Cash flow remains inconsistent, evidenced by an OCF/NI ratio of 2.34 in 2026Q1 and capital expenditures that reached 11.4% of revenue during 2025Q3, highlighting the firm's heavy reliance on reinvestment.
| Cash from Operations | 333M | 0 | 842M | 760M |
| Operating CF Margin % | - | - | 22.33% | 20.83% |
| Operating CF Growth % | -71.61% | -100% | 10.79% | - |
| Net Income | 206.5M | 237M | 605M | 619M |
| Depreciation & Amortization | 162M | 220M | 217M | 221M |
| Stock-Based Compensation | 13M | 0 | 17M | 18M |
| Deferred Taxes | 1M | 0 | -6M | -36M |
| Other Non-Cash Items | 14M | -457M | -19M | -15M |
| Working Capital Changes | -90.5M | 0 | 28M | -47M |
| Change in Receivables | -21M | 0 | 40M | -134M |
| Change in Inventory | -108M | 0 | -16M | -78M |
| Change in Payables | -11M | 0 | 12M | 78M |
| Cash from Investing | -246M | 0 | -298M | -324M |
| Capital Expenditures | -254M | 0 | -296M | -299M |
| CapEx % of Revenue | 6.49% | - | 7.85% | 8.19% |
| Acquisitions | 0 | - | - | - |
| Investments | 168M | 162M | 146M | 130M |
| Other Investing | 8M | 0 | -2M | -25M |
| Cash from Financing | -337M | 0 | -453M | -378M |
| Debt Issued (Net) | 0 | - | - | - |
| Equity Issued (Net) | 0 | 0 | 0 | 0 |
| Dividends Paid | -12M | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 |
| Other Financing | -309M | 0 | -414M | -345M |
| Net Change in Cash | -125M | -127M | 55M | 57M |
| Free Cash Flow | 79M | 0 | 546M | 461M |
| FCF Margin % | 2.02% | - | 14.48% | 12.63% |
| FCF Growth % | - | -100% | 18.44% | - |
| FCF per Share | 0.50 | - | 3.44 | 2.90 |
| FCF Conversion (FCF/Net Income) | 0.38x | - | 2.00x | 1.22x |
| Interest Paid | 0 | 0 | 10M | 17M |
| Taxes Paid | 0 | 0 | 22M | 24M |
Regulatory PFAS litigation exposure
According to recent SEC filings, SOLS exhibits significant volatility in cash conversion, with the OCF/NI ratio reaching 2.34 in 2026Q1, suggesting that reported net income frequently fails to capture the underlying cash-generating capacity of the firm's core specialty chemical operations during periods of inventory adjustment.
The wide variance between net income and operating cash flow indicates that non-cash charges and working capital swings are heavily influencing bottom-line results. Investors should monitor whether this divergence stems from sustainable operational efficiency or temporary accounting timing differences that may reverse in subsequent quarters.
As reported in financial statements, free cash flow margins have fluctuated wildly, ranging from a negative 13.5% in 2025Q3 to a positive 19.7% in 2024Q4, highlighting the difficulty in maintaining a predictable cash trajectory amidst the company's capital-intensive manufacturing requirements and cyclical demand patterns.
The inability to sustain positive FCF margins suggests that the company's growth initiatives are consuming significant liquidity, potentially limiting the firm's ability to self-fund expansion. This inconsistency warrants further investigation into whether the current cost structure is optimized for the company's long-term strategic objectives.
Based on SOLS's reported figures, capital expenditures as a percentage of revenue have remained elevated, peaking at 11.4% in 2025Q3, which underscores the heavy investment required to maintain and expand the specialized chemical synthesis infrastructure necessary for the company's proprietary HFO technology.
High capital intensity suggests that the company must continuously reinvest in its asset base to remain competitive, which may constrain free cash flow generation. Analysts should assess whether these expenditures are primarily for maintenance or growth, as the latter is essential for justifying the current valuation.
Data from recent quarterly reports indicates that working capital changes are a primary driver of cash flow variability, with a notable $88.0 million inflow in 2024Q4 followed by a $67.0 million outflow in 2025Q3, reflecting the company's sensitivity to inventory management and supply chain timing.
These significant fluctuations in working capital suggest that the company's cash position is highly susceptible to shifts in inventory levels and payment cycles. Investors should monitor whether these movements are indicative of operational inefficiencies or strategic stockpiling in anticipation of regulatory-driven demand spikes.
As evidenced by the company's financial statements, capital deployment remains highly conservative, with minimal share repurchases and limited dividend activity, reflecting a management focus on preserving liquidity rather than aggressive return of capital to shareholders during this phase of the regulatory transition.
The prioritization of a fortress balance sheet over aggressive capital returns suggests that management is likely reserving cash for potential R&D pivots or defensive litigation reserves. This approach appears prudent given the significant regulatory uncertainties surrounding PFAS and the long-term viability of current fluorinated chemistries.
Quick answers to the most common questions about buying SOLS stock.
Solstice Advanced Materials Inc. (SOLS) generated $0.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Solstice Advanced Materials Inc. (SOLS) reported negative free cash flow of $0.0M in 2025, indicating capital requirements exceeded cash from operations.
Solstice Advanced Materials Inc. (SOLS) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.