Cash conversion efficiency remains inconsistent, evidenced by an OCF/NI ratio that swung from a negative -18.22 in 2025Q1 to a positive 4.78 in 2025Q3, reflecting significant volatility in working capital management.
| 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 |
|---|
| Cash from Operations | 21.94M | 22.68M | 31.46M | 20.16M | 22.29M | 25.84M | 29.98M | 28.4M | 28.32M | 9.89M | 8.49M | 3.67M | 4.84M | 8.88M | 6.11M |
| Operating CF Margin % | - | 8.82% | 11.79% | 7.87% | 9.61% | 12.58% | 17.59% | 14.44% | 15.33% | 6.93% | 7.42% | 3.59% | 5.95% | 12.92% | 10.34% |
| Operating CF Growth % | -102.77% | -27.91% | 56.05% | -9.56% | -13.76% | -13.79% | 5.54% | 0.29% | 186.48% | 16.37% | 131.66% | -24.22% | -45.51% | 45.26% | - |
| Net Income | 10.39M | 7.41M | 13.41M | 6.58M | -2.15M | 13.14M | -7.27M | 1.64M | 3.03M | -1.66M | -3.02M | -2.86M | 1.87M | 3.41M | 1.45M |
| Depreciation & Amortization | 21.81M | 20.85M | 21.76M | 21.57M | 22.57M | 20.52M | 19.67M | 19.28M | 17.29M | 12.63M | 8.37M | 6.71M | 4.57M | 3.19M | 2.91M |
| Stock-Based Compensation | 175K | 0 | 285K | 39K | -140K | -1.04M | 752K | 302K | 1.07M | 1.03M | 977K | 769K | 675K | 31K | 25K |
| Deferred Taxes | 15.61K | -428.4K | 0 | 71.5K | 975K | 591K | -948K | 2.6M | 426K | 534K | 1.71M | -388K | 387K | -7K | 173K |
| Other Non-Cash Items | 4.01M | 3.34M | -2.58M | 4.47M | 14K | -1.48M | 5.26M | 916K | 1.25M | 984K | 312K | -707K | -1.78M | 1.13M | 793K |
| Working Capital Changes | -14.08M | -8.49M | -1.42M | -12.58M | 1.02M | -5.89M | 12.51M | 3.67M | 5.26M | -3.64M | 139K | 146K | -883K | 1.13M | 759K |
| Change in Receivables | -6.76M | -2.57M | -1.04M | -3.27M | -6.33M | -10.92M | 9.2M | 216K | -3.16M | -6.51M | -6.46M | -6.64M | -5.75M | -2.53M | -1.36M |
| Change in Inventory | -3.82M | -868.32K | -372K | -789.48K | -5.01M | -1.42M | 2.72M | -745K | 812K | -984K | -2.48M | -1.67M | -311K | 159K | -487K |
| Change in Payables | -782.58K | -4.81M | 0 | -8.78M | 0 | 6.45M | 583K | 4.2M | 7.6M | 3.85M | 9.09M | 8.46M | 5.18M | 3.5M | 2.61M |
| Cash from Investing | -9.14M | -9.32M | -28.59M | -11.04M | -53.86M | -13.13M | -28.27M | -25.62M | -22.13M | -59.18M | -12.64M | -4.11M | -31.25M | -3.3M | -4.96M |
| Capital Expenditures | -14.26M | -15.62M | -24.65M | -9.23M | -21.61M | -11.72M | -17.65M | -13.47M | -20.11M | -32.01M | -14.58M | -10.55M | -10.5M | -2.95M | -5.05M |
| CapEx % of Revenue | 5.11% | 6.08% | 9.24% | 3.61% | 9.31% | 5.71% | 10.36% | 6.85% | 10.88% | 22.45% | 12.74% | 10.34% | 12.91% | 4.29% | 8.54% |
| Acquisitions | -79.46K | 373.65K | -2.67M | 0 | -29.29M | -875K | -8.33M | -7.49M | -2.67M | -27.67M | 2.02M | -3.93M | -10.86M | -365K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 5.2M | 5.93M | -1.27M | -1.8M | -2.96M | -536K | 3.78M | -4.38M | 5.15M | 502K | 1.94M | 1.37M | 943K | 13K | 85K |
| Cash from Financing | 16.56M | 18M | -27.64M | -22.37M | -22.51M | 71.16M | -16.89M | 10.78M | 65.23M | 38.04M | 9.27M | -1.79M | 62.06M | 729K | 2.38M |
| Debt Issued (Net) | 2.91M | 23M | -26.39M | -20.27M | -21.09M | -18.05M | -17.38M | 11.59M | 10.63M | 39.47M | 9.97M | -585K | -2.02M | 186K | 2.83M |
| Equity Issued (Net) | -2.32M | 0 | 0 | 0 | 23K | 88.12M | 4.11M | 0 | 60.49M | 0 | 0 | 0 | 70.48M | 0 | -615K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -2.32M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -615K |
| Other Financing | 15.96M | -5.01M | -1.25M | -2.1M | -1.45M | 1.09M | -3.62M | -810K | -5.89M | -1.43M | -709K | -1.2M | -6.41M | 543K | 166K |
| Net Change in Cash | 28.8M | 43.7M | -25.27M | -13.29M | -55.16M | 84.49M | -17.36M | 13.39M | 72.33M | -12.74M | 5.19M | -293K | 38.42M | 6.18M | 3.5M |
