Free cash flow margins have shown significant volatility, dropping from a high of 37.8% in 2025Q1 to 22.1% in 2026Q1, reflecting erratic working capital management.
| 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 | Dec'00 | Dec'99 | Dec'96 | Dec'95 |
|---|
| Cash from Operations | 612.07M | 722.23M | 832.64M | 561.43M | 479.71M | 461.82M | 480.31M | 374.16M | 396.61M | 394.66M | 220.34M | 244.73M | 182.27M | 124.28M | 135.64M | 154.37M | 145.02M | 119.69M | 135.71M | 118.24M | 87.58M | 65.7M | 45.02M | 38.18M | -2.07M | 843K | -2.07M | 19.63M | -2.2M | -2.2M |
| Operating CF Margin % | - | 24.52% | 30.44% | 23.61% | 21.99% | 24.04% | 29.14% | 23.77% | 27.46% | 29.63% | 21.7% | 26.4% | 18.02% | 13.09% | 15.43% | 19.45% | 21.03% | 20.53% | 21.74% | 22.85% | 21.38% | 21.12% | 17.82% | 17.02% | -1.27% | 0.66% | -1.35% | 15.88% | -5.53% | -10.48% |
| Operating CF Growth % | -108.58% | -13.26% | 48.31% | 17.03% | 3.88% | -3.85% | 28.37% | -5.66% | 0.49% | 79.11% | -9.97% | 34.27% | 46.67% | -8.38% | -12.14% | 6.45% | 21.17% | -11.81% | 14.77% | 35.02% | 33.29% | 45.95% | 17.92% | 1946.03% | -345.31% | 140.76% | -110.54% | 992.09% | 0% | - |
| Net Income | 529.5M | 616.96M | 442.59M | 338.3M | 265.94M | 199.22M | 196.35M | 185.9M | 159.34M | 143.29M | 126.07M | 111.5M | 103.08M | 55.27M | 67.89M | 57.26M | 48.71M | 42.76M | 39.11M | 37.38M | 22.4M | 36.57M | 24.55M | 7.09M | -5.32M | -46.8M | -5.32M | 15.11M | 5.2M | 300K |
| Depreciation & Amortization | 218.03M | 200.62M | 205.02M | 167.36M | 176.55M | 184.09M | 182.03M | 173.23M | 157.14M | 156.3M | 77.8M | 57.96M | 73.35M | 91.49M | 95.86M | 67.12M | 57.11M | 47.22M | 42.74M | 30.93M | 22.2M | 13.96M | 15M | 19.09M | 11.51M | 15.29M | 11.85M | 7M | 1.1M | 700K |
| Stock-Based Compensation | 74.69M | 0 | 182.07M | 176.66M | 182.7M | 153.03M | 101.67M | 80.86M | 67.22M | 56.98M | 40.55M | 28.45M | 29.81M | 26.31M | 23.61M | 21.16M | 21.05M | 18.24M | 25.32M | 0 | 0 | 0 | 12K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -57.68M | 10.58M | -40.26M | -66.62M | -52.62M | -39.32M | -33.24M | -12.21M | -30.17M | -70.88M | -25.91M | 10.58M | -27.79M | -17.27M | -24.17M | -8.78M | -4.86M | -6.98M | -5.55M | -5.23M | -3.71M | -4.84M | -2.46M | 0 | 0 | 0 | 0 | 0 | 0 | -200K |
| Other Non-Cash Items | 63.34M | 148.68M | -6.36M | 22.04M | 14.3M | 38.56M | 11.16M | 6.14M | 9.2M | 13.42M | -7.79M | -1.48M | -1.93M | 2.63M | -2.24M | 2.08M | -1.87M | -1.67M | 6.94M | 23.06M | 7.59M | 54K | -7K | -48K | 7.63M | 3.67M | 7.34M | 5.46M | -500K | -400K |
| Working Capital Changes | -216.76M | -254.61M | 49.59M | -76.3M | -107.16M | -73.78M | 22.35M | -59.77M | 33.88M | 95.56M | 9.63M | 37.72M | 5.74M | -34.15M | -25.32M | 15.53M | 24.88M | 20.13M | 27.16M | 31.68M | 26.21M | 18.27M | 7.92M | 12.04M | -15.89M | 28.68M | -15.94M | -7.95M | -8M | -2.6M |
| Change in Receivables | -110.75M | -76.39M | -61.02M | -34.29M | -129.71M | -85.78M | 22.25M | -29.86M | -72.58M | 37.73M | -31.78M | -56.36M | 4.81M | -34.57M | -11.86M | -20.62M | 6.34M | 8.9M | -232K | 0 | 0 | 0 | 3.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -44.19M | 18.24M | 18.7M | 20.11M | 4.11M | -327K | 472K | 500K | -2.05M | 3.55M | -2.27M | 300K | 7.58M | 5.38M | -3.93M | -122K | 1.51M | -10.01M | 9.63M | -10.01M | -335K | -1.3M | -1.2M |
| Change in Payables | 28.88M | -15.24M | 43.97M | 3.43M | 19.92M | -389K | 4.09M | 777K | -3.53M | 2.67M | 4.39M | 2.17M | -13.78M | 5.06M | 295K | 37.7M | -7.14M | 1.54M | 189K | 0 | 0 | 0 | -3.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 169.05M | 161.23M | -397.4M | -293.58M | -152.35M | -261.5M | -465.07M | -344.29M | -460.76M | -212.98M | -800.02M | -28.39M | -9.08M | -33.42M | -159.34M | 9.44M | -276.66M | -71.28M | -120.82M | -275.99M | -318.44M | -64.3M | -68.21M | -39.84M | -18.11M | 3.91M | -18.11M | -35.09M | -16.8M | 5.7M |
