Free cash flow margins have recovered to 11.6% in 2027Q1, reflecting improved operational leverage despite a persistent $13.4M drag from working capital requirements.
| Cash from Operations | 205.63M | 70.58M | -106.39M | -250.35M | -8.85M | 57.95M | 50.09M | 37.54M | 21.86M | 6.54M | 3.56M |
| Operating CF Margin % | - | 6.59% | -12.35% | -35.79% | -1.97% | 15.87% | 17.36% | 15.08% | 11.75% | 4.94% | 3.73% |
| Operating CF Growth % | 1048.9% | 166.34% | 57.5% | -2727.58% | -115.28% | 15.69% | 33.43% | 71.76% | 234.19% | 83.71% | - |
| Net Income | -157.42M | -270.05M | -315.83M | -395.37M | -61.63M | -10.76M | -8.5M | 3.67M | -7.59M | -3.17M | -10.81M |
| Depreciation & Amortization | 211.81M | 210.77M | 237.25M | 263.64M | 22.38M | 18.29M | 14.99M | 10.74M | 10.22M | 9.98M | 9.62M |
| Stock-Based Compensation | 218.27M | 254.87M | 31.71M | 37.47M | 53.88M | 29.06M | 18.71M | 18.98M | 4.51M | 0 | 0 |
| Deferred Taxes | -57.12M | -72.68M | -71.21M | -124.92M | -3.46M | -7.55M | -7.27M | -1.28M | 69K | -2.54M | -3.33M |
| Other Non-Cash Items | 50.07M | 63.59M | 40.12M | 17.37M | 25.76M | 36.92M | 15.47M | 12.15M | 2.43M | 1.32M | 401K |
| Working Capital Changes | -59.98M | -115.92M | -28.43M | -48.54M | -45.77M | -8M | 16.68M | -6.71M | 12.22M | 946K | 7.67M |
| Change in Receivables | -87.3M | -105.83M | -53.38M | -78.54M | -72.67M | -6.77M | -5.07M | -31.25M | -24.12M | -17.25M | -5.25M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -1.79M | -13.73M | -18.22M | 6.25M | -1.92M | 1.99M |
| Change in Payables | 9.68M | 2.29M | -5.35M | 4.23M | 6.22M | 1.53M | -1.63M | 2.41M | 1.44M | -262K | -640K |
| Cash from Investing | -37.38M | -35.56M | -28.94M | -12.66M | -74.95M | -3.97M | -38.91M | -10.86M | -2.52M | -1.25M | -16.31M |
| Capital Expenditures | -4.76M | -5.98M | -5.36M | -2.58M | -3.98M | -4M | -6.55M | -10.89M | -2.71M | -1.26M | -1.23M |
| CapEx % of Revenue | 0.42% | 0.56% | 0.62% | 0.37% | 0.89% | 1.1% | 2.27% | 4.37% | 1.46% | 0.95% | 1.29% |
| Acquisitions | 0 | 0 | -15.38M | -8.22M | -70.96M | 0 | -32.39M | 0 | 0 | 0 | -15.21M |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -32.62M | -29.58M | -8.21M | -1.87M | -7K | 29K | 39K | 33K | 190K | 8K | 133K |
| Cash from Financing | -8.68M | 201.97M | 41.26M | 50.43M | 1.47M | 12.55M | 361.7M | -65.58M | 78.52M | -1.96M | 9.85M |
| Debt Issued (Net) | 0 | -1.04B | -550M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 1.26B | 594.15M | 50.43M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -6.17M | -1.31M | 0 | 0 | 0 | 0 | -658K | -226K | -458K |
| Other Financing | -8.68M | -17.71M | -2.89M | 51.74M | 1.47M | 12.55M | 361.7M | -65.58M | 78.52M | -1.96M | 9.85M |
| Net Change in Cash | 159.57M | 237M | -94.08M | -212.59M | -82.34M | 66.52M | 372.88M | -38.89M | 97.86M | 3.32M | -2.9M |
| Free Cash Flow | 184.97M | 51.75M | -119.97M | -254.83M | -12.88M | 53.95M | 43.54M | 26.65M | 19.14M | 5.28M | 2.33M |
| FCF Margin % | 16.5% | 4.83% | -13.92% | -36.43% | -2.86% | 14.77% | 15.09% | 10.71% | 10.29% | 3.99% | 2.44% |
| FCF Growth % | 215.18% | 143.14% | 52.92% | -1878.81% | -123.87% | 23.91% | 63.37% | 39.21% | 262.8% | 126.68% | - |
| FCF per Share | 0.33 | 0.09 | -0.22 | -1.84 | -0.14 | 0.60 | 0.49 | 0.30 | 0.37 | 0.08 | 0.03 |
| FCF Conversion (FCF/Net Income) | -1.18x | -0.26x | 0.34x | 0.63x | 0.14x | -5.38x | -5.89x | 10.23x | -2.88x | -2.06x | -0.33x |
| Interest Paid | 176K | 37.07M | 152.17M | 182.03M | 646K | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.2M | 0 | 12.95M | 5.58M | 3.48M | 0 | 0 | 0 | 0 | 0 | 0 |
SaaS transition margin compression
Based on recent financial disclosures, SailPoint exhibits a persistent divergence between net losses and operating cash flow, with the 2027Q1 OCF/NI ratio of -0.51 highlighting how non-cash expenses, particularly stock-based compensation, mask the underlying cash burn inherent in the firm's current cloud-first business model transition.
The reliance on stock-based compensation to bridge the gap between GAAP net income and operating cash flow suggests that the company's reported cash generation is heavily supported by accounting adjustments rather than core operational efficiency. Investors should monitor whether this reliance on equity-based incentives remains sustainable as the company attempts to scale its Identity Security Cloud platform.
As reported in quarterly filings, SailPoint's free cash flow margin has shown a notable recovery, reaching 11.6% in 2027Q1 compared to the -43.7% trough observed in 2026Q1, suggesting that the company is beginning to realize the operating leverage expected from its shift toward recurring subscription revenue models.
This trajectory indicates that the heavy upfront investment phase may be moderating, allowing for improved cash conversion. However, the volatility in these margins warrants caution, as the firm remains sensitive to the timing of large enterprise contract renewals and the associated implementation costs.
According to historical cash flow statements, SailPoint maintains a remarkably low capital intensity, with CapEx/Revenue ratios consistently below 1.0% in recent periods, reflecting a business model that prioritizes software development and cloud hosting over significant investments in physical infrastructure or heavy hardware assets.
The minimal capital expenditure requirements suggest that the company's cash flow is not burdened by the need for significant asset replacement or maintenance. This lean capital structure is a positive indicator for long-term scalability, provided the company can successfully manage its rising R&D and S&M costs.
Data from recent SEC filings indicates that SailPoint continues to face working capital headwinds, with negative changes in working capital totaling $13.4M in 2027Q1, which suggests potential inefficiencies in cash collection cycles or the timing of deferred revenue recognition during the ongoing migration to cloud-based identity services.
The consistent negative working capital trend may imply that the company is extending more favorable payment terms to secure enterprise contracts or that the billing cycle for cloud services is not yet fully optimized. This drag on cash flow necessitates close observation to ensure that the transition to subscription revenue does not permanently impair the company's liquidity position.
Quick answers to the most common questions about buying SAIL stock.
SailPoint, Inc. (SAIL) generated $70.6M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
SailPoint, Inc. (SAIL) generated $51.8M 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.
SailPoint, Inc. (SAIL) spent $6.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.