Cash conversion efficiency remains inconsistent, evidenced by a fluctuating operating cash flow to net income ratio that dropped to 0.58 in 2026Q1 from a peak of 1.61 in 2024Q1.
| 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 |
|---|
| Cash from Operations | 217.14M | 245.61M | 235.27M | 123.53M | 119.54M | 132.26M | 60.25M | 40.69M | 36.11M | 61.81M | -4.16M | 25.79M | 33.54M | 10.99M | 7.72M | 25.1M | 25.83M | -1.79M | -3.27M | 4.57M | -5.11M | -7.38M | -1.53M | -5.51M | -7.91M | -5.54M | -3.65M | -1.32M |
| Operating CF Margin % | - | 27.89% | 34.99% | 23.85% | 20.95% | 31.79% | 22.37% | 18.09% | 14.38% | 27.84% | -2.54% | 17.36% | 27.81% | 9.86% | 8.03% | 24.41% | 29.82% | -4.54% | -8.4% | 7.88% | -10.59% | -24.49% | -3.74% | -20.63% | -38.83% | -26.15% | -7.54% | -4.8% |
| Operating CF Growth % | -27.17% | 4.4% | 90.45% | 3.34% | -9.62% | 119.51% | 48.07% | 12.69% | -41.58% | 1585.84% | -116.13% | -23.12% | 205.19% | 42.41% | -69.25% | -2.83% | 1545.55% | 45.42% | -171.58% | 189.48% | 30.74% | -382.73% | 72.24% | 30.39% | -42.9% | -51.51% | -175.98% | - |
| Net Income | 263.66M | 259.22M | 183.76M | 136.31M | 140.21M | 93.1M | 47.91M | 35.17M | 54.38M | 46.46M | 9.64M | 15.72M | 18.65M | 10.52M | 11.83M | 28.12M | 22.18M | 2.63M | -5.42M | -3.92M | -1.93M | -8.41M | 1.47M | -4.21M | -12.96M | -16.87M | 2.78M | -5.04M |
| Depreciation & Amortization | 24.25M | 24.36M | 17.38M | 16.2M | 14.65M | 8.93M | 8.38M | 8.03M | 7.68M | 6.18M | 6.82M | 9.62M | 3.95M | 3.52M | 2.78M | 1.7M | 1.26M | 1.25M | 1.32M | 2.79M | 2.08M | 894K | 670K | 1.26M | 1.88M | 2.71M | 3.04M | 2M |
| Stock-Based Compensation | 19.91M | 26.29M | 25.21M | 18.29M | 16.65M | 10.49M | 6.95M | 5.09M | 4.33M | 2.78M | 2.73M | 2.67M | 2.12M | 2.1M | 1.93M | 0 | 710K | 454K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -6.99M | 0 | 0 | -6.24M | -13.74M | -2.99M | -193K | -681K | -1.92M | -31K | 633K | -5.05M | -2.5M | 1.9M | -1.42M | -2.5M | -108K | -613K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -9.86M | -24.39M | -2.87M | 6.28M | 21.21M | 5.19M | -716K | -510K | 37.09M | 21.07M | 39.27M | -10K | 2.67M | 148K | 1.93M | 1.48M | 108K | 454K | -3.5M | 5.51M | -226K | -418K | 310K | 168K | 2.09M | 76K | -164K | 129K |
| Working Capital Changes | -73.83M | -39.87M | 11.79M | -47.3M | -59.45M | 17.54M | -2.07M | -6.41M | -28.36M | 6.42M | -23.99M | 2.83M | 8.64M | -7.19M | -9.33M | -3.65M | 1.69M | -5.97M | 4.32M | 187K | -5.03M | 557K | -3.98M | -2.72M | 1.08M | 8.55M | -9.32M | 1.58M |
| Change in Receivables | -48.53M | -7.02M | -29.05M | -1.18M | -31.63M | -5.13M | -11.71M | 1.93M | -12.54M | 1.68M | -23.58M | -1.96M | 12.38M | -10.59M | -3.96M | -240K | -1.62M | -8.76M | 6.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -6.15M | -19M | -23.9M | -26M | -29.31M | -18.46M | -16.27M | -7.52M | -8.12M | -6.86M | -1.67M | -1.95M | 2.23M | -1.78M | -10.51M | -1.06M | -7.53M | 2.69M | 1.33M | -1.89M | -786K | -252K | -1.09M | -1M | 1.16M | 776K | -1.2M | -601K |
| Change in Payables | -1.76M | -8.79M | 17.51M | -7.81M | 5.14M | 11.7M | 3.25M | 1.69M | 3.26M | -747K | 2.12M | 1.6M | -4.04M | 4.52M | 2.51M | -1.64M | 6.24M | 234K | -4.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -603.4M | -837.17M | -136.4M | -125.33M | -100.26M | -238.5M | -42.46M | -25.45M | -36.49M | -57.14M | -4.38M | -9.72M | -33.3M | -10.6M | -10.73M | -34.49M | -28.59M | -8.93M | 7.26M | 905K | 3.43M | 711K | -13.48M | -5.14M | 10.38M | 28.55M | -45.17M | -760K |
