Free cash flow has deteriorated into negative territory, reaching -8.7% of revenue in 2026Q2, while the company continues to distribute dividends despite this cash-burning operational profile.
| Metric | TTM | Aug'25 | Aug'24 | Aug'23 | Aug'22 | Aug'21 | Aug'20 | Aug'19 | Aug'18 | Aug'17 | Aug'16 | Aug'15 | Aug'14 | Aug'13 | Aug'12 | Aug'11 | Aug'10 | Aug'09 | Aug'08 | Aug'07 | Aug'06 | Aug'05 | Aug'04 | Aug'03 | Aug'02 | Aug'01 | Aug'00 | Aug'99 | Aug'98 | Aug'97 | Aug'96 |
|---|
| Cash from Operations | -2.14M | 2.44M | 5.88M | 5.54M | 1.15M | 2.89M | 4.91M | 5.48M | 608.69K | 5.74M | 2.06M | -755.54K | 7.42M | 1.91M | -388.69K | -1.14M | -1.18M | -1.74M | -2.83M | -717.36K | 855.47K | -1.36M | -551.45K | -1.35M | 1.07M | 1.13M | 2.62M | 2M | 2M | 1.8M | 1.7M |
| Operating CF Margin % | - | 2.9% | 6.92% | 6.93% | 1.55% | 5.12% | 10.31% | 9.82% | 1.18% | 14.5% | 6.24% | -2.49% | 27.67% | 8.49% | -1.71% | -5.82% | -8.17% | -20.32% | -22.32% | -4.26% | 5.15% | -9.2% | -3.96% | -16.14% | 14.12% | 12.24% | 23.7% | 20.2% | 19.8% | 20.69% | 24.64% |
| Operating CF Growth % | -449.08% | -58.48% | 6.17% | 383.49% | -60.38% | -41.11% | -10.31% | 799.81% | -89.39% | 179.03% | 372.07% | -110.18% | 288.49% | 591.57% | 65.79% | 3.37% | 32.5% | 38.51% | -294.95% | -183.86% | 162.76% | -147.2% | 59.09% | -225.72% | -5.54% | -56.69% | 31.04% | 0% | 11.11% | 5.88% | 13.33% |
| Net Income | -775.29K | 986.39K | 6.32M | 4.24M | 7.19M | 7M | -934.76K | 5.82M | 7.22M | 3.92M | -1.2M | 2.52M | 5.54M | 4.75M | 3.58M | 4M | 2.61M | -3.34M | 2.55M | 3.22M | 1.72M | 1.19M | 1.04M | 507.73K | 1.23M | 1.15M | 2.63M | 2.5M | 2.6M | 2.6M | 2.1M |
| Depreciation & Amortization | 1.43M | 1.76M | 1.75M | 1.63M | 1.57M | 1.11M | 1.07M | 1.1M | 1.11M | 906.14K | 779.04K | 618.11K | 541.54K | 507.08K | 480.04K | 493.61K | 538.26K | 517.26K | 507.88K | 460.47K | 359.39K | 288.37K | 200.54K | 191.57K | 198.1K | 265.31K | 198.26K | 200K | 100K | 100K | 100K |
| Stock-Based Compensation | 1.3M | 1.36M | 1.38M | 1.34M | 931.53K | 664.17K | 1.34M | 1.43M | 413.01K | 391.66K | 427.44K | 495.68K | 454.01K | 306.45K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 90.72K | 50.98K | -336.25K | -395K | -81.5K | 114.62K | 1.42M | -89.64K | 186.81K | -117.3K | -47K | 131.78K | -230.88K | 124.94K | 5.61K | 321.6K | -398.3K | -535K | 320.9K | -476.21K | -341K | 105.72K | -275K | 85K | 20K | 70K | -150K | 0 | 0 | -100K | -100K |
| Other Non-Cash Items | -4.2M | -1.97M | -1.46M | -728.05K | -2.9M | -3.54M | 1.6M | -2.22M | -3.84M | 528.15K | 2.64M | -2.9M | 1.53M | -2M | -5.23M | -5.41M | -3.79M | 402.06K | -3.83M | -3.79M | -2.13M | -1.93M | -1.44M | -457.39K | -490.66K | -110.2K | -590.91K | -300K | -300K | -600K | -200K |
| Working Capital Changes | -1.03M | 257.35K | -1.78M | -542.15K | -5.56M | -2.45M | 415.72K | -561.27K | -4.48M | 102.46K | -548.72K | -1.62M | -411.35K | -1.78M | 780.54K | -536.59K | -134.12K | 1.22M | -2.39M | -133.53K | 1.25M | -1.02M | -76.07K | -1.67M | 117.49K | -242.56K | 532.68K | -400K | -400K | -200K | -200K |
