Operational efficiency remains high, evidenced by a 42.5% free cash flow margin in 2026Q1, though the rapid decline in cash to $21.9 million warrants further investigation.
| Cash from Operations | 38.39M | 37.09M | 38.68M | 38.89M |
| Operating CF Margin % | - | 28.2% | 29.01% | 34.66% |
| Operating CF Growth % | -0.19% | -4.09% | -0.54% | - |
| Net Income | 37.81M | 37.2M | 31.69M | 31.21M |
| Depreciation & Amortization | 691.32K | 0 | 4.59M | 3.54M |
| Stock-Based Compensation | 0 | 0 | 2.14M | 458.62K |
| Deferred Taxes | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 2.3M | 935.41K | 957.57K | 3.34M |
| Working Capital Changes | -2.42M | -1.04M | -704.72K | 336.38K |
| Change in Receivables | 51.21K | 0 | 1.05M | -2M |
| Change in Inventory | 0 | 0 | 0 | 0 |
| Change in Payables | -1.75M | 0 | 1.17M | 2.88M |
| Cash from Investing | -47.54M | -32.66M | -84.93M | -127.96M |
| Capital Expenditures | -1.77M | -1.87M | -3.04M | -3.17M |
| CapEx % of Revenue | 1.37% | 1.42% | 2.28% | 2.82% |
| Acquisitions | 0 | - | - | - |
| Investments | 2.18B | 0 | 1.96B | 1.88B |
| Other Investing | -99.17M | -70.2M | -115.93M | -151.47M |
| Cash from Financing | 27.06M | -38.31M | 68.51M | 183.1M |
| Debt Issued (Net) | 0 | - | - | - |
| Equity Issued (Net) | 29.86M | 28.88M | -1.83M | 1.78M |
| Dividends Paid | -1.37M | -2M | -2M | -1.5M |
| Share Repurchases | 71 | -980.8K | -1.83M | -2.11M |
| Other Financing | -9.99M | -122.86M | 113.03M | 176.13M |
| Net Change in Cash | 4.29M | 0 | 22.26M | 94.03M |
| Free Cash Flow | 36.62M | 35.23M | 35.63M | 35.72M |
| FCF Margin % | 28.35% | 26.78% | 26.73% | 31.84% |
| FCF Growth % | - | -1.14% | -0.24% | - |
| FCF per Share | 2.67 | 2.55 | 2.88 | 2.92 |
| FCF Conversion (FCF/Net Income) | 0.97x | 1.00x | 1.23x | 1.27x |
| Interest Paid | 22.35M | 0 | 44.46M | 27.64M |
| Taxes Paid | 7.82M | 0 | 9.75M | 6.8M |
Revenue contraction and stagnation
According to quarterly financial data, CBK maintains a volatile OCF/NI ratio, fluctuating from a high of 1.82 in 2024Q4 to a low of 0.85 in 2025Q2, indicating that while earnings are generally supported by cash, the timing of accruals creates significant period-to-period variability in cash generation.
The divergence between net income and operating cash flow suggests that non-cash items and working capital shifts play a meaningful role in reported profitability. Investors should monitor whether the recent stabilization of this ratio above 1.0 in 2026Q1 represents a sustainable improvement in cash-backed earnings quality.
As reported in recent filings, CBK's free cash flow margins have demonstrated resilience, peaking at 42.5% in 2026Q1, which suggests that the bank's ability to convert revenue into discretionary cash remains strong despite the broader trend of top-line contraction observed in recent periods.
The consistent generation of positive free cash flow, even during periods of revenue decline, implies that the bank is successfully managing its cost structure. This trajectory warrants further investigation into whether these margins are sustainable or if they rely on reduced reinvestment in the business.
Based on the provided financial statements, CBK maintains a very low capital intensity, with CapEx/Revenue ratios consistently remaining below 2.2% over the last ten quarters, which effectively preserves cash flow for potential capital deployment or balance sheet strengthening rather than heavy investment in fixed assets.
The minimal expenditure on property and equipment suggests that the bank operates with a lean physical footprint, which is typical for the sector but highlights the reliance on digital or human capital. This low capital requirement appears to be a structural advantage that supports the bank's overall cash flow profile.
Data from recent quarterly reports indicates that working capital changes have been a significant driver of cash flow fluctuations, swinging from a $2.6 million contribution in 2025Q1 to a $1.9 million usage in 2025Q4, reflecting the inherent volatility in the bank's short-term asset and liability management.
The sensitivity of operating cash flow to these working capital shifts suggests that the bank's liquidity position is highly dependent on the timing of deposit and loan-related cash movements. Analysts should monitor these swings as they may indicate underlying shifts in the bank's core deposit base or lending activity.
According to the cash flow statements, CBK has utilized its generated cash primarily for modest dividend payments and occasional share repurchases, with $1.4 million returned to shareholders in 2026Q1, signaling a disciplined approach to capital deployment that prioritizes liquidity preservation over aggressive expansion or buybacks.
The limited scale of share repurchases and acquisitions suggests that management is maintaining a cautious stance regarding capital deployment. This appears to be a prudent strategy given the current revenue contraction, though it may limit the potential for long-term earnings per share growth.
Quick answers to the most common questions about buying CBK stock.
Commercial Bancgroup, Inc. Common Stock (CBK) generated $37.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Commercial Bancgroup, Inc. Common Stock (CBK) generated $35.2M 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.
Commercial Bancgroup, Inc. Common Stock (CBK) spent $1.9M 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, Commercial Bancgroup, Inc. Common Stock (CBK) returned $2.0M to shareholders via cash dividends and spent $1.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.