Free cash flow generation is highly erratic, evidenced by a 2025Q3 OCF/NI ratio of -22.02, while the company continues to prioritize shareholder returns through buybacks despite periods of minimal profitability.
| 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 | 105.18M | 111.52M | 81.18M | 65.76M | 215.34M | 230.87M | 125.64M | 224.5M | 83.96M | 82.04M | 97.9M | 92.19M | 85.56M | 98.67M | 51.83M | 69.19M | 59.97M | 46.17M | 36.2M | 62.61M | 29.23M | 36.02M | 30.11M | 20.39M | 31.53M | 16.22M | 14.22M | 22.89M | 18.5M | 8.1M | 1.1M |
| Operating CF Margin % | - | 25.14% | 19.38% | 14.79% | 33.07% | 32.83% | 25.73% | 53.37% | 20.19% | 19% | 25.27% | 26.8% | 24.53% | 28.43% | 16.97% | 23.16% | 20% | 21.41% | 17.95% | 32.77% | 18% | 25.18% | 22.04% | 16.22% | 29.15% | 17.24% | 12.75% | 22% | 26.43% | 18.08% | 4.72% |
| Operating CF Growth % | 109.51% | 37.37% | 23.45% | -69.46% | -6.72% | 83.75% | -44.04% | 167.38% | 2.35% | -16.2% | 6.2% | 7.74% | -13.29% | 90.37% | -25.09% | 15.38% | 29.89% | 27.54% | -42.18% | 114.19% | -18.86% | 19.64% | 47.7% | -35.35% | 94.38% | 14.12% | -37.89% | 23.72% | 128.42% | 636.36% | - |
| Net Income | 16.6M | 22.09M | 32.23M | 55.73M | 170.85M | 164.41M | 71.18M | 193.47M | 69.98M | 27.61M | 47.89M | 39.15M | 59.54M | 57.27M | -34.4M | 34.29M | 49.46M | 23.27M | 1.8M | 26.62M | 9.43M | 15.7M | 20.37M | 18.09M | 9.58M | 6.73M | 19.77M | 24.48M | 12.68M | 4.8M | -1.3M |
| Depreciation & Amortization | 27.14M | 28.03M | 34.58M | 37.38M | 37.34M | 34.95M | 28.1M | 24.4M | 24.18M | 24.46M | 23.48M | 23.5M | 21.96M | 23.49M | 20.42M | 16.32M | 13.02M | 10.34M | 9.82M | 7.5M | 7.1M | 6.26M | 6.88M | 6.85M | 6.68M | 6.94M | 4.19M | 3.23M | 3.03M | 2.3M | 1.9M |
| Stock-Based Compensation | 37.31M | 39.69M | 35.08M | 28.53M | 22.36M | 37.61M | 30.91M | 23.35M | 21.58M | 24.68M | 20.89M | 14.77M | 14.28M | 16.48M | 14.22M | 8.97M | 10.72M | 11.33M | 34.98M | 13.68M | 15.46M | 3.12M | 0 | 0 | 1.8M | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 3.44M | 898K | -8.35M | -9.25M | -2.57M | -13.24M | -592K | 4.02M | -4.46M | 15.84M | -660K | -5.42M | 157K | -2.78M | 804K | 3.78M | 1.12M | 658K | 18K | -1.12M | -4.91M | -24K | 72K | 191K | -718K | 708K | -2.14M | -3.92M | 0 | 0 | 0 |
| Other Non-Cash Items | -9.77M | -1.58M | -1.64M | -705K | 5.35M | 4.71M | 894K | 57K | 752K | 1.67M | 1.09M | 1.36M | 2.39M | 584K | 58.92M | 729K | 2.99M | 1.15M | 2.51M | 3.1M | 427K | 1.25M | 4.58M | 6.94M | 439K | 1.6M | 1.22M | -163K | 164K | 1.1M | 100K |
| Working Capital Changes | 21.65M | 22.4M | -10.72M | -45.93M | -18M | 2.42M | -4.85M | -20.8M | -28.07M | -12.21M | 5.22M | 18.82M | -12.77M | 3.63M | -8.14M | 5.11M | -17.34M | -575K | -12.92M | 12.83M | 1.73M | 9.72M | -1.78M | -11.68M | 13.75M | 244K | -8.83M | -737K | 2.63M | -100K | 400K |
