Cash flow generation has completely stalled, with free cash flow margin turning negative at -10.7% and operating cash flow lagging net income by a factor of 3.45x, driven by a massive $125.2M working capital cash consumption over the last two quarters.
Tennant Company (TNC) cash flow statement — 30-year operating, investing & financing cash flows
| 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 | -14.5M | 65M | 89.7M | 188.4M | -25.1M | 69.4M | 133.8M | 71.9M | 79.97M | 54.17M | 57.88M | 45.23M | 59.36M | 59.81M | 47.57M | 56.91M | 42.53M | 75.19M | 37.55M | 39.64M | 40.32M | 44.24M | 36.7M | 30.47M | 19.22M | 34.14M | 38.87M | 38.3M | 42.9M | 41.9M | 44.6M |
| Operating CF Margin % | - | 5.4% | 6.97% | 15.15% | -2.3% | 6.36% | 13.37% | 6.32% | 7.12% | 5.4% | 7.16% | 5.57% | 7.22% | 7.95% | 6.44% | 7.55% | 6.37% | 12.62% | 5.35% | 5.97% | 6.73% | 8% | 7.23% | 6.71% | 4.53% | 8.07% | 8.56% | 8.92% | 11.02% | 11.25% | 12.95% |
| Operating CF Growth % | -7985.09% | -27.54% | -52.39% | 850.6% | -136.17% | -48.13% | 86.09% | -10.09% | 47.62% | -6.4% | 27.96% | -23.8% | -0.76% | 25.75% | -16.42% | 33.81% | -43.43% | 100.25% | -5.28% | -1.68% | -8.86% | 20.55% | 20.44% | 58.54% | -43.71% | -12.16% | 1.48% | -10.72% | 2.39% | -6.05% | 165.48% |
| Net Income | 18.3M | 43.8M | 83.7M | 109.5M | 66.3M | 64.9M | 33.7M | 45.9M | 33.54M | -6.21M | 46.61M | 32.09M | 50.65M | 40.23M | 41.58M | 32.71M | 34.8M | -26.24M | 10.62M | 39.87M | 29.81M | 22.94M | 13.38M | 14.15M | 8.27M | 4.8M | 28.25M | 19.7M | 25.3M | 24.2M | 21M |
| Depreciation & Amortization | 71.3M | 58.7M | 55.1M | 51.1M | 48.7M | 53.1M | 53.4M | 54.4M | 54.42M | 43.25M | 18.3M | 18.03M | 20.06M | 20.25M | 20.87M | 21.42M | 21.19M | 22.8M | 22.96M | 18.05M | 14.32M | 13.04M | 12.97M | 13.88M | 16.95M | 18.51M | 18.39M | 18.7M | 17.6M | 17.5M | 16.4M |
| Stock-Based Compensation | 9.7M | 10.4M | 11.9M | 11.6M | 7.8M | 9.5M | 6M | 11.4M | 8.31M | 5.89M | 3.88M | 8.22M | 7.31M | 6.12M | 9.09M | 5.41M | 4.64M | 1.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 11.6M | 4.2M | -9.8M | -26.9M | -15.6M | -15M | -4M | -9.6M | -10.86M | -6.09M | -1.17M | -1.13M | 129K | 5.62M | 3.17M | -1.35M | -11.41M | -1.43M | -3.52M | -1.51M | -70K | -395K | 1.28M | 801K | 1.63M | 1.42M | 4.54M | -1.8M | -2M | -2.4M | -1M |
| Other Non-Cash Items | 11M | 8.4M | 4M | 4.7M | -400K | 5.3M | 4.2M | 9.5M | 2.69M | 17.19M | 272K | 12.19M | 1.53M | 1.5M | 517K | 4.45M | 1.91M | 44.97M | 2.31M | 7.02M | 4.22M | 2K | 1.53M | -1.37M | -530K | 968K | 1.82M | -800K | 100K | -100K | 7.5M |
| Working Capital Changes | -136.6M | -60.5M | -55.2M | 38.4M | -131.9M | -48.4M | 40.5M | -39.7M | -8.13M | 140K | -10.01M | -24.17M | -20.32M | -13.9M | -27.66M | -5.72M | -8.6M | 33.28M | -2.45M | -17.82M | -7.96M | 6.46M | 6.88M | 1.71M | -8.85M | 6.43M | -14.13M | -100K | 4.1M | -100K | -2.3M |
