Cash conversion efficiency is highly unstable, with the OCF/NI ratio exhibiting extreme variance from 0.21 in 2025Q2 to 11.40 in 2026Q1, largely driven by unpredictable working capital requirements.
| Cash from Operations | 68.83M | 63.7M | 31.78M | 73.21M | 46.41M | 40.09M | 45.42M | 7.41M |
| Operating CF Margin % | - | 10.44% | 5.6% | 15.17% | 10.14% | 9.38% | 11.22% | 1.76% |
| Operating CF Growth % | 473.41% | 100.48% | -56.59% | 57.75% | 15.75% | -11.72% | 512.61% | - |
| Net Income | 36.87M | 44.14M | 36.13M | 38.64M | 5.82M | 12.66M | 38.45M | -1.93M |
| Depreciation & Amortization | 20.5M | 18.63M | 16.42M | 15.74M | 15.65M | 13.72M | 14.73M | 15.44M |
| Stock-Based Compensation | 10.27M | 12.24M | 8.37M | 9.37M | 31.86M | 355K | 0 | 0 |
| Deferred Taxes | 1.93M | 2.39M | -2.06M | -210K | -1.09M | 4.77M | -12.25M | -817K |
| Other Non-Cash Items | 7.04M | 2.47M | 9.29M | -438K | 6.76M | 18.26M | -12.92M | 1.95M |
| Working Capital Changes | -7.78M | -16.16M | -36.37M | 10.11M | -12.59M | -9.67M | 17.4M | -7.24M |
| Change in Receivables | 7.99M | 8.36M | -24.9M | 6.6M | -11.54M | -4.64M | 11.81M | 8.66M |
| Change in Inventory | -4.97M | -3.62M | 10.02M | -10.22M | 1.16M | -3.19M | 1.64M | 5.72M |
| Change in Payables | -1.7M | -16.41M | -15.62M | 14.03M | 5.49M | 2.72M | 2.12M | -19.7M |
| Cash from Investing | -251.29M | -96.37M | -147.43M | -6.52M | -59.63M | -2.83M | 19.78M | 26.37M |
| Capital Expenditures | -8.23M | -6.86M | -5.67M | -6.73M | -4.49M | -2.83M | -4.71M | -3.08M |
| CapEx % of Revenue | 1.29% | 1.12% | 1% | 1.39% | 0.98% | 0.66% | 1.16% | 0.73% |
| Acquisitions | -243.07M | -89.59M | -141.81M | 0 | -55.54M | 0 | 0 | 26.85M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 6K | 77K | 55K | 207K | 411K | 0 | 12.41M | 70K |
| Cash from Financing | 92.29M | 31.59M | 152.67M | -24.72M | 24.46M | -6.6M | -64.9M | -32.42M |
| Debt Issued (Net) | 144.96M | 83.68M | 83.9M | -10.02M | -11.08M | -65.97M | -56.33M | -29.98M |
| Equity Issued (Net) | 3.33M | 3.38M | 91.78M | 0 | 56.33M | 78.58M | 0 | 0 |
| Dividends Paid | -15.87M | -15.45M | -13.95M | -12.01M | -11.51M | -12.75M | 0 | 0 |
| Share Repurchases | -45K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -40.13M | -40.02M | -9.06M | -2.69M | -9.28M | -6.46M | -8.57M | -2.44M |
| Net Change in Cash | -89.78M | 394K | 37.24M | 42.41M | 11.43M | 30.98M | 353K | 1.23M |
| Free Cash Flow | 60.61M | 56.85M | 26.11M | 66.48M | 41.91M | 37.26M | 40.71M | 4.33M |
| FCF Margin % | 9.54% | 9.31% | 4.6% | 13.78% | 9.16% | 8.72% | 10.06% | 1.03% |
| FCF Growth % | 46.41% | 117.74% | -60.73% | 58.61% | 12.49% | -8.47% | 839.77% | - |
| FCF per Share | 1.40 | 1.31 | 0.65 | 1.75 | 1.16 | 1.30 | 1.22 | 0.13 |
| FCF Conversion (FCF/Net Income) | 1.64x | 1.44x | 0.88x | 1.89x | 7.97x | 3.17x | 1.18x | -3.85x |
| Interest Paid | 4.67M | 0 | 14.43M | 10.09M | 6.11M | 13.34M | 23.32M | 27.91M |
| Taxes Paid | 14.92M | 0 | 24.21M | 8.73M | 1.4M | 1.16M | 879K | 307K |
Working capital volatility
As reported in quarterly financial statements, CDRE exhibits significant volatility in cash conversion, with the OCF/NI ratio swinging from a low of 0.21 in 2025Q2 to a high of 11.40 in 2026Q1, highlighting a disconnect between accounting profits and actual cash generation.
The wide variance in the relationship between net income and operating cash flow suggests that accrual-based earnings are frequently decoupled from the timing of cash receipts. Investors should monitor whether this inconsistency stems from the lumpy nature of government contract milestones or potential inefficiencies in the underlying cash collection cycle.
Based on the provided cash flow data, CDRE's free cash flow margins have fluctuated wildly, ranging from a negative 5.7% in 2024Q3 to a peak of 19.6% in 2023Q4, indicating that the company's ability to retain cash is highly sensitive to quarterly operational shifts.
This erratic trajectory suggests that the company's cash-generating capacity is not yet stabilized, likely due to the timing of large-scale deliveries and associated working capital requirements. The lack of a consistent FCF margin trend warrants further investigation into whether this is a structural feature of the business model or a temporary byproduct of recent acquisition integration.
According to recent SEC filings, CDRE's working capital changes have been a major source of cash flow instability, with a significant $15.1M outflow in 2025Q2 contrasting sharply with a $13.4M inflow in 2023Q4, reflecting the inherent difficulty in managing inventory and receivables.
The frequent and large swings in working capital suggest that the company's cash flow is heavily dependent on the timing of inventory procurement and the settlement of large government contracts. This volatility implies that the company may face periodic liquidity constraints if working capital cycles do not align with operational cash needs.
As evidenced by the cash flow statements, CDRE has prioritized inorganic growth, with net acquisition outflows reaching $153.6M in 2026Q1, which significantly outweighs the company's dividend payments of $4.3M during the same period, signaling a clear preference for expansion over direct shareholder returns.
The aggressive use of cash for acquisitions suggests that management is focused on scaling the platform through bolt-on deals rather than returning excess capital to shareholders. While this strategy may drive long-term growth, it also increases the company's reliance on successful integration to justify the significant cash outlays.
Based on reported figures, CDRE maintains a relatively low capital intensity, with CapEx/Revenue ratios consistently hovering between 0.5% and 2.0%, suggesting that the business model does not require heavy, recurring investment in fixed assets to sustain its current manufacturing operations.
The modest capital expenditure requirements indicate that the company's primary assets are likely intangible or related to proprietary manufacturing processes rather than heavy machinery. This low capital intensity appears to provide a structural advantage, allowing the company to direct more cash toward strategic acquisitions rather than maintenance.
Quick answers to the most common questions about buying CDRE stock.
Cadre Holdings, Inc. (CDRE) generated $63.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Cadre Holdings, Inc. (CDRE) generated $56.8M 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.
Cadre Holdings, Inc. (CDRE) spent $6.9M 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, Cadre Holdings, Inc. (CDRE) returned $15.4M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.