Free cash flow generation has deteriorated significantly, moving from a 22.5% margin in 2023Q4 to a negative 13.6% margin in 2026Q1, reflecting a disconnect between accounting profits and cash conversion.
| Cash from Operations | 151M | 369M | 1.19B | 1.92B | 1.68B | 2.2B |
| Operating CF Margin % | - | 4.43% | 14.36% | 23.36% | 20.65% | 26.95% |
| Operating CF Growth % | -915.77% | -68.86% | -38.12% | 14.06% | -23.75% | - |
| Net Income | 1.43B | 1.56B | 479M | 1.35B | 1.34B | 1.46B |
| Depreciation & Amortization | 257M | 489M | 555M | 561M | 578M | 597M |
| Stock-Based Compensation | 85M | 161M | 112M | 39M | 37M | 38M |
| Deferred Taxes | 56M | -120M | -155M | -142M | -141M | -34M |
| Other Non-Cash Items | -1.72B | -1.6B | 34M | -15M | 64M | 74M |
| Working Capital Changes | 38M | -119M | 160M | 126M | -202M | 67M |
| Change in Receivables | -4M | 78M | 276M | -129M | -32M | -1M |
| Change in Inventory | -139M | -139M | -132M | 23M | -82M | -136M |
| Change in Payables | 118M | 104M | 266M | 105M | 25M | 68M |
| Cash from Investing | 2.83B | 2.8B | -380M | -230M | -253M | -278M |
| Capital Expenditures | -354M | -379M | -380M | -290M | -251M | -277M |
| CapEx % of Revenue | 4.28% | 4.55% | 4.6% | 3.54% | 3.09% | 3.39% |
| Acquisitions | 3.87B | -696M | 0 | 60M | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -683M | 3.87B | 0 | 0 | -2M | -1M |
| Cash from Financing | -2.97B | -3.06B | -240M | -1.55B | -1.46B | -1.96B |
| Debt Issued (Net) | -2.97B | -3.07B | 8B | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -67M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 2M | 13M | -8.24B | -1.55B | -1.46B | -1.96B |
| Net Change in Cash | 27M | 116M | 568M | 133M | -30M | -33M |
| Free Cash Flow | -203M | -10M | 805M | 1.63B | 1.43B | 1.93B |
| FCF Margin % | -2.46% | -0.12% | 9.75% | 19.82% | 17.56% | 23.56% |
| FCF Growth % | -152.73% | -101.24% | -50.46% | 13.8% | -25.82% | - |
| FCF per Share | -1.16 | -0.06 | 4.63 | 9.41 | 8.28 | 11.16 |
| FCF Conversion (FCF/Net Income) | -0.14x | 0.24x | 2.47x | 1.42x | 1.25x | 1.51x |
| Interest Paid | 0 | 0 | 287M | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 244M | 0 | 0 | 0 |
Operational Cash Flow Volatility
As reported in recent financial filings, Solventum’s OCF/NI ratio has swung violently from a high of 7.06 in 2024Q4 to a negative 14.54 in 2026Q1, signaling a profound disconnect between accounting profits and the actual cash generation capabilities of the standalone business.
The extreme variance in the OCF/NI ratio suggests that net income is currently being heavily influenced by non-cash items or one-time separation adjustments that do not reflect operational reality. Investors should monitor whether this volatility persists as the company moves further away from its 3M-era accounting structures.
Based on the provided cash flow data, Solventum’s FCF margin has deteriorated from a peak of 22.5% in 2023Q4 to a negative 13.6% in 2026Q1, indicating that the company is currently struggling to sustain positive cash flow generation as an independent entity.
The rapid shift from positive FCF to significant cash burn suggests that the company's cost structure may be poorly aligned with its current revenue trajectory. This trend warrants further investigation into whether the cash burn is driven by temporary separation-related outflows or structural inefficiencies in the core business segments.
According to the company's quarterly statements, CapEx/Revenue ratios have remained elevated, averaging approximately 4.5% over the last ten quarters, which appears disproportionately high given the stagnant top-line growth and the company's recent transition to a standalone operating model.
The persistence of capital spending at these levels suggests that the company is either heavily investing in infrastructure to replace legacy 3M systems or is burdened by high maintenance requirements for its manufacturing assets. Analysts should question if this level of capital intensity is yielding any tangible improvements in operational efficiency.
As indicated by the quarterly cash flow statements, working capital changes have been highly erratic, ranging from a $162 million inflow in 2023Q4 to a $157 million outflow in 2025Q1, reflecting significant instability in the company's ability to manage its cash conversion cycle.
Such swings in working capital suggest potential friction in inventory management or collection processes following the spin-off. This inconsistency may indicate that the company is still in the process of establishing independent supply chain and accounts receivable protocols, which could continue to impact cash flow predictability.
Quick answers to the most common questions about buying SOLV stock.
Solventum Corporation (SOLV) generated $369.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Solventum Corporation (SOLV) reported negative free cash flow of $10.0M in 2025, indicating capital requirements exceeded cash from operations.
Solventum Corporation (SOLV) spent $379.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.