Free cash flow generation is highly unstable, swinging from a negative 5.3% margin in 2025Q2 to a positive 16.8% margin in 2025Q4, reflecting the difficulty of managing working capital in a capital-intensive environment.
| Cash from Operations | 224M | 356M | 344M | 355M | 274M | 449M |
| Operating CF Margin % | - | 8.18% | 7.97% | 8.47% | 6.63% | 12.65% |
| Operating CF Growth % | -350.76% | 3.49% | -3.1% | 29.56% | -38.98% | - |
| Net Income | 176M | 162M | 92M | -132M | 107M | 187M |
| Depreciation & Amortization | 278M | 277M | 287M | 254M | 259M | 159M |
| Stock-Based Compensation | 25M | 34M | 38M | 68M | 66M | 82M |
| Deferred Taxes | -1M | -1M | -19M | 74M | -28M | 19M |
| Other Non-Cash Items | -103M | -30M | 20M | 3M | 0 | 0 |
| Working Capital Changes | -220M | -86M | -74M | 88M | -130M | 2M |
| Change in Receivables | 76M | 36M | 102M | -52M | -78M | 0 |
| Change in Inventory | -77M | -97M | -77M | 53M | -10M | -136M |
| Change in Payables | 58M | 49M | 0 | 0 | 0 | 0 |
| Cash from Investing | -104M | -116M | -135M | -316M | -417M | -2.49B |
| Capital Expenditures | -152M | -117M | 0 | -132M | -97M | -111M |
| CapEx % of Revenue | 3.44% | 2.69% | 3.22% | 3.15% | 2.35% | 3.13% |
| Acquisitions | 4M | -17M | 0 | -1M | -78M | -2.35B |
| Investments | - | - | - | - | - | - |
| Other Investing | 44M | 17M | -139M | -173M | -242M | -36M |
| Cash from Financing | -215M | -253M | -134M | 31M | 183M | 2.35B |
| Debt Issued (Net) | -155M | -206M | -107M | 3.15B | -538M | 1.18B |
| Equity Issued (Net) | -40M | -17M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -44M | -28M | 0 | 0 | 0 | 0 |
| Other Financing | -20M | -30M | -27M | -3.12B | 721M | 1.17B |
| Net Change in Cash | -85M | 3M | 55M | 87M | 29M | 300M |
| Free Cash Flow | 82M | 239M | 205M | 223M | 177M | 338M |
| FCF Margin % | 1.86% | 5.49% | 4.75% | 5.32% | 4.28% | 9.52% |
| FCF Growth % | -55.91% | 16.59% | -8.07% | 25.99% | -47.63% | - |
| FCF per Share | 1.08 | 3.16 | 2.76 | 3.16 | 2.59 | 4.84 |
| FCF Conversion (FCF/Net Income) | 0.47x | 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 |
Secular cash usage decline
As reported in recent financial filings, NATL's operating cash flow to net income ratio has fluctuated wildly, ranging from a negative 0.41 in 2026Q1 to a high of 7.24 in 2025Q1, indicating a persistent disconnect between accounting profits and actual cash generation capabilities.
The extreme variance in the OCF/NI ratio suggests that net income is a poor proxy for the company's underlying cash health. Investors should monitor whether this divergence stems from non-cash charges or the timing of working capital requirements, as the lack of consistent conversion complicates valuation.
Based on quarterly cash flow statements, NATL's free cash flow margins have remained highly inconsistent, swinging from a negative 5.3% in 2025Q2 to a positive 16.8% in 2025Q4, which highlights the difficulty in maintaining cash flow stability within a hardware-heavy business model.
The inability to generate positive free cash flow in multiple quarters suggests that the company's capital requirements often outpace its operational inflows. This trajectory warrants further investigation into whether the business can achieve sustainable cash generation as it pivots toward an ATM-as-a-Service model.
According to the provided cash flow data, NATL experienced a significant working capital outflow of $103 million in 2026Q1, following a $90 million inflow in 2025Q4, demonstrating that the company's cash position is highly sensitive to the timing of inventory and receivables management.
These sharp reversals in working capital suggest that the company's cash cycle is prone to lumpy operational demands, likely tied to the manufacturing and deployment of ATM hardware. Such volatility may indicate that the company lacks the working capital efficiency required to smooth out its cash flow profile.
As reported in financial statements, NATL's capital expenditures as a percentage of revenue have consistently hovered between 2.8% and 4.3% over the last ten quarters, reflecting the ongoing necessity of maintaining a vast, physical network of ATM infrastructure to support its service contracts.
The persistent capital intensity suggests that NATL cannot easily scale its operations without continued investment in its physical fleet. This capital-heavy requirement appears to be a structural constraint that limits the company's ability to convert revenue into free cash flow compared to software-only peers.
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.