Cash generation remains inconsistent, evidenced by a volatile OCF/NI ratio that reached 6.97 in 2025Q3, suggesting that reported net income often fails to reflect actual cash-generating capacity.
| Cash from Operations | 175.52M | 117.9M | 131.62M | 72.47M | 63.59M | 33.94M | -1.85M |
| Operating CF Margin % | - | 22.24% | 27.75% | 17.75% | 19.66% | 14.1% | -0.87% |
| Operating CF Growth % | 635.64% | -10.43% | 81.63% | 13.95% | 87.39% | 1930.47% | - |
| Net Income | 46.72M | 37.8M | 7.24M | 15.37M | -52.44M | -32.37M | -51.35M |
| Depreciation & Amortization | 68.54M | 63.97M | 54.97M | 50.4M | 62.29M | 67.07M | 70.33M |
| Stock-Based Compensation | 46.95M | 59.76M | 81.1M | 44.75M | 58.77M | 0 | 0 |
| Deferred Taxes | 4.15M | -16.42M | -21.53M | -15.86M | -9.66M | 0 | -16.93M |
| Other Non-Cash Items | 15.34M | 3.55M | 3.83M | 8.51M | 15.01M | 7.11M | 9.72M |
| Working Capital Changes | -6.16M | -30.76M | 6.02M | -30.7M | -10.37M | -7.87M | -13.62M |
| Change in Receivables | -191K | -6.22M | -12.83M | -18.58M | -9.1M | -8.34M | -6.35M |
| Change in Inventory | 0 | 0 | 0 | 0 | -12.54M | 0 | -7.67M |
| Change in Payables | 12.73M | 4.65M | 11.48M | 6.29M | 12.25M | 0 | -242K |
| Cash from Investing | -43.16M | -40.54M | -34.72M | -18.29M | -200.09M | -9.66M | -25.03M |
| Capital Expenditures | -11.84M | -1.78M | -1.98M | -16.69M | -13.66M | -638K | -7.46M |
| CapEx % of Revenue | 2.01% | 0.34% | 0.42% | 4.09% | 4.22% | 0.27% | 3.49% |
| Acquisitions | 0 | 0 | -966K | -1.6M | -186.44M | 0 | -17.57M |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -31.32M | -38.76M | -31.78M | 0 | 0 | -9.02M | 0 |
| Cash from Financing | -61.57M | -116.38M | -58.85M | -37.47M | 160.19M | -1.7M | 13.66M |
| Debt Issued (Net) | -65M | -120M | -70M | -21.82M | -111.72M | -1.53M | 17.3M |
| Equity Issued (Net) | 281K | 409K | 11.15M | -23.66M | -1.2M | -167K | -3.17M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -23.66M | -1.2M | -167K | -3.17M |
| Other Financing | 3.15M | 3.21M | 0 | 8M | 273.11M | 0 | -473K |
| Net Change in Cash | 72.31M | -39.95M | 37.62M | 13.59M | 21.36M | 24.35M | -13.29M |
| Free Cash Flow | 164.58M | 77.35M | 97.87M | 55.78M | 49.94M | 33.3M | -9.31M |
| FCF Margin % | 27.86% | 14.59% | 20.63% | 13.66% | 15.44% | 13.84% | -4.36% |
| FCF Growth % | 55.06% | -20.96% | 75.47% | 11.69% | 49.97% | 457.55% | - |
| FCF per Share | 0.97 | 0.47 | 0.61 | 0.35 | 0.35 | 0.22 | -0.06 |
| FCF Conversion (FCF/Net Income) | 3.52x | 3.12x | 18.18x | 4.71x | -1.21x | -1.05x | 0.04x |
| Interest Paid | 288K | 4.9M | 11.23M | 8.51M | 17.11M | 21.44M | 27.87M |
| Taxes Paid | -13.08M | 34.8M | 10.98M | 16.4M | 2.24M | 0 | 1.16M |
Operating margin volatility
As reported in quarterly financial statements, the OCF/NI ratio for IAS has exhibited extreme volatility, reaching a high of 6.97 in 2025Q3, which suggests that reported net income significantly understates the actual cash-generating capacity of the underlying business model due to non-cash accounting adjustments.
The persistent gap between net income and operating cash flow indicates that IAS's profitability is heavily influenced by non-cash charges, likely including substantial stock-based compensation and depreciation. Investors should monitor this divergence, as it implies that the company's accounting earnings may not be a reliable proxy for its ability to fund operations internally.
Based on the provided cash flow data, IAS's free cash flow margins have fluctuated wildly from a low of -2.0% in 2024Q1 to a peak of 42.8% in 2023Q4, highlighting a lack of consistent cash conversion efficiency across the company's recent operating history.
This erratic FCF trajectory suggests that the company's cash generation is highly sensitive to working capital swings and timing differences in revenue recognition. The inability to maintain a stable FCF margin complicates valuation efforts and warrants further investigation into the underlying drivers of these periodic cash flow spikes.
According to historical cash flow filings, working capital changes have been a significant source of quarterly variance, with a notable $31.5 million outflow in 2025Q1 followed by a $16.0 million inflow in 2025Q2, indicating inconsistent efficiency in managing receivables and payables cycles.
These sharp reversals in working capital suggest that the company's cash position is susceptible to the timing of large client payments or seasonal billing cycles. Such volatility may indicate that the business is not yet operating with the mature cash management discipline required to smooth out operational liquidity.
As evidenced by the company's historical cash flow statements, stock-based compensation remains a material component of the capital structure, with charges reaching $40.4 million in 2023Q2, which effectively masks the true economic cost of operations and dilutes the value of cash flow for common shareholders.
The reliance on equity-based incentives suggests that management may be prioritizing cash preservation at the expense of shareholder dilution. Analysts should adjust cash flow metrics to account for these recurring non-cash expenses to better understand the company's true ability to generate sustainable, unencumbered cash flow.
Quick answers to the most common questions about buying IAS stock.
Integral Ad Science Holding Corp. (IAS) generated $117.9M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Integral Ad Science Holding Corp. (IAS) generated $77.4M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Integral Ad Science Holding Corp. (IAS) spent $1.8M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.