Free cash flow remains highly volatile, with margins fluctuating between 0.8% and 39.1% over the last ten quarters, driven largely by unpredictable working capital shifts.
| Cash from Operations | 145.79M | 159.19M | 77.59M | 71.47M | 26.66M | -32.92M | 7.31M | 18.97M |
| Operating CF Margin % | - | 18.57% | 9.74% | 9.76% | 4.31% | -6.69% | 1.89% | 5.85% |
| Operating CF Growth % | 449.54% | 105.17% | 8.57% | 168.06% | 180.98% | -550.31% | -61.45% | - |
| Net Income | 28.65M | 22.91M | 121.61M | 51.4M | -55.74M | -111.47M | -41.18M | -39.78M |
| Depreciation & Amortization | 18.66M | 19.06M | 18.68M | 15.47M | 12.05M | 8.06M | 5.69M | 4.42M |
| Stock-Based Compensation | 83.16M | 84.43M | 59.52M | 55.76M | 55.52M | 50.13M | 43.88M | 10.17M |
| Deferred Taxes | 23.52M | 20.19M | -88.07M | -2.67M | 166K | 235K | 110K | -32K |
| Other Non-Cash Items | -2.29M | 3.94M | 7.41M | -2.64M | -4.03M | 13.81M | 5.5M | 1.28M |
| Working Capital Changes | -5.91M | 8.66M | -41.56M | -45.85M | 18.7M | 6.32M | -6.69M | 42.91M |
| Change in Receivables | 6.16M | 5.71M | -30.01M | -68.71M | -44.75M | -47.09M | -9.78M | -11.55M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -20.5M | -24.21M |
| Change in Payables | 4.83M | 5.91M | -7.05M | 3.33M | 14.46M | -1.09M | 6.08M | -10.19M |
| Cash from Investing | 150.91M | -12.47M | 154.13M | -110.57M | -193.49M | -15.65M | -219.46M | -11.67M |
| Capital Expenditures | -1.42M | -1.38M | -5.8M | -8.55M | -16.45M | -12.41M | -6.48M | -5.17M |
| CapEx % of Revenue | 0.16% | 0.16% | 0.73% | 1.17% | 2.66% | 2.52% | 1.68% | 1.59% |
| Acquisitions | 0 | 0 | 0 | 0 | 10.36M | -3.63M | 0 | -6.5M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -17.36M | -16.17M | -12.63M | -11.78M | -10.36M | -5.88M | -216.76M | -2.53M |
| Cash from Financing | -259.56M | -131.85M | -248.16M | 24.09M | 34.97M | 303.13M | 269.78M | -7.53M |
| Debt Issued (Net) | -6.18M | 0 | 0 | 0 | 0 | 0 | 73.42M | -9.5M |
| Equity Issued (Net) | -259.56M | -131.85M | -273.87M | -26.68M | 0 | 275.97M | 173.46M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -600K | 0 |
| Share Repurchases | -277.26M | -152.26M | -273.87M | -26.68M | 10.23M | 0 | -18.29M | 0 |
| Other Financing | 6.18M | 0 | 25.71M | 50.77M | 34.97M | 27.16M | 23.5M | 1.97M |
| Net Change in Cash | 36.77M | 17.98M | -18.9M | -15.96M | -133.04M | 253.39M | 57.57M | -402K |
| Free Cash Flow | 144.38M | 157.81M | 71.79M | 51.14M | 10.21M | -45.33M | 827K | 13.8M |
| FCF Margin % | 16.57% | 18.41% | 9.01% | 6.98% | 1.65% | -9.21% | 0.21% | 4.26% |
| FCF Growth % | 39.62% | 119.83% | 40.38% | 400.83% | 122.53% | -5581.02% | -94.01% | - |
| FCF per Share | 0.59 | 0.61 | 0.26 | 0.18 | 0.04 | -0.18 | 0.00 | 0.06 |
| FCF Conversion (FCF/Net Income) | 5.04x | 6.95x | 0.64x | 1.39x | -0.48x | 0.30x | -0.18x | -0.48x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 224K | 547K |
| Taxes Paid | 4.49M | 0 | 11.01M | 7.65M | 6.64M | 3.46M | 3.19M | 2.73M |
Enterprise sales cycle saturation
As reported in recent financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from 0.05 in 2025Q4 to 16.83 in 2027Q1, suggesting that reported earnings are a poor proxy for the company's actual cash-generating capacity.
The significant divergence between net income and operating cash flow indicates that accruals and non-cash adjustments play a dominant role in the company's bottom line. Investors should monitor whether this volatility stems from lumpy enterprise contract renewals or aggressive revenue recognition practices that do not align with cash collection cycles.
Based on historical cash flow data, free cash flow margins have fluctuated wildly between 0.8% and 39.1% over the last ten quarters, indicating that the company's ability to convert revenue into sustainable cash flow remains inconsistent and highly sensitive to quarterly working capital shifts.
While the 2027Q1 FCF margin of 31.9% appears impressive, the historical trend suggests this is an outlier rather than a new baseline. The lack of a stable FCF trajectory complicates valuation models and suggests that the business model has yet to achieve the predictable cash conversion typical of mature enterprise software.
According to quarterly filings, working capital changes have been the primary driver of cash flow variability, with a notable $53.7 million inflow in 2026Q1 followed by a $20.5 million outflow in 2026Q4, highlighting the company's reliance on timing-sensitive collections to fund its operations.
The reliance on working capital fluctuations to bolster cash flow suggests that the underlying business may struggle to generate organic cash from core operations alone. This pattern warrants further investigation into whether the company is pulling forward billings to meet quarterly targets at the expense of future cash flow stability.
As evidenced by recent SEC filings, the company has prioritized significant share repurchases, including $125 million in 2027Q1, despite decelerating revenue growth, which may indicate a management preference for financial engineering over reinvestment into the core platform to drive long-term competitive differentiation.
The decision to deploy substantial cash toward buybacks while growth is slowing suggests a potential lack of high-return internal investment opportunities. Investors should consider whether this capital allocation strategy is an efficient use of resources or a defensive measure to offset the dilutive impact of persistent stock-based compensation.
Based on reported figures, stock-based compensation consistently exceeds $20 million per quarter, effectively acting as a recurring cash-equivalent expense that is excluded from operating cash flow, thereby masking the true economic cost of talent acquisition and retention within the company's current operating model.
By ignoring the cash-like impact of SBC, the company presents a more favorable cash flow profile than is economically accurate. This practice necessitates a downward adjustment to reported FCF to reflect the true cost of equity-based compensation, which appears to be a structural drag on shareholder value.
Quick answers to the most common questions about buying CXM stock.
Sprinklr, Inc. (CXM) generated $159.2M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Sprinklr, Inc. (CXM) generated $157.8M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Sprinklr, Inc. (CXM) spent $1.4M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Sprinklr, Inc. (CXM) spent $152.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.