Cash generation has deteriorated significantly, evidenced by a negative free cash flow margin of -21.1% and an OCF/NI ratio of 6.76 in 2026Q1, indicating a disconnect between accounting losses and operational cash outflows.
| 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 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 337.6M | 741M | 268.2M | 925.8M | 508.6M | 293.7M | 1.02B | 655.04M | 477.11M | 579.98M | 571.78M | 440.23M | 529.27M | 492.24M | 416.12M | 302.53M | 297.62M | 193.2M | 175.75M | 210.16M | 145.62M | 161.53M | 246.83M | 155.76M | 192.77M | 188.58M | 107.67M | 124.4M | 121.4M | 102.3M | 89.1M |
| Operating CF Margin % | - | 10.36% | 3.74% | 10.36% | 5.92% | 3.95% | 14.49% | 9.66% | 7.85% | 10.68% | 12.66% | 9.33% | 11.82% | 13.03% | 12.96% | 11.39% | 14.95% | 12.34% | 9.02% | 11.81% | 8.79% | 8.64% | 13.92% | 9.7% | 12.67% | 12.47% | 7.55% | 9.42% | 10.33% | 9.76% | 7.48% |
| Operating CF Growth % | 276.89% | 176.29% | -71.03% | 82.03% | 73.17% | -71.17% | 55.5% | 37.29% | -17.74% | 1.43% | 29.88% | -16.82% | 7.52% | 18.29% | 37.55% | 1.65% | 54.05% | 9.93% | -16.37% | 44.32% | -9.85% | -34.56% | 58.46% | -19.2% | 2.22% | 75.15% | -13.45% | 2.47% | 18.67% | 14.81% | 16.62% |
| Net Income | -446.1M | -464.8M | 111.2M | 502.8M | 603.4M | 494.3M | 124.9M | 323.88M | 335.26M | 172.49M | 212.95M | 455.36M | 454.03M | 381.07M | 312.31M | 227.57M | 147.14M | 101.02M | 117.39M | 111.65M | 106.58M | 143.28M | 104.5M | 110.93M | 103.59M | 91.41M | 82.81M | 76.3M | 31M | 65.4M | 62.3M |
| Depreciation & Amortization | 275.7M | 286.5M | 286.3M | 258.9M | 232.8M | 237.1M | 260.7M | 234.51M | 211.04M | 191.11M | 167.51M | 152.14M | 127.51M | 92.1M | 70.58M | 66.39M | 66.52M | 64.59M | 66.11M | 62.09M | 71.16M | 67.94M | 59.34M | 54.78M | 57.53M | 52.55M | 47M | 39.3M | 36.2M | 33.2M | 30.6M |
| Stock-Based Compensation | 57.2M | 59.9M | 49.2M | 57.4M | 62.9M | 60.6M | 65.3M | 74.96M | 63.97M | 50.05M | 57.93M | 61.93M | 63.18M | 57.89M | 35.42M | 20.55M | 18.05M | 10.23M | 18.56M | 19.76M | 13.4M | 12.4M | 16.48M | 16.21M | 16.21M | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -140.4M | -139.1M | -86.7M | -86.8M | -48.9M | 15.2M | -83.7M | -9.48M | 23.44M | 73.61M | -29.63M | -51M | -87.35M | -34.51M | -50.17M | -16.95M | -16.89M | 22.09M | -966K | -10.28M | 1.3M | 2.68M | -1.46M | -8.13M | 7.21M | -9.72M | 1.62M | 3M | 5M | 0 | 0 |
| Other Non-Cash Items | 108.7M | 446.1M | -24.2M | -42.4M | -41.5M | 34.2M | 362.6M | -27.34M | -14.36M | 1.77M | -16.65M | -22.6M | -12.52M | -4.48M | -3.72M | -4.31M | -4.33M | 5.31M | -4.9M | -7.37M | -20.47M | -31.58M | 22.29M | -11.24M | -9.2M | 2.99M | -2.53M | 9.6M | 0 | -3.1M | 4.6M |
| Working Capital Changes | 481.9M | 552.4M | -67.6M | 235.9M | -300.1M | -547.7M | 288.8M | 58.5M | -142.23M | 90.94M | 179.68M | -155.6M | -15.57M | 172K | 51.7M | 9.27M | 87.12M | -10.04M | -20.45M | 34.31M | -26.35M | -33.19M | 45.67M | -6.79M | 17.43M | 51.35M | -21.23M | 5.9M | 49.2M | 6.8M | -8.4M |
