Cash conversion efficiency is highly erratic, evidenced by an OCF/NI ratio that swung from a negative 0.81 in 2025Q4 to a robust 3.13 in 2026Q1 due to lumpy working capital cycles.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Cash from Operations | 195.87M | 171.99M | 372.84M | 377.71M | 312.61M | 398.55M | 318.68M | 292.79M | 333.32M | 225.95M | 270.36M | 321.24M | 351.57M | 112.17M | 130.06M | 103.24M | 115.98M | 89.95M |
| Operating CF Margin % | - | 14.37% | 33.53% | 38.73% | 31.47% | 32.48% | 35.43% | 36.65% | 40.23% | 28.4% | 37.51% | 39.88% | 42.42% | 16.35% | 25.72% | 22.68% | 30.34% | 30.37% |
| Operating CF Growth % | -389.71% | -53.87% | -1.29% | 20.82% | -21.56% | 25.06% | 8.84% | -12.16% | 47.52% | -16.42% | -15.84% | -8.63% | 213.43% | -13.76% | 25.98% | -10.99% | 28.93% | - |
| Net Income | 287.19M | 377.88M | 349.65M | 202.41M | 248.38M | 444.52M | 308.5M | 241.46M | 138.86M | 150.74M | 173M | 212.11M | 242.71M | -234.13M | 42.58M | 129.97M | 42.53M | 48.23M |
| Depreciation & Amortization | 9.29M | 9.38M | 9.86M | 9.35M | 7.8M | 6.93M | 6.63M | 6.23M | 5.67M | 5.3M | 5.27M | 4.52M | 3.25M | 3.23M | 2.4M | 2.36M | 2.29M | 2.39M |
| Stock-Based Compensation | 20M | 28.55M | 32.48M | 0 | 41.53M | 39.65M | 37.03M | 43.09M | 53.55M | 62.89M | 72M | 79.52M | 88.26M | 655.42M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 31.01M | 55.16M | 44.18M | 0 | 29.24M | 38.02M | 32.66M | 26.91M | 24.61M | 104.5M | 33.31M | 28.77M | 21.76M | 9.38M | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -205.22M | -320.46M | -168.76M | 103.42M | -50.77M | -110.15M | -43.63M | -58.7M | 76.96M | -63.54M | -517K | -1.24M | -963K | -58.56M | -7.72M | 3.81M | -971.87K | 44.81M |
| Working Capital Changes | 10.68M | 21.49M | 105.43M | 62.53M | 36.43M | -20.43M | -22.51M | 33.8M | 33.66M | -33.93M | -12.7M | -2.44M | -3.45M | -263.16M | 92.79M | -32.91M | 72.14M | -5.48M |
| Change in Receivables | -19.65M | -34.7M | -16.9M | 125K | 16.62M | -15.96M | -18.02M | -14.18M | 9M | -16.95M | 318K | 9.3M | -5.6M | -17.74M | -6.61M | -2.69M | -5.08M | -9.5M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 1.3B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 132.62M | 0 | 42.67M | 27.39M | 0 | -1.3B | 0 | 0 | 10.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 61.53M | 35.25M | -24.87M | -67.18M | -63.73M | -26.97M | 18.75M | -17.51M | -14.34M | -4.7M | -2.33M | -11.32M | -7.78M | 8.74M | -1.01M | -19.65M | -282K | -1.2M |
| Capital Expenditures | -1M | -677K | -4.75M | -8.63M | -19.56M | -5.97M | -3.1M | -17.78M | -13.84M | -5.83M | -7.28M | -7.33M | -9.62M | -3.19M | -5.46M | -2.74M | -1.46M | -1.18M |
| CapEx % of Revenue | 0.08% | 0.06% | 0.43% | 0.89% | 1.97% | 0.49% | 0.34% | 2.23% | 1.67% | 0.73% | 1.01% | 0.91% | 1.16% | 0.47% | 1.08% | 0.6% | 0.38% | 0.4% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 428.7M | 638.28M | 670.93M | 514.62M | 341.16M | 242.88M | 234.04M | 130.61M | 84.28M | 5.14B | 6.3B | 10.3B | 6.71M | 78.97M | 61.48M | 41.53M | 1.18M | 2.15M |
| Other Investing | 24.48M | 0 | 96.27M | 0 | 0 | 274.46M | 0 | 0 | 0 | 0 | 0 | 36K | 264K | 0 | -145K | -1.04M | 0 | 2.14K |
| Cash from Financing | -186.2M | -182.96M | -254.22M | -270.63M | -306.4M | -335.43M | -282.23M | -306.57M | -263.48M | -218.86M | -277.71M | -326M | -373.35M | -50.23M | -114.84M | -115.62M | -58.55M | -22.84M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -419K | 0 | -6.83M | 0 | 0 | -56.17M | 0 | 0 | -24.04M | 0 | 0 | -176.56M | 0 | 280.26M | 0 | 0 | 16K | 0 |
| Dividends Paid | -274.84M | -257.11M | -221.96M | -183.38M | -248.7M | -274.74M | -203.01M | -188.18M | -167.78M | -131.02M | -115.38M | -123.95M | -99.8M | -14.62M | -80.89M | -67.11M | -36.76M | 0 |
| Share Repurchases | -419K | 0 | -6.83M | 0 | 0 | -56.17M | -63.03M | 0 | -21.48M | -162.49M | 0 | -176.56M | 0 | -76.32M | 0 | 0 | 0 | 0 |
| Other Financing | 89.06M | 84.14M | -25.43M | -87.25M | -57.71M | -4.52M | -79.23M | -118.39M | -71.66M | -87.84M | -162.32M | -25.5M | -273.54M | -225.87M | 3.41M | 6.7M | -1.81M | -22.55M |
| Net Change in Cash | 71.2M | -12.71M | 89.75M | 35.22M | -57.52M | 1.32M | 55.2M | -31.28M | 15.74M | 2.39M | -9.68M | -16.09M | -29.55M | 70.68M | 14.2M | -32.03M | 57.14M | 65.92M |
