Free cash flow remains highly inconsistent, swinging to a negative 14.5% margin in 2026Q1, largely driven by a $93.6 million outflow in working capital.
| Metric | TTM | Dec'25 | 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 | Dec'04 | Dec'03 | Dec'02 |
|---|
| Cash from Operations | -19.71M | 61.43M | 77.19M | 149.08M | 83.75M | 176.87M | 115.89M | 77.01M | 108.24M | 103.88M | 125.57M | 65.95M | 68.72M | 49.13M | 69.24M | 53.03M | -9.63M | 10.12M | 84.78M | 49.31M | 18.31M | 16.43M | 7.46M | 3.78M | -1.55M |
| Operating CF Margin % | - | 6.94% | 9.61% | 23.33% | 8.85% | 19.18% | 21.48% | 16.84% | 20.41% | 19.85% | 22.58% | 18.25% | 23.75% | 21.8% | 24.61% | 23.66% | -6.67% | 11.16% | 50.38% | 27.35% | 17.24% | 20.06% | 10.83% | 14.02% | -11.81% |
| Operating CF Growth % | -265.89% | -20.43% | -48.22% | 78.02% | -52.65% | 52.61% | 50.5% | -28.86% | 4.2% | -17.27% | 90.41% | -4.04% | 39.89% | -29.04% | 30.56% | 650.95% | -195.07% | -88.06% | 71.92% | 169.32% | 11.43% | 120.28% | 97.4% | 343.54% | - |
| Net Income | 169.97M | 122.64M | 90.56M | 52.87M | 172.51M | 199.95M | 79.75M | 64.4M | 98.07M | 74.95M | 110.94M | 60.25M | 44.47M | 27.38M | 47.22M | 41.46M | -5.37M | -72.17M | 8.93M | 40.47M | 29.07M | 20.53M | 8.52M | 3.25M | -12.53M |
| Depreciation & Amortization | 32.03M | 30.17M | 25.29M | 21.81M | 18.93M | 17.16M | 13.56M | 13.06M | 14.8M | 13.13M | 11.59M | 8.99M | 6.92M | 6.43M | 5.88M | 6.35M | 7.6M | 11.11M | 10.63M | 7.89M | 1.09M | 866K | 1.25M | 1.54M | 561.8K |
| Stock-Based Compensation | 29.85M | 26.28M | 16.96M | 17.55M | 26.66M | 19.55M | 14.59M | 14.59M | 20.78M | 15.49M | 17.36M | 10.42M | 10.35M | 10.26M | 11.8M | 8.86M | 6.6M | 13.95M | 8.4M | 261.35M | 85.7M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | -173.1K | 0 | 428K | -1.74M | -1.74M | -667K | 1.12M | -1.66M | 581K | -3.37M | 911K | 471K | 1.18M | 1.58M | 2.3M | -172.41K | 1.62M | 264.66K | -3.42M | -2.63M | -693K | 1.73M | -2.81M | 0 |
| Other Non-Cash Items | -41.73M | -39.21M | -2.18M | -22.99M | 853K | 1.95M | 18.54M | 1.87M | 4.47M | 8.48M | 44K | 7K | 14K | -117K | 142K | -12.02K | 269.14K | 39.31M | 1.62M | -251.33M | -83.7M | -375K | 1.9M | 2.27M | 10.42M |
| Working Capital Changes | -194.15M | -78.28M | -53.42M | 79.42M | -133.47M | -59.99M | -9.87M | -18.02M | -28.21M | -8.76M | -10.99M | -14.63M | 6.51M | 4M | 2.61M | -5.93M | -18.56M | 16.3M | 54.94M | -5.65M | -11.22M | -3.89M | -5.95M | -477.44K | 0 |
| Change in Receivables | 0 | 22.2M | -39.04M | 11.4M | 2.47M | -92.93M | -7.09M | -18.75M | -12.63M | -5.16M | -14.62M | -29.18M | 2.36M | 5.57M | 2M | -8.42M | -9.03M | 12.03M | 57.16M | 153.68M | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | -215.3M | 4.87M | 72.13M | -78.09M | -78.09M | -21.72M | -10.15M | 12.67M | -22.3M | -24.78M | -410K | -10.41M | -1.52M | -1.83M | -7.45M | -8.32M | 5.65M | -2.78M | 640K | -4.56M | 7.03M | -11.24M | -711.95K | 0 |
| Change in Payables | 0 | 16.97M | -37.81M | 0 | 36.23M | 36.23M | 13.85M | 4.43M | -28.77M | 24.25M | 9.2M | 7.65M | -415K | -11.98M | 5.64M | 10.38M | 187.09K | -1.7M | -1.99M | -162.57M | 206.24M | -226.84M | 0 | 0 | 0 |
| Cash from Investing | -34.23M | -27.47M | -44.19M | -49.09M | -32.78M | -30.34M | -20.78M | 35.42M | -79.57M | -14.55M | -8.22M | -58.41M | -15.41M | -12.81M | -4.75M | -14.53M | -9.99M | -1.42M | -30.27M | -60.16M | -13.04M | -30.85M | -8.36M | 285.84K | -905.39K |