| Change in Receivables | 8.36M | 9.26M | -12.25M | 6.62M | 19.87M | -5.5M | -11.3M | -13.26M | 5.75M | -10.48M | 650K | 4.13M | 2.13M | -4.94M | 5.31M | -3.62M | 16.24M | -8.71M | 124K | -64K | 420K | 593K | 0 | 0 | 155K | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 6.09M | -1.27M | -2.45M | -27.74M | -36.15M | 3.61M | -12.5M | -9.52M | -23.77M | -4.52M | -630K | 13.5M | -21.7M | 2.38M | 18.03M | 10.04M | -33.59M | 2.14M | -8.93M | 8.56M | -10.05M | 7.47M | -2.24M | -8.09M | 8.59M | -2.02M | -10.19M | -2.56M | -1.52M | -3.4M | 400K |
| Change in Payables | -4.82M | 3.25M | 3.45M | -5.43M | -3.84M | 4.07M | 5.7M | -6.56M | 1.34M | 396K | 7.71M | -2M | 2.34M | 2.47M | 2.07M | -1.56M | -483K | 6.84M | -1.44M | 2.51M | 2.29M | -3.17M | 0 | 0 | 3.09M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 25.53M | 36.21M | -25.92M | -14.15M | 78.34M | -232.8M | -28.27M | -162.05M | 69.14M | -34.72M | -117.43M | -7.74M | -38.15M | -90.66M | -124.71M | -52.31M | -46.54M | -59.17M | 71.15M | -94.98M | -264K | -7.75M | -18.05M | -10.96M | -21.66M | 4.62M | -9.4M | -20.14M | -18.74M | -500K | -4.2M |
| Capital Expenditures | -20.67M | -24.4M | -17.29M | -20.88M | -39.21M | -47.27M | -70.6M | -24.11M | -25.58M | -32.5M | -12.2M | -21.75M | -23.07M | -13.96M | -16.36M | -23.22M | -30.57M | -14.36M | -9.1M | -10.95M | -13.08M | -4.29M | -8.13M | -37.79M | -4.51M | -7.63M | -16.21M | -6.59M | -1.96M | -1.4M | -500K |
| CapEx % of Revenue | 4.63% | 5.5% | 4.13% | 4.7% | 6.02% | 6.72% | 14.46% | 5.73% | 6.15% | 7.53% | 3.15% | 6.32% | 6.61% | 4.02% | 5.36% | 7.77% | 10.2% | 6.66% | 4.51% | 5.73% | 8.06% | 3% | 5.95% | 30.06% | 4.17% | 8.11% | 14.54% | 6.33% | 2.79% | 3.13% | 2.15% |
| Acquisitions | 150K | 150K | -9.52M | 0 | 0 | 35K | 0 | 0 | 900K | 0 | 0 | -15.55M | 0 | 36K | -115.72M | -6.91M | -8.6M | -10M | 0 | -5.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 1.2M | 0 | 651K | -1.03M | -900K | -2.22M | -105.23M | 29.56M | -7.86M | 1.39M | -33.09M | -6.72M | -5.33M | 10M | 1.05M | 0 | -1.3M | -10M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -100K | -100K |
| Cash from Financing | -116.93M | -139.94M | -68.22M | -93.05M | -346.42M | -98.83M | -17.19M | -17.9M | -112.62M | -15.8M | -8.43M | -55.07M | -79.63M | 21.53M | -3.57M | -32.72M | 7.27M | -19.5M | -58.24M | 25.79M | -13.91M | -25.79M | -2.74M | 23.32M | 5.51M | 4.84M | 3.76M | 955K | -1.14M | 14.7M | 3.3M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -41K | -233K | -403K | -640K | -1.1M | -1.99M | -1.96M | -4.72M | 2.41M |
| Equity Issued (Net) | -72.31M | -92.77M | -27.88M | -55.28M | -311.09M | -73.94M | -2.64M | -7.3M | -103.15M | -9.19M | -6.43M | -53.73M | -80.76M | 0 | 1.49M | -27.79M | 12.3M | -8.32M | -58.48M | 24.61M | -14.08M | -25.79M | -2.7M | 23.55M | 5.91M | 5.48M | 4.86M | 2.95M | 828K | 19.43M | 932K |
| Dividends Paid | -47.16M | -47.17M | -46.04M | -44.01M | -41.49M | -32.6M | -25.08M | -20.51M | -18.82M | -16.63M | -15.05M | -13.92M | -13.16M | -9.45M | -5.75M | -5.72M | -5.58M | -2.7M | -730K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -75M | -98.1M | -27.88M | -55.28M | -311.09M | -73.94M | -2.64M | -7.3M | -103.15M | -9.19M | -6.43M | -53.73M | -80.76M | 0 | -20.47M | -50M | -13.96M | -28.67M | -82.36M | 0 | -19.64M | -33.66M | -11.