Free cash flow generation exhibits extreme volatility, with margins swinging from a peak of 40.9% in 2023Q4 to 14.3% in 2026Q1, largely driven by the lumpy nature of project-based billing cycles.
| 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 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 2.78B | 2.84B | 2.39B | 2.04B | 1.82B | 1.84B | 1.61B | 1.82B | 1.07B | 1.35B | 1.17B | 1B | -590M | 944M | 1.07B | 874M | 1.97B | 629M | 242M | 710M | 3.5B | 4.61B | 3.07B | 2.77B | 1.34B | 1.98B | -1.16B | 1.93B | 1.02B | 2.6B | 4.19B |
| Operating CF Margin % | - | 24.29% | 22.1% | 20.49% | 20.01% | 22.48% | 21.76% | 23.11% | 14.64% | 21.1% | 19.29% | 17.65% | -10.03% | 15.16% | 17.07% | 10.65% | 25.82% | 3.47% | 0.8% | 1.94% | 8.16% | 13.06% | 10.34% | 11.97% | 4.91% | 6.48% | -3.12% | 5.83% | 3.26% | 8.71% | 14.98% |
| Operating CF Growth % | 62.62% | 18.65% | 16.98% | 12.12% | -0.76% | 13.89% | -11.52% | 69.58% | -20.13% | 15.54% | 15.92% | 270.34% | -162.5% | -11.78% | 22.43% | -55.57% | 212.72% | 159.92% | -65.92% | -79.71% | -24.02% | 50.2% | 10.65% | 106.95% | -32.24% | 269.76% | -160.37% | 88.83% | -60.67% | -38.04% | 27.47% |
| Net Income | 2.09B | 2.15B | 1.58B | 1.71B | 1.37B | 1.25B | 953M | 871M | 969M | -151M | 562M | 643M | -696M | 1.1B | 878M | 741M | 271M | -88M | -4.24B | -49M | 3.66B | 4.6B | 2.19B | 893M | -2.48B | -3.94B | 1.32B | 817M | -962M | 1.18B | 1.15B |
| Depreciation & Amortization | 487M | 425M | 336M | 356M | 440M | 438M | 409M | 394M | 360M | 343M | 295M | 150M | 173M | 228M | 208M | 366M | 572M | 751M | 831M | 903M | 558M | 613M | 659M | 1.67B | 2.11B | 2.55B | 2.52B | 2.19B | 2.21B | 2.34B | 2.32B |
| Stock-Based Compensation | 327M | 293M | 243M | 212M | 172M | 129M | 129M | 118M | 73M | 66M | 68M | 78M | 94M | 153M | 184M | 168M | 273M | 296M | 280M | 315M | 276M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 77M | 94M | -215M | -32M | -334M | 34M | -25M | -84M | 9M | 1.1B | 213M | 160M | -557M | -231M | 242M | 63M | 346M | 50M | 1.7B | -747M | 838M | 1B | 456M | 1M | -1.57B | -2.27B | 239M | -415M | -933M | -98M | -160M |
| Other Non-Cash Items | 81M | 9M | 601M | 43M | 507M | 20M | 45M | 435M | 34M | 77M | 88M | -87M | 1.99B | -52M | -20M | 120M | 321M | -117M | 2.43B | 32M | -392M | -1.63B | 350M | -488M | 3.92B | 4.11B | 245M | 859M | 1.83B | -116M | -78M |
| Working Capital Changes | -289M | -138M | -156M | -244M | -329M | -34M | 102M | 89M | -370M | -89M | -61M | 61M | -1.59B | -259M | -422M | -584M | 184M | -263M | -757M | 256M | -1.44B | 45M | 69M | 698M | -636M | 1.53B | -5.49B | -1.53B | -1.13B | -709M | 958M |
| Change in Receivables | -215M | -173M | -246M | -180M | -112M | 3M | 90M | -79M | 62M | -60M | 32M | 21M | -62M | -66M | 81M | -250M | -311M | -10M | 1.89B | 2.54B | -1.77B | -539M | -539M | -54M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -282M | -145M | 62M | 200M | -242M | -284M | -14M | -74M | 71M | -46M | 6M | 16M | -5M | -10M | -3M | -14M | -267M | 1.35B | -54M | 556M | -718M | 23M | -433M | 77M | -102M | 1.84B | -2.31B | -661M | 254M | -880M | 308M |
| Change in Payables | 165M | 280M | 302M | -144M | 451M | 578M | -116M | 198M | 271M | 160M | 203M | 10M | -120M | -201M | -162M | -191M | -2.41B | -1.63B | -1.63B | -2.3B | 1.65B | 1.92B | 1.92B | 374M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -4.87B | -5.16B | -507M | -414M | -1.39B | -742M | -437M | -934M | -1.27B | -448M | -1B | -528M | 3.12B | 2.01B | 797M | 2.42B | 188M | -668M | 794M | 2.38B | -1.05B | -2.38B | -163M | -23M | -439M | 2.48B | -4.09B | -728M | -2.96B | -2.63B | -2.91B |
| Capital Expenditures | -290M | -265M | -257M | -253M | -256M | -243M | -217M | -248M | -197M | -227M | -271M | -175M | -181M | -191M | -187M | -186M | -335M | -275M | -504M | -527M | -649M | -583M | -494M | -655M | -607M | -1.32B | -4.13B | -2.68B | -3.22B | -2.87B | -2.97B |
