Free cash flow has turned negative at $34.4 million in 2026Q1, exacerbated by a $51.7 million outflow related to working capital inefficiencies.
| 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 | 34.2M | 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 % | -7747.68% | -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 | 30.9M | 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 | 56M | 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 | 8.7M | 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 | 7M | 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 | 11.7M | 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 | -80.1M | -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 | -32M | 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 | -25.2M | -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 | 4.3M | -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 | -26.1M | -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 | -17.8M | -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 | 1.47% | 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 | -8.2M | -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 | 300K | 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 | -7.8M | -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) | 145M | 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) | -130.7M | -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 | -21.8M | -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 | -130.6M | -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 | -300K | -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 | 3.1M | 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 | 16.4M | 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 % | 1.35% | 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 % | -73.2% | -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 | 0.92 | 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) | 0.53x | 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 | 3.1M | 0 | 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 | 5.5M | 0 | 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 |
Working capital volatility
According to quarterly financial data, Tennant's operating cash flow frequently decouples from net income, evidenced by a volatile OCF/NI ratio that reached -156.00 in 2026Q1, suggesting that reported accounting profits are not consistently translating into actual cash generation for the business.
The significant divergence between net income and operating cash flow suggests that non-cash items and working capital swings are heavily distorting the company's reported profitability. Investors should monitor whether this disconnect is a temporary byproduct of inventory management or a structural issue regarding the quality of earnings.
As reported in recent financial statements, Tennant's free cash flow trajectory has become increasingly erratic, swinging from a robust 17.9% margin in 2023Q4 to a negative 11.5% in 2026Q1, indicating a lack of stability in the company's ability to fund operations internally.
The sharp decline in free cash flow suggests that the company's core business model is struggling to maintain self-sufficiency during periods of revenue contraction. This trend warrants further investigation into whether the current cost structure is too rigid to support the business during cyclical downturns.
Based on reported figures, working capital changes have become a primary drag on cash flow, with a significant $51.7 million outflow in 2026Q1 alone, highlighting potential inefficiencies in inventory management or collection cycles that are currently suppressing the company's overall liquidity position.
The recurring negative impact of working capital changes suggests that the company may be struggling to optimize its cash conversion cycle. This pattern appears to be a major contributor to the recent deterioration in operating cash flow, necessitating a closer look at inventory turnover and accounts receivable aging.
As indicated by recent filings, Tennant has continued to prioritize share repurchases, including a $62.3 million outflow in 2026Q1, even as operating cash flow turned negative, which may indicate a disconnect between capital allocation strategy and the company's current cash-generating reality.
The decision to return significant capital to shareholders during a period of negative free cash flow may indicate management's confidence in future recovery, though it also risks depleting the cash cushion. Investors should monitor whether this deployment strategy remains sustainable if the current revenue contraction persists.
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.