Free cash flow was negative at -$32M in Q2 2026, with operating cash flow of only $21M against net income of $65M, reflecting a 0.32 OCF/NI ratio and working capital swings of -$208M.
NCR Atleos Corporation (NATL) cash flow statement — 5-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Cash from Operations | 268M | 356M | 344M | 355M | 274M | 449M |
| Operating CF Margin % | - | 8.18% | 7.97% | 8.47% | 6.63% | 12.65% |
| Operating CF Growth % | 196.1% | 3.49% | -3.1% | 29.56% | -38.98% | - |
| Net Income | 196M | 162M | 92M | -132M | 107M | 187M |
| Depreciation & Amortization | 348M | 277M | 287M | 254M | 259M | 159M |
| Stock-Based Compensation | 34M | 34M | 38M | 68M | 66M | 82M |
| Deferred Taxes | -5M | -1M | -19M | 74M | -28M | 19M |
| Other Non-Cash Items | -95M | -30M | 20M | 3M | 0 | 0 |
| Working Capital Changes | -304M | -86M | -74M | 88M | -130M | 2M |
| Change in Receivables | 20M | 36M | 102M | -52M | -78M | 70M |
| Change in Inventory | -65M | -97M | -77M | 53M | -10M | -136M |
| Change in Payables | 24M | 49M | 0 | 0 | 0 | 0 |
| Cash from Investing | -156M | -116M | -135M | -316M | -417M | -2.49B |
| Capital Expenditures | -170M | -117M | -139M | -132M | -97M | -111M |
| CapEx % of Revenue | 3.85% | 2.69% | 3.22% | 3.15% | 2.35% | 3.13% |
| Acquisitions | -42M | -17M | 1M | -1M | -78M | -2.35B |
| Investments | - | - | - | - | - | - |
| Other Investing | 11M | 17M | -1M | -173M | -242M | -36M |
| Cash from Financing | -204M | -253M | -134M | 31M | 183M | 2.35B |
| Debt Issued (Net) | -100M | -206M | -107M | 3.15B | -538M | 1.18B |
| Equity Issued (Net) | -49M | -17M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -60M | -28M | 0 | 0 | 0 | 0 |
| Other Financing | -55M | -30M | -27M | -3.12B | 721M | 1.17B |
| Net Change in Cash | -92M | 3M | 55M | 87M | 29M | 300M |
| Free Cash Flow | 108M | 239M | 205M | 223M | 177M | 338M |
| FCF Margin % | 2.44% | 5.49% | 4.75% | 5.32% | 4.28% | 9.52% |
| FCF Growth % | -23.94% | 16.59% | -8.07% | 25.99% | -47.63% | - |
| FCF per Share | 1.42 | 3.16 | 2.76 | 3.16 | 2.59 | 4.84 |
| FCF Conversion (FCF/Net Income) | 0.55x | 2.20x | 3.78x | -2.65x | 2.54x | 2.41x |
| Interest Paid | 0 | 0 | 271M | 36M | 55M | 17M |
| Taxes Paid | 0 | 0 | 54M | 69M | 32M | 42M |
Quick answers to the most common questions about buying NATL stock.
NCR Atleos Corporation (NATL) generated $356.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
NCR Atleos Corporation (NATL) generated $239.0M 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.
NCR Atleos Corporation (NATL) spent $117.0M 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, NCR Atleos Corporation (NATL) spent $28.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
EPS miss and margin volatility
Metrics are mathematically derived from official filings.
Cash Conversion Remains Volatile
NATL's operating cash flow swung from $231M in Q4 2025 to -$9M in Q1 2026, with OCF/NI at 0.32 in Q2 2026, according to recent SEC filings. This suggests earnings quality is inconsistent.
The gap between net income and operating cash flow is stark: Q2 2026 net income of $65M generated only $21M in operating cash, a conversion ratio of 0.32. Working capital swings, particularly a -$208M change in Q2 2026, appear to be the primary driver, indicating that reported earnings are not translating into cash. Investors should monitor whether this volatility reflects seasonal patterns or a structural issue in collections and payables management.
Free Cash Flow Remains Erratic
NATL's free cash flow has been negative in four of the last five quarters, with Q2 2026 FCF at -$32M, as reported in financial statements. This contrasts with the positive FCF margins seen in Q4 2025 and Q1 2025.
The FCF trajectory is highly volatile, swinging from $194M in Q4 2025 to -$36M in Q1 2026. The negative FCF in recent quarters appears driven by working capital outflows rather than elevated capex, as capex has remained relatively stable around 3-5% of revenue. This suggests that the company's cash generation is not yet reliable, and the reported net income is not consistently converting to free cash flow.
Capital Expenditures Remain Moderate
NATL's capex has averaged roughly 3.5% of revenue over the past year, with Q2 2026 capex at $53M, according to reported figures. This suggests a maintenance-heavy capital profile rather than aggressive growth spending.
Capital intensity appears moderate for a hardware-services company, with capex/revenue ranging from 2.8% to 6.5% over the last ten quarters. The relatively stable capex suggests that NATL is not investing heavily in expansion, which may indicate a focus on maintaining its existing ATM fleet rather than growing it. However, the negative FCF in recent quarters is not due to elevated capex but rather working capital dynamics, which warrants further investigation.
Working Capital Swings Drive Cash Flow
Working capital changes have been the primary driver of NATL's cash flow volatility, with a -$208M swing in Q2 2026, as per financial statements. This appears to be a recurring pattern that obscures underlying cash generation.
The working capital line has been highly volatile, ranging from +$90M in Q4 2025 to -$208M in Q2 2026. This suggests that NATL's cash conversion cycle is unstable, possibly due to timing of receivables and payables in its hardware and service contracts. The large negative swings in Q1 and Q2 2026 may indicate that the company is funding its operations through working capital, which could be a red flag if it persists.
Capital Deployment Focused on Buybacks
NATL has allocated $60M to share repurchases over the last two quarters, with no dividends paid, according to recent filings. This suggests management is returning capital to shareholders despite negative free cash flow.
The company has been actively buying back shares, with $16M in both Q1 and Q2 2026, while paying no dividends. This capital deployment appears aggressive given the negative FCF in those quarters, suggesting management may be prioritizing shareholder returns over balance sheet flexibility. Investors should monitor whether this buyback pace is sustainable without increasing leverage.
Cash Flow Statement Obscures Realities
NATL's cash flow statement shows significant non-cash charges, with D&A of $142M in Q2 2026, but the negative operating cash flow suggests these are not fully offsetting cash outflows, as reported in SEC filings.
The large D&A charges (averaging ~$70M per quarter) are not translating into positive operating cash flow, indicating that other cash outflows, such as working capital, are consuming the non-cash add-backs. Additionally, stock-based compensation is minimal (around $9M per quarter), so it is not a major factor. The cash flow statement may obscure the fact that the company is spending heavily on working capital to support its service contracts, which could be a sign of aggressive revenue recognition or inefficient collections.