Cash conversion remains volatile, evidenced by an OCF/NI ratio that swung from a negative 2.90 in 2024Q3 to a positive 1.98 in 2025Q3, complicating the predictability of free cash flow generation.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 |
|---|
| Cash from Operations | 94.36M | 97.59M | -87.5M | 94.81M | 63.81M | 139.07M | 129.18M | 119.11M | 133.11M | 62.78M | 59.22M | 105.1M | 129.17M | 58.66M | 120.56M | 40.14M | 52.15M | 44.5M | -672K | -2.28M | -12.19M | -12.86M | -10.41M | 21.56M | 6.24M | 94K | -902K | 100K | -400K |
| Operating CF Margin % | - | 5.7% | -5.69% | 7.42% | 5.39% | 12.13% | 11.08% | 10.08% | 12.22% | 6.53% | 7.14% | 10.97% | 14.25% | 7.31% | 15.2% | 6.12% | 8.76% | 7.54% | -0.11% | -0.43% | -2.69% | -3.34% | -4.22% | 11.8% | 5.03% | 0.08% | -0.81% | 0.1% | -0.43% |
| Operating CF Growth % | 184.13% | 211.53% | -192.29% | 48.59% | -54.12% | 7.65% | 8.45% | -10.52% | 112.03% | 6.01% | -43.66% | -18.63% | 120.18% | -51.34% | 200.36% | -23.03% | 17.19% | 6722.02% | 70.49% | 81.32% | 5.19% | -23.47% | -148.32% | 245.28% | 6541.49% | 110.42% | -1002% | 125% | - |
| Net Income | 152.22M | 149.64M | 128.15M | 91.78M | 115.35M | 74.05M | 75.25M | 64.8M | -29.13M | 21.08M | 26.16M | 65.15M | 47.89M | 44.13M | 45.55M | 33.42M | 23.56M | 11.15M | 13.86M | -18.76M | -2.36M | -2.4M | 9.96M | 15.79M | 6.92M | 3.5M | 627K | 700K | 8.2M |
| Depreciation & Amortization | 40.3M | 43.58M | 42.21M | 38.51M | 38.68M | 43.85M | 49.76M | 56.23M | 69.75M | 68.23M | 57.92M | 58.98M | 54.24M | 27.51M | 20.2M | 18.53M | 18.56M | 17.8M | 19.34M | 17.83M | 14.19M | 10.64M | 5.71M | 4.29M | 3.93M | 4.13M | 4.04M | 3.7M | 2.3M |
| Stock-Based Compensation | 22.71M | 31.96M | 28.71M | 29.12M | 28.07M | 26.77M | 23.82M | 25.25M | 23.85M | 26.13M | 20.76M | 22.5M | 16.98M | 16.45M | 8.53M | 5.79M | 5.01M | 5.05M | 5.27M | 5.27M | 5.35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -8.99M | -9.09M | -14.13M | -3.98M | 3.52M | 432K | -431K | -8.54M | 26.11M | -24.22M | -13.22M | -5.96M | 7.94M | 3.6M | -941K | 9.67M | 3.45M | -2.26M | -4.89M | -22.68M | -3.7M | -3.37M | -1.45M | 607K | -2.69M | 2.23M | -2.19M | -1.4M | -300K |
| Other Non-Cash Items | 14.63M | 1.26M | 5.67M | -3.45M | -32.33M | 20.02M | 19.76M | 12.06M | 21.36M | 28.52M | 11.84M | 4.23M | 4.92M | 7.43M | 3.38M | 1.48M | 178K | 4.33M | -814K | 11.03M | 4.9M | 4.8M | 2.1M | 806K | 3.11M | -3.57M | 209K | 7.4M | 100K |
| Working Capital Changes | -126.52M | -119.76M | -278.11M | -57.17M | -89.48M | -26.06M | -38.98M | -30.69M | 21.16M | -56.96M | -44.24M | -39.8M | -2.81M | -40.45M | 43.85M | -28.75M | 1.4M | 8.41M | -33.44M | 5.04M | -30.58M | -22.53M | -26.73M | 61K | -5.03M | -6.2M | -3.59M | -10.3M | -10.7M |
| Change in Receivables | -159.03M | -164.72M | -293.64M | -66.09M | -13.71M | -28.95M | -37.07M | -27.21M | 11.34M | -44.46M | 36.88M | 7.36M | 26.18M | -53.57M | -17.45M | -3.07M | -23.37M | 30.82M | 1.86M | 1.86M | 2.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 2.24M | -9.7M | -57.29M | -115K | -44.66M | -47.77M | 30.75M | 39.45M | -59.22M | 30.81M | -37.7M | 249K | -21.03M | -12.89M | -24.52M | -39.7M | 19.9M | -17.61M | -25.56M | 6.25M | -13.68M | -8.63M | -15.11M | -4.32M | -5.06M | -3.95M | -7.58M | -400K | -4M |
| Change in Payables | 27.11M | 7.88M | 52.45M | 10.76M | -15.05M | 55.6M | -8.89M | -16.62M | 25.14M | 2.66M | 6.83M | -15.12M | -26.14M | 40.48M | -12.93M | 14.4M | -5.38M | -15.23M | 1.75M | 1.75M | 9.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -39.87M | -117.85M | -37.64M | -40.46M | -12.67M | -34.69M | -42.69M | -48.49M | -149.44M | -200.69M | -43.48M | -35.43M | -72.23M | -167.85M | -81.18M | -24.01M | -24.39M | -12.43M | -29.84M | -30.21M | -16.32M | -29.62M | -75.62M | -14.89M | -2.52M | 3.78M | -1.29M | -23.4M | -8M |
