Cash generation remains inconsistent, as demonstrated by the operating cash flow to net income ratio fluctuating between a low of 0.25 in 2024Q4 and a high of 1.91 in 2025Q2.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | 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 | 4.02M | 3.99M | 4.11M | 4.1M | 4.56M | 6.9M | 6.5M | 6.68M | 4.4M | 2.75M | 5.24M | 6.3M | 3.84M | 5.19M | 4.94M | 4.38M | 6.3M | 6.27M | 4.11M | 4.67M | 593K | 861K | 7.67M | 2.84M | 1.7M | -1.98M | 2.42M | 1.03M |
| Operating CF Margin % | - | 20.49% | 19.18% | 18.97% | 21.15% | 26.2% | 27.8% | 29.48% | 24.27% | 15.2% | 29.05% | 30.09% | 15.35% | 28.08% | 24.42% | 23.19% | 31.7% | 35.65% | 21.12% | 25.32% | 2.96% | 5.52% | 43.08% | 21.96% | 17% | -18.93% | 15.51% | 12.55% |
| Operating CF Growth % | 289.09% | -3.11% | 0.34% | -10.05% | -33.92% | 6.14% | -2.72% | 51.77% | 60.31% | -47.64% | -16.72% | 63.94% | -25.99% | 5.15% | 12.57% | -30.44% | 0.61% | 52.38% | -11.97% | 687.69% | -31.13% | -88.77% | 169.98% | 67.02% | 185.82% | -181.87% | 135.28% | - |
| Net Income | 2.98M | 2.6M | 4.63M | 5.17M | 5.29M | 5.95M | 5.38M | 5.07M | 5.13M | 5.61M | 4.2M | 5.02M | 5.48M | 2.19M | 4.28M | 4.29M | 4.86M | 19.79M | -6.42M | -11.96M | 909K | 4.06M | 6.88M | 3.63M | 334K | -4.39M | 3.75M | 1.51M |
| Depreciation & Amortization | 265K | 270K | 186K | 196K | 193K | 194K | 200K | 151K | 84K | 104K | 161K | 173K | 233K | 250K | 270K | 295K | 582K | 778K | 1.09M | 950K | 1.39M | 987K | 680K | 806K | 944K | 805K | 379K | 196K |
| Stock-Based Compensation | 96K | 0 | 252K | 281K | 258K | 171K | 213K | 200K | 224K | 182K | 136K | 138K | 72K | 58K | 80K | 393K | 139K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -76.89K | -99K | -43K | 6K | 7K | -96K | -128K | -2K | -2K | 63K | 146K | -46K | 101K | -157K | 138K | -277K | 0 | 113K | 248K | 78K | -293K | 0 | 0 | -8K | 16K | -4K | -485K | 294K |
| Other Non-Cash Items | 224.63K | 251K | 35K | 38K | 86K | 78K | 42K | -6K | 159K | -983K | -16K | 203K | 33K | 79K | 182K | -49K | 1.11M | 39K | 8.19M | 15.48M | 501K | -189K | 195K | -2M | -1.48M | -2K | 479K | 172K |
| Working Capital Changes | 533.25K | 960K | -946K | -1.59M | -1.27M | 604K | 789K | 1.27M | -1.2M | -2.23M | 614K | 811K | -2.08M | 2.77M | -12K | -268K | -385K | 2.98M | 1.01M | 108K | -1.91M | -4M | -82K | 415K | 1.89M | 1.11M | -1.7M | -1.15M |
| Change in Receivables | 334.25K | 1.5M | -4K | -549K | -666K | 243K | 1.07M | 805K | -750K | 574K | 1.15M | 352K | -1.35M | -390K | 913K | -168K | -559K | 2.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 177K | 1.09M | 1K | 4K | 1K | 1.01M | 3K | 16K | 1K | 4K | 2K | 8K | -9K | -5K | -12K | -7K | 3K | 12K | -6K | 17K | 51K |
| Change in Payables | -82.16K | -325K | -173K | 20K | 139K | -363K | -901K | 138K | 34K | 62K | -186K | 99K | -387K | 412K | -639K | 505K | -207K | -19K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 1.41M | 4.27M | 2.29M | -1.54M | 1.83M | -5.69M | -34K | 2.04M | -917K | -777K | -2.45M | 2.67M | 118K | -5.78M | -1.07M | -2.58M | -1.06M | 15.73M | -442K | 7.19M | 19.66M | -4.55M | 8.8M | -7.19M | -30.13M | -1.7M | -815K | -1.11M |
| Capital Expenditures | -24.72K | -27K | -10K | -64K | -130K | -82K | -68K | -52K | -46K | -71K | -68K | -146K | -201K | -240K | -169K | -401K | -171K | -367K | -436K | -445K | -379K | -589K | -1.23M | -499K | -180K | -831K | -1.35M | -526K |
