Operating cash flow of $107M in 2026Q2 and cumulative OCF of $1.9B over ten quarters exceed net income, but FCF margin of 4.2% and volatile working capital swings warrant monitoring.
Organon & Co. (OGN) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Cash from Operations | 737M | 700M | 939M | 799M | 858M | 2.46B | 2.19B | 2.77B | 3.69B |
| Operating CF Margin % | - | 11.26% | 14.67% | 12.76% | 13.9% | 38.99% | 33.48% | 35.58% | 37.71% |
| Operating CF Growth % | 172.02% | -25.45% | 17.52% | -6.88% | -65.09% | 12.39% | -20.96% | -24.95% | - |
| Net Income | 209M | 187M | 864M | 1.02B | 917M | 1.35B | 2.26B | 3.31B | 2.15B |
| Depreciation & Amortization | 331.93M | 361M | 277M | 236M | 212M | 195M | 142M | 333M | 1.67B |
| Stock-Based Compensation | 31.04M | 77M | 105M | 101M | 75M | 59M | 40M | 41M | 56M |
| Deferred Taxes | 70.02M | 63M | -160M | -485M | -18M | -288M | -32M | 12M | 37M |
| Other Non-Cash Items | 409.75M | 259M | 131M | 79M | 124M | 439M | -22M | -253M | -58M |
| Working Capital Changes | -61M | -247M | -278M | -155M | -452M | 702M | -197M | -672M | -174M |
| Change in Receivables | 154.82M | 79M | 383M | -212M | -123M | -277M | 159M | 200M | 250M |
| Change in Inventory | 17.98M | -13M | -131M | -230M | -220M | -138M | -29M | -91M | 44M |
| Change in Payables | -107.89M | -217M | -157M | 163M | -237M | 663M | 27M | -35M | 20M |
| Cash from Investing | 130M | -390M | -513M | -260M | -420M | -481M | -258M | -102M | -69M |
| Capital Expenditures | -373.93M | -192M | -351M | -259M | -427M | -488M | -278M | -92M | -101M |
| CapEx % of Revenue | 6.1% | 3.09% | 5.48% | 4.14% | 6.92% | 7.74% | 4.26% | 1.18% | 1.03% |
| Acquisitions | -149.85M | -198M | -166M | -2M | -124M | -185M | 5M | 7M | 32M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 653.78M | 0 | 4M | 1M | 131M | 192M | 15M | -17M | 32M |
| Cash from Financing | -313M | -561M | -368M | -569M | -433M | -1.33B | -2.17B | -2.62B | -4.16B |
| Debt Issued (Net) | -286M | -458M | -11M | -258M | -108M | 7.85B | 1.51B | 0 | 59M |
| Equity Issued (Net) | -1M | 0 | -22M | -17M | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -18M | -88M | -297M | -294M | -290M | -145M | 0 | 0 | 0 |
| Share Repurchases | -1M | 0 | -22M | -17M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -8M | -15M | -38M | 0 | -35M | -9.03B | -3.69B | -2.62B | -4.22B |
| Net Change in Cash | 533M | -101M | -18M | -13M | -31M | 667M | -249M | 75M | -527M |
| Free Cash Flow | 498M | 538M | 588M | 538M | 431M | 1.97B | 1.91B | 2.67B | 3.59B |
| FCF Margin % | 8.13% | 8.66% | 9.18% | 8.59% | 6.98% | 31.25% | 29.23% | 34.4% | 36.68% |
| FCF Growth % | 3.32% | -8.5% | 9.29% | 24.83% | -78.12% | 3.2% | -28.64% | -25.4% | - |
| FCF per Share | 1.84 | 2.06 | 2.27 | 2.10 | 1.69 | 7.77 | 7.53 | 10.57 | 14.17 |
| FCF Conversion (FCF/Net Income) | 2.38x | 3.74x | 1.09x | 0.78x | 0.94x | 1.82x | 1.01x | 0.86x | 1.71x |
| Interest Paid | 0 | 0 | 0 | 495M | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying OGN stock.
Organon & Co. (OGN) generated $700.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Organon & Co. (OGN) generated $538.0M 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.
Organon & Co. (OGN) spent $192.0M 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, Organon & Co. (OGN) returned $88.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
High leverage and China VBP
Metrics are mathematically derived from official filings.
