Free cash flow margins have demonstrated a robust recovery to 23.0% in 2026Q1, supported by a lean capital expenditure profile that consistently remains below 5.0% of total revenue.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Jan'23 | Jan'22 | Jan'21 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 |
|---|
| Cash from Operations | 1.13B | 1.08B | 837M | 478M | 392M | 545M | 1.08B | 1.05B | 1.14B | 875M | 687.24M | 659.6M | 501.27M | 386.42M | 291.87M | 358.14M | 272.57M | 174.5M | 87.88M | 56.29M | 39M | -9.01M | -19.57M | -18.26M | -25.59M | -10.93M | -14.31M | -2.91M |
| Operating CF Margin % | - | 24.87% | 19.14% | 10.61% | 8.55% | 12.04% | 33.34% | 29.66% | 34.26% | 31.8% | 28.65% | 29.71% | 26.93% | 27.19% | 25.41% | 33.93% | 30.19% | 26.19% | 15.33% | 15.35% | 21.13% | -12.26% | -38.7% | -65.12% | -254.91% | -439.46% | -1093.21% | -613.28% |
| Operating CF Growth % | 190.98% | 28.91% | 75.1% | 21.94% | -28.07% | -49.54% | 2.76% | -7.97% | 30.51% | 27.32% | 4.19% | 31.58% | 29.72% | 32.39% | -18.5% | 31.39% | 56.21% | 98.56% | 56.11% | 44.34% | 532.95% | 53.98% | -7.22% | 28.67% | -134.26% | 23.66% | -392.28% | - |
| Net Income | 853M | 850M | -1.22B | -1.16B | -4.4B | 762M | 656M | 990M | 782M | 678M | 428.09M | 457.39M | 353.35M | 125.31M | 151.25M | 86.63M | 124.89M | 72.28M | 50.48M | -278.36M | 39.97M | -20.87M | -6.22M | -27.06M | -40.33M | -24.82M | -18.61M | -5.52M |
| Depreciation & Amortization | 65M | 270M | 354M | 432M | 394M | 251M | 187M | 188M | 179M | 156M | 140.91M | 126.42M | 112.57M | 97.92M | 63.79M | 68.26M | 42.01M | 31.18M | 28.93M | 15.82M | 5.71M | 4M | 5M | 7.43M | 9.5M | 7.76M | 7.2M | 1.05M |
| Stock-Based Compensation | -3M | 0 | 370M | 380M | 366M | 754M | 194M | 194M | 193M | 164M | 129.06M | 132.59M | 152.55M | 105.83M | 94.32M | 92.09M | 71.64M | 60.81M | 47.69M | 33.75M | 14.3M | 270K | 844K | 2.45M | 4.36M | 5.85M | 0 | 0 |
| Deferred Taxes | 62M | 119M | -112M | -33M | -23M | -76M | 117M | 11M | -18M | 81M | 93.56M | 80.5M | 99.85M | -36.66M | -21.7M | -27.13M | 48.7M | 29.7M | 38.69M | -11.41M | -548K | -270K | 0 | -2.45M | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 587M | -7M | 1.93B | 950M | 3.85B | -994M | -147M | -138M | 24M | -399M | -59.38M | -98.87M | -160.58M | -59.38M | 22.18M | 101.25M | -12.54M | -8.2M | 10.49M | 283.33M | -1.32M | 16.09M | -844K | 175K | -4.36M | -5.85M | 1.72M | 101.34K |
| Working Capital Changes | -70M | -153M | -483M | -90M | 204M | -152M | 73M | -194M | -18M | 195M | -45.02M | -38.44M | -56.47M | 153.4M | -17.97M | 37.03M | -2.13M | -11.29M | -88.39M | 13.16M | -19.11M | -8.22M | -18.35M | 1.2M | 5.24M | 6.13M | -4.62M | 1.45M |
| Change in Receivables | -203M | -108M | -25M | -40M | -12M | -164M | 89M | -58M | -105M | -26M | 3.24M | -95.91M | -50.38M | -15.93M | -34.44M | -7.01M | -7.84M | -18.58M | -57.67M | -37.06M | -21.73M | -7.04M | -7.2M | -1.3M | -2.46M | -334K | 0 | 0 |
| Change in Inventory | 1M | -17M | 19M | -20M | -135M | -58M | -12M | 25M | -53M | -33M | -29.69M | -80.55M | -36.54M | 6.22M | -23.71M | 22.15M | -48.58M | -19.2M | -19.56M | -27.13M | -9.73M | -6.5M | -1.78M | 277K | -1.33M | -900K | 0 | 0 |
| Change in Payables | 43M | 2M | -4M | -44M | -38M | 60M | 40M | -35M | 45M | 10M | -1.97M | 46.3M | -2.11M | 2.39M | 15.11M | -21.1M | 23.15M | 11.78M | 4.84M | 12.26M | 2.44M | 3.19M | 697K | 260K | -205K | 1.25M | 0 | 0 |
| Cash from Investing | -358M | -55M | -178M | -231M | -591M | -1.07B | -554M | 745M | -1.81B | -214M | -514.54M | -106.15M | -406.62M | -69.65M | -150.01M | -401M | -285.05M | -255.72M | -277.25M | -67.69M | -160.74M | -1.53M | 57.02M | 28.47M | -2.64M | -101.67M | 5.96M | -12.28M |
