Free cash flow generation has improved significantly, reaching a 22.7% margin in 2026Q2, supported by an OCF/NI ratio of 1.70 that highlights strong underlying cash conversion.
| Metric | TTM | Oct'25 | Sep'24 | Sep'23 | Sep'22 | Oct'21 | Oct'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 |
|---|
| Cash from Operations | 251.61M | 235.37M | 162.64M | 166.92M | 176.98M | 148.41M | 171.4M | 20.7M | 36.29M | 61.05M | 79.23M | 33.68M | 25M | 36.8M | 35.19M | 32.81M | 20.73M | 10.72M |
| Operating CF Margin % | - | 24.33% | 22.29% | 25.74% | 26.21% | 24.45% | 32.34% | 4.14% | 6.36% | 8.74% | 14.56% | 8.01% | 5.97% | 11.55% | 11.65% | 10.57% | 7.97% | 10.44% |
| Operating CF Growth % | 102.67% | 44.72% | -2.56% | -5.69% | 19.25% | -13.41% | 728% | -42.96% | -40.55% | -22.95% | 135.26% | 34.72% | -32.07% | 4.57% | 7.26% | 58.25% | 93.35% | - |
| Net Income | 176.75M | -54.21M | 76.86M | 91.58M | 439.95M | 37.97M | -46.08M | -386.2M | -139.98M | -169.49M | 1.43M | 48.59M | -15.32M | 27.71M | -1.02M | -1.02M | 7.03M | 4.19M |
| Depreciation & Amortization | 63.51M | 63.3M | 67.25M | 52.15M | 57.23M | 69.95M | 78.83M | 104.42M | 112.38M | 93M | 70.59M | 54.71M | 52.67M | 13.67M | 12.23M | 10.41M | 11.13M | 6.2M |
| Stock-Based Compensation | 57.21M | 86.14M | 45.64M | 38.1M | 41.19M | 35M | 35.67M | 23.79M | 31.94M | 36.34M | 26.95M | 19.43M | 11.28M | 6.1M | 3.76M | 1.56M | 1.54M | 868K |
| Deferred Taxes | 12.03M | 2.64M | 4.95M | 19.8M | -200.43M | 2.52M | 3.34M | -38.89M | -16.53M | 92.17M | -9.94M | 7.83M | -13.33M | -4.65M | 2.01M | -9.07M | 1.25M | -386K |
| Other Non-Cash Items | 12.01M | 175.3M | -1.03M | -6.95M | -114.26M | 28.89M | 24.12M | 284.54M | 25.88M | 31.87M | 31.2M | -36.19M | 6.96M | -1.68M | 37.29M | 45.16M | 4.14M | -23.23M |
| Working Capital Changes | -69.91M | -37.79M | -31.03M | -27.77M | -46.69M | -25.93M | 75.52M | 33.04M | 22.6M | -22.83M | -41.02M | -60.7M | -17.26M | -4.35M | -19.09M | -14.22M | -4.36M | 23.08M |
| Change in Receivables | -28.21M | -41.98M | -16.8M | 12.25M | -16.98M | -38.69M | 23.91M | 27.59M | 38.68M | -15.75M | -17.21M | -13.09M | 2.22M | -8.78M | -7.97M | -690K | -2.28M | -2.73M |
| Change in Inventory | -25.99M | -26.56M | -30.23M | -10.57M | -32.26M | 8.89M | 16.3M | 14.96M | -2.17M | -4.09M | -24.71M | 92K | -9.59M | 3.46M | -4.98M | -7.12M | -2.98M | 4.58M |
| Change in Payables | 1.94M | 22.21M | 18.23M | -21.32M | 2.38M | 5.81M | -1.6M | -12.22M | -2.61M | 3.45M | -1.07M | -1.86M | -7.14M | -3.49M | 7.16M | 1.55M | 3.21M | 2.1M |
| Cash from Investing | -87.61M | -328.26M | -181.13M | 36.34M | -182.86M | -2.58M | -107.19M | -33.89M | -67.12M | -337.57M | -94.86M | -207.43M | -264.97M | -12.67M | -15.68M | -8.55M | -5.88M | -24.2M |
| Capital Expenditures | -58.27M | -42.55M | -22.44M | -24.7M | -26.51M | -17.95M | -17.57M | -37.96M | -53.04M | -32.8M | -32.1M | -41.6M | -22.46M | -12.67M | -15.68M | -9.78M | -5.88M | -2.62M |
| CapEx % of Revenue | 5.43% | 4.4% | 3.08% | 3.81% | 3.93% | 2.96% | 3.32% | 7.6% | 9.3% | 4.69% | 5.9% | 9.89% | 5.37% | 3.97% | 5.19% | 3.15% | 2.26% | 2.55% |
| Acquisitions | 0 | -12.68M | -72.61M | -87.69M | 127.75M | 194.22M | 11M | 5.17M | -1M | -270.01M | -85.52M | -127.14M | -237.25M | 0 | 0 | -1.81M | 0 | -21.59M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -315.29M | -40.82M | -4.33M | -507.82M | -244.62M | 284K | -183.46M | -173.02M | -94.36M | -18.82M | 43.82M | -1.5M | 17.49M | -897K | 0 | 3.04M | 0 | 0 |
| Cash from Financing | -176.88M | 58.1M | -9.06M | -149.02M | -28.91M | -119.09M | -10.72M | -5.83M | -4.45M | 73.65M | 227.35M | 122.41M | 303.38M | 1.78M | 19.34M | -2.54M | -6.26M | 25.12M |
| Debt Issued (Net) | -163.25M | 90.94M | -1.43M | -121.97M | -957K | -96.69M | -8.59M | -8.31M | -3.6M | 90.67M | 233.55M | -5M | 305.58M | 0 | -6.53M | -31.43M | -5.44M | 118K |
| Equity Issued (Net) | 5.98M | -32.85M | -14.22M | -32.62M | -36M | -23.44M | -6.71M | 3.06M | -6.83M | -18.53M | -9.99M | 119.14M | -1.28M | -77K | 37.49M | 118.68M | 367K | 25M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -507K | -79.14M | 0 | 0 |
| Share Repurchases | -4.9M | -43.13M | -14.22M | -32.62M | -36M | -23.44M | -6.71M | -4.14M | -6.83M | -18.53M | -9.99M | -8.63M | -1.28M | -77K | -685K | 0 | 0 | 0 |
| Other Financing | -19.62M | 0 | 6.59M | 5.57M | 8.05M | 1.03M | 4.58M | -578K | 5.97M | 1.51M | 3.8M | 8.28M | -1.94M | 3.39M | -6.09M | -10.66M | -1.19M | 0 |
