Free cash flow remains highly erratic, swinging from a $2.8 billion outflow in 2024Q1 to a $3.1 billion inflow in 2026Q1, reflecting extreme working capital volatility.
| Cash from Operations | 3.34B | 663.28M | -3.62B | 1.65B | 1.68B | 3.61B | 56.48M | -2.65B | -2.42B | -1.28B | -493.4M |
| Operating CF Margin % | - | 4.69% | -28.43% | 14.5% | 18.67% | 78.81% | 1.78% | -110.97% | -157.92% | -173.19% | -116.59% |
| Operating CF Growth % | 223.89% | 118.32% | -319.78% | -2.14% | -53.32% | 6285.71% | 102.13% | -9.78% | -88.14% | -160.22% | - |
| Net Income | 3.44B | 2.31B | -1.51B | 1.6B | -526.4M | -1.38B | 837.45M | 804.2M | 305.2M | -104.97M | -122.19M |
| Depreciation & Amortization | 981.55M | 894.48M | 949.39M | 878.18M | 800.33M | 507.37M | 256.29M | 163.4M | 92.3M | 57.21M | 42.96M |
| Stock-Based Compensation | 166.99M | 0 | 232.67M | 251.24M | 213.08M | 113.17M | 31.51M | 30.79M | 46.1M | 138.94M | 53.06M |
| Deferred Taxes | -1.5B | -145.57M | -38.5M | 24.59M | -153.07M | -239.83M | 73.33M | 69.23M | -17.8M | 3.62M | -27.29M |
| Other Non-Cash Items | 8.25B | 7.99B | 7.62B | 2.3B | 2.48B | 3.3B | 629.84M | 891.36M | 421.3M | 173.94M | 29.19M |
| Working Capital Changes | -8.23B | -10.39B | -10.88B | -3.41B | -1.13B | 1.3B | -1.77B | -4.61B | -3.26B | -1.55B | -469.13M |
| Change in Receivables | 579.06M | -2.26B | -2.81B | 237.41M | 1.72B | -2.99B | -3.44B | -5.13B | -4.02B | -1.78B | -1.47B |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 286.77M | 0 | 131.4M | 18.51M | 3.14M |
| Change in Payables | -11.68B | -8.87B | 361.68M | -80.02M | 323.62M | 40.77M | 1.38B | -3.43M | 570.1M | 210.25M | 993.03M |
| Cash from Investing | -2.03B | -1.73B | 1.59B | -845.44M | -1.87B | -2.98B | -5.81B | -437.56M | -2.74B | -299.67M | 189.91M |
| Capital Expenditures | -965.18M | -1.17B | -764.48M | -736.24M | -417.73M | -1.08B | -455.1M | -333.57M | -185.7M | -162.26M | -43.1M |
| CapEx % of Revenue | 8.69% | 8.23% | 6% | 6.48% | 4.63% | 23.66% | 14.37% | 13.96% | 12.14% | 21.89% | 10.18% |
| Acquisitions | 3.06B | 16.06M | -194.62M | 0 | -121.06M | -4.78B | -291.85M | -16.79M | -7.4M | -1.22M | 6.6M |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -226.87M | 0 | -505.53M | -511.32M | -278.5M | -215.58M | 90.09M | -65.28M | 58.1M | 30.61M | 21.24M |
| Cash from Financing | -880.3M | 912.45M | 5.04B | -148.8M | -2.81B | 1.42B | 7.22B | 3.76B | 4.79B | 2.05B | 377.99M |
| Debt Issued (Net) | 1.01B | 4.16B | 2.88B | 151.37M | -2.46B | 2.18B | -769.04M | 3.76B | 738.95M | 2.03B | -104.87M |
| Equity Issued (Net) | -2.7B | -2.91B | -1.59B | -292.75M | 53.41M | -988.82M | 7.76B | -90K | -142.44M | -280.82M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -2.7B | -2.93B | -1.59B | -292.75M | 0 | -988.82M | -76.36M | -90K | -142.44M | -280.82M | 0 |
| Other Financing | 806.74M | -336.22M | 3.75B | -7.42M | -408.24M | 227.16M | 228.98M | -927K | 4.2B | 305.62M | 482.86M |
| Net Change in Cash | 733.18M | 184.68M | 3.05B | 663.81M | -2.98B | 2.05B | 1.48B | 670.41M | -344M | 471.31M | 87.11M |
| Free Cash Flow | 2.4B | -28.43M | -4.89B | 437.41M | 960.44M | 2.31B | -398.62M | -3.05B | -2.6B | -1.45B | -536.51M |
| FCF Margin % | 21.62% | -0.2% | -38.41% | 3.85% | 10.65% | 50.44% | -12.59% | -127.71% | -170.06% | -195.08% | -126.77% |
| FCF Growth % | 235.23% | 99.42% | -1218.66% | -54.46% | -58.39% | 679.06% | 86.94% | -17.32% | -79.87% | -169.56% | - |
| FCF per Share | 9.48 | -0.10 | -16.22 | 1.37 | 3.08 | 7.47 | -1.36 | -11.00 | -9.38 | -5.22 | -2.61 |