| Change in Receivables | -49.8M | 4.1M | -15M | 4.1M | -46.3M | -20.3M | 23.2M | -9.9M | -7.62M | -14.38M | -9.28M | 4.55M | -18.81M | -7.62M | -11.81M | -4.45M | -7.93M | 1.89M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -43.4M | -21.7M | -33M | 14.3M | -68.3M | -56M | 18.3M | -21.1M | -16.56M | -2.9M | 23K | -10.19M | -21.16M | -11.97M | -149K | -7.67M | -4.39M | 10.48M | -3.31M | -82K | -3.1M | -59K | 3.67M | 8.07M | -7.78M | 5.24M | -6.49M | 2.1M | -5.4M | -6.6M | 0 |
| Change in Payables | -10.9M | -1.9M | 15.4M | -15.3M | 7.7M | 19.1M | 8.5M | -7.5M | 4.57M | 10.85M | -3.9M | -10.46M | 10.19M | 6.12M | 970K | 4.61M | -1.45M | 18.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -37.8M | -22.7M | -78.4M | -23.2M | -24.5M | 1.7M | -29.9M | -55.6M | -16.03M | -375.42M | -40.44M | -23.58M | -17.87M | -11.4M | -11.24M | -19.5M | -10.02M | -13.33M | -101.98M | -10.36M | -45.96M | -11.78M | -32.06M | -6.39M | -10.42M | -20.54M | -19.25M | -26.1M | -17.2M | -15.5M | -17.2M |
| Capital Expenditures | -22.8M | -21.7M | -20.9M | -24M | -29.3M | -23.1M | -30M | -38.9M | -21.55M | -22.94M | -26.53M | -24.78M | -19.58M | -14.78M | -15.62M | -13.9M | -10.53M | -11.48M | -20.79M | -28.72M | -23.87M | -20.88M | -21.09M | 0 | -13.07M | -23.36M | -20.53M | -28.4M | -23.4M | -20.6M | -21M |
| CapEx % of Revenue | 1.87% | 1.8% | 1.62% | 1.93% | 2.68% | 2.12% | 3% | 3.42% | 1.92% | 2.29% | 3.28% | 3.05% | 2.38% | 1.96% | 2.11% | 1.84% | 1.58% | 1.93% | 2.96% | 4.32% | 3.99% | 3.78% | 4.15% | - | 3.08% | 5.52% | 4.52% | 6.61% | 6.01% | 5.53% | 6.1% |
| Acquisitions | -17.6M | -3.2M | -25.7M | 0 | 0 | 24.7M | 0 | -19.7M | 4M | -354.07M | -12.65M | 1.19M | 1.42M | 3.51M | 264K | -2.92M | -86K | -2.16M | -81.84M | -3.14M | -8.47M | 0 | -6.49M | -10.48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 2.6M | 2.2M | 300K | 800K | 4.8M | 100K | 100K | 3M | 1.53M | 1.59M | -1.27M | 14K | 297K | -133K | 4.12M | -2.68M | 595K | 311K | 656K | 7.25M | 632K | 3.05M | 1.57M | 4.09M | 2.65M | 2.82M | 1.28M | 2.3M | 6.2M | 5.1M | 3.8M |
| Cash from Financing | 22.7M | -38.7M | -25.2M | -122.6M | 8.1M | -84.5M | -42.8M | -27.4M | -32.78M | 319.47M | -9.56M | -61.41M | -28.04M | -21.5M | -34.93M | -24.25M | -10.34M | -74.07M | 62.08M | -26.68M | -4.88M | -8.11M | -12.13M | -15.78M | -16.21M | -11.63M | -12.68M | -14.7M | -24.3M | -20.4M | -22M |
| Debt Issued (Net) | 155.8M | 74.2M | -1.6M | -99.8M | 32.9M | -46.1M | -31.3M | -17M | -23.4M | 327.58M | 11.54M | -3.44M | -3.52M | 404K | -2.99M | 728K | -4.2M | -67.13M | 81.49M | -2.3M | -2.26M | -5.88M | -4.25M | -8.23M | -6.69M | -2.91M | -5.45M | -900K | 4M | -2.1M | -14.5M |
| Equity Issued (Net) | -175.3M | -88.5M | -19.6M | -21.7M | -5M | -15M | 4.9M | 6.1M | 0 | 0 | -12.76M | -44.32M | -11.83M | -13.84M | -21.18M | -13.39M | 3.31M | 914K | -12.48M | -20.22M | 3.2M | 4.4M | -1.32M | -1.09M | -3.12M | -3.16M | -188K | -7M | -24.5M | -11.2M | -600K |