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 2.54M | 0 | 5.7M | 6.24M | 6.16M | 7.71M | 10.53M | 9.91M | 9.35M | 10.02M | 13.06M | 12.58M | 14.29M | 30.97M | 704K | 796K | 540K | -8.49M | 972K | 1.18M | 172K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 13.78M | 7.78M | -12.96M | -41.44M | -52.74M | -100.76M | 80.18M | 44.55M | 40.48M | 31.52M | -27.96M | 29.38M | -32.22M | 29.53M | -76.44M | -15.83M | 20.69M | -32.5M | 49.12M | -6.58M | 15.06M | 2.48M | 9.32M | 32.75M | 15.38M | 25.68M | 8.58M | 3.71M | -1.38M | 14.7M | 3.3M |
| Free Cash Flow | 84.51M | 87.12M | 63.9M | 44.88M | 176.13M | 183.6M | 55.04M | 199.36M | 58.39M | 49.54M | 85.7M | 70.44M | 62.49M | 84.71M | 35.47M | 45.97M | 29.41M | 31.82M | 27.1M | 51.66M | 16.15M | 31.73M | 21.98M | -17.4M | 27.02M | 8.59M | -2M | 16.3M | 16.55M | 6.7M | 600K |
| FCF Margin % | 18.94% | 19.64% | 15.25% | 10.09% | 27.05% | 26.11% | 11.27% | 47.39% | 14.04% | 11.47% | 22.12% | 20.48% | 17.92% | 24.41% | 11.62% | 15.39% | 9.81% | 14.75% | 13.44% | 27.04% | 9.94% | 22.18% | 16.08% | -13.84% | 24.98% | 9.13% | -1.79% | 15.66% | 23.63% | 14.96% | 2.58% |
| FCF Growth % | 15.78% | 36.35% | 42.38% | -74.52% | -4.07% | 233.56% | -72.39% | 241.44% | 17.85% | -42.19% | 21.67% | 12.72% | -26.23% | 138.81% | -22.84% | 56.33% | -7.58% | 17.38% | -47.53% | 219.91% | -49.11% | 44.4% | 226.29% | -164.39% | 214.45% | 530.13% | -112.26% | -1.5% | 146.96% | 1016.67% | - |
| FCF per Share | 1.51 | 1.55 | 1.12 | 0.78 | 3.02 | 2.99 | 0.90 | 3.34 | 0.97 | 0.81 | 1.45 | 1.19 | 1.01 | 1.39 | 0.62 | 0.77 | 0.50 | 0.56 | 0.43 | 0.83 | 0.26 | 0.51 | 0.34 | -0.28 | 0.46 | 0.15 | -0.03 | 0.29 | 0.25 | 0.09 | 0.09 |
| FCF Conversion (FCF/Net Income) | 5.09x | 5.05x | 2.52x | 1.18x | 1.26x | 1.40x | 1.77x | 1.16x | 1.20x | 2.97x | 2.04x | 2.35x | 1.44x | 1.72x | -1.51x | 2.02x | 1.21x | 1.98x | 20.08x | 2.35x | 3.10x | 2.29x | 1.48x | 1.13x | 3.29x | 2.41x | 0.72x | 0.94x | 1.46x | 1.69x | -0.85x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3K | 397K | 9K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 440K | 0 | 4.78M | 13.77M | 17.88M | 25.64M | 0 | 21.33M | 7.44M | 1.57M | -6.61M | 473K | 3.12M | 4.14M | -46.69M | -1.23M | 3.02M | 150K | 5.28M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Consumer electronics cyclicality exposure
As reported in financial statements, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio reaching an extreme -22.02 in 2025Q3, suggesting that reported net income is a poor proxy for the company's actual cash-generating capacity during periods of volatility.
The significant divergence between net income and operating cash flow indicates that non-cash charges and working capital adjustments are heavily influencing the bottom line. Investors should monitor whether this disconnect is a temporary byproduct of inventory management or a structural issue regarding the company's ability to convert accounting profits into tangible cash.