| Capital Expenditures | -61.97M | -55.15M | -44.45M | -50.31M | -32.78M | -26.83M | -18.78M | -10.32M | -74.85M | -11.68M | -12.22M | -23.66M | -11.6M | -12.77M | -4.28M | -4.9M | -4.74M | -3.11M | -17.86M | -6.97M | -8.34M | -1.3M | -1.16M | -412.18K | 0 |
| CapEx % of Revenue | 5.84% | 6.23% | 5.53% | 7.87% | 3.46% | 2.91% | 3.48% | 2.26% | 14.11% | 2.23% | 2.2% | 6.55% | 4.01% | 5.67% | 1.52% | 2.19% | 3.28% | 3.43% | 10.61% | 3.87% | 7.85% | 1.59% | 1.68% | 1.53% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | -45.68M | 43.97M | -2.87M | -2.87M | -30.29M | -30.29M | 0 | 0 | -700K | -719.2K | 0 | 0 | -12.06M | -55.27M | 17.87M | 12K | 15K | 40.79K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 27.73M | 27.68M | 1K | 1.23M | 3.51M | -3.51M | 43.97M | -39.25M | 2.87M | 4M | -4.51M | -463K | -3.82M | -89K | -469K | -8.91M | -5.36M | 885.46K | -387.19K | 784K | 42K | -185K | -2.63M | 419.78K | -905.39K |
| Cash from Financing | -67.74M | -91.51M | -67.25M | -16.69M | -183.1M | -99.73M | -73.91M | -70.26M | -101.82M | -31.74M | 2.19M | -20.27M | -19.71M | -29.49M | 224K | 2.29M | 0 | 577.27K | -49.24M | 3.85M | 1.84M | 38.99M | -98K | 7.91M | 355.15K |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -25.01M | 0 | 25M | 0 | 0 | 0 | 0 | 0 | 0 | -226.97K | 579.31K | 1.95K | 0 | 0 | 0 | -42.35K | 0 |
| Equity Issued (Net) | -221.16K | -24.31M | 0 | 0 | -133.16M | -45.7M | -25.01M | -26.23M | -33.54M | 380K | 93K | 494K | 0 | -10.02M | 224K | 2.29M | 0 | 0 | -50.35M | 3.22M | 1.84M | 39M | 0 | 7.95M | 0 |
| Dividends Paid | -67.48M | -67.2M | -67.25M | -16.69M | -49.91M | -54.14M | -49M | -44.11M | -43.28M | -32.12M | -22.9M | -20.77M | -20.22M | -19.9M | 0 | 0 | 0 | 0 | -612.4K | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -221.16K | -24.31M | 0 | 0 | -133.16M | -45.7M | -25.01M | -26.23M | -33.54M | 0 | 0 | 0 | 0 | -10.02M | 0 | 0 | 0 | 0 | -51.38M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -39.84K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 13.13K | 0 | 0 | 0 | 514K | 422K | 0 | 0 | 0 | 804.24K | -1.52M | 581.74K | 0 | -9K | -98K | 0 | 355.15K |
| Net Change in Cash | -138.52M | -57.25M | -34.66M | 81.94M | -128.47M | 46.31M | 20.96M | 41.13M | -74.4M | 60.35M | 119.02M | -13.69M | 32.49M | 6.99M | 65.97M | 37.95M | -13.19M | 11.4M | -649.36K | -6.16M | 7.25M | 26.06M | -1.16M | 11.93M | 355.15K |
| Free Cash Flow | -81.68M | 6.28M | 32.74M | 98.77M | 50.97M | 150.04M | 97.11M | 66.68M | 33.39M | 92.2M | 113.35M | 42.28M | 57.13M | 36.36M | 64.96M | 48.13M | -14.36M | 7.01M | 66.92M | 42.34M | 9.97M | 15.13M | 6.3M | 3.37M | -1.55M |
| FCF Margin % | -7.7% | 0.71% | 4.07% | 15.45% | 5.39% | 16.27% | 18% | 14.58% | 6.3% | 17.62% | 20.38% | 11.7% | 19.75% | 16.14% | 23.09% | 21.47% | -9.95% | 7.73% | 39.77% | 23.49% | 9.39% | 18.47% | 9.15% | 12.49% | -11.81% |
| FCF Growth % | -210.22% | -80.83% | -66.85% | 93.78% | -66.03% | 54.5% | 45.64% | 99.71% | -63.79% | -18.66% | 168.08% | -25.99% | 57.14% | -44.03% | 34.96% | 435.14% | -304.73% | -89.52% | 58.04% | 324.55% | -34.08% | 140.06% | 87.2% | 316.98% | - |
| FCF per Share | -9.63 | 0.75 | 0.97 | 2.95 | 1.53 | 4.29 | 2.78 | 1.89 | 0.92 | 2.57 | 3.19 | 1.21 | 1.67 | 1.08 | 1.93 | 1.49 | -0.49 | 0.25 | 2.08 | 1.27 | 0.32 | 0.52 | 0.24 | 0.14 | -0.06 |
| FCF Conversion (FCF/Net Income) | -0.48x | 0.50x | 0.86x | 2.82x | 0.49x | 0.88x | 1.45x | 1.20x | 1.08x | 1.38x | 1.13x | 1.09x | 1.55x | 1.79x | 1.47x | 1.28x | 1.80x | -0.34x | 5.22x | 1.22x | 0.63x | 0.80x | 0.88x | 1.16x | 0.12x |