| Capital Expenditures | -18.1M | -23.83M | -22.1M | -32.25M | -30.49M | -29.51M | -21.06M | -30.21M | -45.65M | -22.24M | -23.56M | -21.51M | -60.49M | -161.77M | -73.19M | -17.7M | -21.19M | -14.32M | -14.65M | -18.29M | -16.45M | -16.82M | -5.4M | -3.57M | -2.1M | -3.5M | -2.97M | -20.6M | -8.3M |
| CapEx % of Revenue | 1% | 1.39% | 1.44% | 2.52% | 2.58% | 2.57% | 1.81% | 2.56% | 4.19% | 2.31% | 2.84% | 2.25% | 6.67% | 20.17% | 9.23% | 2.7% | 3.56% | 2.43% | 2.35% | 3.44% | 3.63% | 4.37% | 2.19% | 1.95% | 1.69% | 3.15% | 2.67% | 20.24% | 8.84% |
| Acquisitions | 3.62M | -76.74M | -9.05M | -7.1M | -14.13M | -3M | -8.94M | -18.27M | -103.79M | -178.44M | -19.92M | -13.92M | -11.74M | -6.09M | -7.99M | -6.31M | -3.24M | 0 | -23.11M | -23.11M | -311K | -11.45M | -77.51M | -5.37M | 0 | -541K | -1.31M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -25.39M | -17.39M | -16.82M | 347K | 34.13M | 0 | -12.69M | -2.8M | -2.45M | 7.65M | -5.87M | -6.23M | -5.9M | -4.4M | -17.7M | 3K | 37K | 2.3M | 7.92M | 10.55M | 231K | -1.35M | 2.03M | -1.23M | -421K | 7.32M | 148K | -600K | 300K |
| Cash from Financing | 194.6M | 30.82M | 144.25M | -37.17M | -64.01M | -103.92M | -104.73M | -58.31M | -68.45M | 203.58M | 41.83M | -60.03M | -54.29M | 51.06M | -1.73M | -15.89M | -3.01M | -24.79M | 32.97M | 35.76M | 26.73M | 16.05M | 30.51M | 18.95M | 59.69M | -10.42M | 5.68M | 7.5M | 30.6M |
| Debt Issued (Net) | 370.72M | 126.4M | 161.99M | 5.92M | 64.31M | -59.32M | -29.2M | -26.72M | 8.45M | 254.46M | 122.77M | -1.69M | -170K | 68.83M | -217K | -33.31M | -15.99M | -21M | 26.89M | 28.1M | -3.7M | 17.67M | -1.92M | -2.63M | 54.12M | -6.63M | 7.5M | 7.8M | -11.2M |
| Equity Issued (Net) | -139.26M | -80.44M | 0 | -46.7M | -131.06M | -31.95M | -51.77M | -21.03M | -62.93M | -40.8M | -67.23M | -27.15M | -10.55M | -12.01M | -3.93M | -2.22M | 12.99M | -7.39M | 7.22M | 7.66M | 30.43M | -1.63M | 1.45M | 1.05M | 5.56M | -3.79M | -1.44M | -300K | 41.8M |
| 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 | 0 |
| Share Repurchases | -147.03M | -80.44M | 0 | -34.75M | -111.63M | -37.47M | -51.77M | -21.03M | -62.93M | -48.45M | -73.37M | -30.74M | -12.06M | -12.01M | -3.93M | -2.22M | -7.39M | -7.39M | 0 | 0 | 0 | -3.82M | 0 | 0 | 0 | -3.89M | -1.82M | -400K | 0 |
| Other Financing | -36.86M | -15.14M | -17.73M | 3.6M | 2.73M | -12.66M | -23.75M | -10.57M | -13.97M | -10.08M | -13.71M | -31.19M | -43.57M | -5.76M | 2.41M | 19.64M | 0 | 3.6M | -1.14M | 0 | 0 | 0 | 30.98M | 20.53M | 0 | 0 | -389K | 0 | 0 |
| Net Change in Cash | 249.41M | 11.05M | 18.6M | 12.55M | -16.41M | 4.51M | -20.21M | 11.5M | -84.84M | 65.28M | 56.78M | 8.76M | 4.13M | -56.76M | 35.83M | 3.63M | 26.82M | 6.94M | 2.25M | 2.18M | -824K | -25.26M | -54.37M | 26.64M | 63.14M | -6.42M | 3.65M | -15.2M | 21.8M |
| Free Cash Flow | 76.53M | 56.09M | -126.93M | 62.56M | 33.32M | 109.56M | 94.76M | 88.9M | 87.46M | 40.54M | 35.66M | 83.59M | 68.68M | -103.1M | 47.37M | 22.44M | 30.96M | 30.18M | -15.33M | -20.56M | -28.64M | -29.68M | -15.82M | 17.99M | 4.14M | -3.4M | -3.87M | -20.5M | -8.7M |
| FCF Margin % | 4.24% | 3.27% | -8.25% | 4.89% | 2.82% | 9.55% | 8.13% | 7.52% | 8.03% | 4.22% | 4.3% | 8.72% | 7.57% | -12.85% | 5.97% | 3.42% | 5.2% | 5.11% | -2.46% | -3.86% | -6.33% | -7.71% | -6.4% | 9.85% | 3.33% | -3.06% | -3.49% | -20.14% | -9.27% |
| FCF Growth % | 65.94% | 144.19% | -302.9% | 87.74% | -69.59% | 15.61% | 6.6% | 1.65% | 115.75% | 13.67% | -57.34% | 21.71% | 166.61% | -317.65% | 111.12% | -27.53% | 2.58% | 296.91% | 25.47% | 28.2% | 3.5% | -87.62% | -187.95% | 334.26% | 221.75% | 12.07% | 81.13% | -135.63% | - |
| FCF per Share | 4.39 | 3.27 | -7.31 | 3.64 | 1.86 | 5.96 | 5.09 | 4.75 | 4.70 | 2.06 | 1.78 | 4.07 | 3.34 | -5.01 | 2.33 | 1.15 | 1.68 | 1.72 | -0.86 | -1.22 | -1.73 | -1.83 | -1.03 | 1.24 | 0.36 | -0.37 | -0.43 | -2.34 | -0.98 |
