Cash conversion efficiency is inconsistent, as demonstrated by an OCF/NI ratio that reached 15.02 in 2025Q2, while capital expenditure remains elevated at 12.7% of revenue as of 2026Q1.
| Cash from Operations | 330.53M | 294.37M | 179.38M | 81.86M | 66.56M |
| Operating CF Margin % | - | 38.75% | 33.51% | 33.64% | 44.79% |
| Operating CF Growth % | 422.8% | 64.1% | 119.13% | 22.98% | - |
| Net Income | 70.74M | 131.66M | 80.25M | 58.09M | 32.73M |
| Depreciation & Amortization | 162.87M | 154.66M | 95.19M | 44.33M | 36.42M |
| Stock-Based Compensation | 6.06M | 11.03M | 992K | 85K | 493K |
| Deferred Taxes | -2.35M | -5.94M | 0 | 0 | 0 |
| Other Non-Cash Items | 46.6M | 5.85M | 3.22M | 4.39M | 1.29M |
| Working Capital Changes | 27.05M | -2.88M | -265K | -25.03M | -4.38M |
| Change in Receivables | 17.84M | 18.87M | -15.49M | -16.89M | -13.78M |
| Change in Inventory | 5M | -76K | 21.92M | -6.63M | 9.27M |
| Change in Payables | 7.05M | -8.49M | -4.29M | -515K | -2.41M |
| Cash from Investing | -360.37M | -199.75M | -94.43M | -42.67M | -106.93M |
| Capital Expenditures | -125.95M | -127.29M | -90.49M | -43.51M | -106.96M |
| CapEx % of Revenue | 16.21% | 16.75% | 16.91% | 17.88% | 71.97% |
| Acquisitions | -161.76M | 0 | -3.91M | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -72.65M | -72.47M | -27K | 841K | 31K |
| Cash from Financing | 46.49M | -94.71M | -80.33M | -39.19M | 40.37M |
| Debt Issued (Net) | 128.4M | -480.76M | 156.89M | 13.31M | 77.37M |
| Equity Issued (Net) | -31.52M | 444.35M | 0 | 0 | 0 |
| Dividends Paid | -52.49M | -35.27M | -230.51M | -52.5M | -37M |
| Share Repurchases | -31.52M | -15M | 0 | 0 | 0 |
| Other Financing | 2.1M | -23.03M | -6.71M | 0 | 0 |
| Net Change in Cash | 16.65M | -93K | 4.62M | 0 | 0 |
| Free Cash Flow | 204.57M | 167.08M | 88.7M | 38.35M | -40.4M |
| FCF Margin % | 26.33% | 21.99% | 16.57% | 15.76% | -27.18% |
| FCF Growth % | 127.3% | 88.38% | 131.29% | 194.93% | - |
| FCF per Share | 6.25 | 1.84 | 11.50 | 0.44 | -7.48 |
| FCF Conversion (FCF/Net Income) | 2.89x | 7.11x | 2.24x | 1.41x | 2.03x |
| Interest Paid | 0 | 0 | 28.77M | 18.9M | 8.67M |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Liquidity and margin volatility
As reported in quarterly financial filings, FLOC's OCF/NI ratio has fluctuated wildly, reaching a high of 15.02 in 2025Q2, which suggests that reported net income is currently a poor proxy for the actual cash-generating capacity of the company's core artificial lift operations.
The persistent gap between net income and operating cash flow indicates that non-cash charges and working capital adjustments are significantly distorting the bottom line. Investors should monitor whether this divergence reflects aggressive revenue recognition or simply the heavy depreciation burden inherent in the company's equipment-heavy business model.
Based on the provided cash flow statements, FLOC's free cash flow margins have exhibited extreme instability, ranging from a negative 2.8% in 2024Q4 to a peak of 32.0% in 2025Q4, highlighting a lack of predictability in the company's ability to convert operational success into free cash.
This erratic trajectory suggests that the company's cash flow is highly sensitive to the timing of large-scale equipment deployments and service contract cycles. The inability to maintain a consistent FCF margin complicates the valuation of the firm, as it remains unclear if the current cash generation is sustainable or merely a byproduct of temporary operational surges.
According to recent financial data, FLOC's capital expenditure as a percentage of revenue has averaged significantly above 15% in several quarters, indicating that the company must continuously reinvest heavily in its asset base just to maintain its current market position in the Permian Basin.
The high capital intensity suggests that the company's growth is not yet self-funding, as a substantial portion of operating cash flow is immediately consumed by maintenance and growth capex. This reliance on heavy investment warrants further investigation into whether the company's proprietary technology provides a sufficient return on invested capital to justify such high spending levels.
As indicated by the cash flow statements, FLOC has prioritized significant cash outflows for dividends and acquisitions, such as the $161.8M acquisition in 2026Q1, despite maintaining a precarious cash balance of only $4.5M, which suggests a potentially aggressive approach to capital allocation.
The decision to fund large acquisitions and dividend payments while maintaining minimal cash reserves appears to leave the company with little margin for error in a cyclical industry. This strategy may indicate management's confidence in future cash flows, but it simultaneously increases the risk of a liquidity squeeze should market conditions deteriorate unexpectedly.
Quick answers to the most common questions about buying FLOC stock.
Flowco Holdings Inc. (FLOC) generated $294.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Flowco Holdings Inc. (FLOC) generated $167.1M 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.
Flowco Holdings Inc. (FLOC) spent $127.3M 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, Flowco Holdings Inc. (FLOC) returned $35.3M to shareholders via cash dividends and spent $15.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.