Free cash flow remains constrained, with a 5.0% FCF margin in 2026Q1 and a volatile OCF/NI ratio of -22.51 observed in 2025Q4.
| 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 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 2.12B | 2.15B | 2.96B | 5.99B | 5.2B | 3.06B | 2.09B | 1.87B | 1.84B | 1.68B | 1.04B | 846M | 715M | 366M | 612M | 880M | 1.79B | 152.67B | -16.52B | 2.19B | 2.49B | 1.8B | 2.34B | 1.92B | 1.71B | 2.05B | 2.43B | 1.47B | 1.01B | 983.79M | 980.67M |
| Operating CF Margin % | - | 18.18% | 22.35% | 34.66% | 32.25% | 23.98% | 20.48% | 19.55% | 19.09% | 20.09% | 14.96% | 12.27% | 9.66% | 4.53% | 7.21% | 9.04% | 17.34% | 1794.04% | -167.87% | 21.88% | 25.28% | 20.24% | 26.74% | 26.53% | 27.11% | 32.28% | 31.12% | 29.06% | 23.84% | 24.48% | 23.79% |
| Operating CF Growth % | -47.61% | -27.42% | -50.52% | 15.19% | 70% | 46.2% | 12.04% | 1.25% | 10.02% | 60.79% | 23.29% | 18.32% | 95.36% | -40.2% | -30.45% | -50.95% | -98.82% | 1024.06% | -855.12% | -12.16% | 38.54% | -23.23% | 21.98% | 12.08% | -16.52% | -15.62% | 65.51% | 45.11% | 2.92% | 0.32% | 18.85% |
| Net Income | 144.73M | 180M | 1.56B | 4.21B | 3.97B | 2.01B | 1.11B | 1.03B | 1.29B | 802M | 165M | 104M | 128M | -500M | -1.16B | 155M | 840M | -1.59B | -786M | -477M | 782M | 266M | 601M | 253M | 429M | 257.07M | 1.45B | 547.25M | 411.12M | 406.55M | 625.54M |
| Depreciation & Amortization | 564.02M | 1.85B | 1.76B | 1.56B | 1.22B | 1.04B | 923M | 854M | 791M | 650M | 696M | 736M | 811M | 910M | 1.07B | 1.28B | 1.24B | 243.05B | 171.35B | 1.41B | 1.77B | 1.94B | 1.84B | 1.61B | 1.47B | 1.4B | 1.14B | 806.79M | 704M | 608.12M | 535.91M |
| Stock-Based Compensation | -104M | 193M | 222M | 236M | 215M | 221M | 155M | 145M | 121M | 66M | 42M | 41M | 39M | 26M | 11M | 29M | 34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 197M | 17M | 124M | 19M | 3M | 45M | -8M | 25M | 284M | 33M | -38M | -113M | -164M | -48M | -80M | 47M | 120M | 1.98B | -18.45B | -148M | -74M | -31M | -6M | -131M | 14M | -82.74M | -4.54M | 28.71M | 34.33M | -3.16M | 0 |
| Other Non-Cash Items | 1.97B | 51M | -203M | -113M | -68M | -112M | -106M | -90M | -233M | 431M | 240M | 39M | -215M | 57M | 544M | -545M | -669M | -91.21B | -168.62B | 1.34B | 77M | 91M | 52M | 251M | 21M | 1K | 12.34M | 7.18M | 13.64M | 16.62M | -1.63M |
| Working Capital Changes | -602M | -143M | -495M | 78M | -130M | -145M | 21M | -99M | -409M | -300M | -58M | 42M | 119M | -79M | 226M | -85M | 229M | 447M | -19M | 62M | -60M | -472M | -142M | -61M | -251M | 144.7M | -165.39M | 79.35M | -150.56M | -44.35M | -179.15M |
| Change in Receivables | -1.14B | 5M | -32M | 229M | -231M | -307M | -72M | -103M | -155M | -206M | -121M | 81M | 119M | -57M | 35M | 184M | 139M | 57.16B | -230.9B | 2M | -104M | -117M | -119M | -109M | -129M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 481M | -172M | -167M | -72M | -650M | -188M | -84M | -142M | -254M | -94M | 63M | -39M | 163M | -22M | 191M | -59M | -252M | 71.14B | -1.03B | 24M | -161M | -174M | -144M | -75M | -71M | 93.64M | -299.99M | -38.34M | -18.81M | -149.64M | -80.52M |
| Change in Payables | -115M | 83M | -35M | -238M | 240M | 95M | 161M | -14M | 4M | 141M | 68M | -46M | -70M | -139M | 148M | -384M | 212M | -30.9B | 58.05B | 19M | 36M | -71M | 128M | -8M | -21M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -964.65M | -43M | -3.74B | -5.77B | -4.59B | -1.52B | -2.04B | -1.17B | -1.21B | -1.47B | -727M | -516M | -784M | -379M | -396M | -287M | -526M | 290M | -2.42B | -1.74B | -2.75B | -1.53B | -2.13B | -1.44B | -1.37B | -1.8B | -3.57B | -1.54B | -966.25M | -1.05B | -1.12B |
| Capital Expenditures | -52.63M | -2.11B | -3.09B | -4.44B | -3.55B | -1.84B | -1.28B | -1.22B | -1.26B | -1.3B | -611M | -529M | -505M | -543M | -492M | -1.26B | -1.03B | -451M | -983M | -1.35B | -1.62B | -1.44B | -2.05B | -1.22B | 0 | -1.7B | -3.32B | -1.35B | -947.25M | -1.04B | -1.13B |
