Cash conversion has been strong with cumulative OCF of $2.2B exceeding net income of $0.98B over ten quarters, and FCF surged to $367.6M in 2026Q2 (20.2% margin), though capex intensity rose to 6.3% of revenue and working capital swings caused OCF/NI to fluctuate from 4.35 to 0.71.
Somnigroup International Inc (SGI) cash flow statement — 16-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Cash from Operations | 990.4M | 800.1M | 666.5M | 570.3M | 378.8M | 723.1M | 654.7M | 165.5M | 234.2M | 225.2M | 98.5M | 189.9M | 248.7M | 198.39M | 126.36M | 165.81M | 102.25M |
| Operating CF Margin % | - | 10.7% | 13.52% | 11.58% | 7.7% | 14.67% | 17.81% | 31.05% | 44.93% | 42.49% | 12.84% | 25.22% | 39.5% | 80.18% | 35.78% | 46.01% | 47.56% |
| Operating CF Growth % | 194.72% | 20.04% | 16.87% | 50.55% | -47.61% | 10.45% | 295.59% | -29.33% | 4% | 128.63% | -48.13% | -23.64% | 25.36% | 57.01% | -23.79% | 62.17% | - |
| Net Income | 533.3M | 385.3M | 385.7M | 370.7M | 456.1M | 625.2M | 348.8M | 197.3M | 65.7M | 110M | 78.9M | 106.8M | 219.6M | 58.87M | 141.46M | 112.32M | 99.33M |
| Depreciation & Amortization | 270M | 249.5M | 165.1M | 135.3M | 127.1M | 113.2M | 98M | 72.4M | 71.4M | 76.3M | 74.6M | 36.3M | 34.3M | 41.86M | 41.05M | 26.7M | 30.04M |
| Stock-Based Compensation | 32.9M | 41M | 36.4M | 47.7M | 0 | 0 | 0 | 16.2M | 22.5M | 13.4M | 16.9M | 5.7M | 16.7M | 0 | 0 | 0 | 0 |
| Deferred Taxes | -200K | 25.8M | -19.2M | 8.3M | -10.5M | 11.1M | -8.6M | -31.1M | -21.3M | -27.2M | -49.1M | 38.4M | -8.5M | 2.42M | -8.96M | -1.3M | 4.66M |
| Other Non-Cash Items | -60.1M | 44M | 33.9M | 10M | 67.9M | 64.2M | 147.5M | 54.5M | 37.7M | 45.1M | 16.1M | 6M | 3.8M | 7.59M | -4.2M | 18.56M | 8.69M |
| Working Capital Changes | 215.1M | 54.5M | 64.6M | -1.7M | -261.8M | -90.6M | 69M | -143.8M | 58.2M | 7.6M | -38.9M | -3.3M | -17.2M | 87.65M | -42.98M | 9.54M | -40.46M |
| Change in Receivables | 72.6M | 72.6M | -7.3M | -11.5M | -14.8M | -40.4M | -55.7M | 21.5M | -38.4M | -58.8M | -30.1M | 5.3M | -30.2M | 51.23M | -20.54M | -27.61M | -27.27M |
| Change in Inventory | 136.5M | 136.5M | 26.8M | 75.8M | -101.9M | -106.4M | -42.5M | 700K | 10.7M | -34M | -34.5M | 100K | -18.5M | 45.76M | -38.22M | 21.28M | -18.45M |
| Change in Payables | 0 | -133.1M | 58.3M | -46.9M | -59.5M | 50.5M | 63M | -48.3M | 52.8M | 47.8M | 28.1M | 14.3M | 21.7M | -15.68M | 0 | 0 | 0 |
| Cash from Investing | -261.3M | -3.02B | -96.7M | -187.8M | -315.6M | -555.7M | -146.3M | -62.4M | -59.7M | -10.4M | -1.21B | -55M | -36.1M | -5.37M | -22.87M | -37.86M | -86.58M |
| Capital Expenditures | -221.4M | -166.9M | -97.3M | -185.4M | -306.5M | -123.3M | -111.3M | -61.9M | -65.9M | -47.5M | -40M | -50.5M | -29.5M | -10.49M | -17.21M | -38.15M | -84.88M |
