Free cash flow remains highly unstable, with margins swinging from a 29.6% peak in 2024Q4 to a negative 7.3% in 2024Q1, further complicated by erratic working capital swings.
| 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 |
|---|
| Cash from Operations | 49M | 74.7M | 100.7M | 32.4M | 90.9M | 87.3M | -2.5M | -74.5M | -145.6M | 144.2M | 188.8M | 97.6M | 147.9M | 223.8M | 202.6M |
| Operating CF Margin % | - | 10.65% | 14.64% | 4.81% | 13.29% | 11.72% | -0.35% | -10.68% | -22.32% | 23.58% | 33.35% | 6.2% | 8.85% | 13.34% | 12.03% |
| Operating CF Growth % | -265.97% | -25.82% | 210.8% | -64.36% | 4.12% | 3592% | 96.64% | 48.83% | -200.97% | -23.62% | 93.44% | -34.01% | -33.91% | 10.46% | - |
| Net Income | -69.4M | -72.9M | -392.1M | -61.8M | 50.5M | 5.2M | -27.2M | -45.9M | 57.5M | 79.3M | 39.8M | -426.3M | 27.1M | 154.6M | 152.6M |
| Depreciation & Amortization | 29.3M | 38.9M | 45.5M | 46.1M | 47.7M | 38.3M | 42.9M | 36.9M | 33.5M | 59.5M | 65.2M | 65.4M | 85.4M | 69.2M | 57.6M |
| Stock-Based Compensation | 7.6M | 0 | 13.8M | 15.8M | 15.9M | 13.2M | 12.1M | 10.5M | 10.5M | 12.6M | 14.8M | 14.1M | 7.9M | 6M | 5.3M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -3.4M | 25.9M | -6.5M | 3.7M | -6.2M | -11.5M | 8.2M | -35M | -900K | -11.6M |
| Other Non-Cash Items | 118.9M | 98.9M | 398.5M | 50.3M | 1.1M | 8M | 11.6M | -9.9M | -107.4M | 3.3M | -11.1M | 453.2M | 49.7M | 6.8M | -10.9M |
| Working Capital Changes | -27.3M | 9.8M | 35M | -18M | -24.3M | 26M | -67.8M | -59.6M | -143.4M | -4.3M | 91.6M | -17M | 12.8M | -11.9M | 9.6M |
| Change in Receivables | 5.8M | 30.9M | -6.6M | 39M | -24.7M | -10.8M | 45.8M | -800K | 67.4M | -15.3M | 8.4M | 9M | 15.1M | -19.5M | 26.4M |
| Change in Inventory | -1M | 200K | 39M | 4.7M | -30.9M | 17.2M | -21.8M | -21.3M | -34.5M | -16.8M | 41M | -20.2M | -2.9M | 14.3M | -15.1M |
| Change in Payables | 7M | 600K | -900K | -14.4M | 35.4M | -11.9M | -18.9M | -83.6M | -64M | 18.8M | 6.5M | 14.7M | 4.5M | 15.1M | 8M |
| Cash from Investing | -51.5M | -60.6M | -27.5M | 21.6M | -135.4M | -21M | -24.2M | -108.1M | 639.5M | -43.1M | -200.9M | -62.6M | -70.7M | -50.9M | -40.3M |
| Capital Expenditures | -24.9M | -31.6M | -17.8M | -17.8M | -19.3M | -21M | -20.2M | -50.6M | -49.1M | -43.2M | -29.1M | -70.4M | -78.5M | -49M | -40.8M |
| CapEx % of Revenue | 3.48% | 4.51% | 2.59% | 2.64% | 2.82% | 2.82% | 2.83% | 7.25% | 7.53% | 7.06% | 5.14% | 4.47% | 4.69% | 2.92% | 2.42% |
| Acquisitions | -5.3M | -28M | -9.7M | 39.4M | -116.1M | 0 | -4M | -57.5M | 688.6M | 100K | -175M | 7.8M | 0 | -2.2M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -21.3M | -1M | 0 | 0 | 0 | 0 | 0 | 0 | 754.3M | 100K | 3.2M | 7.8M | 7.8M | -46.5M | 500K |
| Cash from Financing | -7.9M | -37M | -49.1M | -94.2M | 56.7M | -55.3M | -70M | 1.5M | -324.4M | 2.2M | -1.4M | -50.6M | 29.2M | -180M | -133.9M |
| Debt Issued (Net) | -9.4M | -34.4M | -33.6M | -64.7M | 103.4M | -50M | -69.8M | -200K | -339M | 0 | -900K | -51M | 624.2M | -63.9M | -24.1M |
| Equity Issued (Net) | -800K | -2.6M | -12.8M | -19.1M | -45.5M | -11.5M | -900K | -3.6M | -900K | -2.5M | -900K | -1M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -680M | 0 | 0 |
| Share Repurchases | -1.1M | -3.3M | -12.8M | -19.1M | -45.5M | -11.5M | -900K | -3.6M | -900K | -2.5M | -900K | -1M | 0 | 0 | 0 |
| Other Financing | 2.3M | 0 | -2.7M | -10.4M | -1.2M | 6.2M | 700K | 5.3M | 15.5M | 4.7M | 400K | 1.4M | -595M | -116.1M | -109.8M |
| Net Change in Cash | -31.4M | -17.9M | 20M | -40M | 9.2M | 7M | -93.8M | -179.2M | 164.8M | 106M | -15.8M | -19.5M | 104.9M | -3.8M | 27.8M |
| Free Cash Flow | 24.1M | 43.1M | 82.9M | 14.6M | 71.6M | 66.3M | -22.7M | -125.1M | -194.7M | 101M | 159.7M | 27.2M | 69.4M | 174.8M | 161.8M |
| FCF Margin % | 3.37% | 6.15% | 12.05% | 2.17% | 10.47% | 8.9% | -3.18% | -17.93% | -29.85% | 16.51% | 28.21% | 1.73% | 4.15% | 10.42% | 9.61% |
| FCF Growth % | -78.86% | -48.01% | 467.81% | -79.61% | 7.99% | 392.07% | 81.85% | 35.75% | -292.77% | -36.76% | 487.13% | -60.81% | -60.3% | 8.03% | - |
| FCF per Share | 0.52 | 0.93 | 1.80 | 0.31 | 1.51 | 1.36 | -0.47 | -2.63 | -4.13 | 2.16 | 3.40 | 0.58 | 1.49 | 3.76 | 3.48 |