| Change in Receivables | -1.99M | 1.1M | -1.28M | -3.29M | -2.14M | -4.12M | 2.79M | -213.25K | -4.69M | -797.47K | -868.61K | 512.23K | -357.94K | -905.2K | 1.01M | -1.05M | -377.7K | 1.55M | -1.76M | 277.96K | 15.27K | -302.71K | -837.04K | -1.86M | -147.84K | 224.22K | 179.69K | -800K | 300K | 0 | -400K |
| Change in Inventory | -1.36M | -1.28M | -1.33M | 3.03M | -4.82M | 58.31K | -435.71K | -1.49M | -1.91M | 305.27K | -257.83K | -1.68M | -825.18K | -1.02M | -365.8K | -203.69K | -1.51M | 722.84K | -1.09M | -258.12K | 169.82K | -336.26K | -166.07K | -112.27K | 54.68K | 15.75K | 83.86K | 0 | -100K | -300K | -100K |
| Change in Payables | 760.93K | 1.47M | 449.01K | -1.51M | 3.01M | 866.6K | -1.23M | 682.79K | 1.64M | -129.37K | 641.63K | 127.91K | 365.8K | 78.62K | -123.51K | 311.38K | 857.71K | -621.16K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -2.39M | -3.93M | -3.42M | -3.34M | -7.11M | -103.32K | -2.78M | -1.34M | -300.11K | -2.61M | -995.24K | 1.9M | -7.46M | -130.55K | 1.35M | 2.18M | 594.42K | 1.7M | 1.67M | 1.5M | -1.67M | 244.64K | 1.06M | 1.77M | -3.88M | -474.77K | -429.42K | -700K | -100K | -1M | -100K |
| Capital Expenditures | -1.82M | -1.53M | -1.92M | -3.25M | -1.5M | -5.53M | -711.41K | -960.34K | -680.5K | -922.27K | -643.41K | -1.44M | -1.6M | -1.49M | -1.04M | -567.26K | -232.01K | -184.26K | -484.83K | -933.04K | -3.07M | -148.41K | -343.79K | -438.71K | -193.25K | -113.26K | -302.22K | -300K | -100K | -100K | -700K |
| CapEx % of Revenue | 2.05% | 1.81% | 2.25% | 4.06% | 2.02% | 9.79% | 1.49% | 1.72% | 1.32% | 2.33% | 1.95% | 4.75% | 5.97% | 6.61% | 4.55% | 2.91% | 1.61% | 2.15% | 3.82% | 5.54% | 18.48% | 1% | 2.47% | 5.25% | 2.54% | 1.22% | 2.73% | 3.03% | 0.99% | 1.15% | 10.14% |
| Acquisitions | 0 | 0 | 0 | 0 | -5.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -110.99K | 0 | -484.55K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -569.56K | -2.4M | -1.5M | -101.06K | -207.15K | -110.65K | -93.81K | -114.44K | -86.48K | -162.53K | -135.41K | -152.18K | -224.19K | 1.36M | 3.36M | 2.79M | 856.53K | -39.66K | 2.27M | 3M | 1.42M | 393.05K | -241.75K | -151.48K | 317.24K | -361.51K | -127.2K | -400K | 0 | -900K | 600K |
| Cash from Financing | 5.74M | 3.86M | -2.96M | -2.05M | 3.19M | -1.52M | -1.52M | -2.39M | -2.37M | -226.69K | -270.25K | -874.65K | -1.81M | -1.56M | 13.82K | 408.72K | 2.22M | -46.35K | 1.18M | -840.2K | 785.21K | 783.95K | -383.35K | -373.33K | -195.68K | -1.26M | -1.1M | -800K | -3.7M | -500K | -700K |
| Debt Issued (Net) | 6.44M | 5.58M | 691.61K | 512.5K | 5.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -933.41K | -76.12K | -76.12K | -59.27K | -1.11M | -80.31K | 1.1M | -966.12K | 652.09K | 1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 81.5K | 0 | 713.73K | 0 | 658.75K | 0 | 0 | 0 | -196.22K | -138.88K | -24.35K | 0 | 0 | 55.41K | 36.73K | 3.2M | 23.46K | 86.56K | 125.92K | 133.12K | 34.69K | -181.67K | -64.12K | -195.68K | -617.03K | -482.63K | -200K | -3M | -100K | -300K |