| CapEx % of Revenue | 0.42% | 17.83% | 23.27% | 25.68% | 22.01% | 14.42% | 12.55% | 12.79% | 13.07% | 15.59% | 8.76% | 7.67% | 6.82% | 6.72% | 5.79% | 12.92% | 9.99% | 5.3% | 9.99% | 13.48% | 16.43% | 16.22% | 23.4% | 16.87% | - | 26.74% | 42.46% | 26.65% | 22.3% | 25.76% | 27.3% |
| Acquisitions | -895M | 0 | 0 | 0 | 0 | 0 | -112M | -127M | -100M | 3M | -78M | -14M | 53M | 56M | -1M | -10M | -11M | -18M | -1.69B | -351M | 7M | 0 | -3M | -188M | -307M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -1.01B | 174M | 353M | 231M | -62M | -85M | -71M | -20M | 51M | -68M | -38M | 13M | -48M | 164M | -83M | -103M | 400M | 1.16B | 0 | 319M | -1.34B | -87M | -81M | -30M | -1.06B | -1K | -249.54M | -190.29M | -19M | -16.06M | 3.12M |
| Cash from Financing | -1.04B | -1.56B | -155M | -267M | -567M | -1.31B | 348M | -343M | -122M | -106M | -439M | -560M | 262M | -388M | 135M | -529M | -876M | -513M | -67M | -296M | 132M | -178M | -1.27B | -59M | -232M | -98.11M | 1.62B | 806.04M | 352.63M | 249.06M | -59.03M |
| Debt Issued (Net) | -761.04M | -989M | 97M | 160M | 66M | -569M | 678M | 137M | 178M | 390M | -178M | -200M | 774M | -144M | 499M | -195M | -650M | -256M | 496M | -23M | 210M | -107M | -1.19B | -9M | -109M | 128M | 1.6B | 598.45M | 119.3M | 239.39M | -75.7M |
| Equity Issued (Net) | -112.58M | -367M | -359M | -346M | -346M | -485M | -125M | -250M | -80M | -306M | 0 | 0 | -156M | 0 | 0 | 0 | 0 | -92M | -313M | 0 | 28M | 35M | 23M | 22M | -86M | -190M | 38.17M | 230.44M | 233.33M | 9.67M | 16.67M |
| Dividends Paid | -96.08M | -321M | -288M | -223M | -212M | -205M | -168M | -214M | -216M | -214M | -251M | -350M | -354M | -346M | -355M | -332M | -219M | -158M | -250M | -269M | -107M | -107M | -107M | -71M | -36M | -35.77M | -26.6M | -22.85M | 0 | 0 | 0 |
| Share Repurchases | -112.58M | -367M | -359M | -346M | -346M | -485M | -125M | -250M | -80M | -306M | -3M | -4M | -156M | 0 | 0 | 0 | 0 | 0 | -313M | 0 | 0 | 0 | 0 | 0 | -115M | -233M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -71.61M | 117M | 395M | 142M | -75M | -55M | -37M | -16M | -4M | 24M | -10M | -10M | -2M | 102M | -9M | -7M | -14M | -2M | -10M | 2M | 1M | 1M | 0 | -1M | -1M | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 1.06B | 555M | -940M | -36M | 33M | 219M | 399M | 341M | 507M | 130M | -142M | -246M | 181M | -414M | 338M | 20M | 304M | 70.17B | 474.95B | 196M | -64M | 77M | -1.05B | 436M | 123M | 143.11M | 472.62M | 722.33M | 398.6M | 150.26M | -202.15M |
| Free Cash Flow | 160.13M | -52M | -216M | 1.46B | 1.57B | 1.12B | 735M | 646M | 582M | 376M | 432M | 317M | 210M | -177M | 120M | -378M | 760M | 152.22B | -17.5B | 840M | 872M | 357M | 292M | 699M | 1.71B | 352.25M | -885.83M | 121.75M | 65.29M | -51.64M | -144.54M |
| FCF Margin % | 1.29% | -0.44% | -1.63% | 8.42% | 9.71% | 8.8% | 7.19% | 6.76% | 6.02% | 4.5% | 6.2% | 4.6% | 2.84% | -2.19% | 1.41% | -3.88% | 7.35% | 1788.74% | -177.86% | 8.4% | 8.85% | 4.02% | 3.33% | 9.66% | 27.11% | 5.54% | -11.34% | 2.41% | 1.54% | -1.28% | -3.51% |
| FCF Growth % | 39.24% | 75.93% | -114.84% | -7.02% | 39.45% | 52.79% | 13.78% | 11% | 54.79% | -12.96% | 36.28% | 50.95% | 218.64% | -247.5% | 131.75% | -149.74% | -99.5% | 969.59% | -2183.93% | -3.67% | 144.26% | 22.26% | -58.23% | -59.19% | 386.3% | 139.77% | -827.61% | 86.46% | 226.43% | 64.27% | 18.25% |
| FCF per Share | 0.17 | -0.06 | -0.23 | 1.54 | 1.72 | 1.22 | 0.80 | 0.71 | 0.64 | 0.41 | 0.49 | 0.36 | 0.24 | -0.20 | 0.14 | -0.42 | 0.83 | 173.59 | -19.63 | 0.93 | 0.87 | 0.39 | 0.32 | 0.75 | 1.92 | 0.40 | -0.96 | 0.14 | 0.08 | -0.06 | -0.17 |