Cash Conversion Volatility Masks Earnings Quality
Operating cash flow to net income swung from 0.38 in 2024Q1 to 3.58 in 2024Q4, per reported figures, indicating significant non-cash items and working capital swings distorting earnings quality.
The OCF/NI ratio has been highly erratic, ranging from -0.69 in 2025Q4 to 3.58 in 2024Q4, suggesting that net income is not a reliable indicator of cash generation. The negative ratio in 2025Q4 reflects a net loss while operating cash flow remained positive, likely due to large non-cash charges such as impairments or deferred taxes. Investors should focus on operating cash flow as the more stable metric, but its volatility across quarters warrants caution.
Free Cash Flow Oscillates Amid Revenue Decline
Free cash flow swung from -$22 million in 2025Q1 to $188 million in 2026Q1, as per financial statements, with FCF margin ranging from -1.5% to 18.7%, reflecting unstable cash generation.
The FCF trajectory is highly volatile, with negative FCF in two of the last ten quarters (2025Q1 and 2024Q1), while other quarters show robust positive FCF. This instability suggests that working capital management and capex timing are significant drivers, not just operational performance. The recent quarters (2026Q1 and 2026Q2) show improvement, but the overall trend is inconsistent, making it difficult to project sustainable FCF.
Capital Expenditures Spike in 2025Q4
Capex surged to $258.9 million in 2025Q4, representing 17.2% of revenue, versus a typical 2-8% range, based on reported data, indicating a major investment or potential one-time expenditure.
The capex-to-revenue ratio spiked dramatically in 2025Q4, far exceeding the historical average of around 5%. This could indicate a significant investment in manufacturing capacity or a one-time asset purchase, but the lack of disclosure makes it difficult to assess. If this is a one-time event, future capex should revert to normal levels, but if it signals a new capital intensity, it could pressure FCF.
Working Capital Swings Drive Cash Flow Volatility
Working capital changes ranged from -$223 million in 2024Q1 to +$112 million in 2024Q4, as reported in cash flow statements, indicating significant variability in collections, inventory, and payables.
The working capital line item has been a major source of volatility, with large negative changes in several quarters (e.g., -$223M in 2024Q1, -$167M in 2024Q3) and positive changes in others. This suggests that the company may be managing cash aggressively through receivables and payables, but it also introduces uncertainty into cash flow projections. The negative changes in recent quarters (2025Q1, 2025Q2) may indicate inventory build-up or slower collections, which could be a red flag.
Capital Deployment Shifts from Dividends to Debt Reduction
Dividends paid fell from $79 million in 2024Q2 to $6 million in 2026Q2, while acquisitions netted -$433 million in 2026Q2, per cash flow data, indicating a strategic pivot toward deleveraging.
The dramatic reduction in dividends from around $70-80 million per quarter in 2024 to $5-6 million in 2026 suggests a deliberate shift to conserve cash for debt repayment. The large acquisition outflows in 2026Q2 and 2024Q4 (net -$433M and -$165.9M) indicate continued M&A activity, but the overall capital deployment appears focused on strengthening the balance sheet. Investors should monitor whether this dividend cut is temporary or permanent.
Cumulative Earnings Exceed Cash Generation
Over the last ten quarters, cumulative net income totaled $1.3 billion while operating cash flow reached $1.9 billion, based on reported figures, indicating cash generation has outpaced earnings.
The cumulative operating cash flow of $1.9 billion exceeds cumulative net income of $1.3 billion, suggesting that non-cash charges (D&A, impairments) are inflating the gap. However, the divergence is not consistent, with some quarters showing OCF below net income (e.g., 2024Q1, 2024Q3). This indicates that earnings quality is mixed, and investors should rely more on cash flow metrics for valuation.
Cash Flow Statement Obscures Leverage and SBC Impact
Stock-based compensation averaged $20 million per quarter, while debt-to-equity stands at 11.70, as per financial data, suggesting cash flow may overstate true economic earnings.
The cash flow statement does not fully capture the dilutive impact of stock-based compensation, which totaled around $200 million over the period, reducing real shareholder value. Additionally, the high leverage (debt-to-equity of 11.70) means that interest payments are a significant cash outflow not fully reflected in operating cash flow. The reported operating cash flow may appear robust, but after accounting for mandatory debt service and SBC, the actual free cash flow available to shareholders is much thinner.