Cash flow generation remains inconsistent, highlighted by an operating cash flow to net income ratio that swung from -9.18 in 2025Q2 to 3.63 in 2025Q4.
| 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 | Dec'11 | Dec'10 |
|---|
| Cash from Operations | 319.19M | 280.45M | 248.73M | 318.52M | 197.52M | 178.97M | 99.87M | 79.71M | 67.2M | 42.99M | 31.48M | -5.32M | 14.3M | 1.21M | 7.71M | 1.17M | 464K |
| Operating CF Margin % | - | 11.42% | 10.3% | 15.2% | 11.1% | 13.8% | 12.27% | 12.09% | 12.87% | 10.4% | 9.75% | -2.09% | 7.16% | 0.76% | 5.99% | 1.3% | 0.81% |
| Operating CF Growth % | 384.35% | 12.75% | -21.91% | 61.26% | 10.36% | 79.2% | 25.3% | 18.62% | 56.31% | 36.56% | 692.29% | -137.18% | 1080.51% | -84.3% | 557.15% | 153.02% | - |
| Net Income | 109.26M | 102.92M | 165.73M | 158.54M | 149.48M | 96.36M | 54.22M | 54.02M | 51.6M | 30.46M | 35.86M | 31.62M | 25.26M | 13.77M | -1.3M | 7.09M | 5.19M |
| Depreciation & Amortization | 158.46M | 0 | 162.73M | 139.86M | 107.93M | 80.29M | 48.48M | 38.84M | 20.54M | 16.13M | 10.92M | 9.3M | 8.03M | 7.16M | 4.77M | 2.5M | 1.64M |
| Stock-Based Compensation | 0 | 0 | 81.8M | 72.94M | 60.25M | 37.03M | 22.42M | 15.36M | 10.55M | 12.87M | 3.62M | 2.38M | 617K | 793K | 11.71M | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | -34.94M | 43.41M | 28.5M | 22.31M | 15.02M | 15.87M | 8.08M | 14.33M | 18.42M | 8.93M | 6.01M | -160K | 1.69M | 0 |
| Other Non-Cash Items | 96.9M | 251.12M | -10.87M | 40.1M | -38.05M | -21.71M | -17.34M | -4.06M | -9.53M | -10.09M | -10.18M | -39.05M | -26.19M | -21.76M | 687K | 273K | 89.88K |
| Working Capital Changes | -45.43M | -73.59M | -150.67M | -57.97M | -125.49M | -41.48M | -30.21M | -39.46M | -21.83M | -14.46M | -23.07M | -27.99M | -2.36M | -4.76M | -7.99M | -8.91M | -6.46M |
| Change in Receivables | 0 | 22.49M | -114.46M | -27.67M | -125.34M | -93.02M | -33.93M | -38.95M | -36.36M | -25.6M | -5.85M | -6.53M | -6.34M | -5.97M | -7.17M | -6.66M | -6.77M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 48.78M | 7.1M | -7.55M | 12.27M | 8.12M | -15.61M | -22.76M | 0 | -197K | 0 | 0 | 0 |
| Change in Payables | 0 | -6.55M | -38.09M | 19M | -2.65M | 10.87M | -2.77M | 7.24M | 2.48M | 4.34M | -1.22M | 1.39M | 2.9M | 1.45M | 579K | 433K | -355.32K |
| Cash from Investing | -166.13M | -161.6M | -403.9M | -350.36M | -269.3M | -272.88M | -124.02M | -151.56M | -46.12M | -57.53M | -28M | 5.53M | -23.68M | 7.77M | -9.16M | -7.13M | -3.76M |
| Capital Expenditures | -16.19M | 0 | -27.73M | -126.8M | -47.06M | -77.63M | -53.46M | -31.99M | -28.88M | -28.05M | -24.03M | -17.82M | -13.87M | -7.38M | -7.38M | -6.05M | -3.68M |
| CapEx % of Revenue | 0.66% | 0.78% | 1.15% | 6.05% | 2.64% | 5.99% | 6.57% | 4.85% | 5.53% | 6.78% | 7.44% | 7.02% | 6.95% | 4.66% | 5.73% | 6.72% | 6.42% |
| Acquisitions | 0 | 0 | -301.07M | -267.34M | -149.11M | -165.31M | -75.06M | -106.28M | -7.39M | -19.62M | -17.08M | -10.57M | -350K | -2.21M | -3.1M | -1.12M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -149.94M | -161.6M | -83.98M | 20.42M | -48.37M | 1.25M | 951K | -936K | -11.21M | -10.99M | -6.12M | 18.48M | 6.43M | 26.43M | 1.14M | -205K | -80.82K |
| Cash from Financing | -71.63M | -16.75M | -5.81M | 44.53M | -65.68M | 243.99M | 241.55M | 56.71M | 4.09M | 16.6M | 7.7M | 2M | 28.47M | 2.07M | 2.2M | 10.32M | 3.34M |
| Debt Issued (Net) | 0 | 45.38M | 56.7M | 85.32M | -38.83M | -37.67M | -62.46M | 34.36M | -6M | 5.7M | -543K | -505K | -9.66M | 610K | 2.79M | 5.12M | 3.51M |
| Equity Issued (Net) | 0 | -44.07M | -10.68M | -11.52M | -9.32M | 278.95M | 300.88M | 0 | 0 | 5.7M | 0 | 0 | 40.45M | 2.29M | 1.11M | 5.77M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -439K | -307K | 0 |
| Share Repurchases | 0 | -56.13M | -10.68M | -11.52M | -9.32M | -7.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.16M | -848K | 0 | 0 |
| Other Financing | -71.63M | -18.06M | -51.83M | -29.27M | -17.53M | 2.71M | 3.13M | 22.35M | 10.1M | 5.2M | 8.24M | 2.5M | -2.33M | -832K | -1.26M | -257K | -169.98K |
| Net Change in Cash | 81.29M | 101.65M | -165.13M | 14.77M | -135.35M | 148.87M | 216.22M | -14.88M | 25.08M | 1.99M | 13.81M | 2.52M | 17.14M | 9.37M | 672K | 4.28M | 0 |
| Free Cash Flow | 303M | 261.22M | 220.99M | 191.72M | 102.09M | 101.34M | 46.41M | 47.72M | 38.31M | 14.94M | 7.45M | -23.13M | 424K | -6.17M | 332K | -4.88M | -2.85M |