| Interest Paid | 0 | 0 | 0 | 0 | 71K | 0 | 11K | 0 | 376K | 367K | 105K | 6K | 71K | 86K | 0 | 0 | 1K | 16.72K | 148.59K | 25.65K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 16.71M | 10.11M | 36.32M | 33.98M | 3.52M | 8.52M | 5.61M | 13.79M | 30.91M | 24.3M | 20.49M | 5.89M | 2.95M | -3.26M | 988K | 412K | 4.04M | 3.11M | 1.19M | 0 | 0 | 0 | 0 | 0 |
Cyclical working capital volatility
As reported in recent financial statements, Silicon Motion's operating cash flow frequently decouples from net income, evidenced by a volatile OCF/NI ratio that dipped to -0.47 in 2026Q1, suggesting that reported earnings may not fully reflect the immediate cash-generating capacity of the underlying business model.
The significant divergence between net income and operating cash flow suggests that non-cash items and aggressive working capital swings are heavily influencing the bottom line. Investors should monitor whether this disconnect is a temporary byproduct of inventory cycles or a structural issue regarding the cash-conversion efficiency of the firm's turnkey controller solutions.
Based on quarterly data, Silicon Motion's free cash flow trajectory remains highly inconsistent, with margins swinging from a positive 23.2% in 2025Q1 to a negative 14.5% in 2026Q1, indicating that the company's ability to generate surplus cash is currently tethered to erratic operational and capital requirements.
The inability to maintain a consistent positive FCF margin suggests that the company's cash generation is highly sensitive to the timing of semiconductor supply chain payments. This instability warrants further investigation into whether the firm can sustain its dividend policy if these cash flow fluctuations persist through the next cycle.
According to recent SEC filings, working capital changes have become the primary driver of cash flow volatility, with a massive $93.6 million outflow in 2026Q1 alone, highlighting the company's vulnerability to inventory build-ups and the timing of receivables within the competitive merchant controller market.
The sharp swings in working capital suggest that the company is absorbing significant inventory risk to maintain its position as a reliable supplier to module makers. This dynamic implies that cash flow is less a function of operational profitability and more a reflection of the firm's aggressive inventory management strategy.
As indicated by historical cash flow statements, Silicon Motion consistently prioritizes dividend payments, which totaled approximately $16.9 million in 2026Q1, even during periods of negative free cash flow, suggesting a management commitment to capital returns that may be straining the company's internal liquidity position.
The decision to maintain dividend payouts despite negative free cash flow suggests a high level of confidence in future earnings, yet it may limit the firm's flexibility to fund R&D or strategic acquisitions. Investors should monitor whether this capital allocation strategy remains sustainable if the current cyclical recovery in NAND pricing fails to materialize.
Quick answers to the most common questions about buying SIMO stock.
Silicon Motion Technology Corporation (SIMO) generated $61.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Silicon Motion Technology Corporation (SIMO) generated $6.3M 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.
Silicon Motion Technology Corporation (SIMO) spent $55.1M 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, Silicon Motion Technology Corporation (SIMO) returned $67.2M to shareholders via cash dividends and spent $24.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.