Free cash flow has become increasingly erratic, deteriorating from a positive $119 million in 2024Q4 to a negative $103 million in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 76M | 155M | 298M | 188M | 0 | 30M | 189M | 224M | 73M | -115M | 235M | 324M | 108M | 317M | -12M |
| Operating CF Margin % | - | 5.5% | 12.56% | 8.1% | - | 1.84% | 11.67% | 7.59% | 2.33% | -4.34% | 11.15% | 10.76% | 2.63% | 7.38% | -0.35% |
| Operating CF Growth % | -453.32% | -47.99% | 58.51% | - | -100% | -84.13% | -15.63% | 206.85% | 163.48% | -148.94% | -27.47% | 200% | -65.93% | 2741.67% | - |
| Net Income | -155M | -89M | 82M | 248M | 129M | 5M | -427M | -97M | 52M | -52M | -234M | -502M | 116M | 147M | 108M |
| Depreciation & Amortization | 44M | 0 | 34M | 26M | 19M | 23M | 28M | 41M | 41M | 50M | 53M | 38M | 21M | 17M | 12M |
| Stock-Based Compensation | 17M | 15M | 13M | 15M | 11M | 8M | 0 | 13M | 16M | 20M | 23M | 27M | 18M | 6M | 6M |
| Deferred Taxes | 4M | 0 | 25M | -119M | 1M | -8M | 0 | -2M | -1M | -1M | -2M | -6M | 7M | 3M | -7M |
| Other Non-Cash Items | 87M | 114M | 25M | 27M | 20M | 35M | 418M | 171M | 11M | 3M | 53M | 467M | 12M | 6M | 7M |
| Working Capital Changes | 65M | 115M | 119M | -9M | -180M | -33M | 170M | 98M | -46M | -135M | 342M | 300M | -66M | 138M | -138M |
| Change in Receivables | 66M | 40M | 81M | 16M | -95M | -97M | 157M | 98M | -69M | -64M | 102M | 414M | -200M | 23M | -25M |
| Change in Inventory | 122M | 107M | 80M | 12M | -138M | 3M | 148M | 109M | -30M | -110M | 190M | 258M | -116M | 158M | -87M |
| Change in Payables | -36M | -52M | -34M | 0 | 0 | 64M | 0 | -110M | -725M | 41M | 22M | -367M | 261M | -20M | -62M |
| Cash from Investing | -638M | -590M | -304M | -48M | -87M | -96M | 22M | -22M | -9M | 8M | -183M | -523M | -67M | -54M | -1.13B |
| Capital Expenditures | -23M | 0 | -9M | -17M | -9M | -5M | -8M | -12M | -11M | -4M | -11M | -11M | -39M | -55M | -14M |
| CapEx % of Revenue | 0.68% | 0.74% | 0.38% | 0.73% | 0.42% | 0.31% | 0.49% | 0.41% | 0.35% | 0.15% | 0.52% | 0.37% | 0.95% | 1.28% | 0.41% |
| Acquisitions | -620M | 0 | -299M | -32M | -80M | -96M | 26M | -8M | 2M | -4M | -175M | -515M | -36M | 0 | -1.11B |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 5M | -590M | 4M | 1M | 2M | 5M | 4M | -2M | 2M | 16M | 3M | 3M | 8M | 1M | -1.11B |
| Cash from Financing | 457M | 339M | -33M | -55M | -10M | -6M | -8M | -138M | -37M | 94M | -47M | 106M | 66M | -299M | 1.18B |
| Debt Issued (Net) | 571M | 411M | -10M | -5M | -3M | -6M | -8M | -138M | -30M | 97M | -43M | 108M | 0 | 0 | 0 |
| Equity Issued (Net) | -79M | -37M | -23M | -50M | -7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -151M | 0 |
| Share Repurchases | -79M | -37M | -23M | -50M | -7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -35M | -35M | 0 | 0 | 0 | 0 | 0 | 0 | -7M | -3M | -4M | -2M | 66M | -299M | 1.18B |
| Net Change in Cash | -103M | -92M | -43M | 87M | -101M | -74M | 204M | 67M | 18M | -8M | 16M | -105M | 94M | -37M | 47M |
| Free Cash Flow | 53M | 134M | 289M | 171M | -9M | 25M | 181M | 212M | 62M | -119M | 224M | 313M | 69M | 262M | -26M |
| FCF Margin % | 1.56% | 4.75% | 12.18% | 7.37% | -0.42% | 1.53% | 11.18% | 7.18% | 1.98% | -4.49% | 10.63% | 10.4% | 1.68% | 6.1% | -0.76% |
| FCF Growth % | -71.66% | -53.63% | 69.01% | 2000% | -136% | -86.19% | -14.62% | 241.94% | 152.1% | -153.13% | -28.43% | 353.62% | -73.66% | 1107.69% | - |