| CapEx % of Revenue | 0.13% | 0.14% | 0.05% | 0.3% | 0.6% | 0.31% | 0.29% | 0.23% | 0.25% | 0.39% | 0.38% | 0.7% | 0.8% | 1.3% | 0.84% | 2.12% | 0.86% | 2.09% | 2.24% | 2.41% | 1.89% | 3.78% | 6.89% | 3.86% | 1.8% | 7.94% | 8.68% | 6.42% |
| Acquisitions | -22.93K | -1.53M | 0 | 0 | 0 | 0 | 0 | -2.31M | 105K | 1.17M | 0 | 0 | 0 | 0 | 84K | -1.56M | 0 | 194K | 0 | -4.98M | 162K | -4.23M | 145K | 109K | 0 | -1M | 0 | -1.41M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 1.25M | -48K | -55K | -53K | -61K | -86K | -126K | -139K | -105K | 93K | 82K | -32K | -109K | -136K | -174K | 1.64M | -168K | -416K | -6K | 119K | -119K | 269K | -120K | -105K | 49K | 130K | 540K | 19K |
| Cash from Financing | -4.9M | -4.63M | -4.87M | -4.84M | -5.23M | -5.2M | -4.78M | -5.06M | -5.76M | -6.12M | -5.11M | -5.59M | -4.12M | -4.46M | -4.46M | -5.57M | -3.61M | -15.95M | -5.95M | -4.22M | -2.86M | -4.82M | -2.17M | -2.58M | 19K | 33K | 39.12M | 1.92M |
| Debt Issued (Net) | 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 |
| Equity Issued (Net) | -329.88K | -130K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.17M | -1.63M | 95K | 149K | 322K | 563K | 354K | 19K | 33K | 41.13M | 2.31M |
| Dividends Paid | -4.57M | -4.5M | -4.87M | -4.84M | -5.23M | -5.2M | -4.78M | -5.06M | -5.8M | -6.17M | -5.19M | -5.76M | -4.54M | -4.53M | -4.5M | -5.97M | -3.69M | -14.78M | -4.32M | -4.32M | -3.01M | -5.14M | -2.74M | -2.93M | 0 | 0 | -2.01M | -393K |
| Share Repurchases | -329.88K | -130K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.17M | -1.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 39K | 53K | 85K | 171K | 424K | 73K | 41K | 399K | 75K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 360K | 3.66M | 1.49M | -2.31M | 1.08M | -4.08M | 1.78M | 3.68M | -2.27M | -4.15M | -2.31M | 3.38M | -112K | -5.1M | -556K | -3.72M | 1.59M | 6.27M | -2.67M | 7.62M | 17.4M | -8.51M | 14.3M | -6.92M | -28.41M | -3.65M | 40.73M | 1.84M |
| Free Cash Flow | 4M | 3.96M | 4.1M | 4.04M | 4.43M | 6.82M | 6.43M | 6.63M | 4.36M | 2.67M | 5.18M | 6.15M | 3.64M | 4.95M | 4.77M | 3.98M | 6.13M | 5.9M | 3.68M | 4.23M | 214K | 272K | 6.44M | 2.34M | 1.52M | -2.81M | 1.07M | 503K |
| FCF Margin % | 20.46% | 20.35% | 19.14% | 18.67% | 20.55% | 25.89% | 27.51% | 29.25% | 24.02% | 14.81% | 28.67% | 29.39% | 14.55% | 26.79% | 23.59% | 21.06% | 30.84% | 33.57% | 18.88% | 22.91% | 1.07% | 1.74% | 36.19% | 18.1% | 15.2% | -26.87% | 6.83% | 6.14% |
| FCF Growth % | 2.36% | -3.53% | 1.68% | -8.85% | -35.04% | 5.99% | -2.99% | 52.18% | 62.84% | -48.32% | -15.85% | 68.98% | -26.46% | 3.84% | 19.65% | -35.04% | 3.97% | 60.47% | -13.01% | 1874.77% | -21.32% | -95.78% | 175.15% | 53.98% | 154.07% | -363.88% | 111.93% | - |
| FCF per Share | 0.20 | 0.19 | 0.20 | 0.20 | 0.22 | 0.34 | 0.32 | 0.33 | 0.22 | 0.14 | 0.27 | 0.32 | 0.19 | 0.26 | 0.25 | 0.21 | 0.33 | 0.31 | 0.17 | 0.20 | 0.01 | 0.01 | 0.30 | 0.11 | 0.07 | -0.14 | 0.06 | 0.03 |
| FCF Conversion (FCF/Net Income) | 1.34x | 1.53x | 0.89x | 0.79x | 0.86x | 1.16x | 1.21x | 1.32x | 0.86x | 0.49x | 1.25x | 1.25x | 0.70x | 2.38x | 1.15x | 1.02x | 1.30x | 0.32x | -0.64x | -0.39x | 0.65x | 0.21x | 1.12x | 0.78x | 5.09x | 0.45x | 0.65x | 0.68x |
| Interest 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 |