| CapEx % of Revenue | 2.44% | 2.27% | 2.38% | 2.54% | 2.81% | 2.97% | 2.93% | 3.14% | 2.68% | 3.56% | 4.49% | 3.07% | 3.08% | 3.07% | 2.98% | 2.27% | 4.4% | 1.52% | 1.67% | 1.44% | 1.51% | 1.65% | 1.67% | 2.83% | 2.23% | 4.33% | 11.06% | 8.11% | 10.28% | 9.65% | 10.63% |
| Acquisitions | 451M | -4.9B | -290M | -180M | -1.18B | -521M | -287M | -709M | -1.16B | -404M | -1.47B | -586M | -47M | -65M | -109M | 1.09B | 106M | 265M | 133M | -4.57B | 933M | -312M | -476M | -302M | -94M | -512M | -1.91B | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -545M | -17M | 0 | 0 | -1.17B | -237M | -161M | -241M | -197M | -227M | -198M | -172M | -144M | -125M | 94M | -1.52B | -29M | 41M | 113M | -6.73B | -1.88B | 103M | 138M | 843M | 96M | 4.06B | 1.43B | 2.45B | 92M | 286M | 15M |
| Cash from Financing | 1.38B | 1.31B | -1.45B | -1.29B | -906M | -429M | -966M | -1.14B | 220M | -722M | -1.04B | -2.38B | -1.71B | -1.21B | -2.29B | -5.59B | -851M | -210M | -645M | -3.23B | -3.16B | -1.19B | -237M | -1.47B | -484M | -1.82B | 5.12B | 725M | 1.92B | -39M | -496M |
| Debt Issued (Net) | 2.96B | 3.15B | -618M | -1M | 310M | 491M | -22M | -561M | 598M | -11M | -13M | 967M | 910M | 589M | 334M | -1.22B | -1.02B | -218M | -268M | -213M | 48M | -1.12B | -2.77B | -1.14B | -521M | -1.83B | 5.07B | 51M | 2.11B | 110M | -242M |
| Equity Issued (Net) | -817M | -1.11B | -172M | -700M | -836M | -528M | -612M | -315M | 36M | -401M | -749M | -3.09B | -2.55B | -1.69B | -2.31B | -918M | 179M | 116M | 7M | -2.6B | -2.91B | 325M | 1.68B | 158M | 401M | 362M | 383M | 1.03B | 53M | 137M | 7M |
| Dividends Paid | -747M | -728M | -654M | -589M | -530M | -482M | -436M | -379M | -337M | -307M | -280M | -277M | -318M | -292M | -270M | -72M | -114M | -114M | -453M | -468M | -443M | -394M | -378M | -372M | -364M | -356M | -333M | -291M | -288M | -286M | -261M |
| Share Repurchases | -947M | -1.15B | -247M | -804M | -836M | -528M | -612M | -315M | -132M | -483M | -842M | -3.18B | -2.55B | -1.69B | -2.44B | -1.11B | 0 | 0 | -138M | -3.04B | -3.83B | -874M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -9M | -5M | -4M | -5M | 150M | 90M | 104M | 111M | -77M | -3M | 0 | 5M | 98M | 190M | -53M | -3.38B | 483M | 6M | 69M | -25M | 142M | 283M | 1.23B | -113M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -678M | -937M | 397M | 380M | -549M | 620M | 253M | -256M | -11M | 238M | -950M | -1.97B | 729M | 1.76B | -413M | -2.33B | 1.34B | -195M | 312M | -64M | -562M | 928M | 2.77B | 1.37B | 425M | 2.78B | -236M | 1.89B | 8M | -68M | 788M |
| Free Cash Flow | 2.49B | 2.57B | 2.13B | 1.79B | 1.57B | 1.59B | 1.4B | 1.57B | 878M | 1.12B | 894M | 830M | -771M | 753M | 883M | 688M | 1.63B | 354M | -262M | 183M | 2.85B | 4.02B | 2.57B | 2.12B | 732M | 655M | -5.29B | -756M | -2.2B | -278M | 1.22B |
| FCF Margin % | 20.96% | 22.02% | 19.73% | 17.95% | 17.2% | 19.51% | 18.83% | 19.97% | 11.96% | 17.54% | 14.81% | 14.57% | -13.11% | 12.09% | 14.09% | 8.39% | 21.43% | 1.95% | -0.87% | 0.5% | 6.65% | 11.41% | 8.67% | 9.14% | 2.68% | 2.15% | -14.18% | -2.29% | -7.02% | -0.93% | 4.35% |
| FCF Growth % | 9.56% | 20.52% | 19.15% | 14.29% | -1.69% | 14.18% | -11.37% | 79.38% | -21.54% | 25.17% | 7.71% | 207.65% | -202.39% | -14.72% | 28.34% | -57.84% | 361.02% | 235.11% | -243.17% | -93.58% | -29.14% | 56.38% | 21.55% | 189.07% | 11.76% | 112.37% | -600.4% | 65.64% | -691.37% | -122.84% | 229.74% |
| FCF per Share | 14.81 | 15.30 | 12.49 | 10.41 | 9.12 | 9.18 | 8.02 | 8.97 | 5.10 | 6.87 | 5.16 | 4.11 | -3.14 | 2.78 | 2.97 | 2.03 | 4.83 | 1.08 | -0.81 | 0.55 | 7.97 | 11.14 | 7.28 | 6.30 | 2.25 | 2.07 | -16.43 | -2.40 | -7.44 | -1.07 | 4.65 |
| FCF Conversion (FCF/Net Income) | 1.19x | 1.32x | 1.52x | 1.20x | 1.34x | 1.48x | 1.70x | 2.10x | 1.11x | -8.68x | 2.08x | 1.65x | -0.45x | 0.86x | 1.21x | 0.75x | 3.11x | -12.33x | -0.06x | -14.49x | 0.96x | 1.01x | 2.00x | 3.10x | -0.54x | -0.50x | -0.88x | 2.36x | -1.06x | 2.20x | 3.63x |
