Despite inconsistent net income, Mesa generates strong underlying cash flow, evidenced by an operating cash flow of $14.7M in Q1 2027 that exceeds net income by a factor of 5.21.
Mesa Laboratories, Inc. (MLAB) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 | Mar'98 | Mar'97 |
|---|
| Cash from Operations | 55.67M | 42.83M | 46.81M | 44.13M | 27.98M | 39.22M | 37.07M | 26.56M | 30.55M | 24.81M | 7.75M | 16.9M | 10.82M | 12.37M | 11.4M | 12.49M | 8.87M | 5.98M | 5.08M | 4.62M | 4.03M | 2.31M | 2.5M | 3.27M | 2.9M | 2.26M | 1.05M | 2.33M | 2.7M | 2.2M | 2.4M |
| Operating CF Margin % | - | 17.19% | 19.42% | 20.41% | 12.77% | 21.28% | 27.68% | 22.57% | 29.63% | 25.8% | 8.27% | 19.97% | 15.16% | 23.47% | 24.55% | 31.53% | 27.03% | 27.27% | 23.57% | 23.6% | 23.38% | 19.91% | 24.91% | 35.86% | 31.92% | 24.95% | 11.49% | 26.9% | 33.33% | 27.85% | 30.77% |
| Operating CF Growth % | 746.38% | -8.5% | 6.06% | 57.71% | -28.66% | 5.8% | 39.59% | -13.08% | 23.13% | 220.18% | -54.15% | 56.28% | -12.58% | 8.52% | -8.7% | 40.75% | 48.38% | 17.83% | 9.94% | 14.48% | 74.85% | -7.8% | -23.59% | 12.91% | 28.45% | 115.77% | -55.08% | -13.76% | 22.73% | -8.33% | 41.18% |
| Net Income | 4.8M | 6.71M | -1.97M | -254.25M | 930K | 1.87M | 3.27M | 1.35M | 7.48M | -2.96M | 11.18M | 11.17M | 9.58M | 9M | 8.45M | 7.92M | 6.18M | 4.77M | 4.79M | 4.61M | 3.96M | 2.81M | 2.31M | 2.13M | 2.13M | 2.03M | 1.83M | 2.11M | 2.1M | 2.1M | 1.7M |
| Depreciation & Amortization | -312K | 23.27M | 24.53M | 31.57M | 33.13M | 25.07M | 17.66M | 12.99M | 9.43M | 9.47M | 8.74M | 7.17M | 5.66M | 3.84M | 3.43M | 2.21M | 1.84M | 786K | 788K | 742K | 669K | 93K | 90K | 97K | 115.35K | 115.09K | 521.69K | 332.59K | 200K | 200K | 200K |
| Stock-Based Compensation | -1.52M | 17.87M | 13.14M | 11.94M | 12.54M | 11.39M | 9.27M | 5.53M | 4.21M | 1.67M | 1.41M | 1.33M | 993K | 840K | 1.11M | 464K | 383K | 282K | 276K | 246M | 216M | 97K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | -1.29M | -72K | -28.42M | -3.49M | 128K | -3.5M | -1.97M | -2.47M | -2.7M | -630K | -807K | 450K | -43K | -291K | -258K | -414K | 92K | 116K | 9K | -243K | 37K | 31K | 108K | 31.44K | 20.57K | -107.14K | 50.45K | 0 | 0 | 0 |
| Other Non-Cash Items | 50.95M | 1.26M | 4.28M | 277.32M | 1.99M | 7.96M | 5.12M | 11.8M | 4.01M | 16.1M | 93K | 53K | -160K | -420K | 146K | 350K | 10K | -60K | 80K | -245.75M | -215.63M | 85K | 40K | -65K | 45K | -22K | 103.97K | -12K | 200K | 0 | 0 |
| Working Capital Changes | 8.4M | -4.99M | 6.9M | 5.97M | -17.11M | -7.19M | 5.25M | -3.14M | 7.89M | 3.24M | -13.04M | -2.01M | -5.71M | -848K | -1.3M | 1.8M | 867K | 111K | -975K | -991K | -723K | -811K | 28K | 1M | 580.01K | 112.06K | -1.3M | -149.1K | 200K | -100K | 500K |
