Cash flow generation remains inconsistent, with the OCF/NI ratio fluctuating from -3.45 in 2026Q1 to 3.81 in 2025Q2, largely driven by volatile working capital requirements.
| Cash from Operations | 25.1M | 22.18M | 12.72M | 4.77M | -1.42M | 11.58M | 35.12M | 17.95M | 14.03M | 16.11M | 10.68M | 4.37M |
| Operating CF Margin % | - | 12% | 7.83% | 3.35% | -0.91% | 9.77% | 32.83% | 8.73% | 6.18% | 7.99% | 10.85% | 3.83% |
| Operating CF Growth % | 615.46% | 74.26% | 166.55% | 435.49% | -112.29% | -67.02% | 95.65% | 27.97% | -12.96% | 50.82% | 144.54% | - |
| Net Income | 19.32M | 23.75M | 8.14M | -3.11M | -952K | -3.78M | -39.11M | -22.82M | -185.23M | 1.29M | -17.93M | 28.02M |
| Depreciation & Amortization | 6.11M | 5.88M | 5.32M | 4.62M | 4.32M | 4.5M | 5.89M | 10.44M | 17.84M | 27.65M | 25.57M | 27.27M |
| Stock-Based Compensation | 5.99M | 6.21M | 5.21M | 5.37M | 6.04M | 6.62M | 8.48M | 12.54M | 10.93M | 6.11M | 1.35M | 1.31M |
| Deferred Taxes | -10.59M | -10.96M | -380K | 152K | 266K | 96K | -3.2M | 9M | -28.84M | -18.96M | -9.27M | -11.3M |
| Other Non-Cash Items | -3.82M | 1.3M | 3.31M | 1.92M | 3.14M | 1.81M | 49.07M | 9.31M | 227.06M | 5.6M | 5.59M | -22.93M |
| Working Capital Changes | 4.09M | -4M | -8.87M | -4.17M | -14.23M | 2.33M | 13.98M | -520K | -27.73M | -5.58M | 5.37M | -18.01M |
| Change in Receivables | 6M | -5.5M | -9.15M | 3.86M | -4.86M | -2.56M | 19.25M | 4.74M | -4.21M | -9.49M | -6.48M | 16.3M |
| Change in Inventory | 10K | 2.21M | -2.81M | -5.76M | -7.68M | -939K | 3.24M | -7.64M | -2.95M | -10.61M | 3.54M | 4.16M |
| Change in Payables | -1.35M | 427K | 2.71M | -1.2M | 1.22M | 2.84M | -3.17M | 2.58M | 219K | -3.75M | 5.13M | -3.13M |
| Cash from Investing | -6.4M | -6.29M | 479K | -1.68M | -698K | -444K | -1.06M | -5M | -15.41M | -85.22M | -1.84M | -1.22M |
| Capital Expenditures | -1.33M | -1.2M | -1.31M | -1.88M | -1.13M | -833K | -2.15M | -6.37M | -15.81M | -5.42M | -1.16M | -890K |
| CapEx % of Revenue | 0.74% | 0.65% | 0.81% | 1.32% | 0.73% | 0.7% | 2.01% | 3.1% | 6.97% | 2.69% | 1.17% | 0.78% |
| Acquisitions | 0 | -5.76M | 0 | 0 | 433K | 389K | 1.09M | 1.37M | 399K | -81.16M | 317K | 424K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -5.07M | 666K | 1.79M | 199K | 0 | 0 | 0 | 0 | 399K | 1.35M | -683K | -331K |
| Cash from Financing | -7.45M | -5.3M | -4.27M | -2.44M | -2.74M | -4.26M | -29.77M | -27.3M | -5.13M | 84.03M | -315K | -12.77M |
| Debt Issued (Net) | -1.75M | -2.28M | -1.95M | -1.65M | -1.41M | -1.32M | -11.51M | -14.19M | -3.75M | -64.94M | 0 | -51.57M |
| Equity Issued (Net) | -58K | -326K | -267K | -287K | -383K | -197K | -157K | -315K | -162K | 151.36M | -175K | 40M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -58K | -326K | -267K | -287K | -383K | -197K | -157K | -315K | -162K | 0 | -175K | 0 |
| Other Financing | -5.64M | -2.7M | -2.05M | -500K | -952K | -2.75M | -18.1M | -12.8M | -1.22M | -2.39M | -140K | -1.2M |
| Net Change in Cash | 11.46M | 10.85M | 9.16M | 486K | -5.93M | 6.62M | 4.3M | -13.89M | -8.68M | 15.53M | 8.73M | -10.63M |
| Free Cash Flow | 23.71M | 20.97M | 11.42M | 2.58M | -2.55M | 10.75M | 32.96M | 11.57M | -1.78M | 10.69M | 9.53M | 3.48M |
| FCF Margin % | 13.2% | 11.35% | 7.02% | 1.81% | -1.64% | 9.07% | 30.81% | 5.63% | -0.79% | 5.3% | 9.67% | 3.05% |
| FCF Growth % | 107.46% | 83.72% | 342.14% | 201.1% | -123.76% | -67.39% | 184.79% | 749.19% | -116.67% | 12.25% | 173.84% | - |
| FCF per Share | 9.02 | 7.64 | 4.41 | 1.04 | -1.05 | 4.49 | 13.94 | 4.96 | -0.80 | 4.91 | 4.20 | 1.54 |
| FCF Conversion (FCF/Net Income) | 1.23x | 0.93x | 1.93x | -1.51x | 1.29x | -2.45x | -0.61x | -0.55x | -0.07x | 7.67x | -0.60x | 0.16x |
| Interest Paid | 0 | 0 | 173K | 377K | 0 | 0 | 0 | 1.07M | 1.37M | 3.02M | 5.45M | 9.38M |
| Taxes Paid | 0 | 0 | 431K | 0 | 0 | 0 | 0 | 122K | 22.36M | 4.03M | 130K | 20.48M |