| CapEx % of Revenue | 2.91% | 2.23% | 1.97% | 3.76% | 6.23% | 2.5% | 3.03% | 11.62% | 12.64% | 8.96% | 5.21% | 6.71% | 4.69% | 4.24% | 4.87% | 10.59% | 39.48% |
| Acquisitions | 0 | -2.82B | 0 | 0 | 0 | -432.8M | -41.2M | 0 | 7.2M | 35M | -1.17B | -4.5M | -4.6M | -1.53M | -5.8M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 2.1M | 8.8M | 600K | -2.4M | -9.1M | 400K | 6.2M | -500K | -1M | 2.1M | -100K | 0 | -2M | 6.66M | 140K | 286K | -1.7M |
| Cash from Financing | -707.3M | 616.9M | 1.08B | -384.3M | -279.1M | 76.5M | -522.6M | -185.1M | -90.7M | -238.1M | 1.01B | -70.8M | -148.9M | -200.15M | -87.64M | -132.48M | -19.95M |
| Debt Issued (Net) | -532.8M | 827.2M | 1.23B | -267M | 458.3M | 954.4M | -185.8M | 342M | -124.8M | -239.4M | 1.06B | 65M | 178M | -183.3M | 238.39M | 1.06M | 2.17M |
| Equity Issued (Net) | -25.8M | -82.9M | -43.8M | -36M | -666.9M | -801.4M | -324.9M | -535M | 3.7M | -2.2M | -7M | -152.6M | -365.9M | 695K | -311.71M | -139.96M | -73.45M |
| Dividends Paid | -135.5M | -127.4M | -92.7M | -77.7M | -70.5M | -63.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -17.93M | -23.81M | 0 | 0 |
| Share Repurchases | -26.2M | -132.4M | -43.8M | -36M | -667.4M | -816.3M | -331.8M | -535M | -1.3M | -2.2M | -7M | -152.6M | -365.9M | 0 | -319.88M | -144M | -76M |
| Other Financing | -13.2M | 0 | -13.2M | -3.6M | 0 | -13.4M | -11.9M | 7.9M | 30.4M | 3.5M | -38.9M | 16.8M | 39M | 385K | 9.49M | 6.42M | 51.32M |
| Net Change in Cash | 13.9M | -1.57B | 1.63B | 5.5M | -231.3M | 235.7M | 100K | -88.2M | 91.4M | -18.5M | -98.3M | 67.9M | 57.8M | -17.93M | 17.53M | -2.07M | -10.51M |
| Free Cash Flow | 769M | 633.2M | 569.2M | 384.9M | 72.3M | 599.8M | 543.4M | 103.6M | 168.3M | 177.7M | 58.5M | 139.4M | 219.2M | 187.9M | 109.16M | 127.67M | 17.37M |
| FCF Margin % | 10.1% | 8.47% | 11.54% | 7.81% | 1.47% | 12.16% | 14.78% | 19.44% | 32.29% | 33.53% | 7.62% | 18.51% | 34.82% | 75.94% | 30.91% | 35.43% | 8.08% |
| FCF Growth % | 32.54% | 11.24% | 47.88% | 432.37% | -87.95% | 10.38% | 424.52% | -38.44% | -5.29% | 203.76% | -58.03% | -36.41% | 16.66% | 72.14% | -14.5% | 635.08% | - |
| FCF per Share | 3.62 | 3.03 | 3.19 | 2.17 | 0.40 | 2.94 | 2.56 | 0.50 | 0.81 | 0.86 | 0.28 | 0.74 | 1.23 | 1.04 | 0.65 | 0.76 | 0.17 |
| FCF Conversion (FCF/Net Income) | 1.44x | 2.08x | 1.73x | 1.55x | 0.83x | 1.16x | 1.88x | -14.81x | -5.98x | -4.26x | -34.93x | -7.76x | -11.71x | -3.66x | -1.82x | 14.45x | 12.01x |
| Interest Paid | 136M | 278.3M | 157.7M | 144.6M | 105.8M | 0 | 0 | 75.4M | 66.5M | 73.5M | 92.1M | 37.1M | 8M | 24.98M | 0 | 0 | 0 |
| Taxes Paid | 40.3M | 41.4M | 134M | 133M | 0 | 0 | 0 | 81.3M | 94.9M | 56.3M | 96.4M | 80.1M | 84.2M | 38.35M | 0 | 0 | 0 |
Quick answers to the most common questions about buying SGI stock.
