Free cash flow remains highly volatile, swinging from a negative $30.0 million in 2024Q4 to a positive $52.3 million in 2025Q4, while working capital changes caused a $44.0 million outflow in 2026Q1.
Clearwater Analytics Holdings, Inc. (CWAN) 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 | 169.07M | 175.9M | 74.32M | 84.6M | 58.01M | 3.36M | -6.49M | -230.03M |
| Operating CF Margin % | - | 24.05% | 16.45% | 22.98% | 19.12% | 1.33% | -3.19% | -136.92% |
| Operating CF Growth % | 267.67% | 136.67% | -12.15% | 45.85% | 1627.37% | 151.77% | 97.18% | - |
| Net Income | -48.09M | -38.81M | 427.58M | -23.08M | -6.7M | -8.09M | -44.23M | 7.73M |
| Depreciation & Amortization | 111.95M | 85.54M | 12.18M | 9.93M | 5.14M | 3.49M | 2.27M | 2.02M |
| Stock-Based Compensation | 99.59M | 127.9M | 103.2M | 104.45M | 65.69M | 36.7M | 24.6M | 6.23M |
| Deferred Taxes | -15.86M | -12.61M | -460.03M | -1.67M | -803K | -648K | 0 | 0 |
| Other Non-Cash Items | 70.77M | 31.68M | 12.61M | 11.1M | 10.56M | 15.23M | 4.85M | 3.07M |
| Working Capital Changes | -47.86M | -17.81M | -21.23M | -16.13M | -15.88M | -43.32M | 6.03M | -249.08M |
| Change in Receivables | -8.35M | -11.15M | -13.65M | -19.3M | -19.1M | -17.31M | -6.33M | -5.66M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -21.23M | 0 | -240.52M |
| Change in Payables | -2.88M | -1.34M | 269K | -115K | 1.61M | 361K | 67K | 166K |
| Cash from Investing | -1.09B | -988.13M | -55.65M | -95.06M | -76.55M | -5.03M | -3.81M | -3.37M |
| Capital Expenditures | -26.53M | -11.55M | -5.26M | -5.62M | -7.76M | -5.03M | -3.81M | -3.37M |
| CapEx % of Revenue | 3.21% | 1.58% | 1.16% | 1.53% | 2.56% | 1.99% | 1.87% | 2.01% |
| Acquisitions | -1.07B | -1.07B | -40.12M | 0 | -65.79M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -328K | -10.33M | -104K | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 733.41M | 725.41M | -61.67M | -19.29M | 16.23M | 195.29M | 51.04M | 237.72M |
| Debt Issued (Net) | 754.1M | 770.41M | -2.75M | -2.75M | -2.75M | -379.92M | 181.13M | 0 |
| Equity Issued (Net) | -2.75M | -11.25M | 0 | 0 | 0 | 581.56M | -567K | -3.78M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -173.18M | 0 |
| Share Repurchases | -9.55M | -18.05M | 0 | 0 | 0 | -626K | -567K | -3.78M |
| Other Financing | -17.94M | -33.75M | -58.92M | -16.54M | 18.98M | -6.36M | 43.66M | 241.5M |
| Net Change in Cash | -193.65M | -86.11M | -44.41M | -28.96M | -3.87M | 193.51M | 40.83M | 4.4M |
| Free Cash Flow | 152.49M | 164.34M | 69.06M | 78.98M | 50.25M | -1.67M | -10.29M | -233.4M |
| FCF Margin % | 18.47% | 22.47% | 15.29% | 21.45% | 16.56% | -0.66% | -5.06% | -138.93% |
| FCF Growth % | 82.63% | 137.96% | -12.56% | 57.18% | 3114.22% | 83.8% | 95.59% | - |
| FCF per Share | 0.52 | 0.61 | 0.27 | 0.40 | 0.27 | -0.01 | -0.04 | -0.99 |
| FCF Conversion (FCF/Net Income) | -3.17x | -4.53x | 0.18x | -3.91x | -7.28x | -0.41x | 0.15x | -29.75x |
| Interest Paid | 37.32M | 0 | 3.46M | 3.45M | 1.4M | 26.11M | 22.18M | 0 |
| Taxes Paid | 1.74M | 0 | 1.98M | 2.43M | 2.04M | 802K | 429K | 0 |
Quick answers to the most common questions about buying CWAN stock.
Clearwater Analytics Holdings, Inc. (CWAN) generated $175.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Clearwater Analytics Holdings, Inc. (CWAN) generated $164.3M 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.
Clearwater Analytics Holdings, Inc. (CWAN) spent $11.6M 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, Clearwater Analytics Holdings, Inc. (CWAN) spent $18.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
High stock-based compensation dilution
Metrics are mathematically derived from official filings.
Earnings Quality Masked by SBC
As reported in recent financial statements, Clearwater Analytics exhibits a persistent disconnect between GAAP net income and operating cash flow, with the latter frequently bolstered by significant non-cash stock-based compensation charges that reached $28.6 million in 2026Q1, obscuring the true underlying cash-generating capacity of the firm.
The recurring negative relationship between net income and operating cash flow suggests that the company's reported profitability is heavily reliant on accounting adjustments rather than core operational efficiency. Investors should monitor whether this reliance on equity-based incentives continues to suppress GAAP earnings while simultaneously inflating the cash flow statement through add-backs.
Volatile Free Cash Flow Generation
Based on quarterly data, the company's free cash flow trajectory remains highly inconsistent, swinging from a negative $30.0 million in 2024Q4 to a positive $52.3 million in 2025Q4, indicating that cash generation is currently sensitive to timing differences and non-recurring operational events rather than steady-state performance.
The lack of a stable FCF margin trend suggests that the business has not yet achieved the predictable cash conversion typical of mature SaaS models. This volatility warrants further investigation into whether the current cash flow profile is sustainable or merely a byproduct of lumpy enterprise contract recognition.
Working Capital Efficiency Remains Erratic
According to recent SEC filings, working capital changes have been a significant source of cash flow volatility, evidenced by a $44.0 million outflow in 2026Q1, which suggests that the company's ability to manage receivables and payables is currently struggling to keep pace with its aggressive revenue expansion.
The frequent swings in working capital indicate potential friction in the cash conversion cycle, possibly due to the complexity of onboarding large institutional clients. If these outflows persist, it may suggest that the company is extending more favorable payment terms to secure market share, thereby pressuring liquidity.
Hidden Costs of Aggressive Growth
Analysis of the cash flow statement reveals that the company's reported cash position is frequently impacted by substantial stock-based compensation and acquisition-related outflows, such as the $1.1 billion net acquisition expenditure in 2025Q2, which significantly alters the firm's liquidity profile beyond what is captured in operating metrics.
The cash flow statement obscures the true cost of growth by separating these large capital outlays from the core operating narrative. Investors should be wary of the extent to which these non-operating cash uses may necessitate future financing or dilution to maintain the current pace of expansion.