Cash flow generation remains highly erratic, evidenced by a massive $6.7B free cash flow outflow in 2026Q3, which underscores the extreme sensitivity of the business model to working capital cycles.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 |
|---|
| Cash from Operations | -6.69B | 1.66B | -2.49B | 663.58M | -440.8M | 122.95M | -30.33M | 262.55M | 84.35M | -96.19M | 107.99M | -46.13M | 6.54M | 13.58M | 16.47M | 8.48M | -2.17M | 21.82M | 18.5M | 14.99M | 8.21M | 4.74M |
| Operating CF Margin % | - | 7.55% | -16.59% | 9.32% | -8.48% | 3.46% | -0.91% | 7.5% | 2.51% | -3.87% | 4.85% | -2.32% | 0.45% | 1.17% | 1.62% | 0.9% | -0.3% | 4.32% | 3.42% | 3.57% | 2.71% | 2.24% |
| Operating CF Growth % | -1155.28% | 166.76% | -474.63% | 250.54% | -458.51% | 505.34% | -111.55% | 211.28% | 187.69% | -189.07% | 334.12% | -805.49% | -51.87% | -17.51% | 94.19% | 490.06% | -109.96% | 17.93% | 23.44% | 82.66% | 73.05% | - |
| Net Income | 1.78B | 1.05B | 1.15B | 640M | 285.16M | 111.86M | 84.31M | 71.92M | 46.16M | 69.32M | 72.02M | 101.86M | 54.16M | 21.28M | 29.85M | 40.21M | 26.91M | 16.11M | 25.42M | 19.34M | 16.95M | 7.09M |
| Depreciation & Amortization | 84.59M | 58.34M | 38.69M | 34.9M | 32.47M | 28.18M | 28.47M | 24.2M | 21.85M | 15.93M | 13.28M | 8.13M | 6.36M | 7.83M | 7.07M | 5.45M | 4.62M | 3.65M | 2.66M | 1.64M | 1.21M | 922K |
| Stock-Based Compensation | 389.17M | 314.45M | 231.51M | 54.43M | 32.82M | 28.55M | 20.19M | 21.18M | 24.66M | 19.19M | 16.13M | 13.7M | 11.06M | 11.36M | 10.25M | 8.06M | 6.46M | 5.66M | 4.17M | 2.43M | 0 | 0 |
| Deferred Taxes | -80.24M | -214.64M | -168.5M | -92.97M | -6.82M | -8.39M | -13.77M | -17.1M | 13.57M | -801K | -6.13M | 632K | 63K | -7.01M | -3.14M | 1.54M | -4.41M | -732K | -3.05M | -3.21M | -806K | 133K |
| Other Non-Cash Items | -8.95B | 62.48M | 12.28M | 346K | -14.59M | 1.26M | 15.26M | 45.81M | 14.24M | 15.33M | 6.45M | -2.87M | 642K | 9.64M | 6.75M | 1.49M | 7.27M | 6.05M | 17M | 7M | 3.6M | 4.66M |
| Working Capital Changes | 620.48M | 390.03M | -3.75B | 26.87M | -769.85M | -38.52M | -164.79M | 116.54M | -36.13M | -208.96M | 4.46M | -154.77M | -65.75M | -29.52M | -34.32M | -48.27M | -43.03M | -8.65M | -23.53M | -9.78M | -12.75M | -8.07M |
| Change in Receivables | -5.77B | 533.34M | -1.59B | -311.9M | -372.44M | -60.15M | -7.02M | 85.03M | -127.08M | -149.46M | 53.58M | -78.19M | -64.87M | -48.26M | -17.23M | -12.54M | -33.34M | -7.67M | -22.04M | -15.82M | -11.24M | -9.6M |
| Change in Inventory | -574.25M | -355.61M | -2.9B | 100.04M | -504.64M | -189.47M | -199.68M | 119.31M | -126.23M | -235.59M | 7.71M | -177.56M | -63.92M | 12.7M | -92.47M | -60.48M | -48.15M | -5.82M | -25.76M | -9.16M | -17.09M | -8.9M |
| Change in Payables | 3.04B | -180.97M | 679.19M | 127.14M | 50.15M | 189.31M | 59.89M | -173.41M | 132.53M | 135.32M | -65.83M | 81.7M | 46.3M | -2.21M | 61.34M | 16.93M | 21.84M | -6.91M | 0 | 0 | 0 | 0 |
| Cash from Investing | -254.45M | -183.21M | -194.25M | -39.49M | -46.28M | -58.02M | -43.59M | -24.85M | -25.92M | -29.36M | -35.13M | -36.18M | -40.16M | -5.11M | -19.72M | -24.77M | -11.8M | -2.71M | -19.61M | -18.11M | -9.79M | -864K |
