Free cash flow remains volatile, swinging from a negative 91.2% margin in 2023Q4 to a positive 16.1% in 2026Q1, reflecting the lumpy nature of capital expenditure cycles.
| 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 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Cash from Operations | 63.42M | 62.93M | 65.5M | 18.03M | 27.76M | 28.29M | 32.65M | 29.41M | 23.41M | 17.45M | 32.77M | 41.61M | 34.56M | 39.24M | 35.42M | 33.62M | 28.8M | 32.18M | 28.25M | 18.27M | 11.84M | 3.79M | 4.7M | 3.02M | 2.21M | 839.75K |
| Operating CF Margin % | - | 36.52% | 41.79% | 14.88% | 32.73% | 39.06% | 47.97% | 37.49% | 35.76% | 25.78% | 45.74% | 43.38% | 35.64% | 43.97% | 37.79% | 51.6% | 53.42% | 47.46% | 33.1% | 25.2% | 18.88% | 7.68% | 29.43% | 23.72% | 21.42% | 9.58% |
| Operating CF Growth % | -41.68% | -3.93% | 263.23% | -35.05% | -1.86% | -13.35% | 11.01% | 25.62% | 34.16% | -46.75% | -21.24% | 20.39% | -11.93% | 10.8% | 5.34% | 16.75% | -10.5% | 13.9% | 54.63% | 54.25% | 212.59% | -19.33% | 55.31% | 37.1% | 162.69% | - |
| Net Income | 21.84M | 19.93M | 17.23M | 4.75M | -569K | -9.18M | 1.81M | -13.86M | 426K | 19.85M | 6.47M | 10.15M | 14.13M | 14.39M | 12.69M | 9.76M | 7.03M | 11.02M | 15.59M | 12.28M | 7.59M | 4.45M | 3.37M | 1.31M | 786.09K | 381.99K |
| Depreciation & Amortization | 38.34M | 36.66M | 31.35M | 26.98M | 24.12M | 25.4M | 25.2M | 23.27M | 22.05M | 21.3M | 21.8M | 22.76M | 21.51M | 18.14M | 15.71M | 13.99M | 11.93M | 11.69M | 9.93M | 7.47M | 6.02M | 4.27M | 2.51M | 1.79M | 1.24M | 968.12K |
| Stock-Based Compensation | 576K | 2.13M | 0 | 2.05M | 1.91M | 0 | 2.19M | 2.58M | 2.38M | 4.04M | 2.3M | 3.54M | 3.24M | 1.68M | 1.42M | 1.07M | 1.06M | 584K | 423K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 7.33M | 6.66M | 4.24M | 0 | 511K | -2.6M | 0 | -662K | -5K | -21.58M | -2.71M | -1.85M | 6.84M | 7.72M | 6.97M | 5.87M | 4.25M | 4.46M | 8.41M | 2.93M | 2.67M | 2.41M | 1.12M | 671.8K | 557.56K | 304.8K |
| Other Non-Cash Items | 5.63M | 5.43M | 4.18M | 9.77M | 466K | 4.42M | 5M | 15.7M | -100K | 209K | 1.07M | 4.87M | 235K | -271K | 1.42M | 437K | 4.16M | -51K | 7K | 541K | 376K | 107K | -344.34K | -76.6K | -105.87K | -318.48K |
| Working Capital Changes | -10.3M | -7.87M | 8.51M | -25.51M | 1.33M | 10.26M | -1.55M | 2.39M | -1.34M | -6.37M | 3.85M | 2.13M | -11.39M | -2.42M | -1.36M | 2.5M | 374K | 4.49M | -6.11M | -4.95M | -3.56M | -7.45M | -2.03M | -687.2K | 189.95K | -496.68K |
| Change in Receivables | -7.57M | -3.03M | 23.13M | -25.01M | -4.28M | 1.43M | -3.11M | -2.55M | 1.5M | -1.25M | 1.67M | 824K | -3.66M | -59K | -1.01M | -400K | 2.04M | 4.01M | 1K | -2.86M | -2.27M | -2.57M | 0 | 0 | 0 | 0 |
| Change in Inventory | -5.49M | -3.71M | 2.48M | -669K | -4.14M | -1.28M | 1.03M | 8.26M | -5.76M | -5.35M | 2.12M | 5.38M | -6.11M | -323K | 456K | -5.48M | 2.77M | 9.01M | -11.16M | -3.83M | -2.22M | -5.7M | -1.92M | -1.08M | 139.61K | -593.4K |
| Change in Payables | -443K | 5.55M | -17.73M | 0 | 0 | 9.76M | 0 | -3.94M | 3.6M | 3.41M | -439K | -7.22M | 1.13M | 1.15M | 1.86M | 1.86M | 1.79M | -8.67M | 4.33M | 3.23M | -3K | 524K | 0 | 0 | 0 | 0 |
| Cash from Investing | -117.25M | -121.3M | -71.44M | -153.89M | -65.08M | -25.66M | -15.16M | -70.17M | -40.01M | -12.79M | -4.4M | -12.31M | -53.1M | -43.32M | -23.76M | -35.51M | -21.86M | -7.1M | -29.86M | -18.82M | -48.43M | -23.03M | -13.55M | -7.44M | -3.88M | -3.09M |