| Change in Receivables | -16.42M | -3.21M | -2.92M | 4.94M | -2.12M | -6.75M | -647K | -1.67M | 1.59M | 680K | 994K | -1.96M | -2.29M | 697K | -1.51M | 493K | -965K | -43M | -494M | -82M | -703M | -503M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -2.68M | -4.43M | 1.15M | 2.56M | -10.18M | -1.04M | 929K | 414K | 2.57M | 2.29M | 295K | -1.2M | -3.16M | -1.3M | -228K | 1.28M | -72K | -143K | -479K | -723K | -397K | -468K | 123K | 285K | 54.09K | -244 | -501.79K | 252.19K | 100K | 0 | 100K |
| Change in Payables | 1.01M | -1.2M | -388K | -97K | -1.54M | 1.37M | 967K | -61K | 1.09M | 212K | -655K | -150K | 410K | 754K | 437K | -150K | -1K | 184K | 123K | -84M | -33M | 28M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -2.8M | -3.25M | -4.5M | -81.31M | -9.49M | -305.23M | -1.99M | -185.59M | -3.88M | -17.18M | -18.41M | -31.84M | -23.37M | -23.14M | -17.57M | -1.42M | -20.67M | -3.16M | -531K | -352K | -3.53M | 544K | 124K | -2.13M | -64.93K | -41.82K | -80.05K | -4.19M | 2M | -2.3M | -200K |
| Capital Expenditures | 450K | -3.25M | -4.25M | -2.57M | -4.54M | -4.43M | -1.99M | -1.5M | -1.26M | -2.8M | -11.61M | -7.73M | -2.83M | -1.04M | -908K | -683K | -2.65M | -3.16M | -676K | -352K | -1.78M | -115K | -70K | -34K | -64.93K | -41.82K | -80.05K | -4.1M | 0 | -200K | -100K |
| CapEx % of Revenue | 0.18% | 1.3% | 1.76% | 1.19% | 2.07% | 2.4% | 1.49% | 1.27% | 1.22% | 2.91% | 12.39% | 9.13% | 3.96% | 1.97% | 1.96% | 1.72% | 8.06% | 14.43% | 3.14% | 1.8% | 10.32% | 0.99% | 0.7% | 0.37% | 0.71% | 0.46% | 0.88% | 47.39% | - | 2.53% | 1.28% |
| Acquisitions | 0 | 0 | 0 | -78.74M | -4.95M | -300.79M | 0 | -184.1M | -4.84M | -15.52M | -6.8M | -24.11M | -20.54M | -22.76M | -16.66M | -737K | -17.97M | 0 | 0 | 0 | -3M | -659M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -3.25M | 0 | -250K | 0 | 0 | 0 | 0 | 15K | 2.22M | 1.13M | -6.8M | -31.84M | -20.54M | 661K | -16.66M | -737K | -56K | -3.16B | 145K | -145M | -1.75B | 659M | 0 | 0 | 0 | 0 | 0 | -83.13K | 0 | -100K | -100K |
| Cash from Financing | -43.92M | -41.85M | -44.51M | 32.84M | -33.33M | 52.58M | 146.23M | 231.28M | -21.67M | -8.12M | 10.71M | 18.62M | 9.07M | 12.33M | 2.98M | -7.42M | 4.88M | -1.46M | -1.2M | -1.84M | -1.62M | -3.36M | -2.32M | -1.23M | -1.53M | -1.07M | -1.5M | -1.97M | -1.4M | -500K | -200K |
| Debt Issued (Net) | -20.26M | -26.75M | -42.35M | 37.5M | -36M | 49M | 0 | 149.5M | -23.63M | -8.63M | 9.55M | 19M | 9.75M | 12.5M | 4M | -6.5M | 6.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -168.69K | 0 | 0 | -300K |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 145.94M | 89.94M | 5.09M | 0 | 3.51M | 0 | 0 | -22K | -102K | 721K | 91K | -265K | 33K | -729K | -349K | -1.81M | -1.03M | -502K | -1.53M | -1.07M | -1.5M | -1.8M | -1.3M | -500K | 100K |