| Capital Expenditures | -157M | -158M | -128M | -195M | -286M | -208M | -189M | -209M | -296M | -312M | -271.38M | -143.25M | -142.22M | -90.56M | -81.01M | -79.55M | -56.47M | -55.22M | -95.69M | -24.43M | -15.21M | -11.39M | -3.35M | -2.03M | -26.83M | -14.97M | -3.43M | -295.29K |
| CapEx % of Revenue | 3.58% | 3.64% | 2.93% | 4.33% | 6.24% | 4.6% | 5.84% | 5.9% | 8.88% | 11.34% | 11.32% | 6.45% | 7.64% | 6.37% | 7.05% | 7.54% | 6.26% | 8.29% | 16.69% | 6.66% | 8.24% | 15.5% | 6.63% | 7.25% | 267.23% | 602.25% | 261.86% | 62.29% |
| Acquisitions | 0 | 0 | 2M | -29M | -265M | -2.44B | -98M | -32M | -100M | -52M | -17.84M | -36.58M | -3.29M | -427.92M | -32.34M | -58.3M | -98.21M | -1.32M | -24.67M | 72.08M | -50M | -2.39M | 40.67M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -371M | 0 | 0 | -1M | 0 | 0 | -132M | 0 | -1.42B | 96M | -237M | 73M | -297.34M | 533.07M | 6M | -401M | -285.05M | -255.72M | -60.67M | 42K | -53.14M | 0 | -35K | -16K | -794K | 0 | 0 | 0 |
| Cash from Financing | -800M | -744M | -570M | -1.21B | 1B | -51M | -766M | -897M | 594M | -176M | -204.71M | -418.76M | -166.75M | -38.72M | -10.76M | 97.02M | 116.47M | -98.86M | 337.67M | 148.29M | 109.3M | 5.96M | 4.88M | 216K | 26.11M | 654K | 103.29M | 28.12M |
| Debt Issued (Net) | -5M | -5M | 491M | -1.24B | 991M | 471M | 0 | -550M | 731M | -4M | -61M | -245M | -142.33M | -10.85M | 0 | 553.62M | 0 | -10M | -15K | 251.13M | -109K | -83K | -25.62M | -679K | 25.41M | -261K | 1.15M | 0 |
| Equity Issued (Net) | -525M | -698M | -60M | 67M | 63M | 60M | -675M | -265M | -275M | -180M | -201.68M | -202M | -140.85M | 44.44M | -28.16M | -508.47M | 58M | -135.76M | 316.19M | -122.93M | 107.97M | 6.05M | 30.49M | 895K | 696K | 915K | 102.14M | 28.12M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -542M | -742M | -116M | 0 | 0 | 0 | -736M | -324M | -201M | -251M | -249M | -274.32M | -237.18M | -50.02M | -82.52M | -570.41M | -44.02M | -175.14M | -70.78M | -251.62M | 0 | 0 | -13K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -270M | -41M | -1B | -42M | -54M | -582M | -91M | -82M | 138M | 8M | -33.32M | -3.89M | 116.44M | -72.31M | 17.41M | 51.87M | 58.47M | 46.9M | 21.49M | 20.09M | 1.44M | 0 | 0 | 0 | 0 | 0 | 4K | 0 |
| Net Change in Cash | -24M | 291M | 79M | -963M | 779M | -578M | -232M | 898M | -81M | 490M | -34.25M | 132.62M | -75.48M | 277.66M | 131M | 54.03M | 104.31M | -182.39M | 152.08M | 136.56M | -12.44M | -3.97M | 42.32M | 10.43M | -2.13M | -111.94M | 94.94M | 12.93M |
| Free Cash Flow | 989M | 931M | 709M | 282M | 106M | 337M | 891M | 842M | 846M | 563M | 415.86M | 516.35M | 359.06M | 295.86M | 210.86M | 278.59M | 216.1M | 119.27M | -7.81M | 31.87M | 23.79M | -20.4M | -22.93M | -20.29M | -52.42M | -25.9M | -17.74M | -3.2M |
| FCF Margin % | 22.52% | 21.46% | 16.22% | 6.26% | 2.31% | 7.45% | 27.51% | 23.77% | 25.38% | 20.46% | 17.34% | 23.26% | 19.29% | 20.82% | 18.36% | 26.39% | 23.94% | 17.9% | -1.36% | 8.69% | 12.89% | -27.76% | -45.33% | -72.37% | -522.14% | -1041.71% | -1355.07% | -675.58% |
| FCF Growth % | 13.81% | 31.31% | 151.42% | 166.04% | -68.55% | -62.18% | 5.82% | -0.47% | 50.27% | 35.38% | -19.46% | 43.81% | 21.36% | 40.31% | -24.31% | 28.91% | 81.18% | 1627% | -124.51% | 33.97% | 216.58% | 11.02% | -13.02% | 61.3% | -102.43% | -45.99% | -453.94% | - |
| FCF per Share | 6.42 | 5.97 | 4.46 | 1.78 | 0.68 | 2.23 | 6.02 | 5.65 | 5.68 | 3.80 | 2.81 | 3.47 | 2.41 | 2.11 | 1.58 | 2.01 | 1.51 | 0.87 | -0.06 | 0.29 | 0.24 | -0.25 | -0.32 | -0.32 | -0.85 | -0.44 | -0.32 | -1.14 |
