Free cash flow remains highly inconsistent, ranging from a $142.0 million peak in 2025Q4 to a $47.2 million deficit in 2026Q1, reflecting the pressure of high capital expenditures that reached 34.2% of revenue in the most recent quarter.
| Cash from Operations | 556.59M | 599.74M | 327.99M | 266.33M | 219.85M | 249.98M | 243.98M |
| Operating CF Margin % | - | 45.85% | 28.29% | 31.32% | 31.06% | 41.23% | 45.82% |
| Operating CF Growth % | 280.49% | 82.85% | 23.15% | 21.14% | -12.05% | 2.46% | - |
| Net Income | 67.92M | 81.59M | 50.33M | 20.07M | 106.27M | 180.96M | -2.19M |
| Depreciation & Amortization | 274.34M | 276.19M | 260.27M | 182.87M | 174.46M | 166.99M | 145.63M |
| Stock-Based Compensation | 23.44M | 24.53M | 17.66M | 5.91M | 971K | 1.22M | 0 |
| Deferred Taxes | 21.36M | 25.66M | 15.43M | 7.86M | 27.3M | 0 | 5.54M |
| Other Non-Cash Items | 132.5M | 104.73M | 62.69M | 72.09M | -71.11M | -92.8M | 62.5M |
| Working Capital Changes | 36.6M | 87.05M | -78.39M | -22.48M | -18.05M | -6.39M | 32.49M |
| Change in Receivables | 14M | 46.14M | -93.04M | -36.61M | -20.44M | -14.94M | -1.06M |
| Change in Inventory | -4.74M | 1.07M | -1.34M | -4.58M | -24.3M | -2.97M | -3.74M |
| Change in Payables | 2.95M | 5.17M | 4.97M | 10.17M | -1.52M | -2.78M | -2.85M |
| Cash from Investing | -332.02M | -285.29M | -292.47M | -218.42M | -251.38M | -202.03M | -296.38M |
| Capital Expenditures | -356.29M | -315.47M | -336.96M | -219.79M | -259.35M | -201.93M | -297.39M |
| CapEx % of Revenue | 26.91% | 24.12% | 29.07% | 25.85% | 36.64% | 33.3% | 55.86% |
| Acquisitions | 0 | 0 | 9.46M | 1.45M | 8.08M | 0 | 1.04M |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 24.27M | 30.18M | 35.03M | -75K | 8.07M | -100K | -28K |
| Cash from Financing | -132.16M | -316.02M | -36.33M | -62.77M | 23.17M | -43.25M | 73.71M |
| Debt Issued (Net) | 197.78M | -47.15M | 142.47M | -256.65M | 888.99M | -65.24M | 73.71M |
| Equity Issued (Net) | -94.01M | -103.97M | -42.77M | 277.84M | 0 | 0 | 0 |
| Dividends Paid | -165.72M | -159.56M | -133.89M | -72.09M | -838M | -1.13M | 0 |
| Share Repurchases | -94.01M | -103.97M | -42.77M | 0 | 0 | 0 | 0 |
| Other Financing | -70.22M | -5.34M | -2.15M | -11.87M | -27.82M | 23.11M | 0 |
| Net Change in Cash | 92.41M | -1.57M | -812K | -14.87M | -8.36M | 4.69M | 21.31M |
| Free Cash Flow | 200.31M | 284.27M | -8.97M | 46.53M | -39.5M | 48.04M | -53.41M |
| FCF Margin % | 15.13% | 21.73% | -0.77% | 5.47% | -5.58% | 7.92% | -10.03% |
| FCF Growth % | 450.03% | 3269.45% | -119.28% | 217.79% | -182.22% | 189.95% | - |
| FCF per Share | 2.29 | 3.25 | -0.11 | 0.68 | -0.53 | 0.64 | -0.71 |
| FCF Conversion (FCF/Net Income) | 2.95x | 7.45x | 6.57x | 13.27x | 2.07x | 1.38x | -111.66x |
| Interest Paid | 29.75M | 0 | 147.14M | 216.65M | 143.44M | 119.89M | 0 |
| Taxes Paid | 4.91M | 0 | 14.66M | 9.76M | 2.18M | 1.85M | 0 |
Liquidity and capital intensity
According to the provided financial data, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from 4.00 in 2026Q1 to -8.09 in 2025Q3, suggesting that reported earnings are frequently decoupled from the company's actual cash-generative capacity.
The significant divergence between net income and operating cash flow indicates that non-cash charges and working capital fluctuations are heavily distorting the bottom line. Investors should monitor whether this volatility is a structural feature of the company's accounting or a temporary byproduct of recent integration efforts.
As reported in quarterly filings, free cash flow has demonstrated extreme inconsistency, ranging from a peak of $142.0 million in 2025Q4 to a deficit of $47.2 million in 2026Q1, highlighting a precarious trajectory that complicates the company's ability to fund dividends and debt obligations internally.
The inability to maintain positive free cash flow suggests that the company's aggressive capital expenditure program often outpaces its operational cash generation. This pattern warrants further investigation into whether the current dividend policy is sustainable without continued reliance on external financing sources.
Based on the reported figures, Kodiak Gas Services consistently allocates a substantial portion of revenue to capital expenditures, with the CapEx/Revenue ratio reaching as high as 37.8% in 2024Q2, indicating a capital-intensive business model that requires constant reinvestment to maintain its high-horsepower fleet.
The high level of capital spending appears necessary to support the company's fleet modernization strategy, yet it leaves little room for error in a cyclical energy environment. Analysts should distinguish between maintenance spending required to keep existing units operational and growth spending intended to expand the footprint.
Data from recent financial statements reveals significant working capital volatility, including a $69.1 million cash outflow in 2026Q1, which suggests that the timing of collections and inventory management is creating substantial quarterly pressure on the company's already thin liquidity position.
These fluctuations may indicate challenges in managing receivables or inventory levels during periods of rapid operational scaling. Investors should monitor whether these working capital swings are becoming a recurring drag on cash flow or if they represent temporary timing differences in project-based service revenue.
Quick answers to the most common questions about buying KGS stock.
Kodiak Gas Services, Inc. (KGS) generated $599.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Kodiak Gas Services, Inc. (KGS) generated $284.3M 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.
Kodiak Gas Services, Inc. (KGS) spent $315.5M 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, Kodiak Gas Services, Inc. (KGS) returned $159.6M to shareholders via cash dividends and spent $104.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.