Free cash flow generation is highly volatile, with FCF margin swinging from -117.3% in 2024Q2 to 34.9% in 2025Q2, primarily driven by massive working capital swings that obscure underlying cash conversion efficiency.
PagSeguro Digital Ltd. (PAGS) cash flow statement — 12-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 |
|---|
| Cash from Operations | 653.83M | 2.57B | -3.42B | 4B | 3.55B | 898.01M | 2.15B | 489.08M | -1.87B | 471.3M | 71.88M | 56.37M | 17.56M |
| Operating CF Margin % | - | 13.3% | -18.63% | 25.51% | 23.41% | 8.72% | 32.2% | 8.76% | -46.08% | 18.74% | 6.34% | 8.49% | 5.42% |
| Operating CF Growth % | -99.06% | 175.34% | -185.41% | 12.7% | 295.2% | -58.28% | 340.14% | 126.17% | -496.57% | 555.64% | 27.51% | 221.09% | - |
| Net Income | 2.15B | 2.08B | 2.38B | 2.02B | 1.76B | 1.49B | 1.77B | 1.39B | 963.85M | 497.45M | 118.75M | 41.55M | 29.33M |
| Depreciation & Amortization | 1.85B | 1.77B | 1.6B | 1.36B | 1.13B | 768.59M | 376.33M | 128.35M | 95.36M | 51.57M | 31.25M | 22.42M | 13.14M |
| Stock-Based Compensation | 40.69M | 0 | 178.69M | 144.62M | 127.39M | 370.63M | 122.87M | 23.23M | 68.24M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -4.64M | -84.29M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 6.84B | 6.44B | 3.49B | 3.97B | 4.53B | 2.05B | 533.55M | 1.18B | 847.9M | 303.14M | 185.4M | 729.77M | 561.64M |
| Working Capital Changes | -10.31B | -7.72B | -11.06B | -3.49B | -4B | -3.78B | -570.49M | -2.24B | -3.84B | -380.86M | -263.51M | 12.35M | -3.81M |
| Change in Receivables | -10.32B | -6.62B | -21.69B | -10.5B | -17.67B | -9.4B | -5.83B | -3.28B | -5.38B | -2.16B | -707.9M | -712.87M | -545.31M |
| Change in Inventory | 0 | 0 | 5.22M | -19.71M | 36.26M | -132.4M | 31.6M | 14.5M | -49.83M | -42.17M | 18.84M | -29.72M | -15.64M |
| Change in Payables | -2.53M | -52.84M | 148.6M | 3.4B | -133.85M | 243.59M | 72.33M | 1.11B | 1.4B | 1.81B | 415.79M | 37.71M | 4.48M |
| Cash from Investing | -2.43B | -2.25B | -1.83B | -2.7B | -2.18B | -1.47B | -1.86B | -1.87B | -30.75M | -215.31M | -189.82M | -49.64M | -25.55M |
| Capital Expenditures | -1.64B | -2.23B | -1.13B | -951.56M | -1.1B | -972.27M | -1.52B | -707.09M | -268.83M | -111.74M | -67.59M | -49.86M | -25.72M |
| CapEx % of Revenue | 8.27% | 11.53% | 6.17% | 6.07% | 7.23% | 9.44% | 22.78% | 12.67% | 6.63% | 4.44% | 5.97% | 7.51% | 7.94% |
| Acquisitions | 0 | 0 | 0 | -31.31M | 0 | -43.37M | -345.6M | -34.62M | 14.29M | -23.09M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -680.28M | 0 | -698.21M | -1.72B | -1.09B | -455.31M | -523.78M | -367.97M | 4.93M | -53.48M | -61.86M | -9.77M | -7.84M |
| Cash from Financing | 347.43M | -443.29M | 3.27B | -225.99M | -1.33B | 727.24M | -55.06M | -1.77M | 4.76B | -269.71M | 186.17M | 0 | 0 |
| Debt Issued (Net) | -1.43B | 1.54B | 4.14B | 183.03M | -981.32M | 996.94M | 0 | 0 | 0 | -199.48M | 199.39M | 0 | 0 |
| Equity Issued (Net) | -1.02B | -1.3B | -784.46M | -399.41M | -291.44M | -257.99M | -44.77M | -1.74M | 4.68B | 0 | 0 | 0 | 0 |
| Dividends Paid | -920.15M | -604.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -56.39M | 0 | 0 | 0 |
| Share Repurchases | -1.02B | -1.3B | -784.46M | -399.41M | -291.44M | -257.99M | -44.77M | -1.74M | -39.53M | 0 | 0 | 0 | 0 |
| Other Financing | 3.72B | -78.59M | -81.99M | -9.61M | -56.93M | -11.71M | -10.29M | -16.21M | -174.56M | -5.83M | 0 | 0 | 0 |
| Net Change in Cash | -456.46M | 1.03B | -1.97B | 1.07B | 34.73M | 154.3M | 236.11M | -1.36B | 2.7B | -13.2M | 73.08M | 5.69M | -7.99M |
| Free Cash Flow | -565.5M | 1.55B | -5.74B | 2.01B | 1.41B | -853.82M | 106.11M | -218.01M | -2.14B | 359.56M | 4.29M | 6.51M | -8.16M |
| FCF Margin % | -2.86% | 8.03% | -31.29% | 12.83% | 9.32% | -8.29% | 1.59% | -3.91% | -52.71% | 14.3% | 0.38% | 0.98% | -2.52% |
| FCF Growth % | -408.68% | 127.09% | -385.22% | 42.39% | 265.44% | -904.66% | 148.67% | 89.8% | -694.57% | 8273.48% | -34.07% | 179.78% | - |
| FCF per Share | -2.02 | 5.22 | -17.96 | 6.21 | 4.29 | -2.57 | 0.32 | -0.66 | -6.72 | 1.14 | 0.01 | 0.02 | -0.03 |
| FCF Conversion (FCF/Net Income) | -0.26x | 1.24x | -1.61x | 2.42x | 2.36x | 0.77x | 1.67x | 0.36x | -2.06x | 0.98x | 0.57x | 1.61x | 0.68x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying PAGS stock.
