Free cash flow generation is volatile and inconsistent, swinging to -$13.2M in 2027Q2, with working capital changes driving significant operating cash flow volatility.
SentinelOne, Inc. (S) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 |
|---|
| Cash from Operations | 57.33M | 76.62M | 33.73M | -68.37M | -193.29M | -95.59M | -66.57M | -44.42M |
| Operating CF Margin % | - | 7.65% | 4.11% | -11.01% | -45.78% | -46.67% | -71.54% | -95.59% |
| Operating CF Growth % | 67.56% | 127.16% | 149.33% | 64.63% | -102.21% | -43.59% | -49.85% | - |
| Net Income | -340.09M | -450.74M | -288.44M | -338.69M | -378.68M | -271.1M | -117.57M | -76.57M |
| Depreciation & Amortization | 67.62M | 54.93M | 42.77M | 38.91M | 29.72M | 7.91M | 2.84M | 1.85M |
| Stock-Based Compensation | 242.34M | 297.59M | 267.53M | 216.87M | 164.47M | 87.89M | 15.91M | 4.35M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 160.72M | 77.89M | 58.49M | 34.69M | 26.57M | 24.08M | 14.58M | 5.71M |
| Working Capital Changes | -73.27M | 96.94M | -46.62M | -20.16M | -35.37M | 55.64M | 17.67M | 20.23M |
| Change in Receivables | -39.65M | -52.06M | -21.17M | -61.95M | -44.44M | -59.08M | -8.32M | -18.99M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -3.57M | 4.7M |
| Change in Payables | -949K | 1.62M | 1.41M | -4.5M | 3.67M | -2.08M | 7.43M | 2.85M |
| Cash from Investing | -2.63M | 86.99M | -218.4M | 140.59M | -1.31B | -19.74M | -6.26M | -3.19M |
| Capital Expenditures | -7.42M | -713K | -1.86M | -1.3M | -4.95M | -3.65M | -3.28M | -953K |
| CapEx % of Revenue | 0.68% | 0.07% | 0.23% | 0.21% | 1.17% | 1.78% | 3.53% | 2.05% |
| Acquisitions | -245.67M | -248.97M | -123.84M | -13.59M | -281.03M | -3.45M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 99.47M | -24.22M | -25.28M | -17.46M | -13.86M | -6.64M | -2.98M | -1.9M |
| Cash from Financing | -121.69M | -160.75M | 55.88M | 47.46M | 36.31M | 1.39B | 423.98M | 52.77M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | -20M | -143K | 0 |
| Equity Issued (Net) | -123.96M | -160.75M | 0 | 0 | 0 | 1.39B | 419.31M | 51.87M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -147.32M | -200.01M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 2.26M | 0 | 55.88M | 47.46M | 36.31M | 18.56M | 4.81M | 899K |
| Net Change in Cash | -80.99M | 2.86M | -128.78M | 119.68M | -1.47B | 1.27B | 351.43M | 5.2M |
| Free Cash Flow | 44.88M | 75.9M | 6.59M | -87.14M | -212.1M | -105.88M | -72.83M | -47.28M |
| FCF Margin % | 4.08% | 7.58% | 0.8% | -14.03% | -50.24% | -51.7% | -78.27% | -101.73% |
| FCF Growth % | 170.33% | 1051.44% | 107.56% | 58.92% | -100.32% | -45.37% | -54.06% | - |
| FCF per Share | 0.13 | 0.23 | 0.02 | -0.30 | -0.76 | -0.61 | -0.34 | -0.22 |
| FCF Conversion (FCF/Net Income) | -0.13x | -0.17x | -0.12x | 0.20x | 0.51x | 0.35x | 0.57x | 0.58x |
| Interest Paid | 0 | 0 | 30K | 7K | 17K | 409K | 1.38M | 1.84M |
| Taxes Paid | 1.9M | 0 | 6.84M | 5.11M | 500K | 583K | 298K | 363K |
Quick answers to the most common questions about buying S stock.
