Free cash flow margin improved to 19.6% in 2026Q1, with an operating cash flow to net income ratio of 2.67 indicating strong cash conversion efficiency.
| 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 |
|---|
| Cash from Operations | 276.66M | 238.66M | 168.48M | 97.33M | -55.66M | 9.5M | -33.24M | 26.65M | 28.81M | 12.69M | -12.81M | -22.28M | -6.39M | -3.4M |
| Operating CF Margin % | - | 17% | 14.1% | 9.2% | -6.57% | 1.27% | -5.93% | 4.87% | 6.47% | 3.8% | -4.86% | -11.97% | -5.09% | -3.82% |
| Operating CF Growth % | 248.78% | 41.66% | 73.1% | 274.87% | -685.78% | 128.58% | -224.73% | -7.48% | 127% | 199.09% | 42.52% | -248.71% | -88.13% | - |
| Net Income | 171.05M | 177.69M | 14.01M | 90.95M | -2M | 5.28M | -19.26M | 48.46M | 2.91M | 4.66M | 14.81M | 2.37M | 2.25M | 4.1M |
| Depreciation & Amortization | 17.03M | 17.47M | 23.7M | 30.61M | 27.57M | 19.49M | 12.89M | 7.85M | 6.17M | 3.78M | 2.3M | 1.75M | 751K | 677K |
| Stock-Based Compensation | 45.43M | 59.21M | 46.16M | 0 | 0 | 0 | 25.54M | 0 | 18.42M | 17.81M | 14.64M | 7.27M | 1.43M | 886K |
| Deferred Taxes | 22.3M | 21.03M | -16.34M | -19.06M | 1.46M | -14.09M | -18.82M | 1.82M | -6.48M | -4.29M | -12.38M | -2.96M | -571K | -335K |
| Other Non-Cash Items | 195.79M | 5.97M | 124.72M | 73.92M | 38.84M | 65.53M | 17.59M | 25.36M | 38.05M | 4.22M | 4.01M | 1.56M | 1.86M | -3.73M |
| Working Capital Changes | 2.75M | -42.72M | -23.78M | -79.08M | -121.53M | -66.71M | -51.19M | -56.84M | -30.26M | -13.49M | -36.19M | -32.26M | -12.11M | -5M |
| Change in Receivables | -14.52M | -19.51M | 26.6M | -266K | -69.86M | -21.34M | -8.29M | -25.03M | -25.76M | -9.12M | -14.56M | -11.06M | -7.43M | -1.55M |
| Change in Inventory | -24.74M | -26.48M | -65.66M | -67.71M | -74.63M | -51.55M | -56.98M | -41.41M | -22.29M | -18.83M | -19.74M | -25.13M | -9.44M | -3.78M |
| Change in Payables | 12.28M | 3.07M | 4.17M | 1.1M | 13.38M | -1.56M | -308K | 6.04M | 1.33M | 1.85M | 1.38M | 132K | 1.3M | -451K |
| Cash from Investing | -434.72M | -404.59M | 77.62M | -16.08M | 54.79M | -21.73M | -104.15M | -11.91M | -385K | -77.65M | 687K | -85.82M | -37M | -1.25M |
| Capital Expenditures | -63.93M | -63.73M | -21.18M | -15.21M | -19.3M | -21.18M | -24.76M | -22.11M | -9.6M | -15.03M | -13.63M | -5.47M | -3.89M | -798K |
| CapEx % of Revenue | 4.4% | 4.54% | 1.77% | 1.44% | 2.28% | 2.83% | 4.42% | 4.04% | 2.16% | 4.5% | 5.18% | 2.94% | 3.1% | 0.9% |
| Acquisitions | 0 | 0 | 0 | -988K | 0 | 2.92M | 0 | 800K | -20.41M | -9.25M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -1M | 0 | 1.1M | -500K | 0 | -400K | -3.06M | -8.64M | 29.63M | -55.87M | 14.32M | -80.34M | -33.11M | -453K |
| Cash from Financing | 21.92M | 26.53M | -87.01M | 16.2M | 11.62M | 836K | 134.92M | -9.76M | -9.81M | 104.36M | 7.13M | 124.42M | 42.9M | 2.18M |
| Debt Issued (Net) | -2.49M | -2.48M | -2.28M | -1.98M | -1.75M | -1.45M | -3.42M | -2.57M | -404K | -1.08M | 0 | 0 | -6M | 2M |
| Equity Issued (Net) | 27.8M | 31.82M | -100.39M | 20.41M | 21.55M | 18.37M | 134.76M | 13.1M | 0 | 106.27M | 0 | 124.74M | 47.86M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -100.39M | 0 | 0 | 0 | 0 | 0 | -17.73M | 0 | -2.62M | 0 | -9.35M | 0 |
| Other Financing | -3.39M | -2.8M | 15.66M | -2.23M | -8.18M | -16.08M | 3.58M | -20.29M | -9.41M | -829K | 7.13M | -318K | 1.04M | 178K |
| Net Change in Cash | -134.76M | -137.51M | 156.92M | 97.63M | 10.48M | -10.29M | -3.11M | 4.93M | 17.21M | 37.4M | -6.31M | 16.26M | -841K | -3.3M |
| Free Cash Flow | 212.73M | 174.93M | 147.3M | 82.12M | -74.96M | -11.68M | -58M | 4.54M | 19.2M | -2.34M | -26.44M | -27.75M | -10.28M | -4.19M |
| FCF Margin % | 14.63% | 12.46% | 12.33% | 7.76% | -8.85% | -1.56% | -10.35% | 0.83% | 4.32% | -0.7% | -10.04% | -14.91% | -8.19% | -4.72% |
