While free cash flow improved to $10.8M in 2025Q3, this performance remains highly sensitive to working capital fluctuations and is heavily supported by $13.8M in stock-based compensation.
| Metric | TTM | 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 |
|---|
| Cash from Operations | 39.81M | 27.38M | 9.88M | -23.91M | -18.55M | -49.39M | 5.25M | 5.7M | -25.31M | -14.35M | 15.53M | 1.75M | 16.97M | 24.65M | 14.24M | -5.28M | 11.29M | 13.82M | 10.02M | 13.52M | 34.95M |
| Operating CF Margin % | - | 8.29% | 3.25% | -8.66% | -7.38% | -19.57% | 2.1% | 2.89% | -14.99% | -9.36% | 9.23% | 0.94% | 11.72% | 20.93% | 14.74% | -7.43% | 16.41% | 18.29% | 16.15% | 29.37% | 99.48% |
| Operating CF Growth % | 763.12% | 177.24% | 141.32% | -28.84% | 62.43% | -1041.64% | -8.03% | 122.53% | -76.46% | -192.36% | 785.52% | -89.66% | -31.16% | 73.08% | 369.96% | -146.75% | -18.36% | 37.91% | -25.85% | -61.32% | - |
| Net Income | -11.66M | -20.48M | -56.35M | -82.25M | -81.21M | -76.98M | -69.08M | -64.25M | -77.93M | -75.22M | -65.81M | -37.55M | 3.45M | 4.97M | 6.35M | -1.93M | 5.52M | 10.76M | 10.52M | 7.03M | 3.44M |
| Depreciation & Amortization | 7.52M | 8.3M | 11.51M | 14.97M | 12.06M | 14.33M | 13.87M | 13.05M | 10.53M | 9.51M | 10.39M | 10.44M | 4.31M | 2.29M | 1.61M | 1.36M | 1.28M | 1.36M | 1.18M | 1.27M | 1.52M |
| Stock-Based Compensation | 47.01M | 40.75M | 0 | 42.71M | 35.08M | 24.4M | 24.68M | 21.45M | 22.8M | 20.47M | 27.86M | 22.66M | 16.27M | 9.64M | 6.83M | 6.96M | 5.47M | 4.02M | 1.6B | 0 | 0 |
| Deferred Taxes | 0 | -11K | -63K | 0 | -1.91M | 4.78M | -119K | -463K | -520K | 40K | 165K | 12.53M | 155K | 2.54M | 315K | -187K | -1.19M | -821K | -1.87M | -1.16M | -98.27K |
| Other Non-Cash Items | -4.04M | -817K | 47.9M | 1.45M | 1.49M | 8.74M | 16.02M | 12.28M | 9.32M | 6.63M | 8.81M | 4.18M | -2.64M | -2.01M | -1.2M | -1.04M | -447K | 288K | -1.6B | 0 | 28.02M |
| Working Capital Changes | 998K | -371K | 6.89M | -795K | 15.94M | -24.66M | 19.87M | 23.63M | 10.48M | 24.23M | 34.1M | -10.51M | -4.57M | 7.23M | 338K | -10.44M | 647K | -1.78M | -2.18M | 6.38M | 2.07M |
| Change in Receivables | -14.52M | -16.21M | -899K | -7.33M | 12.56M | 10.45M | -22.27M | -9.55M | 2.02M | 5.67M | 32.27M | -14.03M | -7.49M | -4.61M | -6.66M | -14.62M | 4.38M | -669K | -183.18M | -6.36M | 942.7K |
| Change in Inventory | 0 | 0 | 8.33M | 0 | -12.56M | -10.45M | 22.27M | 8.68M | -7.11M | 7.08M | -1.02M | -1.17M | 3.99M | 6.79M | -1.64M | -48.8M | 0 | -204K | 402.14M | 0 | 0 |
| Change in Payables | 296K | 6.13M | -5.04M | 3.96M | -515K | -4.82M | 2.49M | 3.93M | 700K | -2.9M | -4.05M | -3.1M | 2.88M | -790K | 2.58M | 654K | 0 | -340K | -221.08M | 0 | 0 |
| Cash from Investing | -935K | -1.22M | -2.7M | -1.14M | -85.17M | -30.46M | -17.56M | -6.26M | -22.35M | -25.4M | -9.42M | 7.87M | -58.77M | -9.53M | -2.96M | -1.89M | -1.11M | -1.21M | -1.68M | -1.09M | -766.36K |
| Capital Expenditures | -1.17M | -1.17M | -2.54M | -861K | -2.8M | -30.18M | -6.76M | -6.21M | -4.21M | -9.91M | -7.03M | -9.8M | -6.28M | -9.53M | -3M | -1.52M | -1.11M | -1.21M | -1.68M | -1.09M | -766.36K |
| CapEx % of Revenue | 0.33% | 0.35% | 0.84% | 0.31% | 1.11% | 11.96% | 2.7% | 3.15% | 2.49% | 6.47% | 4.18% | 5.28% | 4.33% | 8.09% | 3.11% | 2.15% | 1.62% | 1.6% | 2.7% | 2.37% | 2.18% |
| Acquisitions | 0 | 0 | 0 | 0 | -79.48M | 0 | -10.51M | 0 | -34.13M | 2.67M | -233K | -22.05M | -13.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 118K | -58K | -48K | 0 | -82.38M | 0 | -1.49M | 0 | -130K | -2.67M | 333K | 39.72M | -39.39M | 0 | 37K | -293K | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 11.6M | -32.34M | -32.36M | 1.07M | 2.47M | 102.91M | 22.99M | 135.35M | 90.65M | -3.68M | -5.55M | 106.31M | 2.92M | -24K | 1.33M | 562K | 296K | -5.01M | -6.51M | -8.38M | 17.15K |
| Debt Issued (Net) | 46.22M | -21.71M | 0 | 0 | -288K | 146.93M | 42.48M | -54K | 93.29M | -196K | -263K | 109.22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 2M | 1000K | 0 | 1000K | 1000K | 0 | 0 | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 562K | 118K | -1000K | 1000K | -1000K | 17.15K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -41.33M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6.15M | 0 | 0 | 0 | -1.28M | 0 | -5M | -17.37M | -8.45M | 0 |
| Other Financing | -36.66M | -12.7M | -32.36M | -1.65M | -352K | -44.01M | -19.49M | -9.41M | -7.38M | -5.47M | -6.84M | -15.31M | -402K | -1.38M | -540K | 0 | 0 | 0 | -417.81K | 0 | 0 |