| Interest Paid | 256M | 0 | 253M | 234M | 226M | 207M | 217M | 221M | 204M | 176M | 191M | 163M | 128M | 122M | 109M | 166M | 240M | 320M | 252M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 530M | 0 | 627M | 587M | 307M | 257M | 181M | 138M | 119M | 122M | 66M | 105M | 105M | 246M | 127M | 107M | 259M | 159M | 407M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical Working Capital Volatility
As reported in financial statements, MSI's operating cash flow to net income ratio has fluctuated wildly, ranging from a low of -9.79 in 2024Q1 to a high of 2.09 in 2023Q4, suggesting that reported earnings are frequently decoupled from actual cash generation on a quarterly basis.
The significant variance in the OCF/NI ratio appears to be driven by the timing of large-scale project milestones and associated working capital swings. Investors should interpret this as a signal that quarterly net income is an unreliable proxy for immediate liquidity, necessitating a focus on multi-quarter cash averages.
Based on MSI's reported figures, free cash flow margins have demonstrated extreme seasonality, swinging from a low of 4.3% in 2024Q2 to a peak of 40.9% in 2023Q4, which highlights the company's vulnerability to the lumpy nature of government-contracted system deployments and service revenue recognition.
This volatility suggests that while the underlying business model is inherently cash-generative, the timing of cash inflows is highly dependent on project completion phases. The lack of a smooth FCF trajectory may complicate short-term valuation models that rely on consistent quarterly cash conversion.
According to recent SEC filings, MSI's working capital changes have been a primary driver of cash flow variance, with swings as large as a $511 million inflow in 2023Q4 followed by a $434 million outflow in 2024Q2, indicating significant reliance on project-based billing cycles.
These dramatic shifts in working capital suggest that the company's cash position is heavily influenced by the timing of municipal payments and inventory procurement for large systems. Analysts should monitor these fluctuations as they appear to be the primary mechanism behind the company's periodic cash flow compression.
As indicated by historical cash flow data, MSI consistently prioritizes shareholder returns, with combined dividend payments and share repurchases frequently exceeding $200 million per quarter, even during periods of significant working capital outflows, which suggests a high degree of confidence in long-term cash flow stability.
The commitment to returning capital appears to be a core pillar of management's strategy, though it warrants investigation into whether this pace is sustainable if project-based cash inflows face prolonged delays. The reliance on debt to fund these activities during lean cash quarters may introduce unnecessary balance sheet risk.
Based on reported figures, stock-based compensation has trended upward to $100 million in 2026Q1, representing a non-cash expense that effectively inflates reported net income while failing to account for the long-term dilution of shareholder value that is not captured in standard operating cash flow metrics.
This rising SBC expense suggests that the company's true economic profitability may be lower than reported net income implies. Investors should adjust cash flow models to treat these equity-based grants as a recurring cost of operations rather than a simple accounting add-back.
Quick answers to the most common questions about buying MSI stock.
Motorola Solutions, Inc. (MSI) generated $2.84B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Motorola Solutions, Inc. (MSI) generated $2.57B 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.
Motorola Solutions, Inc. (MSI) spent $265.0M 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, Motorola Solutions, Inc. (MSI) returned $728.0M to shareholders via cash dividends and spent $1.15B on share repurchases. This shows the company's commitment to returning capital to its equity investors.