Cash conversion is erratic, with OCF/NI spiking to 3.91x in 2026Q2 but falling to 0.21x in 2025Q2, while acquisitions consumed $163.9M in 2026Q2, far exceeding dividends and buybacks.
Cadre Holdings, Inc. (CDRE) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Cash from Operations | 110.9M | 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 % | 2175.54% | 100.48% | -56.59% | 57.75% | 15.75% | -11.72% | 512.61% | - |
| Net Income | 36.06M | 44.14M | 36.13M | 38.64M | 5.82M | 12.66M | 38.45M | -1.93M |
| Depreciation & Amortization | 32.65M | 18.63M | 16.42M | 15.74M | 15.65M | 13.72M | 14.73M | 15.44M |
| Stock-Based Compensation | 14.66M | 12.24M | 8.37M | 9.37M | 31.86M | 355K | 0 | 0 |
| Deferred Taxes | 623K | 2.39M | -2.06M | -210K | -1.09M | 4.77M | -12.25M | -817K |
| Other Non-Cash Items | 12.04M | 2.47M | 9.29M | -438K | 6.76M | 18.26M | -12.92M | 1.95M |
| Working Capital Changes | 12.89M | -16.16M | -36.37M | 10.11M | -12.59M | -9.67M | 17.4M | -7.24M |
| Change in Receivables | 929K | 8.36M | -24.9M | 6.6M | -11.54M | -4.64M | 11.81M | 8.66M |
| Change in Inventory | -11.08M | -3.62M | 10.02M | -10.22M | 1.16M | -3.19M | 1.64M | 5.72M |
| Change in Payables | 37.72M | -16.41M | -15.62M | 14.03M | 5.49M | 2.72M | 2.12M | -19.7M |
| Cash from Investing | -330.27M | -96.37M | -147.43M | -6.52M | -59.63M | -2.83M | 19.78M | 26.37M |
| Capital Expenditures | -12.94M | -6.86M | -5.67M | -6.73M | -4.49M | -2.83M | -4.71M | -3.08M |
| CapEx % of Revenue | 1.89% | 1.12% | 1% | 1.39% | 0.98% | 0.66% | 1.16% | 0.73% |
| Acquisitions | -317.33M | -89.59M | -141.81M | 0 | -55.54M | 0 | 0 | 26.85M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 77K | 55K | 207K | 411K | 0 | 12.41M | 70K |
| Cash from Financing | 58.82M | 31.59M | 152.67M | -24.72M | 24.46M | -6.6M | -64.9M | -32.42M |
| Debt Issued (Net) | 117.2M | 83.68M | 83.9M | -10.02M | -11.08M | -65.97M | -56.33M | -29.98M |
| Equity Issued (Net) | 3.38M | 3.38M | 91.78M | 0 | 56.33M | 78.58M | 0 | 0 |
| Dividends Paid | -20.57M | -15.45M | -13.95M | -12.01M | -11.51M | -12.75M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -41.19M | -40.02M | -9.06M | -2.69M | -9.28M | -6.46M | -8.57M | -2.44M |
| Net Change in Cash | -161.47M | 394K | 37.24M | 42.41M | 11.43M | 30.98M | 353K | 1.23M |
| Free Cash Flow | 97.96M | 56.85M | 26.11M | 66.48M | 41.91M | 37.26M | 40.71M | 4.33M |
| FCF Margin % | 14.29% | 9.31% | 4.6% | 13.78% | 9.16% | 8.72% | 10.06% | 1.03% |
| FCF Growth % | 192.95% | 117.74% | -60.73% | 58.61% | 12.49% | -8.47% | 839.77% | - |
| FCF per Share | 2.26 | 1.31 | 0.65 | 1.75 | 1.16 | 1.30 | 1.22 | 0.13 |
| FCF Conversion (FCF/Net Income) | 2.72x | 1.44x | 0.88x | 1.89x | 7.97x | 3.17x | 1.18x | -3.85x |
| Interest Paid | 24.67M | 17.84M | 14.43M | 10.09M | 6.11M | 13.34M | 23.32M | 27.91M |
| Taxes Paid | 17.44M | 24.92M | 24.21M | 8.73M | 1.4M | 1.16M | 879K | 307K |
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.