| Dividends Paid | -27.2M | -21.9M | -21.4M | -20.1M | -18.9M | -17.5M | -16.3M | -16M | -15.34M | -14.95M | -14.29M | -14.5M | -14.49M | -13.23M | -12.82M | -12.85M | -11.18M | -9.86M | -9.55M | -8.98M | -8.57M | -7.92M | -7.74M | -7.53M | -7.37M | -7.24M | -7.04M | -6.9M | -6.9M | -7.1M | -6.9M |
| Share Repurchases | -175.4M | -88.5M | -19.6M | -21.7M | -5M | -15M | 0 | 0 | 0 | 0 | -12.76M | -46M | -14.1M | -22.16M | -25.34M | -17.6M | -3.15M | 0 | -14.35M | -28.95M | -5.28M | -3.47M | -2.84M | -2.68M | -4.63M | -5.04M | -3.2M | -9.88M | -27.1M | -13.6M | -2.9M |
| Other Financing | 69.4M | -2.5M | 17.4M | 19M | -900K | -5.9M | -100K | -500K | 5.9M | 6.82M | 5.96M | 859K | 1.79M | 5.18M | 2.05M | 1.27M | 1.72M | 2.01M | 2.61M | 4.82M | 2.75M | 1.29M | 1.17M | 1.06M | 968K | 1.68M | 0 | 135K | 3.1M | 0 | 0 |
| Net Change in Cash | -27M | 6.6M | -17.3M | 39.7M | -46.2M | -17.4M | 66.4M | -11.5M | 27.08M | 365K | 6.73M | -41.66M | 11.98M | 27.04M | 1.6M | 12.81M | 21.47M | -11.22M | -3.81M | 2.07M | -10.27M | 24.45M | -7.75M | 8.23M | -7.43M | 2.27M | 6.58M | -2.8M | 1.4M | 6.4M | 5.6M |
| Free Cash Flow | -37.3M | 43.3M | 68.3M | 164.4M | -54.4M | 46.3M | 103.8M | 33M | 58.41M | 31.24M | 31.35M | 20.45M | 39.78M | 45.04M | 31.94M | 43.01M | 32M | 63.7M | 16.76M | 10.92M | 16.45M | 23.36M | 15.61M | 30.47M | 6.15M | 10.78M | 18.34M | 9.9M | 19.5M | 21.3M | 23.6M |
| FCF Margin % | -3.07% | 3.6% | 5.31% | 13.22% | -4.98% | 4.24% | 10.37% | 2.9% | 5.2% | 3.11% | 3.88% | 2.52% | 4.84% | 5.99% | 4.32% | 5.7% | 4.79% | 10.69% | 2.39% | 1.64% | 2.75% | 4.22% | 3.07% | 6.71% | 1.45% | 2.55% | 4.04% | 2.31% | 5.01% | 5.72% | 6.85% |
| FCF Growth % | -156.95% | -36.6% | -58.45% | 402.21% | -217.49% | -55.4% | 214.55% | -43.51% | 87.01% | -0.37% | 53.3% | -48.59% | -11.68% | 41% | -25.73% | 34.39% | -49.76% | 280.17% | 53.44% | -33.6% | -29.58% | 49.65% | -48.78% | 395.69% | -42.96% | -41.22% | 85.2% | -49.23% | -8.45% | -9.75% | 380.95% |
| FCF per Share | -2.17 | 2.33 | 3.58 | 8.75 | -2.91 | 2.46 | 5.57 | 1.79 | 3.19 | 1.77 | 1.74 | 1.11 | 2.12 | 2.39 | 1.67 | 2.22 | 1.66 | 3.44 | 0.90 | 0.57 | 0.87 | 1.25 | 0.85 | 1.68 | 0.34 | 0.58 | 1.00 | 0.54 | 0.96 | 1.08 | 1.20 |
| FCF Conversion (FCF/Net Income) | -2.04x | 1.48x | 1.07x | 1.72x | -0.38x | 1.07x | 3.97x | 1.57x | 2.39x | -8.74x | 1.24x | 1.41x | 1.17x | 1.49x | 1.14x | 1.74x | 1.22x | -2.87x | 3.53x | 0.99x | 1.35x | 1.93x | 2.74x | 2.15x | 2.33x | 7.11x | 1.38x | 1.94x | 1.70x | 1.73x | 2.12x |
| Interest Paid | 10.4M | 12.3M | 13.6M | 17.1M | 7.6M | 11.7M | 18.3M | 19.7M | 22.4M | 14.2M | 1.14M | 1.17M | 1.47M | 1.6M | 2.38M | 2.06M | 1.56M | 2.78M | 3.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 4.4M | 13.4M | 30.2M | 39.5M | 34.1M | 19.5M | 12M | 21.7M | 11.1M | 13.5M | 14.17M | 23.42M | 11.34M | 13.46M | 11.56M | 13.16M | 13.91M | 4.32M | 15.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying TNC stock.
