Earnings quality remains high as evidenced by an operating cash flow to net income ratio that reached 1.57 in 2024Q3, despite significant quarterly volatility in free cash flow margins.
| Cash from Operations | 556.45M | 655.79M | 428.97M | 107.67M | -147.11M | 94.27M | 241M | -13.92M |
| Operating CF Margin % | 15.63% | 22.16% | 17.16% | 5.66% | -10.09% | 7.88% | 20.58% | -2.11% |
| Operating CF Growth % | -15.15% | 52.88% | 298.42% | 173.19% | -256.05% | -60.88% | 1831.81% | - |
| Net Income | 585.88M | 517.25M | 306.24M | 121.33M | 50.91M | 124.35M | 118.26M | -1.59M |
| Depreciation & Amortization | 30.6M | 13.41M | 4.36M | 4.63M | 11.15M | 16.81M | 17.95M | 18.5M |
| Stock-Based Compensation | 0 | 118.88M | 56.78M | 31.99M | 3.05M | 4.31M | 4.24M | 7.9M |
| Deferred Taxes | 0 | -8.74M | -37.99M | 25.99M | -5.34M | -2.85M | -5.81M | -8.28M |
| Other Non-Cash Items | -1.99M | 16.02M | 192.33M | 3M | 184K | 3.9M | 3.4M | 97.06M |
| Working Capital Changes | -58.04M | -1.02M | -92.76M | -79.27M | -207.07M | -52.24M | 102.97M | -35.7M |
| Change in Receivables | 0 | -148.5M | -113.95M | -160.26M | -45.46M | -6.13M | -16.79M | -7.09M |
| Change in Inventory | 0 | -2.97M | -60.98M | 25.06M | -87.74M | -23.29M | -35.74M | -1.84M |
| Change in Payables | 0 | 102.91M | 245.37M | -37.03M | 35.82M | 55.56M | 69.95M | -37.97M |
| Cash from Investing | -182.41M | -186.1M | -6.66M | -3.16M | -5.75M | -2.96M | -1.66M | -4.13M |
| Capital Expenditures | -44.81M | -33.92M | -6.16M | -3.18M | -5.92M | -2.96M | -1.66M | -4.52M |
| CapEx % of Revenue | 1.26% | 1.15% | 0.25% | 0.17% | 0.41% | 0.25% | 0.14% | 0.68% |
| Acquisitions | -117.16M | -152.18M | 0 | 24K | 167K | 0 | 0 | 396K |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -8.26M | 0 | -500K | 0 | 0 | 0 | 0 | -1.6M |
| Cash from Financing | -45.17M | -177.65M | -78.27M | -3.57M | -8.66M | 96.33M | -250.76M | 11.62M |
| Debt Issued (Net) | 0 | -150M | 0 | 150M | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -395K | 0 | -552.01M | 76K | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -331.4M | 0 | 0 |
| Share Repurchases | -395K | 0 | -552.01M | -693.78M | 0 | 0 | 0 | 0 |
| Other Financing | -44.77M | -27.65M | 473.74M | -153.65M | -8.66M | 427.73M | -250.76M | 11.62M |
| Net Change in Cash | 328.87M | 292.05M | 344.05M | 100.94M | -161.52M | 187.64M | -11.42M | 14.37M |
| Free Cash Flow | 511.64M | 621.87M | 422.31M | 104.49M | -153.03M | 91.31M | 239.34M | -18.44M |
| FCF Margin % | 14.37% | 21.01% | 16.89% | 5.49% | -10.5% | 7.64% | 20.43% | -2.79% |
| FCF Growth % | -17.73% | 47.25% | 304.18% | 168.28% | -267.59% | -61.85% | 1397.96% | - |
| FCF per Share | 3.35 | 4.17 | 2.87 | 0.72 | -3.34 | 2.37 | 6.21 | -0.48 |
| FCF Conversion (FCF/Net Income) | 0.95x | 1.29x | 1.40x | 0.91x | -2.89x | 0.76x | 2.04x | 8.75x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Project-based cash flow volatility
As reported in financial statements, Nextpower's operating cash flow to net income ratio has frequently exceeded 1.0, peaking at 1.57 in 2024Q3, which suggests that the company's reported earnings are consistently backed by actual cash inflows rather than relying on aggressive accounting accruals or non-cash adjustments.
The consistent ability to generate operating cash flow in excess of net income indicates a high quality of earnings, likely stemming from the company's asset-light model and efficient collection cycles. Investors should monitor whether this conversion efficiency persists as the company scales, as any sustained divergence below parity could signal a deterioration in underlying business health.
Based on reported figures, Nextpower's free cash flow margins have exhibited significant volatility, ranging from a low of 8.1% in 2026Q1 to a high of 24.6% in 2025Q4, reflecting the inherent lumpiness of utility-scale solar project milestones and the resulting impact on quarterly cash generation.
While the company maintains strong cash generation, the wide variance in FCF margins underscores the project-based nature of the business. This trajectory suggests that while the company is structurally profitable, cash flow remains highly sensitive to the timing of large-scale deployments and the associated revenue recognition cycles.
According to recent SEC filings, Nextpower maintains a low capital intensity, with CapEx as a percentage of revenue consistently remaining below 2% over the last ten quarters, which confirms the company's successful execution of an asset-light manufacturing strategy that avoids heavy investment in proprietary fabrication facilities.
The minimal capital expenditure requirements allow the company to direct a larger portion of its operating cash flow toward strategic initiatives or liquidity preservation. This capital-efficient structure appears to be a key differentiator, providing the firm with greater flexibility to navigate cyclical downturns compared to more capital-intensive industrial peers.
As indicated by the provided financial data, working capital changes have been a major source of cash flow volatility, with a significant $81.6M outflow in 2026Q1 contrasting sharply with a $74.4M inflow in 2025Q4, highlighting the company's exposure to timing differences in project-related receivables and payables.
These substantial swings in working capital suggest that the company's cash position is heavily influenced by the timing of project completions and customer payment terms. Investors should monitor these fluctuations closely, as they may obscure the underlying operational cash generation capacity during periods of rapid backlog conversion or project delays.
Based on the cash flow statements, Nextpower has prioritized strategic acquisitions and liquidity retention over aggressive shareholder returns, as evidenced by the $110.2M acquisition outflow in 2025Q1 and the absence of regular dividend payments, suggesting a management team focused on long-term growth and balance sheet stability.
The company's approach to capital deployment appears conservative, favoring the accumulation of cash and targeted investments to bolster its competitive moat. This strategy warrants further investigation into the return on invested capital for these acquisitions, as the company transitions from its post-spin phase into a more mature operational state.
Quick answers to the most common questions about buying NXT stock.
Nextpower Inc. (NXT) generated $556.5M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Nextpower Inc. (NXT) generated $511.6M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Nextpower Inc. (NXT) spent $44.8M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Nextpower Inc. (NXT) spent $0.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.