Based on POWI's reported figures, free cash flow margins have fluctuated significantly between 11.1% and 23.5% over the last ten quarters, reflecting the company's sensitivity to short-cycle consumer electronics demand and the resulting instability in cash generation relative to top-line revenue performance.
While the company maintains positive free cash flow, the lack of a consistent upward trajectory suggests that the business model remains tethered to volatile end-market cycles. The inability to sustain higher FCF margins during periods of lower revenue indicates that fixed costs and capital requirements continue to weigh on cash conversion efficiency.
According to recent SEC filings, POWI's capital expenditures as a percentage of revenue have remained within a tight range of 1.8% to 6.9%, suggesting that the company's fab-lite model effectively limits the need for massive, lumpy investments in manufacturing infrastructure to maintain its competitive position.
The relatively low capital intensity supports the company's ability to generate cash even during revenue downturns, as maintenance capex appears manageable. However, analysts should watch for any shift toward higher capital intensity if the company decides to accelerate its automotive design-win pipeline, which may require more significant investment.
As evidenced by the provided data, the company has consistently prioritized shareholder returns, with dividend payments and share buybacks totaling significant sums even during quarters where net income was minimal, such as the $42.4 million in buybacks executed during the 2025Q3 period of negative earnings.
This capital allocation strategy suggests a high degree of confidence in the balance sheet, yet it warrants further investigation into whether these outflows are sustainable if the current cyclical downturn persists. The reliance on cash reserves to fund buybacks during earnings troughs may limit the company's flexibility to pursue strategic R&D or inorganic growth opportunities.
Analysis of the cash flow statement reveals that stock-based compensation, which peaked at $21.2 million in 2025Q3, frequently acts as a significant non-cash add-back that inflates operating cash flow, potentially masking the true economic cost of talent retention in a competitive semiconductor labor market.
By adding back substantial SBC amounts, the company's operating cash flow may appear more robust than the underlying business performance justifies. Investors should consider adjusting cash flow metrics to account for these recurring equity-based expenses to better understand the true cash-generation potential of the firm.
Quick answers to the most common questions about buying POWI stock.
Power Integrations, Inc. (POWI) generated $111.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Power Integrations, Inc. (POWI) generated $87.1M 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.
Power Integrations, Inc. (POWI) spent $24.4M 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, Power Integrations, Inc. (POWI) returned $47.2M to shareholders via cash dividends and spent $98.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.