| Capital Expenditures | -66.13M | -94.49M | -34.96M | -29.2M | -31.89M | -24.77M | -24.19M | -61.97M | -63.67M | -67.83M | -36.28M | -17.98M | -17.67M | -21.33M | -29.8M | -21.46M | -13.02M | -11.17M | -20.27M | -11.91M | -9.34M | -6.13M | -6.7M | -5.49M | -14.16M | -7.65M | -14.16M | -10.06M | -2.6M | -1.9M |
| CapEx % of Revenue | 2.2% | 3.21% | 1.28% | 1.23% | 1.46% | 1.29% | 1.47% | 3.94% | 4.41% | 5.09% | 3.57% | 1.94% | 1.75% | 2.25% | 3.39% | 2.7% | 1.89% | 1.91% | 3.25% | 2.3% | 2.28% | 1.97% | 2.65% | 2.45% | 8.71% | 6.02% | 9.25% | 8.14% | 6.53% | 9.05% |
| Acquisitions | -820.22M | -862.88M | -64.82M | -415.19M | -29.72M | -142.8M | -147.26M | -25.97M | -104.78M | -76.03M | -1.16B | -1.5M | -906K | -24.19M | -164.54M | -143.38M | -52.27M | -84.93M | -2.86M | -217.51M | -236.78M | -41.61M | -5.32M | -9.84M | -10.15M | 1.56M | -10.15M | -6.27M | 0 | 100K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 1.01B | 0 | -64.81M | -54.97M | -50M | -42.44M | -39.1M | 1K | -324.55M | -97.06M | -9.15M | 186.14M | 37K | 63K | 2.13M | 84K | 13K | 70K | 94.27M | -25K | 243K | 1.53M | 6.93M | 5.04M | 12.81M | -5.43M | -5.62M | -16.58M | -5.3M | -900K |
| Cash from Financing | -989.77M | -992.08M | -456.6M | -290.27M | -164.5M | -261.82M | 196.84M | -42.66M | -16.27M | -14.83M | 413.31M | -71.79M | -101.68M | -68.9M | -76.55M | -68.76M | 25.97M | 20.92M | 15.92M | 206.15M | 43.66M | 226.98M | 19.87M | 12.06M | 14.99M | 1.86M | 14.99M | 10.3M | 20.2M | -4.2M |
| Debt Issued (Net) | -462.81M | -463.65M | -192.11M | -2.63M | -20.13M | -177.31M | 236.24M | -816K | -9.31M | -2K | 463.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -24K | 24K | 0 | -3K | -303K | 0 | -100K |
| Equity Issued (Net) | -490.55M | -491.67M | -369.2M | -288.44M | -144.94M | -73.18M | -48.27M | -47.28M | -26M | -24.43M | -43.63M | -68.38M | -94.27M | -79.45M | -76.66M | -69.14M | 0 | 0 | 0 | 201.21M | 38.99M | 226.98M | 19.87M | 12.09M | 2.12M | 1.86M | 14.99M | 10.6M | 20.2M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -9.64M | -38.2M | -38.24M | -38.14M | -29.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.1M |
| Share Repurchases | -490.7M | -492.79M | -369.2M | -288.44M | -144.94M | -73.18M | -48.27M | -47.28M | -26M | -24.43M | -43.63M | -68.38M | -94.27M | -79.45M | -107.04M | -95.89M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -36.41M | -36.76M | 104.7M | 799K | 577K | -11.33M | 8.87M | 5.43M | 19.05M | 19.24M | 23.52M | 27.23M | 30.57M | 39.55M | 104K | 372K | 25.97M | 20.92M | 15.92M | 4.95M | 4.67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -203.15M | -102.33M | -28.28M | -19.78M | 154.44M | -63.61M | 213.94M | -13.78M | -86.2M | 171.28M | -168.91M | 138.43M | 67.95M | 20.95M | -100.82M | 94.91M | -105.28M | 70.44M | 27.76M | 49.25M | -187.59M | 228.38M | -3.28M | 10.58M | -5.19M | 6.62M | -5.19M | -5.17M | 1.2M | -700K |
| Free Cash Flow | 569.29M | 703.16M | 732.87M | 477.25M | 397.82M | 394.61M | 417.02M | 312.19M | 332.94M | 326.84M | 184.06M | 226.75M | 164.6M | 102.95M | 105.84M | 132.92M | 132M | 108.52M | 115.44M | 106.33M | 78.24M | 59.58M | 38.32M | 32.68M | -16.23M | -6.8M | -16.23M | 9.56M | -4.8M | -4.1M |
| FCF Margin % | 18.9% | 23.87% | 26.79% | 20.07% | 18.24% | 20.54% | 25.3% | 19.84% | 23.05% | 24.53% | 18.12% | 24.46% | 16.27% | 10.84% | 12.04% | 16.74% | 19.15% | 18.61% | 18.5% | 20.55% | 19.1% | 19.15% | 15.17% | 14.57% | -9.99% | -5.35% | -10.6% | 7.74% | -12.06% | -19.52% |
| FCF Growth % | -26.02% | -4.05% | 53.56% | 19.97% | 0.82% | -5.38% | 33.58% | -6.23% | 1.87% | 77.57% | -18.83% | 37.76% | 59.89% | -2.73% | -20.37% | 0.69% | 21.64% | -6% | 8.57% | 35.91% | 31.33% | 55.48% | 17.23% | 301.39% | -138.49% | 58.07% | -269.69% | 299.25% | -17.07% | - |