| FCF Conversion (FCF/Net Income) | 1.16x | 1.27x | -0.68x | -0.41x | -0.09x | 0.72x | 1.65x | 1.05x | 1.38x | 1.21x | 1.49x | 1.43x | 1.42x | 3.08x | 1.93x | 4.13x | 2.18x | 2.41x | 1.74x | -0.20x | 0.98x | 0.43x | 3.14x | 0.67x | 0.63x | 0.44x | 0.77x | 0.53x |
| Interest Paid | 0 | 0 | 83M | 73M | 17M | 9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.55M | 2.48M | 2.44M | 2.44M | 2.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 105M | 65M | 122M | 233M | 119M | 164M | 99M | 149M | 60M | 17M | 17.89M | 50.09M | 74.04M | 9.81M | 31.57M | 10.36M | 1.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Divestiture execution and competition
As reported in recent financial filings, Illumina's operating cash flow to net income ratio has exhibited extreme volatility, ranging from -1.27 to 2.16, which suggests that reported earnings are frequently decoupled from the actual cash-generating capacity of the core sequencing business due to significant non-cash accounting adjustments.
The wide variance in the OCF/NI ratio indicates that net income is an unreliable proxy for operational health, likely distorted by the heavy restructuring and impairment charges associated with the GRAIL divestiture. Investors should monitor whether this ratio stabilizes as the company moves past its recent period of intense strategic reorganization.
Based on quarterly data, Illumina's free cash flow margin has shown a meaningful recovery from a low of 3.8% in 2024Q1 to 23.0% in 2026Q1, signaling that the company is successfully transitioning toward a more efficient cash-generative profile as it exits its recent period of capital-intensive expansion.
The upward trend in FCF margins appears to be driven by both a stabilization in operating cash flow and a disciplined approach to capital expenditures. This trajectory suggests that the core razor-and-blade model is beginning to exert its natural leverage, provided that competitive pressures do not force excessive reinvestment.
According to historical cash flow statements, Illumina maintains a relatively lean capital expenditure profile, with CapEx as a percentage of revenue consistently hovering between 2.6% and 5.0%, which implies that the business model is not overly burdened by the need for massive, recurring physical infrastructure investments.
The modest capital intensity suggests that the company's primary value is derived from its proprietary chemistry and installed base rather than heavy manufacturing assets. This low-capex requirement provides a structural advantage, allowing a larger portion of operating cash flow to be converted into free cash flow for shareholders.
As evidenced by recent financial statements, Illumina has prioritized aggressive share repurchases, totaling $370 million in 2025Q2 alone, which indicates a management focus on returning capital to shareholders despite the significant operational and legal distractions caused by the ongoing divestiture of the GRAIL business unit.
The reliance on share buybacks as a primary deployment tool warrants further investigation into whether this capital could be more effectively utilized for R&D or debt reduction. Investors should monitor if this pace of repurchases is sustainable given the company's need to maintain a competitive edge against emerging low-cost sequencing rivals.
Quick answers to the most common questions about buying ILMN stock.
Illumina, Inc. (ILMN) generated $1.08B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Illumina, Inc. (ILMN) generated $931.0M 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.
Illumina, Inc. (ILMN) spent $158.0M 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, Illumina, Inc. (ILMN) spent $742.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.