SentinelOne, Inc. (S) generated $76.6M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
SentinelOne, Inc. (S) generated $75.9M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
SentinelOne, Inc. (S) spent $0.7M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, SentinelOne, Inc. (S) spent $200.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Liquidity risk from persistent cash burn
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Non-Cash Charges
The persistent gap between net losses and operating cash flow is almost entirely explained by stock-based compensation, which reached $92.1M in 2027Q2, suggesting the underlying cash burn is less severe than GAAP losses imply but remains a significant dilutive headwind.
The OCF/NI ratio has been volatile, swinging from -0.60 in 2025Q1 to 0.07 in 2027Q2, indicating that the relationship between reported losses and cash generation is not stable. This volatility is driven by large swings in working capital, which can obscure the true cash conversion of the business. The heavy reliance on SBC to bridge the gap between net loss and operating cash flow means that while the company is not consuming as much cash as its income statement suggests, it is doing so at the cost of significant shareholder dilution.
FCF Volatility Undermines Path to Profitability
Free cash flow has been inconsistent, swinging from a positive $45.4M in 2026Q1 to a negative $13.2M in 2027Q2, with the FCF margin averaging just 3.9% over the last ten quarters, indicating the business has not yet achieved sustainable positive free cash flow generation.
The FCF trajectory is highly erratic, with positive quarters often followed by negative ones, suggesting that cash generation is not yet a reliable feature of the business model. This volatility is primarily driven by large, unpredictable swings in working capital rather than consistent operational performance. The negative FCF in the most recent quarter, despite a narrowing net loss, indicates that the path to consistent profitability and cash generation remains uncertain and may require further cost discipline or revenue acceleration.
Working Capital Swings Drive Cash Flow Volatility
Working capital changes have been the primary driver of operating cash flow volatility, with a massive $161.3M inflow in 2026Q1 followed by a $42.8M outflow in 2027Q2, suggesting inconsistent collection cycles or timing of payments that obscure underlying cash generation.
The erratic pattern in working capital, with large inflows and outflows quarter-to-quarter, indicates that the company's cash conversion cycle is not yet stable or predictable. This volatility makes it difficult to assess the true cash-generating power of the core business, as results are heavily influenced by the timing of receivables and payables. Investors should monitor whether these swings normalize as the business matures, as persistent volatility could signal inefficiencies in collections or inventory management.
Strategic Acquisitions Consume Limited Cash Reserves
The company has deployed significant cash for acquisitions, including $244.7M in 2026Q3 and $952K in 2027Q1, while maintaining a minimal cash balance of $169.6M, suggesting a strategy of growth through M&A that may strain liquidity if operating cash flow does not improve.
The pattern of cash deployment shows a clear priority on strategic acquisitions to expand the platform, as seen with the Attivo Networks deal, rather than returning capital to shareholders. This approach consumes a substantial portion of the company's limited cash reserves, which could become a concern if the operating burn rate is not curtailed. The lack of dividends or share repurchases is typical for a growth-stage company, but the aggressive M&A spending relative to the cash balance warrants close monitoring for potential future financing needs.
Cash Flow Statement Obscures True Economic Cost
The cash flow statement does not fully reflect the economic cost of stock-based compensation, which totaled $92.1M in 2027Q2 alone, nor does it capture the potential future cash obligations from capitalized costs or deferred revenue associated with multi-year contracts.
While SBC is a non-cash charge on the income statement, it represents a real economic cost to shareholders through dilution, which is not captured in the operating cash flow figure. Furthermore, the timing of large, multi-year prepayments can inflate cash flow from operations in certain quarters, creating a misleading picture of sustainable free cash flow. The costs associated with 'free' data ingestion tiers used to attract customers may be capitalized and amortized, potentially understating the true cash cost of customer acquisition in the short term.