| FCF per Share | 9.39 | 11.10 | 11.19 | 7.20 | 5.99 | 5.90 | 6.32 | 4.83 | 5.26 | 5.26 | 3.02 | 3.70 | 2.70 | 1.67 | 1.70 | 2.07 | 2.06 | 1.74 | 1.88 | 1.91 | 1.50 | 1.44 | 1.02 | 0.97 | -0.59 | -0.26 | -0.66 | 0.39 | -0.33 | -0.31 |
| FCF Conversion (FCF/Net Income) | 1.08x | 1.18x | 1.88x | 1.66x | 1.80x | 2.32x | 2.45x | 2.01x | 2.49x | 2.75x | 1.88x | 0.95x | 1.77x | 2.25x | 2.00x | 2.70x | 2.98x | 2.80x | 3.47x | 3.16x | 3.91x | 1.80x | 1.83x | 5.38x | 0.06x | -0.02x | 0.39x | 1.30x | -0.42x | -7.33x |
| Interest Paid | 0 | 0 | 236K | 1.22M | 2.97M | 688K | 7.83M | 11.49M | 12.32M | 7.91M | 2.2M | 107K | 116K | 336K | 63K | 78K | 28K | 36K | 52K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 120.34M | 210.44M | 123.59M | 97.26M | 83.25M | 65.2M | 42.86M | 33.03M | 28.4M | 53.65M | 32.85M | 43.86M | 10.71M | 17.56M | 9.99M | 5.55M | 2.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Leadership transition and AI competition
Based on reported financial statements, NICE's operating cash flow to net income ratio has exhibited extreme volatility, ranging from a low of 0.33 in 2025Q2 to a high of 3.83 in 2026Q1, suggesting that accounting earnings may not reliably reflect the company's underlying cash generation capabilities.
The significant variance between net income and operating cash flow indicates that non-cash items and working capital fluctuations are heavily distorting the reported bottom line. Investors should monitor whether this divergence is a temporary byproduct of the cloud transition or a sign of deteriorating earnings quality as the company scales its AI-integrated platforms.
As indicated by the quarterly data, NICE's free cash flow margins have fluctuated significantly, dropping from a peak of 37.8% in 2025Q1 to 22.1% in 2026Q1, which suggests that the company's ability to convert revenue into discretionary cash is becoming increasingly sensitive to operational and working capital pressures.
The inconsistency in FCF margins implies that the company's cash generation is not yet fully decoupled from its heavy investment requirements. This volatility warrants further investigation into whether the current cost structure can support sustained margin expansion as the firm navigates a more competitive AI-driven landscape.
According to recent SEC filings, NICE experienced a massive $200.2 million working capital outflow in 2025Q2, followed by a $109.1 million inflow in 2026Q1, highlighting a highly erratic cash conversion cycle that complicates the predictability of the company's short-term liquidity position.
Such sharp swings in working capital suggest potential inefficiencies in collections or inventory management that may be masked by the company's broader cloud transition. Analysts should scrutinize whether these fluctuations are indicative of changing customer payment terms or seasonal imbalances in the firm's enterprise sales pipeline.
Based on the provided figures, NICE has prioritized share repurchases, with $252.6 million deployed in 2026Q1 alone, even as net income faced significant pressure, suggesting a management strategy that favors returning capital to shareholders over retaining cash for potential strategic pivots or competitive AI investments.
The decision to aggressively buy back shares during a period of decelerating growth and leadership transition may signal confidence to some, but it also reduces the company's financial flexibility. Investors should monitor if this capital allocation strategy limits the firm's ability to respond to emerging AI-native competitors.
Quick answers to the most common questions about buying NICE stock.
NICE Ltd. (NICE) generated $722.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
NICE Ltd. (NICE) generated $703.2M 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.
NICE Ltd. (NICE) spent $94.5M 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, NICE Ltd. (NICE) spent $492.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.