| FCF Conversion (FCF/Net Income) | 0.50x | 0.65x | -0.68x | 1.03x | 0.55x | 1.88x | 1.72x | 1.84x | -4.57x | 2.98x | 2.26x | 1.61x | 2.70x | 1.33x | 2.65x | 1.20x | 2.21x | 3.99x | -0.05x | 0.12x | 5.17x | 5.37x | -1.05x | 1.36x | 0.90x | 0.03x | -1.44x | 0.14x | -0.05x |
| Interest Paid | -13.66M | 26.84M | 26.76M | 20.28M | 6.98M | 5.98M | 7.71M | 11.86M | 9.25M | 5.18M | 2.38M | 2.8M | 4.66M | 3.48M | 3.17M | 1.63M | 2.76M | 3M | 4.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -1.08M | 39.9M | 42.1M | 19.44M | 16.66M | 12.78M | 19.08M | 34.79M | 29.45M | 25.07M | 26.67M | 31.27M | 18.55M | 12.29M | 7.15M | 6.24M | 7.59M | 6.8M | 3.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in recent financial filings, OSIS exhibits a highly inconsistent relationship between net income and operating cash flow, with the OCF/NI ratio swinging from a negative 2.90 in 2024Q3 to a positive 1.98 in 2025Q3, reflecting significant volatility in cash conversion quality.
The frequent divergence between accounting profits and cash generation suggests that the company's reliance on large-scale, long-term contracts creates substantial timing differences in revenue recognition. Investors should monitor whether these accruals eventually reverse into cash or if they indicate a structural difficulty in collecting payments on complex government projects.
Based on the provided quarterly data, OSIS's free cash flow trajectory remains erratic, with margins fluctuating from a negative 17.9% in 2024Q3 to a peak of 16.4% in 2025Q3, underscoring the lack of predictable cash generation inherent in the current project-based business model.
The inability to maintain a consistent positive FCF margin suggests that the company's operational cash flow is highly sensitive to the timing of milestone payments. This volatility makes it difficult to assess the underlying cash-generating power of the business independent of its lumpy contract cycles.
According to the cash flow statements, working capital changes have acted as a persistent drag on liquidity, with a significant outflow of $103.7 million in 2024Q3, indicating that the company frequently ties up substantial cash in inventory and unbilled receivables during project execution phases.
The recurring negative impact of working capital changes suggests that the company's growth is capital-intensive, requiring significant upfront investment before cash is realized. This dynamic warrants further investigation into the company's ability to negotiate more favorable payment terms with its government and municipal customers.
As evidenced by financial data, OSIS has utilized significant cash for share repurchases, including a $147.0 million outlay in 2026Q2, despite the underlying volatility in operating cash flow, which may indicate a management preference for returning capital over maintaining a cash buffer for operational contingencies.
The decision to deploy large sums toward buybacks during periods of inconsistent cash flow suggests a high degree of confidence in future contract wins. However, investors should consider whether this capital could be more effectively utilized to reduce the working capital intensity of the company's core security business.
Quick answers to the most common questions about buying OSIS stock.
OSI Systems, Inc. (OSIS) generated $97.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
OSI Systems, Inc. (OSIS) generated $56.1M 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.
OSI Systems, Inc. (OSIS) spent $23.8M 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, OSI Systems, Inc. (OSIS) spent $80.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.