Somnigroup International Inc (SGI) generated $800.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Somnigroup International Inc (SGI) generated $633.2M 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.
Somnigroup International Inc (SGI) spent $166.9M 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, Somnigroup International Inc (SGI) returned $127.4M to shareholders via cash dividends and spent $132.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Revenue volatility and margin compression
Metrics are mathematically derived from official filings.
Cash Conversion Volatility Signals Earnings Quality
SGI's operating cash flow to net income ratio swung from 4.35 in 2026Q2 to 0.71 in 2025Q4, per reported figures, indicating earnings quality varies with working capital swings.
The OCF/NI ratio of 4.35 in 2026Q2 suggests strong cash conversion, but the 0.71 in 2025Q4 implies net income was not fully backed by cash, likely due to working capital outflows. This volatility suggests that reported earnings may not consistently translate into cash, warranting close monitoring of accruals.
Free Cash Flow Rebound After Soft Quarter
FCF surged to $367.6M in 2026Q2 from $41.1M in 2025Q4, as per financial statements, with FCF margin expanding from 2.2% to 20.2%, indicating a strong recovery.
The FCF margin of 20.2% in 2026Q2 is the highest in the period, reflecting robust cash generation relative to revenue. However, the 2025Q4 dip to 2.2% shows vulnerability to working capital timing. The recent trajectory suggests improving cash flow, but sustainability depends on maintaining revenue growth and managing working capital.
Capital Intensity Rising with Growth
CapEx as a percentage of revenue increased from 1.3% in 2024Q3 to 6.3% in 2026Q2, based on reported data, indicating higher investment to support expansion.
The doubling of CapEx/Rev from 1.3% to 6.3% suggests SGI is investing more heavily in fixed assets, possibly for capacity expansion or modernization. This increased capital intensity may pressure near-term FCF but could support future growth. Investors should assess whether these investments are yielding adequate returns.
Working Capital Swings Drive Cash Flow Volatility
Working capital changes contributed $116.7M in 2026Q2 but subtracted $35.0M in 2025Q4, as per quarterly data, highlighting significant quarter-to-quarter variability.
The large positive working capital contribution in 2026Q2 suggests efficient collection or inventory reduction, while the negative in 2025Q4 indicates cash tied up in operations. This volatility is a key driver of OCF fluctuations and may reflect seasonal demand patterns or supply chain dynamics. Monitoring working capital efficiency is crucial for cash flow predictability.
Capital Returns and Acquisition Impact
SGI paid $72.5M in dividends and repurchased $26.2M in 2026Q2, while a $2.8B acquisition in 2025Q1 dominated cash outflows, as reported in filings.
Dividends have steadily increased from $22.6M in 2024Q2 to $72.5M in 2026Q2, indicating a commitment to shareholder returns. Buybacks have been sporadic, with a notable $94.9M in 2025Q2. The $2.8B acquisition in 2025Q1 was a major cash deployment, likely funded by debt, which may have increased leverage. Future capital allocation will be key to balance growth and returns.
Cumulative Cash Generation Exceeds Net Income
Over the last ten quarters, cumulative operating cash flow of $2.2B exceeds cumulative net income of $0.98B, per reported data, indicating strong cash conversion.
The cumulative OCF/NI ratio of approximately 2.2 suggests that SGI's cash generation is significantly higher than reported earnings, possibly due to non-cash charges like D&A and favorable working capital changes. This divergence may indicate conservative earnings or aggressive cash collection. However, the 2025Q1 net loss of $33.1M with positive OCF of $106.4M highlights the impact of non-cash items.
What Could Invalidate the Base Case
Despite strong cash generation, the $2.8B acquisition in 2025Q1 may obscure underlying cash flow quality, as per reported figures, and SBC adjustments could overstate cash sustainability.
The cash flow statement shows robust OCF, but the large acquisition in 2025Q1 may have been funded by debt, potentially increasing leverage and interest costs. Additionally, stock-based compensation, though non-cash, dilutes shareholders and may not be fully reflected in cash flow metrics. Investors should monitor the sustainability of working capital contributions and the impact of acquisition integration on future cash flows.