| FCF Conversion (FCF/Net Income) | 1.11x | 12.92x | 1.90x | 1.42x | 1.31x | 1.53x | 1.89x | 1.81x | 1.13x | 7.69x | 8.62x | 4.83x | 5.07x | -0.73x | -0.53x | 1.35x | 2.16x | -134.99x | 21.02x | -4.59x | 3.19x | 6.76x | 3.90x | 7.59x | 3.99x | 7.98x | 1.67x | 2.68x | 2.46x | 2.42x | 1.57x |
| Interest Paid | 0 | 54M | 67M | 31M | 2M | 2M | 7M | 13M | 12M | 12M | 13M | 15M | 11M | 10M | 26M | 17M | 15M | 34M | 63M | 52M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 141M | 197M | 489M | 416M | 279M | 138M | 130M | 60M | 52M | 42M | 41M | 30M | 23M | 51M | 83M | 23M | 141M | 154M | 133M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical Fab Underutilization
As reported in financial statements, the relationship between net income and operating cash flow has become increasingly erratic, with the OCF/NI ratio reaching a volatile -22.51 in 2025Q4, suggesting that reported earnings are currently failing to provide a reliable proxy for the company's actual cash-generating capacity.
The significant disconnect between net income and operating cash flow indicates that non-cash charges and working capital fluctuations are heavily distorting the bottom line. Investors should monitor whether this divergence persists, as it may imply that the company's core profitability is currently insufficient to cover its operational requirements without relying on accounting adjustments.
Based on the provided cash flow data, free cash flow margins have deteriorated significantly, oscillating between negative territory and low single digits, with a 5.0% margin in 2026Q1 compared to the 8.8% peak observed in 2023Q4, highlighting the company's struggle to maintain cash efficiency.
The inability to consistently generate positive free cash flow during this cycle suggests that the company's high capital intensity is outpacing its current revenue generation. This trend warrants further investigation into whether the current level of capital expenditure is sustainable given the ongoing contraction in end-market demand.
According to recent SEC filings, the company's capital expenditure remains elevated relative to revenue, with CapEx/Rev ratios frequently exceeding 20%, such as the 28.7% observed in 2024Q1, which indicates a persistent commitment to capacity expansion despite the current unfavorable macroeconomic environment and cooling demand.
The high level of capital expenditure appears to be a structural necessity of the IDM model, yet it creates significant pressure on cash reserves during periods of revenue decline. This aggressive investment strategy may be intended to secure long-term market share in Silicon Carbide, but it currently exacerbates the company's cash flow volatility.
As evidenced by the quarterly cash flow statements, working capital changes have consistently acted as a cash drain, with a notable $228 million outflow in 2025Q4, suggesting that inventory management and receivables collection are becoming increasingly difficult to optimize in the current semiconductor industry downturn.
The recurring negative impact of working capital on operating cash flow may indicate an accumulation of unsold inventory or extended payment terms granted to customers to maintain market presence. Investors should monitor these trends closely, as they may imply a buildup of obsolete stock that could necessitate future write-downs.
Quick answers to the most common questions about buying STM stock.
STMicroelectronics N.V. (STM) generated $2.15B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
STMicroelectronics N.V. (STM) reported negative free cash flow of $52.0M in 2025, indicating capital requirements exceeded cash from operations.
STMicroelectronics N.V. (STM) spent $2.11B 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, STMicroelectronics N.V. (STM) returned $321.0M to shareholders via cash dividends and spent $367.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.