| Dividends Paid | -3.53M | -3.52M | -3.47M | -3.45M | -3.41M | -3.34M | -3.17M | -2.72M | -2.46M | -2.41M | -2.35M | -2.3M | -2.18M | -1.99M | -1.81M | -1.65M | -1.49M | -1.34M | -1.27M | -1.14M | -1.27M | -1.55M | -1.28M | -770K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.09M | 0 | 0 | 0 | 0 | -22K | -98K | -92K | -105K | -265K | -132K | -831K | -480K | -1.99M | -1.16M | -800K | -1.62M | -1.1M | -1.54M | -1.88M | -1.4M | -600K | 0 |
| Other Financing | -20.14M | -11.58M | 1.3M | -1.22M | 6.08M | 6.92M | 3.46M | -5.44M | -680K | 2.92M | 0 | 1.92M | 1.5M | 1.84M | 898K | 0 | -227K | 152K | 36K | 29K | 0 | 0 | 0 | 40K | 0 | 0 | 0 | 0 | -100K | 0 | 0 |
| Net Change in Cash | 9.42M | -393K | -893K | -4.7M | -16.44M | -214.52M | 182.49M | 71.19M | 4.72M | -351K | 125K | 3.66M | -3.54M | 1.57M | -3.19M | 3.65M | -6.92M | 1.36M | 3.34M | 2.42M | -1.12M | -512K | 308K | -91K | 1.3M | 1.15M | -532.94K | -3.83M | -1.4M | -500K | -200K |
| Free Cash Flow | 56.12M | 39.58M | 42.31M | 41.57M | 23.44M | 34.79M | 35.08M | 25.06M | 29.29M | 22.02M | -3.85M | 9.17M | 7.99M | 11.33M | 10.49M | 11.81M | 6.23M | 2.82M | 4.4M | 4.26M | 2.25M | 2.19M | 2.43M | 3.24M | 2.83M | 2.21M | 965.83K | -1.77M | 2.7M | 2M | 2.3M |
| FCF Margin % | 22.47% | 15.89% | 17.56% | 19.23% | 10.7% | 18.87% | 26.19% | 21.29% | 28.4% | 22.89% | -4.12% | 10.84% | 11.2% | 21.49% | 22.6% | 29.8% | 18.97% | 12.84% | 20.43% | 21.8% | 13.06% | 18.92% | 24.21% | 35.49% | 31.2% | 24.49% | 10.61% | -20.49% | 33.33% | 25.32% | 29.49% |
| FCF Growth % | 66.78% | -6.45% | 1.79% | 77.34% | -32.63% | -0.83% | 39.98% | -14.44% | 33.05% | 671.08% | -142.02% | 14.85% | -29.51% | 7.99% | -11.11% | 89.56% | 121.16% | -35.99% | 3.17% | 89.34% | 2.78% | -9.87% | -24.95% | 14.3% | 27.94% | 129.32% | 154.46% | -165.69% | 35% | -13.04% | 76.92% |
| FCF per Share | 9.75 | 7.11 | 7.79 | 7.72 | 4.37 | 6.52 | 6.85 | 5.73 | 7.26 | 5.84 | -1.00 | 2.44 | 2.19 | 3.14 | 2.92 | 3.41 | 1.87 | 0.86 | 1.36 | 1.30 | 0.70 | 0.72 | 0.78 | 1.03 | 0.86 | 0.64 | 0.26 | -0.46 | 0.65 | 0.45 | 0.51 |
| FCF Conversion (FCF/Net Income) | 11.69x | 6.38x | -23.71x | -0.17x | 30.09x | 20.96x | 11.32x | 14.94x | 4.08x | -8.38x | 0.69x | 1.51x | 1.13x | 1.37x | 1.35x | 1.58x | 1.44x | 1.25x | 1.06x | 1.00x | 1.02x | 0.82x | 1.08x | 1.54x | 1.36x | 1.11x | 0.57x | 1.11x | 1.29x | 1.05x | 1.41x |
| Interest Paid | 0 | 0 | 11.08M | 4.65M | 3.48M | 2.76M | 2.37M | 1.63M | 1.64M | 1.96M | 1.38M | 848K | 499K | 133K | 116K | 176K | 141K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 5.73M | 4.59M | 1.36M | 3.05M | 1.37M | 2.63M | 5.87M | -4.55M | 5.61M | 3.95M | 3.35M | 4.71M | 4.78M | 4.46M | 3.53M | 2.5M | 2.67M | 2.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying MLAB stock.