| Capital Expenditures | -22.89M | -27.7M | -17.21M | -17.19M | -21.31M | -4.82M | -6.44M | -21.27M | -3.68M | -6.29M | -3.13M | -4.37M | -5.23M | -4.12M | -3.66M | -2.31M | -1.56M | -403K | -944K | -1.18M | -1.23M | -1.28M | -1.24M | -364K | -601K | -1.14M | -1.17M | -760K |
| CapEx % of Revenue | 2.54% | 3.15% | 2.56% | 3.32% | 3.73% | 1.16% | 2.39% | 9.46% | 1.46% | 2.84% | 1.91% | 2.94% | 4.34% | 3.69% | 3.81% | 2.24% | 1.81% | 1.03% | 2.42% | 2.04% | 2.55% | 4.25% | 3.04% | 1.36% | 2.95% | 5.39% | 2.41% | 2.76% |
| Acquisitions | -4.66M | -56.35M | 0 | 0 | -78.47M | 0 | 0 | 0 | 0 | 0 | 0 | -45.34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.58M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 26.72M | 0 | 0 | -29.66M | 0 | 0 | 0 | 0 | -33M | -50.84M | -1.25M | -2M | -28.06M | -126K | 140K | 86K | -27.02M | -17K | 97K | 0 | 0 | 0 | 0 | 0 | -1.89M | 44.41M | -44M | 0 |
| Cash from Financing | 662.21M | 642.21M | -48.35M | 10K | -29.81M | 11K | 181.41M | -6.67M | -4.44M | 2.62M | 1.21M | -1.98M | -4.14M | 1.19M | 259K | 2.71M | 18.29M | 1.25M | 12K | 5.67M | 83K | 275K | 548K | 318K | 31K | 8K | 49.2M | 1.5M |
| Debt Issued (Net) | 732.25M | 749.99M | -18.51M | 0 | 0 | 0 | 193.59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -70.12M | -35M | -30M | -112K | -21.42M | 0 | -12.55M | -7.16M | -4.8M | 0 | -937K | -4.3M | -6.73M | 0 | 0 | 0 | 16.97M | 0 | 0 | 4.98M | 83K | 275K | 548K | 318K | 31K | 8K | 49.2M | 1.5M |
| Dividends Paid | 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 | 0 | 0 | 0 |
| Share Repurchases | -70.12M | -35M | -30M | -112K | -21.42M | 0 | -12.55M | -7.16M | -4.8M | 0 | -937K | -4.3M | -6.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 69.4K | -72.78M | 160K | 122K | -8.39M | 11K | 367K | 492K | 361K | 2.62M | 2.15M | 2.32M | 2.59M | 1.19M | 259K | 2.71M | 1.32M | 1.25M | 12K | 687K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 281.08M | 57M | 50.2M | -4.15M | -14.98M | -105.61M | 200.56M | 8.87M | -4.82M | 7.29M | -7.33M | 14.08M | -3.89M | 1.58M | -2.75M | -6.68M | 15.53M | -9.46M | 4M | 11.15M | -1.6M | -6.39M | -14.46M | -10.33M | 2.5M | 23.02M | 376K | -582K |
| Free Cash Flow | 194.25M | 217.91M | 218.05M | 106.34M | 98.22M | 127.45M | 53.81M | 19.42M | 32.43M | 55.52M | -7.29M | 21.41M | 28.31M | 6.87M | 4.06M | 22.79M | 24.27M | -2.19M | -4.22M | 3.39M | -6.34M | -8.66M | -2.77M | -5.87M | -8.51M | -6.68M | -4.82M | -2.08M |
| FCF Margin % | 21.52% | 24.75% | 32.43% | 20.53% | 17.21% | 30.63% | 19.97% | 8.64% | 12.91% | 25.01% | -4.45% | 14.42% | 23.47% | 6.16% | 4.22% | 22.17% | 28.02% | -5.57% | -10.82% | 5.84% | -13.14% | -28.74% | -6.78% | -22% | -41.78% | -31.54% | -9.95% | -7.56% |
| FCF Growth % | -12.37% | -0.06% | 105.05% | 8.26% | -22.93% | 136.84% | 177.04% | -40.11% | -41.58% | 861.22% | -134.06% | -24.35% | 311.95% | 69.34% | -82.2% | -6.07% | 1208.08% | 48.08% | -224.39% | 153.44% | 26.76% | -212.63% | 52.8% | 31.03% | -27.48% | -38.41% | -131.48% | - |
| FCF per Share | 5.64 | 6.64 | 6.78 | 3.31 | 3.08 | 4.27 | 1.86 | 0.68 | 1.13 | 1.95 | -0.27 | 0.78 | 1.02 | 0.25 | 0.15 | 0.85 | 0.94 | -0.11 | -0.22 | 0.18 | -0.40 | -0.56 | -0.18 | -0.39 | -0.57 | -0.44 | -0.33 | -0.20 |
| FCF Conversion (FCF/Net Income) | 0.74x | 0.95x | 1.28x | 0.91x | 0.85x | 1.42x | 1.26x | 1.16x | 0.66x | 1.33x | -0.43x | 1.64x | 1.80x | 1.05x | 0.65x | 0.89x | 1.16x | -0.68x | 0.60x | -1.17x | 2.64x | 0.88x | -1.04x | 1.31x | 0.61x | 0.33x | -1.31x | 0.26x |
