Cash flow conversion remains highly erratic, evidenced by an OCF/NI ratio that swung from a negative 61.00 in 2025Q4 to a positive 1.67 in 2026Q1 due to insurance-related accrual timing.
| 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 |
|---|
| Cash from Operations | 357M | 303M | 279M | 545M | 562M | 218M | 546M | 471M | -104M | 253M | 144.53M | 130.6M | 153.84M | 100.72M | 80.54M |
| Operating CF Margin % | - | 6.05% | 5.52% | 11.07% | 11.5% | 4.8% | 13.54% | 12.21% | -2.97% | 7.73% | 4.72% | 4.91% | 7.01% | 6.13% | 7.9% |
| Operating CF Growth % | 461.07% | 8.6% | -48.81% | -3.02% | 157.8% | -60.07% | 15.92% | 552.88% | -141.11% | 75.05% | 10.67% | -15.11% | 52.74% | 25.05% | - |
| Net Income | 159M | 155M | 173M | 375M | 355M | 338M | 272M | 212M | 192M | 178M | 61.41M | 31.7M | 15.5M | 13.15M | 31.83M |
| Depreciation & Amortization | 73M | 73M | 86M | 121M | 126M | 94M | 81M | 57M | 46M | 35M | 39.17M | 52.82M | 84.4M | 73.84M | 31.2M |
| Stock-Based Compensation | 68M | 65M | 65M | 59M | 62M | 50M | 43M | 41M | 44M | 32M | 26.5M | 17.92M | 10.96M | 6.11M | 4.36M |
| Deferred Taxes | 46M | 45M | -2M | 5M | -22M | -9M | -42M | -7M | 1M | -25M | 41.77M | 14.95M | 43.84M | -6.68M | 7.66M |
| Other Non-Cash Items | 64M | 54M | 72M | 7M | 29M | 5M | 4M | 15M | 142M | 85M | -4.64M | -21.31M | -10.75M | -17.04M | -1.67M |
| Working Capital Changes | -53M | -89M | -115M | -22M | 12M | -260M | 188M | 153M | -387M | 33M | -19.68M | 34.52M | 9.89M | 31.34M | 7.16M |
| Change in Receivables | -1M | 0 | -2M | -74M | -51M | 3M | 32M | 5M | 10M | -7M | -2.68M | 3.15M | 0 | 0 | 0 |
| Change in Inventory | 0 | 3M | 0 | 40M | 51M | -254M | 0 | 175M | -370M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 7M | -4M | -7M | -8M | -13M | 33M | 19M | -15M | -8M | 22M | 9.16M | 287K | 5.21M | 976K | -150K |
| Cash from Investing | -48M | -43M | 153M | -70M | -226M | -135M | -151M | -188M | -200M | -24M | -27.12M | -37.69M | -45.43M | -212.44M | -262.61M |
| Capital Expenditures | -10M | 3M | -78M | -75M | -56M | -40M | -36M | -45M | -43M | -38M | -39.65M | -18.56M | -20.55M | -10.69M | -9.66M |
| CapEx % of Revenue | 0.2% | 0.06% | 1.54% | 1.52% | 1.15% | 0.88% | 0.89% | 1.17% | 1.23% | 1.16% | 1.3% | 0.7% | 0.94% | 0.65% | 0.95% |
| Acquisitions | 0 | 1M | 0 | 0 | -229M | 40M | -12M | 47M | 46M | 0 | -300K | -4.75M | 0 | -195M | -225.82M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -69M | -72M | 0 | -5M | 0 | -40M | 0 | -47M | -46M | 14M | 13M | -14M | -24.88M | -6.75M | -252.95M |
| Cash from Financing | -200M | -49M | -207M | -546M | -536M | 12M | -208M | -176M | -85M | -77M | -99.37M | -60.75M | -68.31M | 142.38M | 214.19M |
| Debt Issued (Net) | -90M | -90M | -110M | 600M | 0 | 130M | -22M | -22M | -16M | -38M | -37M | -45M | -273.86M | 517.54M | 298.49M |
| Equity Issued (Net) | -82M | -172M | -171M | -1.11B | -512M | -83M | -196M | -129M | -83M | -28M | -76M | -35.88M | 208.37M | 1.15M | 4.75M |
| Dividends Paid | -53M | -52M | -37M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -357.58M | -75.35M |
| Share Repurchases | -151M | -183M | -183M | -1.12B | -523M | -94M | -178M | -140M | -61M | -44M | -71.6M | -48M | -16.44M | -14.61M | -638K |
| Other Financing | 25M | 265M | 111M | -39M | -24M | -35M | 10M | -25M | 14M | -11M | 13.63M | 20.13M | -889K | -18.73M | -13.7M |
| Net Change in Cash | 611M | 211M | 225M | -71M | -201M | 95M | 187M | 107M | -389M | 152M | 17.83M | 31.84M | 39.98M | 30.61M | 32.13M |
| Free Cash Flow | 330M | 306M | 201M | 470M | 506M | 178M | 510M | 426M | -147M | 215M | 104.88M | 112.04M | 133.29M | 90.03M | 70.88M |
| FCF Margin % | 6.67% | 6.11% | 3.98% | 9.55% | 10.36% | 3.92% | 12.64% | 11.05% | -4.2% | 6.56% | 3.43% | 4.21% | 6.08% | 5.48% | 6.96% |