| Capital Expenditures | -120.42M | 1.98M | -71.89M | -153.94M | -65.12M | -25.71M | -15.26M | -69.94M | -39.79M | -13.49M | -4.31M | -12.5M | -53.34M | -43.42M | -23.77M | -36.52M | -21.91M | -9.54M | -46.27M | -25.31M | -27.68M | -17.71M | -11.6M | -7.88M | -4.41M | -2.22M |
| CapEx % of Revenue | 67.12% | 1.15% | 45.87% | 127.05% | 76.77% | 35.5% | 22.42% | 89.16% | 60.77% | 19.93% | 6.01% | 13.04% | 55.01% | 48.65% | 25.36% | 56.06% | 40.64% | 14.07% | 54.22% | 34.91% | 44.13% | 35.91% | 72.66% | 61.82% | 42.88% | 25.34% |
| Acquisitions | 131K | 0 | 476K | 0 | 0 | 195K | 0 | 30K | 69K | 87K | 101K | 189K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -7.58M | 0 | 0 | 0 | -1.39M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 3.04M | -123.27M | -22K | 55K | 43K | -150K | 98K | -267K | -220K | 698K | -93K | 189K | 240K | 95K | 5K | 1.02M | 47K | 143K | 47K | 95K | 4.3M | 2.26M | -1.95M | 437.79K | 530.37K | 526.56K |
| Cash from Financing | 54M | 56.23M | 5.33M | 135.23M | 17.75M | -8.61M | -157K | -273K | 16K | 453K | 191K | 55K | 276K | 437K | 39K | -864K | -10.82M | -3.21M | 2.52M | -3.59M | 37.71M | 21.82M | 9.36M | 1.88M | 3.89M | 2.61M |
| Debt Issued (Net) | 56.7M | 58.7M | 6M | 139M | 25M | -417K | 0 | 0 | 0 | 0 | 0 | 0 | -160K | -320K | -120K | -983K | -11.19M | -3.26M | 2.02M | -3.84M | -9.81M | 8.74M | 4.25M | 1.76M | -2.51M | 407.5K |
| Equity Issued (Net) | 235K | 168K | 293K | -983K | -6.66M | -7.85M | -152K | 16K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 248K | 47.52M | 13.09M | 5.16M | 238K | 6.54M | 903.23K |
| Dividends Paid | -4.02M | -2.64M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -53.28K | -120.94K | -106.62K | -10.91K |
| Share Repurchases | 0 | 0 | 0 | -983K | -6.66M | -7.85M | -152K | -490K | -629K | -644K | -909K | -695K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.08M | -6K | -958K | -2.79M | -592K | -337K | -5K | -289K | 16K | 453K | 191K | 55K | 436K | 757K | 159K | 119K | 377K | 49K | 495K | 0 | 0 | 0 | 346 | 0 | -43K | 1.31M |
| Net Change in Cash | 164K | -2.14M | -604K | -626K | -19.57M | -5.98M | 17.33M | -41.04M | -16.58M | 5.11M | 28.56M | 29.35M | -18.26M | -3.64M | 11.7M | -2.75M | -3.88M | 21.87M | 904K | -4.15M | 1.12M | 2.59M | 508.99K | -2.54M | 2.21M | 363.76K |
| Free Cash Flow | -57M | 64.9M | -6.39M | -135.91M | -37.36M | 2.58M | 17.39M | -40.53M | -16.38M | 3.96M | 28.46M | 29.11M | -18.78M | -4.17M | 11.65M | -2.9M | 6.89M | 22.64M | -18.02M | -7.04M | -15.84M | -13.92M | -6.9M | -4.86M | -2.21M | -1.38M |
| FCF Margin % | -31.77% | 37.66% | -4.08% | -112.17% | -44.04% | 3.56% | 25.56% | -51.66% | -25.01% | 5.85% | 39.72% | 30.35% | -19.36% | -4.68% | 12.43% | -4.45% | 12.78% | 33.39% | -21.12% | -9.71% | -25.25% | -28.23% | -43.23% | -38.1% | -21.45% | -15.75% |
| FCF Growth % | -3095.48% | 1115.2% | 95.3% | -263.8% | -1547.98% | -85.17% | 142.92% | -147.47% | -513.22% | -86.08% | -2.21% | 255.01% | -349.77% | -135.83% | 501.52% | -142.11% | -69.56% | 225.61% | -156.05% | 55.57% | -13.8% | -101.77% | -42.03% | -119.89% | -60.03% | - |
| FCF per Share | -4.47 | 5.11 | -0.51 | -10.98 | -3.04 | 0.20 | 1.31 | -3.09 | -1.26 | 0.30 | 2.20 | 2.28 | -1.48 | -0.33 | 0.95 | -0.24 | 0.56 | 1.87 | -1.48 | -0.58 | -1.38 | -1.64 | -1.08 | -0.92 | -0.51 | -0.40 |
| FCF Conversion (FCF/Net Income) | -2.61x | 3.16x | 3.80x | 3.80x | -48.79x | -3.08x | 18.06x | -2.12x | 54.96x | 0.88x | 5.07x | 4.10x | 2.45x | 2.73x | 2.79x | 3.44x | 4.10x | 2.92x | 1.81x | 1.49x | 1.56x | 0.85x | 1.39x | 2.31x | 2.81x | 2.20x |