| Dividends Paid | -379.22K | -1.52M | -2.64M | -2.62M | -2.58M | -1.78M | -1.18M | -2.18M | -1.82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -250.74K | -201.69K | -309.2K | 0 | -644.97K | -618.93K | -600K | -600K | -500K | -400K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -196.22K | -138.88K | -24.35K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -181.67K | -64.12K | -195.68K | -637.03K | -551.38K | -300K | -3.1M | -100K | -300K |
| Other Financing | -326.04K | -280K | -1.01M | -655.57K | -130.44K | -400K | -335.81K | -213.42K | -556.62K | -30.46K | -131.37K | -850.3K | -881K | -1.49M | 34.53K | 431.26K | 135.19K | 10.5K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -100K | 100K | 0 |
| Net Change in Cash | 1.38M | 2.3M | -453.99K | 72.28K | -2.35M | 1.28M | 546.27K | 1.69M | -2.2M | 2.96M | 771.29K | 146.96K | -1.84M | 176.71K | 871.18K | 1.49M | 1.64M | -121.58K | 15.96K | -54.62K | -28.34K | -334.58K | 123.59K | 53.05K | -3.01M | -601.77K | 1.09M | 600K | -1.7M | 200K | -2.8M |
| Free Cash Flow | -4.49M | -1.51M | 2.46M | 2.18M | -557.75K | -2.75M | 4.1M | 4.4M | -158.3K | 4.65M | 1.28M | -2.35M | 5.6M | 167.38K | -1.61M | -1.85M | -1.59M | -1.93M | -3.32M | -1.65M | -2.21M | -1.51M | -895.24K | -1.79M | 1.07M | 1.02M | 2.32M | 1.7M | 1.9M | 1.7M | 1M |
| FCF Margin % | -5.04% | -1.79% | 2.9% | 2.73% | -0.75% | -4.87% | 8.62% | 7.9% | -0.31% | 11.75% | 3.88% | -7.74% | 20.86% | 0.74% | -7.08% | -9.48% | -11.04% | -22.46% | -26.15% | -9.81% | -13.33% | -10.2% | -6.42% | -21.39% | 14.12% | 11.02% | 20.96% | 17.17% | 18.81% | 19.54% | 14.49% |
| FCF Growth % | -318.33% | -161.15% | 13.1% | 490.77% | 79.72% | -167.01% | -6.76% | 2881.02% | -103.4% | 264.27% | 154.41% | -141.93% | 3243.38% | 110.38% | 12.87% | -16.58% | 17.55% | 41.94% | -101.04% | 25.44% | -46.43% | -68.85% | 49.89% | -266.65% | 4.93% | -55.93% | 36.39% | -10.53% | 11.76% | 70% | -33.33% |
| FCF per Share | -0.47 | -0.16 | 0.25 | 0.22 | -0.06 | -0.28 | 0.45 | 0.47 | -0.02 | 0.51 | 0.14 | -0.25 | 0.61 | 0.02 | -0.18 | -0.21 | -0.19 | -0.26 | -0.44 | -0.22 | -0.30 | -0.21 | -0.12 | -0.25 | 0.15 | 0.14 | 0.30 | 0.21 | 0.23 | 0.20 | 0.11 |
| FCF Conversion (FCF/Net Income) | 5.80x | 138.65x | 1.09x | 1.90x | 0.18x | 0.46x | -3.67x | 1.05x | 0.09x | 1.68x | -2.37x | -0.42x | 1.81x | 0.57x | -0.11x | -0.29x | -0.46x | 0.52x | -1.11x | -0.22x | 0.50x | -1.14x | -0.53x | -2.65x | 0.87x | 0.98x | 1.00x | 0.80x | 0.77x | 0.69x | 0.81x |
| Interest Paid | -59.41K | 599.93K | 340.13K | 461.81K | 89.1K | 16.09K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 462.75K | 1.61M | 1.19M | 1.06M | 1.22M | 895.65K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
JV dividend distribution volatility
According to recent financial disclosures, NTIC's operating cash flow to net income ratio has exhibited extreme volatility, frequently exceeding 3.0x, which suggests that reported net income is a poor proxy for the actual cash-generative capacity of the parent company's core operations during recent quarterly periods.