| Free Cash Flow | 6.82M | 9.14M | 5.08M | 8.4M | -2.48M | 14.12M | 12.33M | 12.74M | 8.21M | -22.13M | -6.08M | -6.88M | -5.67M | 5.93M | 1.07M |
| FCF Margin % | 2.44% | 3.56% | 1.9% | 3.28% | -1.07% | 6.87% | 7.23% | 6.48% | 4.45% | -15.52% | -5.31% | -6.74% | -6.96% | 8.63% | 1.81% |
| FCF Growth % | 17.1% | 79.95% | -39.51% | 437.91% | -117.6% | 14.56% | -3.23% | 55.05% | 137.13% | -263.69% | 11.58% | -21.47% | -195.48% | 456.05% | - |
| FCF per Share | 0.12 | 0.15 | 0.09 | 0.14 | -0.04 | 0.25 | 0.23 | 0.24 | 0.16 | -0.47 | -0.13 | -0.15 | -0.13 | 0.14 | 0.03 |
| FCF Conversion (FCF/Net Income) | 0.66x | 3.06x | 2.34x | 3.00x | -10.50x | 1.96x | -4.26x | 17.91x | 9.36x | -5.97x | -2.81x | -1.31x | 2.35x | 2.53x | 3.94x |
| Interest Paid | 0 | 0 | 1.34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Operating margin volatility
As reported in financial statements, Materialise exhibits significant volatility in its cash conversion, with the OCF/NI ratio swinging from a negative -18.22 in 2025Q1 to a positive 4.78 in 2025Q3, highlighting a disconnect between accounting profits and the actual cash generated by core operations.
The wide variance in the relationship between net income and operating cash flow suggests that accruals and non-cash adjustments play a disproportionate role in the company's reported profitability. Investors should monitor whether this instability stems from lumpy revenue recognition in the software segment or timing differences in the manufacturing business.
Based on the company's reported figures, free cash flow margins have fluctuated wildly, ranging from a high of 11.9% in 2025Q1 to a low of -7.3% in 2025Q2, indicating that the business struggles to maintain consistent cash generation across its diverse operational segments.
The inability to sustain positive free cash flow suggests that the company's high fixed-cost base often overwhelms its cash-generating capacity during periods of revenue softness. This trajectory implies that the firm remains vulnerable to cyclical downturns that disrupt the conversion of gross profit into meaningful free cash flow.
According to recent SEC filings, Materialise's capital expenditure as a percentage of revenue has varied significantly, peaking at 11.6% in 2024Q2, which reflects the ongoing requirement to maintain and upgrade its specialized 3D printing hardware infrastructure to remain competitive in the industrial manufacturing space.
The persistent level of capital spending relative to revenue suggests that the manufacturing segment requires constant reinvestment to offset the depreciation of its hardware fleet. This capital intensity acts as a structural drag on free cash flow, limiting the company's ability to pivot toward a purely software-driven model.
As evidenced by the quarterly data, working capital changes have been highly erratic, with a significant outflow of $9.0 million in 2023Q4 followed by a $3.8 million inflow in 2025Q1, suggesting that the company faces challenges in managing its cash conversion cycle effectively.
These swings in working capital likely reflect the lumpy nature of project-based manufacturing contracts and the timing of software license renewals. The lack of a predictable working capital trend warrants further investigation into the company's accounts receivable and inventory management practices, which appear to be primary drivers of cash flow volatility.
Quick answers to the most common questions about buying MTLS stock.
Materialise N.V. (MTLS) generated $22.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Materialise N.V. (MTLS) generated $9.1M 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.
Materialise N.V. (MTLS) spent $15.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.