| FCF Conversion (FCF/Net Income) | 0.70x | 0.29x | 2.39x | 1.03x | -3.24x | -2.65x | 0.07x | -3.30x | -8.02x | 11.81x | 4.12x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Extreme Working Capital Volatility
According to recent financial disclosures, StoneCo's operating cash flow to net income ratio has fluctuated wildly, reaching a negative 6.62x in 2024Q1 and a positive 1.96x in 2026Q1, indicating that reported net income is a poor proxy for the company's actual cash-generating capacity.
The persistent divergence between accounting profits and cash flow suggests that non-cash items and aggressive accruals are significantly distorting the firm's performance metrics. Investors should monitor whether this disconnect stems from the timing of financial income recognition or underlying issues in the credit portfolio.
As reported in quarterly filings, StoneCo's free cash flow trajectory has been erratic, swinging from a massive outflow of $2.8 billion in 2024Q1 to a positive $3.1 billion in 2026Q1, reflecting a business model that lacks consistent cash generation stability.
This extreme volatility in free cash flow suggests that the company's core operations are highly sensitive to external funding cycles and working capital shifts. The inability to maintain a predictable cash flow profile complicates valuation and raises questions about the sustainability of current capital allocation strategies.
Based on the provided cash flow statements, StoneCo has experienced massive working capital outflows, including a $4.1 billion drain in 2024Q1, which highlights the intense liquidity pressure inherent in the company's merchant prepayment and receivables financing business model.
The recurring, large-scale negative working capital changes suggest that the company is effectively financing its merchant base at the expense of its own liquidity. This dynamic warrants further investigation into the credit quality of the underlying receivables and the potential for future liquidity crunches.
As evidenced by recent financial statements, StoneCo has aggressively utilized cash for share repurchases, including $843.4 million in 2025Q1, even during periods of significant operational cash flow volatility and negative free cash flow generation.
The decision to prioritize buybacks while the core business faces severe cash flow instability appears questionable from a risk-management perspective. This capital deployment strategy may indicate a management focus on supporting the share price rather than strengthening the balance sheet against potential credit losses.
Based on reported figures, the company's cash flow statement obscures the true impact of capitalized software costs and credit loss provisions, which may be masking the underlying cash burn associated with the firm's aggressive expansion into the MSMB lending segment.
The reliance on non-cash adjustments and the capitalization of development costs may be artificially inflating the reported cash flow from operations. Analysts should be wary of these accounting treatments, as they may hide the true economic cost of maintaining the company's competitive moat.
Quick answers to the most common questions about buying STNE stock.
StoneCo Ltd. (STNE) generated $663.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
StoneCo Ltd. (STNE) reported negative free cash flow of $28.4M in 2025, indicating capital requirements exceeded cash from operations.
StoneCo Ltd. (STNE) spent $1.17B 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, StoneCo Ltd. (STNE) spent $2.93B on share repurchases. This shows the company's commitment to returning capital to its equity investors.