| FCF Growth % | -24.49% | 52.24% | -57.23% | -7.11% | 184.27% | -65.1% | 19.72% | 389.8% | -168.37% | 104.99% | -6.39% | -15.94% | 48.04% | 27.01% | - |
| FCF per Share | 7.02 | 6.38 | 4.02 | 8.25 | 7.91 | 2.66 | 7.50 | 6.00 | -2.03 | 3.01 | 1.46 | 1.54 | 2.24 | 1.32 | 1.03 |
| FCF Conversion (FCF/Net Income) | 2.08x | 1.95x | 1.61x | 1.45x | 1.58x | 0.64x | 2.01x | 2.22x | -0.54x | 1.42x | 2.35x | 4.12x | 9.93x | 7.66x | 2.53x |
| Interest Paid | 27M | 52M | 59M | 25M | 18M | 12M | 16M | 19M | 17M | 16M | 15M | 15M | 0 | 30.53M | 5.36M |
| Taxes Paid | 27M | 27M | 76M | 114M | 128M | 129M | 123M | 62M | 49M | 2M | 39M | 2M | 0 | 8.07M | 19.59M |
Insurance reserve volatility
As reported in financial statements, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio swinging from a negative 61.00 in 2025Q4 to a positive 1.67 in 2026Q1, indicating significant non-cash adjustments and timing differences in insurance-related accruals.
The extreme variance in the conversion ratio suggests that reported net income is a poor proxy for the company's underlying cash-generating capability. Investors should monitor whether these fluctuations are driven by recurring insurance reserve adjustments or one-time accounting shifts that obscure true operational performance.
Based on recent SEC filings, TriNet experiences massive quarterly swings in working capital, such as the $508 million inflow in 2024Q4 followed by a $35 million outflow in 2025Q4, which highlights the company's role as a pass-through entity for payroll taxes and insurance premiums.
These large working capital movements appear to be a structural feature of the PEO model rather than operational efficiency gains. The volatility in these balances suggests that liquidity is highly sensitive to the timing of tax and insurance payments, which may complicate short-term cash flow forecasting.
According to historical cash flow data, TriNet has consistently prioritized share repurchases, including $90 million in 2025Q1, even as revenue growth has turned negative, suggesting management may be utilizing excess cash to support EPS in the absence of high-return organic growth opportunities.
The reliance on buybacks to manage equity value warrants further investigation, particularly given the recent revenue contraction. This capital allocation strategy may indicate that management lacks confidence in finding accretive M&A targets or internal projects that could effectively deploy the company's substantial cash reserves.
As evidenced by the provided data, TriNet maintains a low capital intensity, with CapEx/Revenue ratios consistently hovering between 0.5% and 2.0%, which suggests that the business model requires minimal physical asset investment to support its core professional services and technology platform.
The modest capital expenditure requirements imply that the company is not burdened by heavy maintenance costs, allowing for higher potential free cash flow conversion. However, this low intensity also suggests that the company's competitive moat is not built on proprietary physical infrastructure, but rather on service-based relationships.
Quick answers to the most common questions about buying TNET stock.
TriNet Group, Inc. (TNET) generated $303.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
TriNet Group, Inc. (TNET) generated $306.0M 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.
TriNet Group, Inc. (TNET) spent $3.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, TriNet Group, Inc. (TNET) returned $52.0M to shareholders via cash dividends and spent $183.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.