| Interest Paid | 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 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 29.88M | 26.84M | 23.01M | 13.28M | 3.98M | 8.34M | 13.05M | 8.16M | 1.9M | 83K | 136K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical revenue recognition volatility
According to the provided quarterly data, Nova's operating cash flow to net income ratio has fluctuated significantly, ranging from a low of 0.58 in 2026Q1 to a high of 1.61 in 2024Q1, suggesting that reported earnings are frequently decoupled from actual cash generation.
The volatility in the OCF/NI ratio appears to be driven by the timing of revenue recognition and subsequent working capital swings rather than structural earnings quality issues. Investors should interpret the recent dip in conversion as a potential signal of delayed customer acceptances, which may temporarily mask the underlying cash-generating capability of the business.
As reported in financial statements, Nova's free cash flow margins have shown marked instability, swinging from a peak of 40.0% in 2024Q1 to 15.3% in 2026Q1, indicating that the company's ability to convert revenue into discretionary cash is highly sensitive to quarterly operational cycles.
While the company maintains strong profitability, the inconsistent FCF trajectory suggests that capital requirements and working capital needs are not perfectly synchronized with top-line growth. This variability warrants further investigation into whether the recent margin compression is a permanent shift or merely a reflection of the lumpy nature of semiconductor equipment deliveries.
Based on Nova's reported figures, working capital changes have frequently acted as a significant drain on cash, most notably in 2026Q1 when a $42.0 million outflow occurred, highlighting the company's susceptibility to inventory and receivable fluctuations inherent in the semiconductor capital equipment sector.
The recurring negative working capital adjustments suggest that Nova is often forced to tie up cash in inventory or extended payment terms to support its customer base during installation phases. This dynamic appears to be a structural feature of the business model that periodically limits the company's immediate liquidity despite strong reported net income.
As evidenced by the quarterly cash flow statements, Nova has prioritized aggressive share repurchases, such as the $55.0 million buyback in 2025Q3, while maintaining a conservative stance on dividends, which suggests management's preference for returning capital through opportunistic equity reduction rather than recurring income distributions.
The company's capital deployment strategy appears to be reactive to market conditions, with buyback activity intensifying during periods of higher cash availability. Investors should monitor whether this reliance on share repurchases continues to be an effective use of capital or if it signals a lack of internal investment opportunities for the company's excess cash.
Quick answers to the most common questions about buying NVMI stock.
Nova Ltd. (NVMI) generated $245.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Nova Ltd. (NVMI) generated $217.9M 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.
Nova Ltd. (NVMI) spent $27.7M 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, Nova Ltd. (NVMI) spent $35.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.