| FCF Conversion (FCF/Net Income) | -0.35x | -1.10x | -0.26x | -0.52x | 1.80x | 13.86x | 0.09x | 1.62x | -2.53x | 1.82x | 4.74x | -0.23x | 5.46x | 1.45x | 1.33x |
| Interest Paid | 0 | 6.5M | 11.5M | 14.7M | 0 | 0 | 0 | 16.7M | 20.6M | 28.7M | 29.9M | 32.6M | 0 | 0 | 0 |
| Taxes Paid | 0 | 14.1M | 3.3M | 23.6M | 0 | 0 | 0 | 8.4M | 96.6M | 21.4M | 29.1M | -43.3M | 87.6M | 74.2M | 94.3M |
Persistent operating margin volatility
According to reported financial data, the relationship between net income and operating cash flow is highly erratic, evidenced by an OCF/NI ratio that swung from -10.00 in 2025Q3 to 15.44 in 2024Q2, suggesting that accounting accruals frequently decouple from actual cash generation capabilities.
The extreme variance in the OCF/NI ratio indicates that net income is an unreliable proxy for the company's underlying cash-generating health. Investors should monitor whether these discrepancies stem from recurring restructuring charges or aggressive revenue recognition practices that fail to convert into liquid assets.
As reported in quarterly filings, Avanos Medical's free cash flow trajectory is characterized by significant inconsistency, with margins fluctuating from a high of 29.6% in 2024Q4 to a negative 7.3% in 2024Q1, highlighting the difficulty in maintaining a predictable cash conversion cycle across its core segments.
The lack of a stable FCF margin trend suggests that the company's operational efficiency is highly sensitive to episodic cash outflows. This volatility complicates long-term valuation models, as the business appears unable to consistently fund its own operations without periodic reliance on balance sheet liquidity.
Based on historical cash flow statements, working capital changes have been a primary driver of cash flow volatility, including a notable $45.0 million inflow in 2024Q4 followed by a $32.4 million outflow in 2026Q1, indicating significant instability in inventory management and accounts receivable collection cycles.
These sharp swings in working capital suggest that the company may be struggling to align its production schedules with actual market demand. Such fluctuations often indicate potential channel loading or supply chain inefficiencies that warrant further investigation into the company's inventory turnover and credit terms.
As indicated by the provided financial statements, the company's capital expenditure relative to revenue has remained relatively contained, averaging roughly 3.5% over the last ten quarters, which suggests that current spending is primarily directed toward maintenance rather than aggressive capacity expansion or new product development.
The modest capital intensity implies that the business is not currently in a heavy investment phase, which may be a strategic choice to preserve cash during its ongoing turnaround. However, this low level of investment may also limit the company's ability to innovate and defend its market share against better-capitalized competitors.
Analysis of the cash flow statement reveals that stock-based compensation consistently consumes cash-equivalent value, with quarterly charges often exceeding $3 million, which, when combined with recurring restructuring costs, obscures the true cash-flow generation potential of the company's core medical device operations.
The persistent nature of these adjustments suggests that the reported cash flow figures may overstate the company's ability to generate organic, sustainable returns. Investors should be cautious of the impact these non-operational cash drains have on the firm's long-term ability to self-fund growth initiatives.
Quick answers to the most common questions about buying AVNS stock.
Avanos Medical, Inc. (AVNS) generated $74.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Avanos Medical, Inc. (AVNS) generated $43.1M 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.
Avanos Medical, Inc. (AVNS) spent $31.6M 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, Avanos Medical, Inc. (AVNS) spent $3.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.