Cash conversion efficiency is highly erratic, evidenced by OCF/NI ratios that swung from a negative 3.07 in 2025Q2 to a peak of 8.24 in 2025Q4, reflecting significant sensitivity to working capital cycles.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | May'16 | May'14 | May'13 | May'12 | May'11 | May'10 | May'09 | May'08 |
|---|
| Cash from Operations | 30.14M | 32.98M | 50.13M | 26.75M | 26.41M | 42.26M | 67.8M | 59.11M | 41.66M | 55.24M | 63.21M | 50.62M | 36.87M | 43.5M | 31.4M | 25.25M | 18.99M | 12.66M | 12.85M |
| Operating CF Margin % | - | 4.56% | 6.87% | 3.79% | 3.84% | 6.24% | 11.44% | 7.9% | 5.61% | 7.88% | 9.23% | 7.12% | 5.91% | 8.22% | 7.19% | 7.46% | 6.98% | 6.05% | 8.44% |
| Operating CF Growth % | -407.3% | -34.21% | 87.41% | 1.3% | -37.52% | -37.67% | 14.7% | 41.87% | -24.57% | -12.61% | 24.86% | 37.29% | -15.24% | 38.54% | 24.34% | 33.01% | 49.96% | -1.48% | - |
| Net Income | 22.41M | 16.84M | 18.97M | -17.45M | 6.57M | 3.89M | -99.47M | 6.08M | 6.84M | -2.17M | 14.46M | 15.99M | 22.57M | 11.64M | 21.35M | 16.43M | 10.43M | 5.47M | 7.44M |
| Depreciation & Amortization | 23.58M | 31.01M | 33.01M | 34.1M | 33.29M | 34.92M | 35.7M | 38.53M | 34.41M | 31.38M | 32.39M | 33.29M | 28.43M | 26.65M | 22.17M | 18.76M | 15.18M | 12.64M | 11.42M |
| Stock-Based Compensation | 2.32M | 7.79M | 5.07M | 5.71M | 5.33M | 5.42M | 5.85M | 5.77M | 6.11M | 6.57M | 7.32M | 6.51M | 6.58M | 6.26M | 6.29M | 5.1M | 3.75M | 2.69M | 0 |
| Deferred Taxes | 2.13M | 304K | -4.87M | -5.28M | -517K | 87K | -13.41M | -3.6M | 1.86M | -4.85M | -1.77M | -1.75M | -621K | -1.73M | -984K | 1.78M | 907K | 146K | 329K |
| Other Non-Cash Items | 7.24M | 2.65M | -1.4M | 13.8M | -268K | 1.49M | 111.81M | 4.82M | -677K | 16.63M | -97K | -1.22M | -3.32M | 6.68M | -797K | -366K | -446K | 2.39M | 973K |
| Working Capital Changes | -23.73M | -25.61M | -659K | -4.14M | -18.01M | -3.55M | 27.31M | 7.51M | -6.88M | 7.68M | 10.91M | -2.27M | -16.45M | -6.02M | -15.44M | -15.1M | -9.78M | -8.17M | -7.63M |
| Change in Receivables | -24.8M | -24.95M | 1.29M | -8.03M | -17.23M | -3.98M | 27.31M | 8.3M | -10.35M | 2.49M | -5M | 3.98M | -23.86M | 4.77M | -18.03M | -22.66M | -15.21M | -8.85M | -9.23M |
| Change in Inventory | 331K | 772K | 100K | -1.87M | -1.28M | 278K | 84K | -302K | -2.76M | -117K | 608K | 388K | 1.2M | 525K | -1.71M | -77K | -116K | -887K | -1.8M |
| Change in Payables | 1.3M | 3.28M | -5.15M | 4.18M | -93K | -1.14M | -1.02M | 1.14M | 2.95M | 2.57M | -2.79M | -6.28M | 6.13M | -5.48M | 3.15M | 1.9M | 1.81M | -2.23M | 2.2M |
| Cash from Investing | -25.27M | -25.12M | -21.37M | -22.13M | -12.24M | -18.55M | -14.97M | -25.28M | -155.45M | -102.8M | -22.41M | -49.94M | -38.01M | -45.48M | -37.51M | -36.48M | -16.53M | -15.89M | -19.45M |
| Capital Expenditures | -22.34M | 0 | -17.9M | -20.85M | -13.42M | -19.28M | -15.4M | -22.05M | -21.13M | -20.57M | -15.87M | -15.97M | -17.58M | -13.52M | -10.4M | -10.6M | -1.98M | -5.71M | -4.43M |
| CapEx % of Revenue | 3.05% | 3.41% | 2.45% | 2.96% | 1.95% | 2.85% | 2.6% | 2.95% | 2.85% | 2.93% | 2.32% | 2.25% | 2.82% | 2.56% | 2.38% | 3.13% | 0.73% | 2.73% | 2.91% |
| Acquisitions | 3.19M | 0 | 0 | 0 | -405K | -440K | 0 | -4.23M | -135.74M | -83.42M | -8.29M | -34.97M | -21.92M | -33.12M | -29.22M | -26.2M | -14.7M | -10.46M | -15.54M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -6.11M | -25.12M | -3.46M | -1.28M | 1.58M | 1.17M | 427K | 995K | 1.42M | 1.2M | 1.75M | 996K | 1.5M | 1.17M | 2.11M | 312K | 148K | 289K | 519K |
| Cash from Financing | -242K | -595K | -27.4M | -7.71M | -16.32M | -23.25M | -44.17M | -44.14M | 113.97M | 53.6M | -30.03M | 481K | 3.26M | 1.14M | 2.01M | 5.34M | 8.08M | 4.91M | 6.32M |
| Debt Issued (Net) | 285K | 1.06M | -26.09M | -6.13M | -14.94M | -20.94M | -40.09M | -40.12M | 118.98M | 71.46M | -36.51M | -36.51M | 5.62M | 4.61M | 2.52M | -671K | -9.48M | -65.52M | 2.84M |
| Equity Issued (Net) | -13K | 0 | -1.31M | -1.57M | -977K | -1.37M | -494K | 0 | -2.19M | -15.65M | -19.41M | -1.48M | 0 | -1.01M | -809K | 0 | 14.68M | 74.01M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -13K | 0 | -1.31M | -1.57M | -977K | -1.37M | -494K | 0 | -2.19M | -15.92M | -9M | -1.48M | 0 | -1.01M | -809K | -283K | 0 | 0 | 0 |
| Other Financing | -514K | -1.66M | 0 | 0 | -405K | -938K | -3.59M | -4.02M | -2.83M | -2.21M | 43.05M | -2.38M | -3.56M | -342K | -568K | 2.68M | 138K | -406K | 3.48M |
