Free cash flow margin compressed to 15.1% in 2026Q2 from 40.0% in 2024Q1, with operating cash flow covering only 55% of net income, as working capital outflows of $47.2M and acquisition spending strain cash generation.
Nova Ltd. (NVMI) cash flow statement — 27-year operating, investing & financing cash flows
| 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 | 212.4M | 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 % | -13.24% | 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 | 270.38M | 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 | 24.77M | 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 | 20.42M | 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 | -1.91M | 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 | 1.12M | -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 | -102.39M | -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 | -73.3M | -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 | -7.01M | -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 | 11.96M | -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 | -912.73M | -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 | -22.65M | -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 | 2.42% | 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 | 0 | -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) | -70.02M | -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 | -70.02M | -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 | -27.04K | -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 | -35.72M | 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 | 189.75M | 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 % | 20.24% | 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 % | -8.19% | -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 | 5.51 | 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) | 0.70x | 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 |
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.
Key Metrics
Top Statement Risk
Geopolitical and guidance uncertainty
Cash Conversion Volatility Amid Growth
Nova's operating cash flow to net income ratio swung from 1.61 in 2024Q1 to 0.55 in 2026Q2, indicating significant timing effects in collections and payables, as reported in quarterly filings.
The OCF/NI ratio has deteriorated sharply in recent quarters, with 2026Q2 at 0.55 versus 1.61 in 2024Q1. This suggests that while net income is growing, cash conversion is being held back by working capital outflows, particularly a $47.2M negative working capital change in 2026Q2. Investors should monitor whether this is a temporary timing issue or a sign of deteriorating earnings quality.
FCF Margin Compression Despite Revenue Growth
Free cash flow margin fell from 40.0% in 2024Q1 to 15.1% in 2026Q2, even as revenue grew 31% year-over-year, based on reported cash flow statements.
The FCF margin has contracted significantly, from 40.0% in 2024Q1 to 15.1% in 2026Q2, despite strong revenue growth. This divergence suggests that working capital absorption and possibly higher receivables are consuming cash. The trend warrants close attention, as it may indicate that reported earnings are not translating into cash at the same rate as before.
Low Capital Intensity Masks Growth Investments
Capital expenditures remain modest at 1-5% of revenue, with 2026Q2 CapEx at $2.5M, suggesting a light-asset model, as per the latest quarterly data.
Nova's capital intensity is low, with CapEx/Revenue ranging from 1.0% to 5.3% over the past ten quarters. This indicates that the company's growth is not heavily dependent on physical asset expansion, consistent with its software and services mix. However, the low CapEx may also mean that maintenance and growth investments are understated, potentially affecting long-term competitiveness.
Working Capital Drag Intensifies
Working capital changes turned sharply negative, with a $47.2M outflow in 2026Q2, reversing positive contributions in earlier quarters, as shown in the cash flow data.
The working capital swing from +$11.9M in 2024Q1 to -$47.2M in 2026Q2 is a major driver of the cash flow deterioration. This could reflect increased receivables due to strong sales or inventory build-up ahead of expected demand. The pattern suggests that Nova is funding its growth through working capital, which may pressure near-term cash generation.
Share Repurchases and Acquisitions Shape Cash Use
Nova deployed $120M on buybacks and $56.4M on acquisitions over the past ten quarters, while paying no dividends, based on reported cash flow statements.
Capital deployment has been focused on share repurchases and acquisitions, with notable buybacks in 2025Q3 ($55M) and 2025Q4 ($15M), and acquisition outflows in 2025Q1 ($51.7M) and 2025Q2 ($4.7M). This suggests management is returning cash to shareholders and pursuing strategic M&A, but the lack of dividends may not appeal to income-focused investors.
Cumulative Earnings Outpace Cash Generation
Over the last ten quarters, cumulative net income of $587.3M exceeds operating cash flow of $562.4M, indicating a persistent gap that may signal accrual-based earnings, as per the data.
The cumulative gap between net income and operating cash flow is approximately $24.9M, which is relatively small but consistent. This suggests that earnings quality is generally high, but the recent quarters show a widening divergence, with 2026Q2 OCF/NI at 0.55. Investors should monitor whether this gap narrows or expands, as it could indicate aggressive revenue recognition or working capital mismanagement.
What Could Invalidate the Base Case
The skipped guidance in 2026Q2 and geopolitical tensions in Israel may obscure the sustainability of Nova's cash flow growth, despite strong reported results.
While Nova's cash flow appears robust on a cumulative basis, the recent deterioration in conversion and the absence of forward guidance suggest potential headwinds. The company's heavy reliance on working capital to fund growth, combined with geopolitical risks, could lead to a sharper cash flow contraction if demand softens. Investors should weigh these factors against the strong secular tailwinds from GAA adoption.