Mesa Laboratories, Inc. (MLAB) generated $42.8M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Mesa Laboratories, Inc. (MLAB) generated $39.6M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Mesa Laboratories, Inc. (MLAB) spent $3.3M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Mesa Laboratories, Inc. (MLAB) returned $3.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Persistent Earnings-Cash Flow Disconnect
Metrics are mathematically derived from official filings.
Robust Cash Conversion Amid Net Losses
Operating cash flow has consistently exceeded net income, with an OCF/NI ratio of 5.21 in Q1 2027, suggesting strong underlying cash generation despite reported losses in multiple recent quarters.
The significant disconnect between net income and operating cash flow, where OCF has been positive in every quarter including periods of net loss (e.g., -$4.1M NI in Q4 2026 vs. $14.0M OCF), indicates heavy reliance on non-cash charges like depreciation and stock-based compensation. This pattern, consistent with the prior analysis of distorted earnings, implies that the company's core operations are cash-generative, but reported profitability is being severely masked by accounting items. Investors should monitor whether this strong cash conversion can persist if non-cash adjustments moderate.
Free Cash Flow Volatility Amid Stable Margins
FCF margin has been volatile, ranging from 1.5% to 28.0% over the past ten quarters, yet has recently stabilized above 20%, indicating strong but inconsistent cash generation relative to revenue.
The erratic FCF margin trajectory, swinging from a low of 1.5% in Q1 2026 to a high of 28.0% in Q3 2025, appears driven primarily by swings in working capital rather than fundamental shifts in operational cash generation. The recent quarters showing FCF margins above 20% suggest the company has achieved a higher cash conversion baseline, but the sharp decline to 6.0% in Q2 2025 underscores the sensitivity to working capital cycles. This volatility complicates forecasting and suggests the company's cash flow is not yet on a stable, predictable growth path.
Working Capital as Primary Cash Flow Driver
Working capital changes have been the dominant factor in operating cash flow volatility, swinging from a $10.0M source in Q3 2026 to a $8.0M use in Q1 2026.
The extreme swings in working capital, which have accounted for the majority of the variance in quarterly operating cash flow, suggest a highly seasonal or lumpy business cycle for inventory and receivables. The large positive working capital contributions in quarters like Q4 2024 ($8.6M) and Q3 2026 ($10.0M) appear to be timing-related releases, which are not sustainable cash sources. This reliance on working capital management for strong OCF quarters, coupled with the prior finding of erratic profitability, indicates the company's cash flow quality is dependent on cyclical collection and payment patterns.
Disciplined Capital Allocation to Dividends
Dividends paid have remained stable at approximately $0.87-0.88 million per quarter, representing a modest but consistent cash outflow that is easily covered by operating cash flow.
The consistent dividend payment, which has grown marginally from $0.864M in Q4 2024 to $0.884M in Q1 2027, indicates a commitment to returning cash to shareholders despite volatile earnings. Given that the dividend is covered by OCF in every quarter (often multiple times over), this deployment does not appear to strain the balance sheet. However, the lack of any share repurchases or significant acquisition activity (only a net $0.961M in Q4 2024) suggests management is prioritizing liquidity and dividend stability over aggressive growth-oriented capital deployment.
Stock-Based Compensation Cash Reality
Stock-based compensation, a non-cash expense added back to operating cash flow, was a massive -$11.1M in Q4 2026, representing a significant future cash obligation via share dilution.
The large negative SBC figure in Q4 2026 is particularly notable because it appears as a debit in the cash flow statement, implying a large non-cash charge to income that was added back. While this temporarily inflates operating cash flow relative to net income, it creates a future economic cost in the form of share dilution. When combined with the volatile depreciation and amortization figures (e.g., -$17.5M in Q4 2026), these non-cash items can obscure the true recurring cash cost of running the business, a point that aligns with the prior analysis of distorted net income.