| Net Change in Cash | 6.45M | 9.69M | 671K | -2.84M | -3.62M | -1.65M | 10.74M | -10.53M | -2M | 8.39M | 9.55M | 535K | 2.22M | -608K | -2.47M | -5.16M | 10.37M | 2.11M | -212K |
| Free Cash Flow | 3.03M | 8.31M | 27.14M | 3.1M | 12.99M | 22.98M | 52.03M | 36.19M | 20.54M | 34.67M | 47.34M | 34.65M | 19.29M | 29.98M | 21M | 14.66M | 17M | 6.95M | 8.42M |
| FCF Margin % | 0.41% | 1.15% | 3.72% | 0.44% | 1.89% | 3.39% | 8.78% | 4.83% | 2.77% | 4.95% | 6.91% | 4.87% | 3.09% | 5.66% | 4.81% | 4.33% | 6.25% | 3.32% | 5.53% |
| FCF Growth % | -90.96% | -69.4% | 775.86% | -76.14% | -43.48% | -55.82% | 43.77% | 76.2% | -40.76% | -26.76% | 36.6% | 79.61% | -35.64% | 42.78% | 43.24% | -13.79% | 144.73% | -17.49% | - |
| FCF per Share | 0.09 | 0.26 | 0.86 | 0.10 | 0.43 | 0.76 | 1.79 | 1.25 | 0.70 | 1.22 | 1.57 | 1.17 | 0.66 | 1.03 | 0.73 | 0.54 | 0.70 | 0.53 | 0.41 |
| FCF Conversion (FCF/Net Income) | 0.14x | 1.96x | 2.64x | -1.53x | 4.06x | 10.95x | -0.68x | 9.75x | 6.09x | -25.40x | 4.37x | 3.15x | 1.64x | 3.74x | 1.47x | 1.54x | 1.82x | 2.32x | 1.73x |
| Interest Paid | 10.27M | 0 | 0 | 0 | 0 | 10.08M | 0 | 14.16M | 7.75M | 4.26M | 3.17M | 4.15M | 4.5M | 3.27M | 3.14M | 2.75M | 2.78M | 3.94M | 4.03M |
| Taxes Paid | 7.65M | 0 | 6.41M | 6.9M | 0 | 4.71M | 543K | 6.1M | 10.98M | 3.06M | 12.36M | 10.69M | 13.24M | 12.92M | 15.64M | 14.87M | 9.26M | 2.31M | 6.51M |
Working capital volatility
As reported in quarterly filings, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from a negative 3.07 in 2025Q2 to a peak of 8.24 in 2025Q4, indicating significant disconnects between accounting profits and actual cash generation.
The extreme variance in the OCF/NI ratio suggests that reported net income is frequently impacted by non-cash charges or timing differences that do not reflect the underlying cash-generating capacity of the business. Investors should monitor whether this volatility stems from aggressive revenue recognition or the inherent lumpiness of large-scale industrial service contracts.
Based on the provided financial data, Mistras Group's free cash flow trajectory is characterized by frequent negative periods, including a $15.7M outflow in 2025Q2, which underscores the difficulty of maintaining consistent cash conversion in a business model heavily reliant on project-based industrial maintenance cycles.
The inability to sustain positive free cash flow across consecutive quarters suggests that the company's capital intensity and working capital requirements often outpace its operational inflows. This pattern warrants further investigation into whether the company can achieve a more stable FCF profile without sacrificing its competitive positioning in the NDT market.
According to the cash flow statements, working capital changes are a primary driver of liquidity fluctuations, evidenced by a $24.7M cash outflow in 2025Q2 followed by a $20.3M inflow in 2025Q4, highlighting the company's sensitivity to client payment cycles and inventory management.
These significant swings in working capital suggest that Mistras Group may lack the leverage to dictate favorable payment terms with its large industrial clients. The recurring need to fund these working capital gaps may continue to pressure the company's liquidity position during periods of project delays or seasonal slowdowns.
As indicated by the reported figures, Mistras Group maintains a consistent capital expenditure profile, with CapEx/Revenue ratios generally hovering between 2.1% and 4.8% over the last ten quarters, suggesting that maintenance requirements are relatively predictable despite the volatility in other cash flow components.
While the capital intensity appears manageable, the company's reliance on specialized hardware means that even modest maintenance spending is non-discretionary. Analysts should monitor whether these expenditures are sufficient to keep the proprietary sensor technology competitive or if future growth will require a significant step-up in capital investment.
Quick answers to the most common questions about buying MG stock.
Mistras Group, Inc. (MG) generated $33.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Mistras Group, Inc. (MG) generated $8.3M 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.
Mistras Group, Inc. (MG) 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.