| FCF per Share | 0.28 | 1.14 | 2.70 | 1.58 | -0.08 | 0.23 | 1.65 | 1.95 | 0.57 | -1.10 | 2.09 | 2.93 | 0.64 | 2.45 | -0.24 |
| FCF Conversion (FCF/Net Income) | -0.34x | -1.74x | 3.68x | 0.76x | - | 6.00x | -0.44x | -2.31x | 1.40x | 2.21x | -1.00x | -0.65x | 0.93x | 2.16x | -0.11x |
| Interest Paid | 0 | 4M | 0 | 0 | 0 | 0 | 2M | 7M | 9M | 6M | 0 | 2M | 0 | 0 | 0 |
| Taxes Paid | 0 | 3M | 0 | 10M | 11M | 0 | 0 | 5M | 6M | 2M | 0 | 10M | 65M | 73M | 65M |
Operating cash flow volatility
According to the provided financial data, DNOW's operating cash flow to net income ratio reached an extreme 2.16 in 2026Q1, highlighting a significant divergence between accounting losses and cash outflows that suggests core earnings are currently failing to capture the true economic reality of the company's operations.
The persistent gap between net income and operating cash flow indicates that non-cash charges and working capital swings are heavily distorting the company's reported profitability. Investors should monitor whether this disconnect is a temporary byproduct of inventory management or a structural issue in how the firm recognizes revenue versus collecting cash.
As reported in recent quarterly filings, DNOW's free cash flow trajectory has become increasingly erratic, swinging from a positive $119 million in 2024Q4 to a negative $103 million in 2026Q1, which underscores the difficulty the firm faces in maintaining consistent cash generation during periods of operational scaling.
The sharp decline in free cash flow margins suggests that the company's current business model is highly sensitive to cyclical shifts in the energy sector. This volatility warrants further investigation into whether the firm can achieve sustainable cash flow positive status without relying on favorable working capital timing.
Based on the reported figures, DNOW experienced a massive $115 million working capital outflow in 2026Q1, a sharp reversal from the $193 million inflow seen in 2025Q4, suggesting that inventory and receivables management remains a primary source of cash flow instability for the organization.
The dramatic swings in working capital indicate that the company's cash position is heavily dependent on the timing of inventory procurement and customer payments. Such fluctuations may imply that the firm lacks the necessary leverage to optimize its cash conversion cycle effectively in a volatile commodity environment.
As evidenced by the company's recent financial statements, DNOW utilized $50 million for share repurchases in 2026Q1 despite generating negative free cash flow, a decision that appears to prioritize shareholder returns over the preservation of liquidity during a period of significant operational cash outflows.
The commitment to share buybacks while operating cash flow is negative suggests a management strategy that may be over-relying on the company's historical cash reserves. This approach warrants further investigation into the sustainability of such capital deployment if the current trend of cash burn persists.
Quick answers to the most common questions about buying DNOW stock.
Dnow Inc. (DNOW) generated $155.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Dnow Inc. (DNOW) generated $134.0M 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.
Dnow Inc. (DNOW) spent $0.0M 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, Dnow Inc. (DNOW) spent $37.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.