Docebo Inc. (DCBO) Cash Flow Statement

The wide dispersion in the OCF/NI ratio suggests that working capital timing and non-cash items are creating significant noise in the cash flow statement. The negative ratio in 2026Q2, where operating cash flow was -$3.1M despite positive net income, is a red flag that warrants investigation into the specific drivers of the -$11.6M working capital outflow. This inconsistency makes it difficult to assess the underlying cash-generating power of the business on a quarterly basis.

The negative FCF in 2026Q2 is particularly concerning as it coincides with a quarter of positive net income, highlighting that operational profitability is not translating into cash generation. The trajectory shows that while the company can generate strong FCF in certain quarters (e.g., 2026Q1's 36.6% margin), this is not sustainable and is likely influenced by the timing of large cash outflows for acquisitions and share repurchases, which are now consuming more cash than the business is generating.

The scale of the buyback program, particularly the $62.2M in 2026Q1, is unusual for a company with Docebo's growth profile and may indicate management's view that the stock is undervalued. However, this aggressive deployment is creating a significant cash burn, as evidenced by the negative FCF in 2026Q2. Investors should monitor whether this pace of capital return is sustainable without compromising the company's ability to fund operations and future growth organically.

The erratic working capital movements suggest potential issues with the predictability of collections or inventory management, which is atypical for a software-as-a-service business. The large positive swing in 2026Q1 may have been a one-time event, such as the collection of a large receivable or a delay in payments, but the subsequent outflow indicates this was not a sustainable improvement in efficiency. This volatility makes it challenging to forecast near-term cash flows with any confidence.