| Free Cash Flow | 195.41M | 171.31M | 368.09M | 369.07M | 293.05M | 392.58M | 315.58M | 275.01M | 319.48M | 220.12M | 263.08M | 313.9M | 341.95M | 108.97M | 124.59M | 100.5M | 114.52M | 88.77M |
| FCF Margin % | 15.89% | 14.32% | 33.11% | 37.85% | 29.5% | 31.99% | 35.08% | 34.42% | 38.56% | 27.67% | 36.5% | 38.97% | 41.26% | 15.89% | 24.64% | 22.08% | 29.96% | 29.97% |
| FCF Growth % | -48.68% | -53.46% | -0.27% | 25.94% | -25.35% | 24.4% | 14.75% | -13.92% | 45.14% | -16.33% | -16.19% | -8.2% | 213.79% | -12.53% | 23.97% | -12.24% | 29.01% | - |
| FCF per Share | 2.74 | 2.61 | 5.67 | 5.81 | 4.69 | 6.56 | 5.67 | 5.38 | 6.54 | 4.93 | 6.90 | 8.86 | 12.43 | 5.50 | 3.07 | 1.53 | 1.74 | 1.35 |
| FCF Conversion (FCF/Net Income) | 0.68x | 0.59x | 1.44x | 1.70x | 1.51x | 1.18x | 1.50x | 1.87x | 2.11x | 4.56x | 3.70x | 3.93x | 5.05x | 4.52x | 3.85x | 0.78x | 2.73x | 1.87x |
| Interest Paid | 0 | 0 | 7.68M | 0 | 10.3M | 10.21M | 10.26M | 10.65M | 10.69M | 11.02M | 11.11M | 11.02M | 11.11M | 11.42M | 7.58M | 22.21M | 0 | 0 |
| Taxes Paid | 0 | 57.03M | 42.72M | 0 | 31.57M | 70.34M | 35.48M | 18.59M | 20.73M | 25.3M | 18.62M | 29.32M | 30.68M | 16.45M | 541K | 2.48M | 0 | 0 |
Volatile working capital cycles
As reported in financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from a negative 0.81 in 2025Q4 to a robust 3.13 in 2026Q1, suggesting that accounting earnings frequently diverge from actual cash generation capabilities.
The significant variance in the OCF/NI ratio indicates that accrual-based net income is a poor proxy for the firm's immediate liquidity. Investors should monitor whether these swings are driven by timing differences in performance fee recognition or underlying shifts in the firm's operational efficiency.
Based on recent SEC filings, Artisan Partners' free cash flow trajectory remains inconsistent, with quarterly FCF margins fluctuating between a negative 22.1% and a peak of 61.5%, highlighting the inherent sensitivity of the firm's cash generation to market-driven AUM levels and periodic performance fee volatility.
The inability to maintain a stable FCF margin suggests that the firm's cash flow profile is highly susceptible to external market cycles rather than internal operational scaling. This volatility complicates long-term capital planning and may necessitate a more conservative approach to dividend sustainability.
According to the provided cash flow data, working capital changes are the primary driver of quarterly cash flow variance, with a notable $104.2 million inflow in 2026Q1 contrasting sharply with a $138.0 million outflow in 2025Q4, indicating significant instability in the firm's short-term cash conversion cycle.
These large, periodic swings in working capital suggest that the firm's cash position is heavily influenced by the timing of fee collections and potential shifts in payables management. Such fluctuations warrant further investigation into whether these movements represent structural changes in client payment terms or temporary accounting anomalies.
As evidenced by historical financial data, Artisan Partners consistently prioritizes returning capital to shareholders, with dividend payments reaching $112.5 million in 2026Q1, a figure that often exceeds quarterly free cash flow, suggesting a reliance on existing cash reserves to maintain the firm's dividend policy.
The firm's aggressive dividend payout strategy appears to be a core component of its value proposition, yet it creates a potential vulnerability if cash generation remains inconsistent. Investors should monitor whether the firm's reliance on cash reserves for dividends is sustainable in a prolonged market downturn.
Quick answers to the most common questions about buying APAM stock.
Artisan Partners Asset Management Inc. (APAM) generated $172.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Artisan Partners Asset Management Inc. (APAM) generated $171.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Artisan Partners Asset Management Inc. (APAM) spent $0.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Artisan Partners Asset Management Inc. (APAM) returned $257.1M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.