| Net Change in Cash | 57.84M | -6.76M | -34.88M | -23.93M | -101.58M | 23.06M | 10.6M | 134.97M | 42.47M | -43.73M | 751K | 116.33M | -38.87M | 15.1M | 12.61M | -6.6M | 10.47M | 7.6M | 1.84M | 4.05M | 34.2M |
| Free Cash Flow | 38.64M | 26.22M | 7.33M | -24.77M | -21.35M | -79.57M | -1.51M | -510K | -29.52M | -24.26M | 8.51M | -8.05M | 10.7M | 15.13M | 11.24M | -6.8M | 10.17M | 12.62M | 8.35M | 12.43M | 34.18M |
| FCF Margin % | 10.99% | 7.94% | 2.41% | -8.97% | -8.49% | -31.52% | -0.6% | -0.26% | -17.49% | -15.83% | 5.06% | -4.33% | 7.38% | 12.84% | 11.63% | -9.57% | 14.79% | 16.69% | 13.44% | 27% | 97.3% |
| FCF Growth % | 139.7% | 257.47% | 129.61% | -16% | 73.17% | -5162.43% | -196.47% | 98.27% | -21.69% | -385.23% | 205.65% | -175.26% | -29.28% | 34.55% | 265.31% | -166.84% | -19.35% | 51.16% | -32.85% | -63.64% | - |
| FCF per Share | 0.80 | 0.56 | 0.16 | -0.55 | -0.48 | -1.84 | -0.04 | -0.01 | -0.93 | -0.80 | 0.29 | -0.28 | 0.36 | 0.53 | 0.40 | -0.26 | 0.38 | 0.47 | 0.36 | 0.60 | 1.71 |
| FCF Conversion (FCF/Net Income) | -3.31x | -1.34x | -0.18x | 0.29x | 0.23x | 0.64x | -0.08x | -0.09x | 0.32x | 0.19x | -0.24x | -0.05x | 4.92x | 4.96x | 2.24x | 2.73x | 2.05x | 1.29x | 0.95x | 1.92x | 10.16x |
| Interest Paid | 0 | 6.3M | 4.63M | 4.94M | 4.99M | 1.68M | 3.5M | 5.25M | 4.01M | 3.18M | 2.93M | 243K | 87K | 68K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 192K | 188K | 146K | 403K | 341K | 308K | 262K | 271K | -968K | 3K | 233K | 278K | -4.69M | 5.33M | 84K | 4.41M | 4.89M | 0 | 0 | 0 |
Persistent negative operating margins
As reported in recent financial statements, PROS Holdings consistently generates positive operating cash flow despite recurring net losses, with the 2025Q3 operating cash flow of $11.4M contrasting sharply against a $4.2M net loss, highlighting a significant disconnect between GAAP accounting and actual cash generation.
The persistent gap between net income and operating cash flow suggests that non-cash charges, particularly stock-based compensation, are heavily inflating the company's cash position. Investors should monitor whether this reliance on non-cash adjustments masks an underlying inability to achieve organic profitability through core software operations.
Based on quarterly data, PROS has demonstrated a volatile free cash flow trajectory, swinging from a negative $6.8M in 2023Q2 to a positive $10.8M by 2025Q3, indicating that while cash generation is improving, it remains highly sensitive to quarterly fluctuations in working capital and operational efficiency.
The erratic nature of these margins suggests that the company has not yet reached a steady state of cash production. The recent improvement appears to be driven more by timing differences in working capital than by a fundamental shift in the underlying profitability of the SaaS business model.
According to historical cash flow filings, working capital changes have acted as a primary driver of liquidity, with a notable $13.6M inflow in 2024Q4 followed by a $7.5M outflow in 2025Q1, illustrating the significant impact of timing on the company's short-term cash availability.
The high variability in working capital suggests that the company's cash flow is heavily dependent on the timing of customer payments and deferred revenue recognition. This lumpy cash profile warrants further investigation into whether these swings are indicative of seasonal contract renewals or potential delays in project-based professional services.
Analysis of the cash flow statement reveals that stock-based compensation, which reached $13.8M in 2025Q3, consistently offsets the company's net losses, effectively obscuring the true cash burn rate and complicating the assessment of the firm's long-term self-sustainability without external capital or continued equity-based incentives.
By adding back significant non-cash compensation, the company presents a more favorable cash flow picture than the underlying operational performance might suggest. This practice may lead to an overestimation of the company's ability to fund its own growth, as the dilution associated with these grants represents a real cost to shareholders.
Quick answers to the most common questions about buying PRO stock.
PROS Holdings, Inc. (PRO) generated $27.4M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
PROS Holdings, Inc. (PRO) generated $26.2M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
PROS Holdings, Inc. (PRO) spent $1.2M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.