| Change in Receivables | -36.2M | -34.1M | 103.4M | 49M | -122.6M | -200K | -56.2M | 6.81M | 20.69M | -17.06M | 2.03M | 48.8M | -24.17M | -54.05M | 2.41M | -23.11M | 1.11M | 8.19M | -15.71M | -19.07M | 14.53M | -7.18M | -20.6M | 5.12M | 5.12M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 9.4M | 183.6M | 39.5M | 115.1M | -391.1M | -503.1M | -44.9M | -149.87M | -149.7M | -26.96M | 112M | -148.72M | -158.48M | -52.05M | -36.03M | -49.97M | -56.61M | 43M | -3.97M | 12.19M | -28.51M | -28.4M | -6.69M | -26.98M | -3.14M | -9.23M | -25.43M | -10.6M | 32.1M | -16.6M | -18.3M |
| Change in Payables | 85.8M | 196.7M | -141.8M | -143.8M | 71.7M | 27.1M | 326.6M | 103.77M | -984K | 39.52M | -62.69M | -46.09M | 105.78M | 51.52M | 21.37M | 27.23M | 37.58M | -40.33M | 25.94M | -10.63M | 3.61M | 762K | 33.26M | -13.09M | -13.09M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -232.6M | -139.5M | -270.9M | -462M | -324.6M | -303.9M | -150.7M | -239.29M | -959.49M | -151.1M | -909.26M | -289.09M | -246.78M | -406.69M | -163.05M | -141.15M | -42.12M | -29.68M | -69.73M | 20.43M | -31.05M | -121.13M | -97.25M | -66.53M | -60.33M | -52.77M | -59.23M | -67M | -60.9M | -39.4M | -51.6M |
| Capital Expenditures | -177M | -182.9M | -261.7M | -412.6M | -306.6M | -298.3M | -213.9M | -251.37M | -225.41M | -184.39M | -209.14M | -249.49M | -205.08M | -251.4M | -103.08M | -84.48M | -55.72M | -43.93M | -76.58M | -63.75M | -52.64M | -89.77M | -88.84M | -61.44M | -56.58M | -53.98M | -63.06M | -65.1M | -61.5M | -36.8M | -44.9M |
| CapEx % of Revenue | 2.43% | 2.56% | 3.65% | 4.62% | 3.57% | 4.01% | 3.04% | 3.71% | 3.71% | 3.4% | 4.63% | 5.29% | 4.58% | 6.66% | 3.21% | 3.18% | 2.8% | 2.81% | 3.93% | 3.58% | 3.18% | 4.8% | 5.01% | 3.83% | 3.72% | 3.57% | 4.42% | 4.93% | 5.23% | 3.51% | 3.77% |
| Acquisitions | 200K | 0 | 0 | -22.7M | -12.7M | -5.6M | 63.2M | 12.09M | -734.08M | 33.29M | -700.12M | -39.6M | -41.7M | -155.28M | -59.97M | -51.9M | -4.74M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -726K | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -57.8M | 43.4M | -9.2M | -26.7M | -5.3M | -15.5M | 53.6M | 12.1M | 25.7M | 33.29M | 23.58M | 1.59M | -13.69M | -18.18M | -59.97M | 11.95M | 9.17M | 3.01M | 0 | 84.18M | 21.58M | -31.36M | -8.41M | -5.09M | -3.03M | 1.22M | 3.83M | -1.9M | 600K | -2.6M | -6.7M |
| Cash from Financing | -129.7M | -693M | -59.2M | -431.3M | -363.2M | -107.6M | -415.4M | -411.83M | 523.42M | -427.68M | 314.49M | -120.13M | -222.57M | -409.04M | -162.52M | -227.52M | -1.81M | -50.41M | -142.17M | -186.88M | -114.68M | -159.19M | -93.87M | -87.67M | -91.78M | -97.65M | -52.26M | -52.6M | -60.2M | -67.5M | -35.2M |
| Debt Issued (Net) | -525.3M | -543.6M | 165.8M | -158.2M | 257.7M | 351.3M | -246.2M | -270.01M | 973.7M | -234.53M | 679.38M | 245.59M | -82.13M | 179.18M | -5.04M | -102.33M | 0 | 0 | 0 | -50M | 232M | 0 | -8K | -19K | -16K | -29.02M | 7.07M | 19.5M | -3.9M | -10.6M | -5.2M |
| Equity Issued (Net) | 2.3M | 1.3M | -82.7M | -178.6M | -505M | -461.6M | -50.3M | -8.4M | -348.7M | -90.46M | -245.82M | -293.62M | -50.5M | -530.03M | -85.83M | -86.72M | -27.49M | -4.56M | -107.17M | -91.37M | -298.45M | -112.23M | -55.01M | -60.99M | -66.49M | -49.21M | -39.62M | -52.41M | -37.7M | -39.9M | -13.6M |