| Taxes Paid | 0 | 0 | 393K | 419K | 413K | 903K | 454K | 12K | 19K | 935K | 841K | 414K | 1.27M | 95K | 113K | 72K | 190K | 85K | 111K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Revenue contraction and volatility
According to quarterly financial data, MNDO's operating cash flow to net income ratio has fluctuated significantly, ranging from a low of 0.25 in 2024Q4 to a high of 1.91 in 2025Q2, indicating inconsistent alignment between reported accounting profits and actual cash generation capabilities.
The wide variance in the OCF/NI ratio suggests that accrual-based accounting items, likely related to the timing of project-based billing milestones, are creating substantial noise in the reported earnings. Investors should monitor whether this volatility reflects genuine operational shifts or merely the inherent lumpiness of the company's software implementation cycles.
As reported in recent financial statements, MNDO's free cash flow margins have shown marked instability, swinging from a peak of 37.4% in 2024Q2 to a low of 5.9% in 2024Q4, which highlights the difficulty in maintaining consistent cash flow generation amidst a contracting revenue environment.
The inability to sustain high FCF margins suggests that the company's cost structure is not sufficiently flexible to offset revenue declines. This trend warrants further investigation into whether the current cash flow profile is sufficient to support the company's historical dividend policy without eroding the underlying cash balance.
Based on reported figures, working capital changes have been highly erratic, with quarterly swings ranging from a $1.1 million outflow in 2024Q4 to a $743,000 inflow in 2024Q2, suggesting that the company's cash cycle is heavily influenced by the timing of large client payments.
These fluctuations indicate that the company's cash position is vulnerable to the payment behaviors of its mid-market telecom clients. The lack of a predictable working capital trend may imply that the company lacks the leverage to enforce standardized payment terms, leading to periodic cash flow pressure.
As evidenced by historical filings, MNDO has prioritized returning capital to shareholders through significant dividend payments and occasional buybacks, despite the recent revenue contraction, which may indicate a management preference for value preservation over aggressive reinvestment in new growth initiatives or strategic acquisitions.
The decision to pay out substantial dividends during periods of revenue decline suggests a mature capital allocation strategy that may limit the company's ability to pivot toward new growth segments. Investors should monitor whether this commitment to shareholder returns remains sustainable if operating cash flow continues to exhibit its current volatility.
Quick answers to the most common questions about buying MNDO stock.
MIND C.T.I. Ltd (MNDO) generated $4.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
MIND C.T.I. Ltd (MNDO) generated $4.0M 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.
MIND C.T.I. Ltd (MNDO) 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.
In 2025, MIND C.T.I. Ltd (MNDO) returned $4.5M to shareholders via cash dividends and spent $0.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.