Free cash flow remains highly erratic, swinging from a 64.2% margin in 2025Q3 to a -75.8% margin in 2026Q1, largely driven by inventory pre-positioning and $682.3 million in acquisition outflows.
| Cash from Operations | 132.08M | 238.15M | 188.39M | 193K | -40.17M | 72.35M | 70.83M | -305K |
| Operating CF Margin % | - | 36.48% | 33.58% | 0.06% | -11.14% | 19.97% | 20.86% | -0.13% |
| Operating CF Growth % | -227.71% | 26.41% | 97510.36% | 100.48% | -155.52% | 2.15% | 23321.64% | - |
| Net Income | -190.12M | -206.37M | -5.91M | 67.49M | 91.76M | -661.52M | 24.25M | -42.04M |
| Depreciation & Amortization | 65.34M | 74.03M | 65.72M | 64.86M | 65.8M | 76.19M | 58.12M | 58.02M |
| Stock-Based Compensation | 9.3M | 16.65M | 12.85M | 1.6M | 14.65M | 292.18M | 0 | 0 |
| Deferred Taxes | -47.27M | -74.14M | -99.56M | -25.82M | -17M | -13.4M | -2.68M | -22.19M |
| Other Non-Cash Items | 191.61M | 448.37M | 214.67M | -62.83M | -88.21M | 15.26M | 3.47M | 3.56M |
| Working Capital Changes | -127.66M | -20.39M | 609K | -45.1M | -107.16M | 363.63M | -12.33M | 2.34M |
| Change in Receivables | -13.13M | -6.95M | -13.29M | -17.93M | -6.19M | -895K | 6.09M | -9.57M |
| Change in Inventory | -10.57M | -5.98M | 29.87M | -2.04M | -61.93M | -23.46M | 11.17M | -10.15M |
| Change in Payables | 8.5M | 6.23M | -754K | -15.34M | 9.7M | 18.3M | -9.61M | 3.9M |
| Cash from Investing | -781.79M | -106.82M | -42.94M | -14.89M | -10.25M | -1.23B | -9.47M | -25.17M |
| Capital Expenditures | -30.71M | -29.59M | -15.53M | -9.44M | -8.61M | -9.75M | -7.5M | -8.86M |
| CapEx % of Revenue | 4.35% | 4.53% | 2.77% | 2.93% | 2.39% | 2.69% | 2.21% | 3.7% |
| Acquisitions | -735.85M | -62M | -32.79M | 0 | -1.64M | -1.22B | -1.97M | -16.31M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -15.23M | -15.23M | 0 | -5.46M | 0 | 0 | 0 | 0 |
| Cash from Financing | 543.47M | -8.97M | 8.35M | -64.45M | -48.81M | -761.43M | -45.61M | 21.03M |
| Debt Issued (Net) | 536.88M | -3.05M | -740K | -387K | 0 | -703.43M | -45.61M | 33.39M |
| Equity Issued (Net) | 6.34M | -5.92M | -14.42M | -64.07M | -49.34M | -60M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -60M | 0 | -12.36M |
| Share Repurchases | -31.89M | -40.37M | -14.42M | -64.07M | -49.34M | -60M | 0 | -12.36M |
| Other Financing | 251K | 0 | 23.51M | 0 | 529K | 62M | 0 | 0 |
| Net Change in Cash | -108.43M | 127.47M | 151.18M | -79.47M | -98.8M | 203.08M | 12.66M | -6.14M |
| Free Cash Flow | 86.03M | 208.56M | 172.86M | -9.24M | -48.78M | 62.6M | 63.33M | -9.16M |
| FCF Margin % | 12.19% | 31.95% | 30.81% | -2.87% | -13.53% | 17.28% | 18.65% | -3.83% |
| FCF Growth % | -54.85% | 20.65% | 1970.34% | 81.06% | -177.93% | -1.15% | 791.06% | - |
| FCF per Share | 0.52 | 1.40 | 1.19 | -0.06 | -0.28 | 0.40 | 0.40 | -0.06 |
| FCF Conversion (FCF/Net Income) | -0.45x | -1.15x | -31.90x | 0.00x | -0.44x | -0.11x | 2.92x | 0.01x |
| Interest Paid | 19.69M | 36.74M | 37.32M | 37.01M | 35.49M | 0 | 45.44M | 44.75M |
| Taxes Paid | 12.31M | 48.85M | 74.56M | 25.96M | 13.49M | 0 | 19.34M | 8.17M |
Extreme seasonal cash volatility
According to recent financial disclosures, the relationship between net income and operating cash flow is highly erratic, evidenced by a 2025Q3 OCF/NI ratio of -2.29, which suggests that reported accounting profits frequently fail to capture the underlying cash-generative dynamics of the company's seasonal firefighting operations.
The significant divergence between net income and operating cash flow indicates that non-cash charges and working capital swings are the primary drivers of reported figures. Investors should monitor whether this disconnect is a permanent feature of the company's accounting or a temporary result of its aggressive acquisition strategy.
As reported in quarterly filings, free cash flow margins exhibit extreme swings, ranging from a peak of 64.2% in 2025Q3 to a low of -75.8% in 2026Q1, highlighting the company's heavy reliance on the timing of wildfire activity to generate positive cash flow throughout the fiscal year.
The trajectory of free cash flow appears tethered to the intensity of the fire season rather than consistent operational efficiency. This suggests that the company's cash-generative capacity remains highly unpredictable, necessitating a cautious approach when evaluating its ability to fund long-term growth without external financing.
Based on reported cash flow statements, working capital changes are a major source of volatility, with a significant cash outflow of $92.0 million in 2026Q1, suggesting that the company must aggressively pre-position inventory at airfields well in advance of the peak wildfire season to maintain its service moat.
The recurring need to build inventory ahead of revenue realization creates a structural cash drag that complicates liquidity management during off-peak quarters. This pattern implies that the company's cash position is highly sensitive to the accuracy of its seasonal demand forecasting and inventory deployment strategies.
As indicated by recent cash flow data, the company has prioritized inorganic growth, with a substantial $682.3 million net acquisition outflow in 2026Q1, which appears to be the primary driver of recent cash depletion rather than core operational losses or shareholder return programs.
The aggressive deployment of capital toward acquisitions suggests management is focused on expanding its competitive moat, yet this strategy places significant pressure on the company's cash position. Investors should monitor whether these investments will eventually yield the expected synergies or if they will continue to weigh on the company's overall liquidity profile.
Quick answers to the most common questions about buying PRM stock.
Perimeter Solutions, S.A. (PRM) generated $238.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Perimeter Solutions, S.A. (PRM) generated $208.6M 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.
Perimeter Solutions, S.A. (PRM) spent $29.6M 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, Perimeter Solutions, S.A. (PRM) spent $40.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.