| Dividends Paid | -151.5M | -150.3M | -147.7M | -147.3M | -150M | -153.4M | -152.5M | -149.1M | -149.03M | -145.42M | -140.34M | -139.28M | -126.91M | -113.72M | -101.53M | -61.59M | -53.04M | -50.18M | -49.6M | -47.74M | -50.23M | -46.96M | -38.86M | -26.66M | -25.27M | -22.85M | -20.65M | -19.7M | -18.6M | -17M | -16.4M |
| Share Repurchases | -9.2M | -2.4M | -82.7M | -178.6M | -505M | -461.6M | -50.3M | -8.38M | -348.66M | -90.46M | -245.82M | -293.62M | -81.81M | -530.03M | -127.53M | -132.37M | -27.49M | -4.56M | -107.17M | -103.1M | -307.62M | -132.28M | -66.83M | -73.13M | -76.39M | -49.21M | -39.62M | -52.41M | -37.7M | -39.9M | -13.6M |
| Other Financing | 544.8M | -400K | 5.4M | 52.8M | 34.1M | 156.1M | 33.6M | 15.68M | 47.45M | 42.74M | 21.27M | 67.19M | 36.97M | 55.54M | 29.89M | 23.12M | 78.72M | 4.32M | 14.6M | 2.23M | 2M | 15.17M | 0 | 0 | 0 | 3.42M | 947K | 12K | 0 | 0 | 0 |
| Net Change in Cash | -91.2M | -66.7M | -79.9M | 43.2M | -189.4M | -128.4M | 461.2M | 3.16M | 31.51M | 11.02M | -28.02M | 17.75M | 45.35M | -324.77M | 91.68M | -68.59M | 253.69M | 113.11M | -36.15M | 43.72M | -109K | -118.79M | 55.71M | 1.57M | 40.66M | 38.16M | -3.81M | 4.7M | 300K | -4.6M | 2.3M |
| Free Cash Flow | 160.6M | 558.1M | 6.5M | 513.2M | 202M | -4.6M | 804.7M | 403.66M | 251.7M | 395.59M | 362.65M | 190.75M | 324.19M | 240.84M | 313.03M | 218.05M | 241.9M | 149.27M | 99.18M | 146.41M | 92.99M | 71.76M | 157.99M | 94.33M | 136.2M | 134.6M | 44.61M | 59.3M | 59.9M | 65.5M | 44.2M |
| FCF Margin % | 2.21% | 7.8% | 0.09% | 5.74% | 2.35% | -0.06% | 11.45% | 5.95% | 4.14% | 7.29% | 8.03% | 4.04% | 7.24% | 6.38% | 9.75% | 8.21% | 12.15% | 9.53% | 5.09% | 8.23% | 5.61% | 3.84% | 8.91% | 5.87% | 8.95% | 8.9% | 3.13% | 4.49% | 5.1% | 6.25% | 3.71% |
| FCF Growth % | -4.91% | 8486.15% | -98.73% | 154.06% | 4491.3% | -100.57% | 99.35% | 60.38% | -36.37% | 9.08% | 90.12% | -41.16% | 34.61% | -23.06% | 43.56% | -9.86% | 62.06% | 50.5% | -32.26% | 57.45% | 29.58% | -54.58% | 67.49% | -30.74% | 1.19% | 201.72% | -24.77% | -1% | -8.55% | 48.19% | 48.82% |
| FCF per Share | 2.80 | 9.81 | 0.11 | 8.89 | 3.36 | -0.07 | 12.85 | 6.48 | 3.94 | 6.16 | 5.57 | 2.83 | 4.75 | 3.41 | 4.41 | 3.07 | 3.52 | 2.26 | 1.48 | 2.02 | 1.12 | 0.82 | 1.78 | 1.01 | 1.39 | 1.37 | 0.45 | 0.60 | 0.57 | 0.61 | 0.40 |
| FCF Conversion (FCF/Net Income) | -0.36x | -1.59x | 2.42x | 1.84x | 0.86x | 0.59x | 8.16x | 2.02x | 1.42x | 3.36x | 2.69x | 0.97x | 1.17x | 1.30x | 1.33x | 1.33x | 2.02x | 1.91x | 1.50x | 1.88x | 1.30x | 1.18x | 1.92x | 1.40x | 1.86x | 2.06x | 1.30x | 1.63x | 3.92x | 1.56x | 1.43x |
| Interest Paid | 66.7M | 0 | 141.5M | 120.6M | 71.2M | 44.8M | 67M | 77M | 51M | 30.88M | 15.83M | 11.45M | 11.26M | 6.08M | 5.93M | 3.35M | 2.81M | 3.97M | 9.61M | 16.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 24.1M | 0 | 123.6M | 187.2M | 194.4M | 124.4M | 65.5M | 87.8M | 74M | 46.31M | 126.8M | 244.33M | 261.55M | 162.65M | 143.51M | 132.09M | 81.14M | 29.04M | 70.2M | 54.19M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Inventory-driven cash flow volatility
