Sprinklr, Inc. (CXM) Cash Flow Statement

The extreme volatility in the OCF/NI ratio indicates that net income is a poor proxy for underlying cash generation. For instance, the $98.7M net income in 2025Q4 translated to only $5.4M in operating cash flow, a conversion ratio of just 0.05, which appears to be driven by a large negative working capital swing of -$23.8M. This pattern suggests that accruals and timing of cash collections are major drivers of reported results, warranting close scrutiny of the quality of earnings.

The FCF trajectory does not show a clear trend, making it difficult to assess the company's sustainable cash-generating ability. The $80.4M FCF in 2026Q1 was driven by a massive $53.7M working capital inflow, which is likely non-recurring. Excluding such one-time swings, the underlying FCF generation appears more modest and inconsistent, which is a concern for a company at its stage of maturity.

The company's cash flow is heavily influenced by the timing of collections and payments, as evidenced by the large and unpredictable swings in the working capital line. This volatility suggests that the underlying cash conversion cycle may be unstable or that the company is experiencing lumpiness in its enterprise contract payments. Investors should monitor whether these swings are a function of growth or a sign of collection challenges.

The significant share repurchase activity, particularly the $125M in 2027Q1, suggests management believes the stock is undervalued or is seeking to offset dilution from stock-based compensation. This capital allocation strategy comes at a time of decelerating growth and thin margins, raising questions about whether these funds could be more productively deployed toward R&D or sales to reignite growth.