| Net Change in Cash | -12.4M | -34.66M | -27.15M | 54M | -36.59M | 27.1M | 53.92M | -19.16M | -35.43M | -202.87M | 210.66M | -51.58M | 63.41M | 25.92M | 38.86M | 21.72M | 8.59M | 11.64M |
| Free Cash Flow | 167.68M | 192.82M | 140.2M | 142.22M | 150.47M | 130.46M | 153.82M | -17.26M | -16.75M | 28.25M | 47.13M | -7.92M | 2.54M | 24.14M | 19.52M | 23.03M | 14.85M | 8.11M |
| FCF Margin % | 15.62% | 19.93% | 19.22% | 21.93% | 22.29% | 21.5% | 29.02% | -3.45% | -2.94% | 4.04% | 8.66% | -1.88% | 0.61% | 7.57% | 6.46% | 7.42% | 5.71% | 7.89% |
| FCF Growth % | -11.99% | 37.53% | -1.42% | -5.48% | 15.34% | -15.19% | 991.06% | -3.06% | -159.3% | -40.07% | 695.06% | -412.3% | -89.49% | 23.67% | -15.27% | 55.09% | 83.14% | - |
| FCF per Share | 2.17 | 2.61 | 1.91 | 1.99 | 2.11 | 1.85 | 2.31 | -0.26 | -0.26 | 0.47 | 0.88 | -0.15 | 0.05 | 0.51 | 0.79 | 6.14 | 8.50 | 2.16 |
| FCF Conversion (FCF/Net Income) | 0.95x | -4.34x | 2.12x | 1.82x | 0.40x | 3.91x | -3.72x | -0.05x | -0.26x | -0.36x | 55.25x | 0.69x | -1.63x | 1.33x | -34.64x | -32.30x | 3.03x | 2.57x |
| Interest Paid | 0 | 3.22M | 3.98M | 10.78M | 6.74M | 11.84M | 0 | 0 | 0 | 0 | 0 | 0 | 6.99M | 501K | 317K | 1.02M | 2.57M | 0 |
| Taxes Paid | -1.05M | 16.19M | 6M | 2.87M | 2.19M | 1.62M | 0 | 0 | 0 | 0 | 0 | 0 | 4.67M | 7.32M | 19.63M | 10.27M | 4.71M | 0 |
Geopolitical supply chain exposure
As reported in recent financial statements, MTSI consistently generates operating cash flow that exceeds net income, with an OCF/NI ratio reaching 1.70 in 2026Q2, suggesting that non-cash charges and accounting adjustments significantly mask the underlying cash-generative capacity of the firm's core semiconductor operations.
The persistent gap between net income and operating cash flow indicates that the company's reported profitability is heavily impacted by non-cash items, such as depreciation and stock-based compensation. Investors should interpret this as a sign that the business is fundamentally more cash-generative than the bottom-line net income figures suggest.
Based on quarterly data, MTSI has demonstrated a strengthening free cash flow trajectory, with margins improving from 7.2% in 2024Q2 to 22.7% in 2026Q2, reflecting the company's ability to convert its growing revenue base into tangible liquidity despite periodic spikes in capital expenditure requirements.
The upward trend in FCF margins suggests that the company is successfully scaling its operations while maintaining disciplined control over its capital intensity. This trajectory warrants further investigation into whether this efficiency is sustainable as the company integrates recent acquisitions and navigates evolving semiconductor industry standards.
According to recent SEC filings, MTSI's working capital management remains a source of cash flow volatility, evidenced by a significant $42.7 million outflow in 2026Q1, which highlights the sensitivity of the company's cash position to inventory builds and the timing of customer collections.
The erratic nature of working capital changes suggests that the company may be managing inventory levels aggressively to support its design-win pipeline. Analysts should monitor these fluctuations closely, as they may indicate potential supply chain bottlenecks or shifts in the timing of large-scale infrastructure project deliveries.
As indicated by historical financial data, MTSI maintains a disciplined approach to capital expenditure, with CapEx/Revenue ratios generally hovering between 2.4% and 5.6%, suggesting that the company's hybrid manufacturing model effectively balances internal fabrication needs with the flexibility of external foundry partnerships.
The relatively low capital intensity relative to revenue implies that the company is not overly burdened by the maintenance of its physical assets. This allows for a higher portion of operating cash flow to be directed toward R&D or strategic initiatives, which is critical for maintaining its competitive edge in compound semiconductors.
Quick answers to the most common questions about buying MTSI stock.
MACOM Technology Solutions Holdings, Inc. (MTSI) generated $235.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
MACOM Technology Solutions Holdings, Inc. (MTSI) generated $192.8M 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.
MACOM Technology Solutions Holdings, Inc. (MTSI) spent $42.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, MACOM Technology Solutions Holdings, Inc. (MTSI) spent $43.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.