Tennant Company (TNC) generated $65.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Tennant Company (TNC) generated $43.3M 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.
Tennant Company (TNC) spent $21.7M 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, Tennant Company (TNC) returned $21.9M to shareholders via cash dividends and spent $88.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Severe working capital cash drain
Metrics are mathematically derived from official filings.
Earnings Quality Erodes with Cash Drain
The gap between net income and operating cash flow has turned severely negative, with 2026Q2 reporting a 3.45x operating cash outflow versus earnings, a dramatic reversal from the 1.93x conversion seen just three quarters prior.
This extreme negative conversion suggests that recent reported profits are not translating into cash and may be masking underlying operational inefficiencies or aggressive accounting. The massive swing from positive conversion to severe cash burn implies a fundamental deterioration in the quality of Tennant's earnings that warrants immediate investor scrutiny.
Working Capital Consuming Vast Cash
According to reported cash flow statements, working capital changes consumed a staggering $125.2M in cash over the last two quarters, representing a massive drain that has obliterated operating cash flow despite modest net income.
This scale of working capital usage is highly unusual for the company's historical pattern and suggests either a severe breakdown in receivables collection, a significant inventory buildup, or aggressive payables management. The magnitude indicates a structural issue that is not being offset by operations, fundamentally threatening near-term liquidity.
Free Cash Flow in Precipitous Decline
Tennant's free cash flow margin has plunged to -10.7% in 2026Q2 from a positive 8.5% in 2024Q4, a complete reversal that highlights the failure of earnings to generate cash amidst intense working capital pressures.
The trajectory is not merely cyclical but appears structurally damaged, with the company now burning significant cash after previously generating positive FCF. This negative FCF environment, coupled with sustained capital expenditures, suggests the business model is currently unable to fund itself, let alone provide returns to capital providers.
What the Cash Flow Statement Obscures
The cash flow statement obscures the potential for aggressive capitalization of costs or changes in non-cash accruals, as the widening gap between net income and operating cash flow implies non-cash adjustments may be masking underlying operational cash generation.
While SBC is a reported non-cash charge, the sheer scale of the cash conversion breakdown suggests other, less transparent adjustments may be at play. Investors should scrutinize the balance sheet for growing intangible assets or deferred charges that could indicate capitalized costs, further eroding the true cash economic picture.