The significant divergence between net income and operating cash flow indicates that non-cash items and working capital adjustments are heavily influencing the bottom line. Investors should monitor whether this disconnect reflects the timing of non-consolidated joint venture distributions or underlying inefficiencies in the parent company's cash collection cycle.
As reported in quarterly filings, NTIC's free cash flow margin has trended into negative territory, reaching -8.7% in 2026Q2, which highlights a concerning inability to sustain positive cash generation after accounting for necessary capital expenditures and the ongoing operational requirements of the business.
The shift from positive free cash flow in early 2024 to consistent outflows suggests that the company's current cost structure is not adequately supported by its consolidated revenue base. This trajectory warrants further investigation into whether the current investment phase in Natur-Tec will eventually yield self-sustaining cash flows.
Based on the provided cash flow statements, working capital changes have been highly erratic, swinging from a $1.9 million inflow in 2024Q1 to a $3.6 million outflow in 2024Q4, indicating that the company's cash position is highly sensitive to fluctuations in inventory and accounts receivable management.
Such dramatic swings in working capital suggest that the company may be struggling to synchronize its production cycles with customer demand, particularly within the automotive-linked ZERUST segment. This volatility complicates cash flow forecasting and may necessitate higher liquidity buffers than the company currently maintains.
As indicated by recent financial statements, NTIC has continued to pay dividends despite periods of negative free cash flow, with cash outflows for dividends totaling $94.9K in 2026Q2, a practice that appears increasingly difficult to reconcile with the company's current cash-burning operational profile.
The decision to maintain dividend payments while operating cash flow is negative suggests a management priority on shareholder returns, yet this may be unsustainable if the current operating losses persist. Investors should monitor whether future capital allocation shifts toward preserving liquidity rather than maintaining historical dividend levels.
Quick answers to the most common questions about buying NTIC stock.
Northern Technologies International Corporation (NTIC) generated $2.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Northern Technologies International Corporation (NTIC) reported negative free cash flow of $1.5M in 2025, indicating capital requirements exceeded cash from operations.
Northern Technologies International Corporation (NTIC) spent $1.5M 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, Northern Technologies International Corporation (NTIC) returned $1.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.