Cash conversion remains a bright spot, with an OCF/NI ratio of 2.37 in 2026Q1, though free cash flow margins have fluctuated significantly between 2.2% and 18.5% over the last ten quarters.
| 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 | 940.2M | 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 % | 191.32% | 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 | 521.4M | 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 | 287.5M | 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 | 10.1M | 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 | 27.5M | 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 | 41.4M | 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 | 51.8M | 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 | 0 | 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 | 0 | 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 | -226.1M | -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 | -203.4M | -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 | 2.65% | 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 | 10.5M | -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 | 8.8M | 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 | -729.9M | 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) | -526.1M | 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) | -120.7M | -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 | -131.2M | -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 | -121.1M | -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 | 48.1M | 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 | -300K | -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 | 736.8M | 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 % | 9.6% | 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 % | 33.26% | 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 | 3.47 | 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) | 1.41x | 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 | 144.9M | 0 | 157.7M | 144.6M | 0 | 0 | 0 | 75.4M | 66.5M | 73.5M | 92.1M | 37.1M | 8M | 24.98M | 0 | 0 | 0 |
| Taxes Paid | 1.2M | 0 | 134M | 133M | 0 | 0 | 0 | 81.3M | 94.9M | 56.3M | 96.4M | 80.1M | 84.2M | 38.35M | 0 | 0 | 0 |
High Customer Acquisition Costs
As reported in quarterly financial filings, SGI consistently demonstrates an OCF/NI ratio significantly above 1.0, peaking at 2.37 in 2026Q1, which suggests that the company's reported net income may be a conservative measure of its actual cash-generating capacity within the premium sleep hardware market.
The persistent gap between net income and operating cash flow indicates that non-cash charges, such as depreciation and amortization, are playing a substantial role in the company's reported profitability. Investors should monitor whether this conversion efficiency remains elevated as the company scales its digital wellness services, as a narrowing gap could signal a shift toward more cash-intensive operational requirements.
Based on historical cash flow statements, SGI's free cash flow margins have fluctuated between 2.2% and 18.5% over the last ten quarters, reflecting a business model that balances aggressive top-line expansion with the inherent capital requirements of maintaining a proprietary biometric sensor and sleep surface ecosystem.
The significant variance in FCF margins appears tied to the timing of major operational investments and working capital swings rather than structural margin degradation. While the 18.5% margin achieved in 2024Q3 highlights the potential for high cash conversion, the subsequent compression suggests that management is prioritizing market share capture over consistent quarterly cash flow generation.
According to recent SEC filings, SGI's working capital changes have been highly erratic, swinging from a $144 million outflow in 2025Q4 to a $133.4 million inflow in 2025Q3, which indicates that inventory management and receivables collection are currently primary drivers of short-term cash flow volatility.
These sharp fluctuations suggest that the company's supply chain for specialized sensors and foams may be subject to significant lead-time variability. The reliance on large working capital inflows to bolster cash flow warrants further investigation into whether these movements are sustainable or if they represent temporary timing benefits that may reverse in future periods.
As indicated by financial statements, SGI has consistently returned capital to shareholders through dividends and buybacks, including a $94.9 million repurchase in 2025Q2, even while simultaneously navigating the capital-intensive integration of smart technology into its core mattress and adjustable base product lines.
The commitment to returning cash to shareholders, despite the high growth phase, suggests a management team that is confident in the company's internal cash generation. However, investors should evaluate if these distributions are limiting the capital available for R&D, particularly as the company attempts to defend its moat against competitors with deeper software-focused resources.
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.