| FCF Growth % | 41.51% | 18.76% | 79.37% | 209.55% | -541.88% | 79.86% | -1376.65% | -76.34% | 920.38% | 91.15% | 4.72% | -170.05% | -145.04% | - |
| FCF per Share | 5.38 | 4.45 | 3.75 | 2.09 | -1.98 | -0.31 | -1.62 | 0.13 | 0.53 | -0.07 | -0.79 | -1.95 | -0.42 | -0.17 |
| FCF Conversion (FCF/Net Income) | 1.24x | 1.34x | 12.02x | 1.07x | 27.80x | 1.80x | 2.12x | 0.55x | 4.36x | 2.73x | -0.86x | -9.42x | -2.85x | -0.83x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1K | 160K | 100K |
| Taxes Paid | 7.08M | 0 | 20.67M | 0 | 0 | 0 | 1.41M | 0 | 156K | 141K | 2.15M | 1.22M | -3.09M | 37K |
Competitive VTE market saturation
According to recent quarterly filings, Penumbra's operating cash flow to net income ratio reached 2.67 in 2026Q1, indicating that cash generation is significantly outpacing reported accounting profits, a trend that warrants further investigation into the underlying non-cash charges and working capital movements driving this divergence.
The substantial premium of operating cash flow over net income suggests that reported earnings may be conservative relative to the company's actual ability to convert sales into liquidity. Investors should monitor whether this conversion efficiency is sustainable or if it reflects temporary timing differences in accruals that could reverse in subsequent periods.
As reported in financial statements, Penumbra's free cash flow margin climbed to 19.6% in 2026Q1, marking a notable recovery from the 6.0% low observed in 2024Q2 and suggesting that the company is successfully scaling its core procedural business while managing its discretionary cash outflows more effectively.
The upward trajectory in free cash flow margins appears to be driven by a combination of revenue growth and a stabilization of capital intensity. This trend implies that the company is moving toward a more self-sustaining financial model, though the consistency of this margin expansion remains sensitive to ongoing R&D and market development costs.
Based on Penumbra's reported figures, the company's capital expenditure to revenue ratio reached 3.6% in 2026Q1, reflecting a measured approach to infrastructure investment that remains well-aligned with the company's current growth phase and the necessity of maintaining its specialized manufacturing and aspiration hardware ecosystem.
The relatively low capital intensity suggests that Penumbra does not require massive, recurring heavy-asset investments to support its current revenue trajectory. This capital-light profile provides flexibility, though analysts should watch for potential spikes in spending if the company accelerates its transition toward more complex, computer-assisted aspiration systems.
Data from recent quarterly reports highlights a significant $35.5M positive working capital adjustment in 2026Q1, which contrasts sharply with the $23.9M outflow seen in 2024Q2 and suggests that the company's cash cycle is subject to meaningful fluctuations tied to inventory management and hospital-level consignment dynamics.
The volatility in working capital movements appears to be a byproduct of the company's consignment-heavy sales model, where inventory is held at customer sites. This suggests that cash flow is highly sensitive to the timing of procedural volume and the efficiency with which the company manages its field-based inventory pipeline.
Quick answers to the most common questions about buying PEN stock.
Penumbra, Inc. (PEN) generated $238.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Penumbra, Inc. (PEN) generated $174.9M 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.
Penumbra, Inc. (PEN) spent $63.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.