Working Capital Volatility
As reported in quarterly financial filings, the relationship between net income and operating cash flow is highly erratic, evidenced by an OCF/NI ratio that swung from -3.45 in 2026Q1 to 3.81 in 2025Q2, indicating that reported earnings frequently fail to translate into actual cash generation.
The extreme variance in the OCF/NI ratio suggests that NCSM's bottom-line results are heavily influenced by non-cash adjustments or timing differences rather than core operational efficiency. Investors should monitor this disconnect, as it implies that headline profitability may be a poor proxy for the company's underlying ability to fund its own operations.
Based on the provided cash flow data, free cash flow trajectory remains inconsistent, with margins fluctuating from a peak of 25.3% in 2025Q4 to a negative 5.6% in 2024Q3, reflecting the company's high sensitivity to the cyclical nature of North American oil and gas completion activity.
The inability to maintain a consistent positive FCF margin suggests that the business model is prone to sudden cash outflows during periods of operational contraction. This volatility warrants further investigation into whether the company can achieve a stable cash-generative state without relying on favorable shifts in working capital.
According to recent SEC filings, working capital changes are the primary driver of cash flow volatility, with quarterly fluctuations reaching as high as $5.5 million in 2024Q2 and negative $9.6 million in 2024Q3, highlighting the significant impact of inventory and receivables management on the firm's liquidity.
The recurring, large-scale swings in working capital suggest that NCSM is struggling to align its cash collection cycles with its manufacturing output. This pattern appears to create a 'boom-bust' cash flow profile that complicates long-term financial planning and may mask the true underlying cash-generating capacity of the business.
Based on reported figures, NCSM maintains a disciplined approach to capital expenditure, with CapEx/Revenue ratios consistently remaining below 1.5% over the last ten quarters, suggesting that the company is not currently burdened by heavy reinvestment requirements to maintain its existing proprietary pinpoint fracturing hardware infrastructure.
The low capital intensity indicates that the company's primary assets are not requiring significant ongoing investment to remain functional, which is a positive for cash preservation. However, this may also imply that the company is not aggressively scaling its asset base, potentially limiting future growth opportunities in a competitive market.
As indicated by the financial statements, stock-based compensation (SBC) consistently averages over $1 million per quarter, which frequently exceeds or offsets the company's net income, suggesting that the true economic cost of operations is higher than what is reflected in standard GAAP net income figures.
The persistent reliance on SBC as a significant portion of operating expenses may be obscuring the true cash-based profitability of the firm. Analysts should monitor this closely, as it represents a form of dilution that effectively subsidizes the company's operating cash flow at the expense of long-term shareholder equity.
Quick answers to the most common questions about buying NCSM stock.
NCS Multistage Holdings, Inc. (NCSM) generated $22.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
NCS Multistage Holdings, Inc. (NCSM) generated $21.0M 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.
NCS Multistage Holdings, Inc. (NCSM) spent $1.2M 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, NCS Multistage Holdings, Inc. (NCSM) spent $0.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.