PagSeguro Digital Ltd. (PAGS) generated $2.57B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
PagSeguro Digital Ltd. (PAGS) generated $1.55B 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.
PagSeguro Digital Ltd. (PAGS) spent $2.23B 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, PagSeguro Digital Ltd. (PAGS) returned $604.9M to shareholders via cash dividends and spent $1.30B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Volatile working capital swings
Earnings Quality Masked by Working Capital
The relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio swinging from -9.04 in 2024Q2 to 5.03 in 2024Q1, indicating that reported earnings are a poor proxy for near-term cash generation due to massive working capital volatility.
The extreme volatility in the OCF/NI ratio suggests that PAGS's core earnings power is being obscured by the timing of cash flows related to its prepayment and credit operations. This pattern implies that the company's cash conversion is not driven by the quality of its underlying transactional earnings, but by the management of its balance sheet, which introduces significant unpredictability into its cash flow profile.
FCF Volatility Undermines Margin Stability
Free cash flow margin has been wildly inconsistent, ranging from -117.3% in 2024Q2 to 44.5% in 2024Q1, demonstrating that the company's ability to generate cash after capital expenditures is highly unpredictable and not aligned with its stable net income trajectory.
The erratic FCF margin trajectory indicates that PAGS's capital expenditure and working capital needs are not scaling predictably with revenue. This volatility makes it difficult to assess the company's sustainable cash generation capacity, as the reported net income does not translate into a reliable free cash flow stream, a critical concern for valuation.
Massive Working Capital Swings Dominate Cash Flow
Working capital changes have been the primary driver of operating cash flow volatility, with outflows reaching -$6.2B in 2024Q2 and -$5.8B in 2025Q4, suggesting that the company's cash position is heavily influenced by the timing of its prepayment and credit activities rather than operational efficiency.
The enormous and unpredictable swings in working capital, often exceeding the magnitude of net income, indicate that PAGS's cash flow is being dictated by the expansion or contraction of its balance sheet assets, likely related to merchant advances and credit receivables. This dynamic suggests that the company's cash flow statement is more a reflection of its financing and lending activities than its core payment processing operations.
Capital Returns Accelerate Amidst Cash Generation
Capital deployment has shifted towards shareholder returns, with dividends and buybacks totaling $457.6M in 2026Q2, a significant increase from zero in early 2024, indicating a new phase of capital allocation as the company's cash generation stabilizes.
The initiation and acceleration of dividends and share repurchases suggest that management is confident in the sustainability of its cash flow generation, despite its historical volatility. This shift in capital allocation may indicate a maturing business model, but it also reduces the financial flexibility available to fund growth or absorb potential working capital shocks.
Cash Flow Obscured by Financial Engineering
The cash flow statement likely obscures the true economic cost of PAGS's growth, as the massive working capital outflows may represent the capital-intensive nature of its prepayment and credit business, which is not fully reflected in the reported operating expenses.
The significant gap between net income and operating cash flow, driven by working capital, suggests that the company's reported profitability may be overstating its economic returns. The cash flow statement does not clearly distinguish between the cash used to fund merchant advances (a core business activity) and cash used for operational growth, making it difficult to assess the true capital efficiency of the business model.