| FCF Margin % | 12.36% | 10.64% | 9.15% | 9.15% | 5.73% | 7.81% | 5.7% | 7.24% | 7.34% | 3.61% | 2.31% | -9.11% | 0.21% | -3.9% | 0.26% | -5.42% | -4.97% |
| FCF Growth % | 45.73% | 18.2% | 15.27% | 87.79% | 0.74% | 118.36% | -2.74% | 24.54% | 156.51% | 100.6% | 132.19% | -5555.66% | 106.87% | -1958.73% | 106.8% | -71.21% | - |
| FCF per Share | 6.99 | 5.80 | 4.96 | 4.40 | 2.38 | 2.41 | 1.17 | 1.27 | 1.04 | 0.41 | 0.21 | -0.66 | 0.01 | -0.19 | 0.01 | -0.15 | -0.09 |
| FCF Conversion (FCF/Net Income) | 2.77x | 2.72x | 1.50x | 2.01x | 1.33x | 1.86x | 1.84x | 1.48x | 1.30x | 1.38x | 0.86x | -0.17x | 0.57x | 0.09x | -5.93x | 0.17x | 0.09x |
| Interest Paid | 0 | 0 | 19.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital cycle volatility
As reported in financial statements, Globant's operating cash flow to net income ratio has exhibited extreme volatility, ranging from -9.18 in 2025Q2 to 3.63 in 2025Q4, suggesting that reported earnings are frequently decoupled from actual cash generation due to significant non-cash adjustments and accrual timing.
The wide variance between net income and operating cash flow indicates that the company's earnings quality is highly sensitive to accounting estimates and timing differences. Investors should monitor whether this divergence stems from aggressive revenue recognition or simply the inherent lumpiness of project-based billing cycles.
Based on Globant's reported figures, free cash flow margins have fluctuated wildly between -4.8% and 34.7% over the last ten quarters, reflecting a business model that struggles to maintain consistent cash conversion during periods of decelerating revenue growth and operational transition.
The inability to generate stable free cash flow suggests that the company's cost structure remains rigid despite shifts in demand. This inconsistency complicates valuation efforts, as the firm's cash-generating capacity appears tethered to short-term project milestones rather than a predictable, recurring revenue base.
According to recent SEC filings, Globant's working capital changes have been a significant drag on cash flow, with a notable $88.4 million outflow in 2025Q1, indicating that the firm frequently faces challenges in aligning client payment terms with its own labor-intensive cost obligations.
The recurring negative working capital swings suggest that the company is effectively financing its clients' digital transformation projects through its own balance sheet. This dynamic warrants further investigation into the firm's collection efficiency and whether it is being forced to offer more lenient credit terms to retain business.
As indicated by the provided data, Globant's capital expenditure as a percentage of revenue has reached as high as 8.4%, suggesting that the firm is prioritizing infrastructure and studio expansion over immediate cash preservation, even as organic growth rates have begun to show signs of stagnation.
The elevated capital intensity appears to be a strategic choice to support the 'Studio' model, but it places additional pressure on free cash flow during downturns. Analysts should evaluate whether these investments are yielding the expected productivity gains or if they represent sunk costs in a cooling market.
Based on the provided cash flow data, the presence of significant non-cash items and periodic stock-based compensation, such as the $21.1 million recorded in 2025Q1, suggests that the true economic cost of talent retention is often excluded from standard operating cash flow metrics.
These adjustments may flatter the company's cash flow profile, potentially masking the underlying cash burn associated with maintaining a high-end engineering workforce. Investors should be cautious of relying on headline cash flow figures without adjusting for these recurring, yet non-cash, talent-related expenses.
Quick answers to the most common questions about buying GLOB stock.
Globant S.A. (GLOB) generated $280.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Globant S.A. (GLOB) generated $261.2M 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.
Globant S.A. (GLOB) 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, Globant S.A. (GLOB) spent $56.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.