| Capital Expenditures | -156.45M | -127.21M | -124.28M | -36.79M | -45.18M | -58.02M | -44.34M | -24.85M | -24.82M | -29.36M | -34.11M | -35.1M | -40.57M | -5M | -24.86M | -16.2M | -22.22M | -3.56M | -16.09M | -3.04M | -11.45M | -1.05M |
| CapEx % of Revenue | 0.46% | 0.58% | 0.83% | 0.52% | 0.87% | 1.63% | 1.33% | 0.71% | 0.74% | 1.18% | 1.53% | 1.76% | 2.76% | 0.43% | 2.45% | 1.72% | 3.08% | 0.7% | 2.98% | 0.72% | 3.79% | 0.5% |
| Acquisitions | 0 | 0 | -296K | -2.19M | 0 | 0 | 750K | 0 | -2.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.1M | 0 | -1.02M | -416K | 406K | -412K | 2.84M | -123K | 1.48M | 0 | -1.67M | -157K | -63K | 1.75M |
| Cash from Financing | 5.76B | 2.02B | 3.91B | -448.29M | 522.87M | -44.44M | 23.8M | -95.83M | -50.83M | 57.72M | 13.1M | 80.01M | 37.22M | 3.76M | 13.82M | 13.59M | 16.32M | -290K | 1.72M | 37.47M | 6.92M | -67K |
| Debt Issued (Net) | 2.35B | 2.56B | 1.88B | -300.56M | 512.55M | 66.45M | 4.35M | -92.15M | -48.99M | 66.32M | -89K | 48.77M | 10.99M | 2.53M | 4.71M | 9.53M | 8.52M | -364K | -1.38M | -7.89M | 6.17M | -474K |
| Equity Issued (Net) | -187.07M | -200M | 2.34B | -150M | 0 | -130M | 0 | 0 | 0 | -18.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.03M | 2.93M | 45.18M | 377K | 44K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -200M | -200M | 0 | -150M | 0 | -130M | 0 | 0 | 0 | -18.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.03M | 0 | 0 | 0 | 0 |
| Other Financing | 3.59B | -334.96M | -316.46M | 2.24M | 10.25M | 19.11M | 19.45M | -3.68M | -1.84M | 9.86M | 13.19M | 31.24M | 26.23M | 1.23M | 9.11M | 4.05M | 7.81M | 2.1M | 171K | 182K | 374K | 363K |
| Net Change in Cash | -1.2B | 3.5B | 1.23B | 172.4M | 35.11M | 21.06M | -49.75M | 141.76M | 7.58M | -67.87M | 85.9M | -2.56M | 3.83M | 12.21M | 10.88M | -2.7M | 2.35M | 18.81M | 617K | 34.35M | 5.34M | 3.81M |
| Free Cash Flow | -6.85B | 1.53B | -2.61B | 626.79M | -485.98M | 64.94M | -74.67M | 237.71M | 59.52M | -125.55M | 73.88M | -81.22M | -34.03M | 8.58M | -8.39M | -16.92M | -24.4M | 18.26M | 2.42M | 11.95M | -3.25M | 3.69M |
| FCF Margin % | -20.33% | 6.97% | -17.41% | 8.8% | -9.35% | 1.83% | -2.24% | 6.79% | 1.77% | -5.05% | 3.32% | -4.08% | -2.32% | 0.74% | -0.83% | -1.79% | -3.38% | 3.61% | 0.45% | 2.84% | -1.07% | 1.74% |
| FCF Growth % | -19352.57% | 158.7% | -516.45% | 228.97% | -848.37% | 186.97% | -131.41% | 299.35% | 147.41% | -269.94% | 190.96% | -138.69% | -496.52% | 202.23% | 50.38% | 30.66% | -233.62% | 655.4% | -79.77% | 468.05% | -187.92% | - |
| FCF per Share | -10.17 | 2.44 | -4.15 | 1.04 | -0.87 | 0.12 | -0.14 | 0.46 | 0.11 | -0.24 | 0.14 | -0.16 | -0.07 | 0.02 | -0.02 | -0.04 | -0.06 | 0.05 | 0.01 | 0.04 | -0.01 | 0.01 |
| FCF Conversion (FCF/Net Income) | -3.85x | 1.58x | -2.16x | 1.04x | -1.55x | 1.10x | -0.36x | 3.65x | 1.83x | -1.44x | 1.50x | -0.45x | 0.12x | 0.64x | 0.56x | 0.21x | -0.08x | 1.35x | 0.73x | 0.78x | 0.48x | 0.67x |
| Interest Paid | 40.69M | 25.49M | 16.02M | 8.54M | 5.49M | 1.95M | 2.17M | 3.86M | 4.54M | 2.08M | 1.63M | 933K | 757K | 718K | 621K | 649K | 371K | 930K | 0 | 0 | 0 | 0 |
| Taxes Paid | -231.89M | 327.16M | 392.02M | 114.96M | 19.69M | 2.91M | 43.32M | 23.6M | 14.73M | 30.81M | 36.95M | 30.67M | 13.1M | 8.07M | 8.46M | 9.81M | 6.54M | 3.65M | 0 | 0 | 0 | 0 |