Key Metrics
Top Statement Risk
Acquisition-driven cash flow volatility
Metrics are mathematically derived from official filings.
Cash Conversion Swings Sharply
Operating cash flow exceeded net income by 3.9x in 2026Q2, but fell to 0.21x in 2025Q2, indicating volatile earnings quality. Based on reported quarterly data, conversion is inconsistent.
The OCF/NI ratio ranged from 11.40 in 2026Q1 to 0.21 in 2025Q2, with negative readings in 2024Q3. This suggests that net income is not a reliable proxy for cash generation, as working capital swings and acquisition-related costs distort the relationship. Investors should monitor the sustainability of cash conversion, especially given the large acquisition outflows in recent quarters.
FCF Rebound Masks Underlying Volatility
Free cash flow margin improved to 18.6% in 2026Q2 from 0.7% in 2025Q2, but the series shows extreme quarterly swings. According to financial statements, FCF is highly variable.
FCF swung from -$6.2M in 2024Q3 to $38.5M in 2026Q2, with margins ranging from -5.7% to 18.6%. The recent improvement appears driven by strong operating cash flow and modest capex, but the historical pattern suggests that FCF is not yet stable. The gap between net income and FCF is significant, with FCF often exceeding net income due to high D&A and working capital releases, but this is not consistent.
Light Capex Belies Growth Ambitions
Capital expenditure averaged only 1.3% of revenue over the last ten quarters, with 2026Q2 at 3.0%. As reported in SEC filings, capex is minimal relative to revenue.
Capex/Revenue has remained below 3% in all quarters, suggesting that the company is not investing heavily in fixed assets. This may indicate that growth is pursued through acquisitions rather than organic capex, as evidenced by large acquisition outflows in 2026Q2 and 2026Q1. The low capital intensity could support high FCF margins, but it also raises questions about the sustainability of organic growth.
Working Capital Swings Drive Cash Flow
Working capital changes ranged from +$10.0M in 2026Q1 to -$15.1M in 2025Q2, causing significant quarterly cash flow volatility. Based on reported figures, working capital is a major cash flow driver.
The working capital contribution to operating cash flow has been highly erratic, with positive and negative swings of over $10M in several quarters. This suggests that the company's cash conversion is heavily influenced by timing of receivables, payables, and inventory. The negative working capital changes in 2025Q2 and 2024Q1 coincided with weak operating cash flow, indicating that collections or inventory management may be strained during certain periods.
Acquisitions Dominate Cash Deployment
Cash used for acquisitions totaled $163.9M in 2026Q2 and $153.6M in 2026Q1, far exceeding dividends and buybacks. According to cash flow statements, M&A is the primary use of cash.
The company has deployed significant cash toward acquisitions, with net acquisition outflows of $163.9M and $153.6M in the last two quarters, while dividends remained modest at around $4-8M per quarter. This suggests a strategy of growth through M&A, which may strain liquidity if not integrated successfully. The lack of buybacks indicates that management is prioritizing external growth over returning capital to shareholders.
Cumulative Earnings vs Cash Gap Widens
Over the last ten quarters, cumulative net income was $93.6M, while operating cash flow totaled $162.5M, a gap of $68.9M. Based on reported data, cash generation has outpaced earnings.
The cumulative OCF exceeds net income by a wide margin, driven by high D&A and favorable working capital changes in some quarters. However, this divergence is not consistent, as some quarters show OCF below net income. The large acquisition outflows in recent quarters may have been funded by this excess cash, but the sustainability of this gap is uncertain. Investors should monitor whether the gap narrows as acquisition-related charges subside.
What Could Invalidate the Base Case
The cash flow statement obscures the true cost of acquisitions, as net acquisition outflows of $163.9M in 2026Q2 are not reflected in operating cash flow. Based on reported figures, this may overstate cash generation.
While operating cash flow appears robust, the massive acquisition outflows in recent quarters suggest that the company is spending heavily on M&A, which may not be captured in the OCF/NI ratio. Additionally, stock-based compensation averaging $2.9M per quarter is added back to operating cash flow, potentially inflating cash generation relative to economic reality. Investors should consider whether the company's growth is sustainable without continued external acquisitions, as organic capex remains minimal.