As reported in recent financial statements, Polaris exhibits a significant divergence between net income and operating cash flow, with the OCF/NI ratio reaching an extreme 6.76 in 2026Q1, highlighting that reported accounting losses are currently being exacerbated by substantial cash outflows from core operations.
The persistent gap between net income and operating cash flow suggests that non-cash charges and working capital swings are masking the true cash-generating capacity of the business. Investors should monitor whether this disconnect reflects temporary inventory liquidation or a more permanent structural impairment in the company's ability to convert sales into actual liquidity.
Based on the provided quarterly data, Polaris's free cash flow trajectory has turned sharply negative, with an FCF margin of -21.1% in 2026Q1, indicating that the company is currently unable to fund its capital requirements through internal operations alone during this period of cyclical demand contraction.
The volatility in FCF margins, swinging from a positive 21.2% in 2023Q4 to deep negative territory, underscores the high operating leverage inherent in the powersports manufacturing model. This trend suggests that the company's cash position is highly vulnerable to even minor fluctuations in wholesale shipment volumes and dealer inventory management.
According to historical cash flow filings, Polaris has experienced erratic working capital movements, including a $170.2M inflow in 2025Q4 followed by a $320.2M outflow in 2026Q1, which suggests that the company is struggling to manage its inventory levels effectively amidst a cooling retail environment.
These sharp swings in working capital indicate that the company is likely forced to adjust production schedules rapidly to match dealer demand, leading to inefficient cash cycles. The reliance on these fluctuations to manage liquidity warrants further investigation into the sustainability of current dealer floorplan financing arrangements.
As indicated by recent cash flow statements, Polaris continues to prioritize dividend payments of approximately $37M per quarter despite negative free cash flow, a strategy that appears increasingly difficult to sustain given the current deterioration in the company's overall cash-generating ability and rising operational risks.
The decision to maintain dividend payouts while operating cash flow is negative suggests a management commitment to shareholder returns that may conflict with the need to preserve liquidity. Investors should monitor whether this capital allocation policy will necessitate future debt issuance or further reductions in growth-oriented capital expenditures.
Quick answers to the most common questions about buying PII stock.
Polaris Inc. (PII) generated $741.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Polaris Inc. (PII) generated $558.1M 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.
Polaris Inc. (PII) spent $182.9M 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, Polaris Inc. (PII) returned $150.3M to shareholders via cash dividends and spent $2.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.