Cash conversion remains volatile, as evidenced by the OCF/NI ratio swinging from 0.14 in 2025Q1 to 19.28 in 2024Q3, while aggressive capital allocation is highlighted by $59.8M in share repurchases during 2026Q1.
| Cash from Operations | 109.02M | 85.26M | 88.89M | -2.42M |
| Operating CF Margin % | - | 20.32% | 26.9% | - |
| Operating CF Growth % | 4694.97% | -4.09% | 3774.73% | - |
| Net Income | 46.8M | 35.12M | -29.14M | -4.25M |
| Depreciation & Amortization | 6.35M | 6.21M | 5.38M | 0 |
| Stock-Based Compensation | 36.97M | 39.31M | 39.06M | 0 |
| Deferred Taxes | -2.26M | -2.24M | 498K | 0 |
| Other Non-Cash Items | 370.44M | 356.13M | 73.1M | -1.67M |
| Working Capital Changes | -349.28M | -349.28M | 0 | 3.5M |
| Change in Receivables | -17.25M | -31.3M | -4.9M | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 |
| Change in Payables | 9.94M | 3.38M | 16.05M | 4.26M |
| Cash from Investing | -4.95M | -20.2M | -2.6M | 1.62M |
| Capital Expenditures | -3.45M | -3.68M | -3.04M | 0 |
| CapEx % of Revenue | 0.78% | 0.88% | 0.92% | - |
| Acquisitions | 0 | - | - | - |
| Investments | 0 | 0 | 167K | 0 |
| Other Investing | -1.6M | -1.62M | -3.09M | 1.62M |
| Cash from Financing | -11.06M | 123.99M | -15.54M | 0 |
| Debt Issued (Net) | 0 | - | - | - |
| Equity Issued (Net) | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | -97.65M | -49.75M | -33.05M | 0 |
| Other Financing | -11.06M | 123.99M | -15.54M | 0 |
| Net Change in Cash | 444.13M | 190.32M | 67.57M | -797.18K |
| Free Cash Flow | 105.58M | 81.57M | 85.85M | -2.42M |
| FCF Margin % | 23.8% | 19.45% | 25.98% | - |
| FCF Growth % | -24.35% | -4.98% | 3648.89% | - |
| FCF per Share | 0.47 | 0.36 | 0.47 | -0.05 |
| FCF Conversion (FCF/Net Income) | 2.26x | 2.43x | -3.05x | 0.57x |
| Interest Paid | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 |
Platform Ecosystem Dependency
According to quarterly financial data, the relationship between net income and operating cash flow is highly volatile, with OCF/NI ratios swinging from 0.14 in 2025Q1 to 19.28 in 2024Q3, indicating that reported net income is a poor proxy for the company's actual cash-generating capacity.
The significant divergence between accounting profits and cash flow suggests that non-cash items and working capital fluctuations are heavily influencing the bottom line. Investors should monitor whether this volatility stems from aggressive revenue recognition or the timing of large enterprise contract payments, as the current lack of correlation complicates the assessment of sustainable cash generation.
As reported in recent financial statements, free cash flow margins have fluctuated significantly, ranging from a negative 1.1% in 2025Q1 to a robust 61.0% in 2024Q3, highlighting the inconsistent nature of cash conversion as the company attempts to balance rapid top-line growth with operational overhead.
The erratic FCF trajectory suggests that the company's cash flow profile is not yet stabilized, likely due to the lumpy nature of enterprise software sales and the ongoing investment in customer acquisition. This inconsistency warrants further investigation into whether the company can achieve a more predictable cash flow cadence as it matures beyond its current growth phase.
Based on reported figures, capital expenditures remain minimal, with CapEx/Revenue ratios consistently staying below 3% across the observed periods, confirming that the company operates an asset-light software model that requires little physical infrastructure to support its ongoing expansion within the Microsoft 365 ecosystem.
The low capital intensity is a positive indicator for long-term scalability, as it allows the majority of operating cash flow to be directed toward R&D or shareholder returns rather than maintenance of fixed assets. However, the company must ensure that this low spending does not come at the expense of necessary product innovation to keep pace with evolving cloud security requirements.
Financial filings reveal that the company has prioritized share repurchases, with $59.8M deployed in 2026Q1 alone, a move that appears aggressive given the company's fluctuating net income and the ongoing need to fund its 26.93% revenue growth through sustained sales and marketing investment.
The decision to return significant capital to shareholders while operating margins remain in the single digits suggests a management team confident in future cash flow stability. Nevertheless, investors should monitor whether these buybacks are being funded by operational success or if they are potentially constraining the liquidity needed to navigate future competitive threats or platform-related disruptions.
Analysis of recent SEC filings shows that stock-based compensation, such as the $39.1M charge in 2024Q4, frequently distorts the cash flow statement, effectively masking the true economic cost of talent acquisition and potentially inflating the perceived quality of the company's operating cash flow generation.
By treating SBC as a non-cash add-back, the company presents a more favorable cash flow picture than the underlying dilution of equity holders might suggest. This practice warrants caution, as it may hide the true cost of maintaining the engineering and sales talent required to sustain the company's competitive moat in the Microsoft ecosystem.
Quick answers to the most common questions about buying APXT stock.
Apex Treasury Corporation Class A (APXT) generated $85.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Apex Treasury Corporation Class A (APXT) generated $81.6M 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.
Apex Treasury Corporation Class A (APXT) spent $3.7M 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, Apex Treasury Corporation Class A (APXT) spent $49.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.