Free cash flow remains highly unstable, swinging from a $262.5 million inflow in 2024Q2 to a $127.1 million deficit in 2025Q1, driven by erratic working capital cycles.
| Cash from Operations | 237.7M | 113.5M | 262.8M | 168.4M | 82.7M | 169.8M |
| Operating CF Margin % | - | 4.17% | 9.75% | 5.92% | 2.92% | 5.55% |
| Operating CF Growth % | 4379.6% | -56.81% | 56.06% | 103.63% | -51.3% | - |
| Net Income | -446.9M | -986.2M | -271.5M | -25.2M | 186.2M | 98M |
| Depreciation & Amortization | 58.5M | 78M | 98M | 98M | 93.6M | 166.3M |
| Stock-Based Compensation | 59.8M | 74.4M | 58.4M | 42.7M | 25.4M | 27.5M |
| Deferred Taxes | -25.4M | -32M | -24.6M | -41.6M | -16.5M | -30.2M |
| Other Non-Cash Items | 382.6M | 864.6M | 38M | 67.6M | 42.2M | 35.4M |
| Working Capital Changes | 185.5M | 114.7M | 364.5M | 26.9M | -248.2M | -127.2M |
| Change in Receivables | 141.4M | 70.9M | 309.9M | -53.4M | -108.4M | -187.6M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -81.5M | -109.9M | 7.2M | 55.3M | 24.8M | -6.2M |
| Cash from Investing | -1.7M | 14.4M | 251.6M | -31.8M | -54M | -26.2M |
| Capital Expenditures | -22.3M | -25.2M | -25.5M | -40.3M | -54.4M | -26.5M |
| CapEx % of Revenue | 0.82% | 0.93% | 0.95% | 1.42% | 1.92% | 0.87% |
| Acquisitions | 20.6M | 0 | 276.6M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | 39.6M | 500K | 8.5M | 400K | 300K |
| Cash from Financing | -164.7M | -76.3M | -497.8M | -140.8M | -6.3M | -128.5M |
| Debt Issued (Net) | -164.7M | -76.3M | -482.7M | 1.62B | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -15.1M | -1.76B | -6.3M | -128.5M |
| Net Change in Cash | 45.9M | 56.1M | 9.9M | -1.8M | 15.8M | 14.3M |
| Free Cash Flow | 215.4M | 88.3M | 237.3M | 128.1M | 28.3M | 143.3M |
| FCF Margin % | 7.95% | 3.24% | 8.8% | 4.51% | 1% | 4.69% |
| FCF Growth % | 48.45% | -62.79% | 85.25% | 352.65% | -80.25% | - |
| FCF per Share | 2.36 | 0.97 | 2.65 | 1.44 | 0.32 | 1.62 |
| FCF Conversion (FCF/Net Income) | -0.48x | -0.12x | -0.80x | -6.68x | 0.44x | 1.73x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent operating cash volatility
As reported in recent financial filings, the relationship between net income and operating cash flow remains highly erratic, with OCF/NI ratios frequently reaching extreme negative values, such as the -5.46 observed in 2025Q3, indicating that accounting losses are not currently reflective of underlying cash generation.
The significant divergence between net income and operating cash flow suggests 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 the spin-off or a sign of persistent difficulty in converting service revenue into actual cash.
Based on the provided cash flow data, free cash flow has exhibited extreme instability, swinging from a peak of $262.5 million in 2024Q2 to a deficit of $127.1 million in 2025Q1, highlighting the company's struggle to maintain consistent cash generation as an independent entity.
The lack of a stable FCF trend suggests that the business model is currently sensitive to operational disruptions that impact cash timing. Without a predictable FCF margin, the company may face challenges in funding its own growth or servicing debt obligations without relying on external financing.
According to quarterly cash flow statements, working capital changes have been the primary driver of cash flow volatility, evidenced by a massive $350.7 million inflow in 2024Q2 followed by an $88.6 million outflow in 2025Q1, suggesting highly inconsistent collection and payment cycles.
These dramatic fluctuations in working capital imply that the company's cash position is highly dependent on the timing of large project milestones or sponsor payments. Such volatility warrants further investigation into whether these shifts represent structural inefficiencies in the billing process or merely the lumpy nature of clinical trial contracts.
Based on an analysis of the cash flow statement, the company's reported figures are significantly impacted by stock-based compensation and recurring depreciation, with SBC expenses reaching $22.7 million in 2025Q2, which effectively masks the true cash cost of maintaining the company's human capital.
The reliance on SBC as a significant non-cash add-back suggests that the company's operating cash flow may be overstated relative to the actual economic cost of its workforce. Analysts should be cautious, as these adjustments may obscure the true cash-burn rate required to retain specialized clinical staff in a competitive labor market.
Quick answers to the most common questions about buying FTRE stock.
Fortrea Holdings Inc. (FTRE) generated $113.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Fortrea Holdings Inc. (FTRE) generated $88.3M 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.
Fortrea Holdings Inc. (FTRE) spent $25.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.