Cash flow generation remains volatile, evidenced by erratic OCF/NI ratios that swung from 0.12 in 2025Q3 to 5.97 in 2025Q1, largely driven by significant fluctuations in working capital.
| Cash from Operations | 559.42M | 459.42M | 378.11M | 354.88M | 250.92M | 220.44M | -142.46M | 147.14M | 118.84M | 94.56M |
| Operating CF Margin % | 27.72% | 27.05% | 26.43% | 30.63% | 27% | 31.33% | -26.1% | 34.14% | 29.86% | 23.27% |
| Operating CF Growth % | 21.77% | 21.5% | 6.54% | 41.44% | 13.83% | 254.74% | -196.82% | 23.82% | 25.67% | - |
| Net Income | 162.67M | 483.68M | 154.63M | 107.96M | 52.45M | 75.71M | -413.82M | -116.19M | 9.22M | 796K |
| Depreciation & Amortization | 24.06M | 48.1M | 54.94M | 54.61M | 56.88M | 60.96M | 66.32M | 80.11M | 82.24M | 84.92M |
| Stock-Based Compensation | 0 | 271.7M | 208.9M | 146.87M | 99.54M | 57.78M | 222.48M | 71.15M | 22.29M | 349K |
| Deferred Taxes | 25.13M | -392.94M | -59.91M | -53.53M | -12.4M | -7.04M | -46.22M | -34.21M | -73.2M | -28.41M |
| Other Non-Cash Items | 311.22M | 2.04M | 11.22M | 6.91M | 1.49M | 1.84M | 6.13M | -1.14M | 400K | 1.82M |
| Working Capital Changes | 36.33M | 46.84M | 8.34M | 92.06M | 52.97M | 31.16M | 22.66M | 147.43M | 77.88M | 35.08M |
| Change in Receivables | -108.18M | -24.03M | -161.89M | -94.91M | -108.85M | -81.99M | -44.02M | 17.98M | -14.73M | 10.58M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 25.9M | 31.53M | 37.9M | 58.68M | 35.95M | 26.59M | 53M | 32.4M | 26.8M | 9.69M |
| Cash from Investing | -15.69M | -69.31M | -193.05M | -21.54M | -30.89M | -13.88M | -20.61M | -9.25M | -26.53M | -13.88M |
| Capital Expenditures | -32.37M | -26.11M | -26.46M | -21.54M | -17.7M | -14.08M | -19.72M | -7.38M | -11.61M | -8.66M |
| CapEx % of Revenue | 1.6% | 1.54% | 1.85% | 1.86% | 1.9% | 2% | 3.61% | 1.71% | 2.92% | 2.13% |
| Acquisitions | -6M | -100K | -57.11M | 0 | -13.2M | 0 | 0 | 0 | -11.3M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -750K | -2.7M | -5.27M | 0 | 0 | 197K | -892K | -1.87M | -3.62M | -5.22M |
| Cash from Financing | -471.66M | -151.63M | 50.66M | -232.34M | -80.66M | -97.8M | 329.39M | -161.48M | -75.5M | -63.02M |
| Debt Issued (Net) | 2.43M | 0 | 0 | -281.13M | -120M | -120M | -515.19M | 1.04B | 0 | 0 |
| Equity Issued (Net) | -447.83M | -130.46M | 50.66M | 50.73M | 39.34M | 22.2M | 585.14M | -649K | -885K | -287K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -478.71M | -172.62M | 0 | -15K | -66K | -49K | -156K | -649K | -885K | -287K |
| Other Financing | -26.26M | -21.17M | 0 | -1.95M | 0 | 0 | 259.44M | -1.2B | 0 | 0 |
| Net Change in Cash | 80.18M | 238.06M | 223.63M | 92.38M | 138M | 111.79M | 161.86M | -26.27M | 19.63M | 16.33M |
| Free Cash Flow | 527.24M | 433.31M | 351.65M | 333.35M | 233.22M | 206.36M | -162.18M | 137.89M | 103.61M | 80.68M |
| FCF Margin % | 26.12% | 25.51% | 24.58% | 28.77% | 25.09% | 29.33% | -29.71% | 32% | 26.03% | 19.85% |
| FCF Growth % | 21.68% | 23.22% | 5.49% | 42.93% | 13.02% | 227.24% | -217.61% | 33.09% | 28.41% | - |
| FCF per Share | 1.76 | 1.43 | 1.17 | 1.14 | 0.80 | 0.72 | -0.61 | 0.50 | 0.38 | 0.29 |
| FCF Conversion (FCF/Net Income) | 3.44x | 0.95x | 2.45x | 3.29x | 4.78x | 2.91x | 0.34x | -1.27x | 12.89x | 118.79x |
| Interest Paid | 0 | 753K | 851K | 7.11M | 8.38M | 12.47M | 39.57M | 40.97M | 38K | 163K |
| Taxes Paid | 0 | 117.98M | 81.36M | 14.31M | 24.25M | 7.34M | 266.71M | 5.93M | 12.91M | 8.91M |
Competitive consolidation and pricing
As reported in quarterly filings, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from 0.12 in 2025Q3 to 5.97 in 2025Q1, suggesting that reported earnings are frequently decoupled from the actual cash-generating capacity of the core business.
The significant variance in cash conversion suggests that working capital timing and non-cash adjustments play an outsized role in quarterly performance. Investors should monitor whether this volatility reflects genuine operational shifts or merely the timing of large enterprise contract renewals and associated deferred revenue recognition.
Based on the provided financial data, FCF margins exhibit extreme inconsistency, ranging from a low of 4.8% in 2025Q2 to a peak of 57.0% in 2025Q1, indicating that the company's ability to convert revenue into free cash flow remains highly sensitive to quarterly operational fluctuations.
While the company maintains a positive FCF trajectory, the lack of stability suggests that the business model is still maturing in its ability to generate predictable cash flows. This inconsistency may complicate valuation models that rely on steady-state cash flow assumptions for long-term enterprise software providers.
According to recent cash flow statements, working capital changes are a primary driver of cash flow volatility, with swings as large as $146.7 million in 2026Q2, highlighting the significant impact of billing cycles and customer payment patterns on the company's short-term liquidity position.
The frequent reversal of working capital impacts suggests that the company's cash flow is heavily influenced by the timing of large-scale enterprise billings. This pattern warrants further investigation into whether these fluctuations are becoming more pronounced as the company scales its complex, multi-year subscription offerings.
As indicated by the latest financial statements, Dynatrace has shifted toward aggressive capital deployment, with share repurchases totaling $223.7 million in 2026Q4, which significantly outpaced the company's net income for that period, signaling a management focus on returning capital to shareholders over internal reinvestment.
The decision to prioritize buybacks over potential M&A or increased R&D spending suggests a high level of confidence in the company's current market position. However, investors should consider whether this capital allocation strategy might limit the firm's flexibility to respond to the rapid consolidation occurring within the observability sector.
Quick answers to the most common questions about buying DT stock.
Dynatrace, Inc. (DT) generated $559.4M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Dynatrace, Inc. (DT) generated $527.2M 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.
Dynatrace, Inc. (DT) spent $32.4M 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, Dynatrace, Inc. (DT) spent $478.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.