Governance and Liquidity Instability
According to the provided financial data, the company exhibits a severe disconnect between net income and operating cash flow, evidenced by a 2026Q3 OCF/NI ratio of -6.50, which suggests that reported profits are not currently translating into tangible cash generation for the business.
The persistent negative OCF/NI ratios across multiple quarters indicate that accounting earnings are heavily influenced by non-cash items and accruals rather than actual cash inflows. Investors should monitor this divergence as it suggests that the company's reported profitability may be significantly overstated relative to its underlying cash-generating capacity.
As reported in recent financial statements, SMCI's free cash flow trajectory remains highly erratic, swinging from a $840.9M inflow in 2025Q4 to a $6.7B outflow in 2026Q3, reflecting the extreme sensitivity of the company's cash position to lumpy, large-scale hardware delivery cycles.
The inability to maintain consistent positive free cash flow suggests that the business model requires massive, unpredictable capital outlays to support its growth. This volatility makes it difficult to forecast future liquidity needs and implies that the company remains highly dependent on external financing or working capital management to sustain operations.
Based on the reported figures, working capital fluctuations are the primary driver of cash flow volatility, with a massive $1.9B inflow in 2026Q3 following a $1.2B outflow in 2026Q1, highlighting the intense pressure of managing inventory and payables in a high-velocity hardware environment.
The extreme swings in working capital suggest that the company is frequently forced to tie up significant cash in inventory or prepayments to secure critical components. This dynamic creates a precarious liquidity profile where operational success is tethered to the timing of customer payments and supply chain procurement cycles.
As indicated by the cash flow statements, the company's reliance on stock-based compensation, which reached $216.4M in 2026Q3, masks the true cash cost of operations and dilutes the quality of reported earnings for shareholders, warranting further investigation into the sustainability of this compensation structure.
The consistent use of stock-based compensation as a significant add-back to cash flow suggests that the company is effectively subsidizing its operating expenses with equity. This practice obscures the true cash burn of the business and may indicate that the company's operational efficiency is lower than the headline figures suggest.
Quick answers to the most common questions about buying SMCI stock.
Super Micro Computer, Inc. (SMCI) generated $1.66B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Super Micro Computer, Inc. (SMCI) generated $1.53B 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.
Super Micro Computer, Inc. (SMCI) spent $127.2M 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, Super Micro Computer, Inc. (SMCI) spent $200.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.