| Interest Paid | 0 | 0 | 0 | 7.05M | 276K | 0 | 14K | 39K | 14K | 14K | 8K | 15K | 10K | 56K | 18K | 61K | 238K | 613K | 802K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 55K | 0 | 0 | 0 | 0 | 0 | 0 | 275K | 85K | 3.73M | 5.83M | 6.53M | 4.11M | 2.59M | 267K | 130K | 2.2M | 1.48M | 294K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High capital intensity requirements
According to reported financial data, NGS consistently generates operating cash flow significantly higher than net income, with an OCF/NI ratio peaking at 6.00 in 2024Q2, suggesting that non-cash depreciation charges play a dominant role in the company's reported earnings profile versus actual cash generation.
The persistent gap between net income and operating cash flow indicates that the company's profitability is heavily influenced by accounting depreciation rather than pure cash-based earnings. Investors should monitor this divergence, as it implies that reported net income may not fully capture the ongoing cash requirements needed to maintain the aging rental fleet.
As reported in quarterly filings, NGS exhibits highly inconsistent free cash flow, with margins swinging from a negative 91.2% in 2023Q4 to a positive 16.1% in 2026Q1, reflecting the company's aggressive and lumpy capital expenditure cycles relative to its recurring rental revenue streams.
The erratic FCF trajectory suggests that the company's ability to self-fund growth is frequently interrupted by heavy investment phases. This volatility warrants further investigation into whether the recent positive FCF trend is sustainable or merely a temporary reprieve from intensive fleet expansion projects.
Based on the provided financial statements, NGS maintains a high capital intensity, with CapEx as a percentage of revenue reaching as high as 96.5% in 2025Q3, indicating that a substantial portion of top-line growth is immediately reinvested into the fabrication and maintenance of the rental fleet.
The elevated CapEx/Revenue ratio suggests that the company is in a constant state of capital reinvestment to keep its compression units operational and competitive. This high level of spending may limit the company's ability to generate meaningful free cash flow during periods of rapid fleet expansion.
Analysis of recent SEC filings reveals that working capital changes are a primary driver of cash flow instability, with swings ranging from a $12.0 million inflow in 2024Q2 to a $9.6 million outflow in 2023Q4, highlighting the sensitivity of cash balances to inventory and collection cycles.
The significant fluctuations in working capital suggest that the company's cash position is highly susceptible to the timing of equipment sales and the efficiency of its accounts receivable collections. Investors should monitor these shifts as they may indicate underlying friction in the company's project-based sales segment.
Quick answers to the most common questions about buying NGS stock.
Natural Gas Services Group, Inc. (NGS) generated $62.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Natural Gas Services Group, Inc. (NGS) generated $64.9M 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.
Natural Gas Services Group, Inc. (NGS) spent $2.0M 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, Natural Gas Services Group, Inc. (NGS) returned $2.6M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.