Free cash flow generation remains highly volatile, with margins plummeting to 1.8% in 2026Q1 compared to 13.1% in 2025Q4, reflecting inconsistent operational cash conversion.
| 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 | 57.44M | 63.81M | 63.81M | 61.67M | 108.48M | 67.74M | 43.02M | -7.42M | -37.74M | 34.15M | -23.84M | 15.79M | 42.07M | 727K | 111.96M | 115.44M | 194.21M | 57.85M | 44.26M | 39.19M | 46.02M | 44.91M | 999K | 21.77M | -2.16M | 21.74M | 10.31M | 14M | 10.8M | 6.8M | 7.2M |
| Operating CF Margin % | - | 9.61% | 8.9% | 9.25% | 16.79% | 11.61% | 9.47% | -1.77% | -6.96% | 7.04% | -7.17% | 3.31% | 10.71% | 0.22% | 21.7% | 11.79% | 20.81% | 15.22% | 10% | 9.74% | 10.43% | 10.95% | 0.26% | 7.79% | -0.72% | 4.84% | 2.67% | 5.68% | 5.22% | 4.11% | 7.44% |
| Operating CF Growth % | -77.37% | 0% | 3.47% | -43.15% | 60.14% | 57.46% | 680.11% | 80.35% | -210.52% | 243.21% | -251.02% | -62.47% | 5686.66% | -99.35% | -3.01% | -40.56% | 235.73% | 30.69% | 12.96% | -14.84% | 2.46% | 4395.5% | -95.41% | 1109.27% | -109.92% | 110.85% | -26.34% | 29.63% | 58.82% | -5.56% | 260% |
| Net Income | 23.12M | 35.39M | 73.71M | -30.37M | 166.94M | 26.04M | -8.39M | -78.73M | -407.09M | -44.79M | -122.21M | -31.98M | -66.94M | -42.26M | 30.93M | 127.99M | 361.76M | -15.63M | -71.06M | -17.36M | 14.92M | -897K | -62.55M | -9.75M | -123.73M | 10.31M | 502K | 20.4M | 12.7M | 12.3M | 8M |
| Depreciation & Amortization | 20.02M | 25.14M | 25.14M | 24.97M | 25.64M | 26.06M | 30.7M | 34.4M | 50M | 50.09M | 32.65M | 39.85M | 24.57M | 18.43M | 16.19M | 12.89M | 12.85M | 21.62M | 25.09M | 24.99M | 30.08M | 29.81M | 31.26M | 24.86M | 27.93M | 22.65M | 15.55M | 5.8M | 4.7M | 1.6M | 1.6M |
| Stock-Based Compensation | 27.31M | 35.88M | 35.88M | 28.56M | 22.99M | 15.25M | 12.7M | 15.27M | 16.07M | 24.4M | 15.74M | 17.99M | 18.81M | 13.13M | 14.27M | 12.81M | 9.65M | 8.54M | 10.53M | 5.62M | 2.22M | 138K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -5.64M | -8.73M | -8.73M | -2.21M | -118.04M | -651K | -299K | 360K | -27.62M | -33.88M | 940K | 2.65M | -11.33M | -12.26M | -340K | 11.28M | -25.14M | -414K | 1.57M | 1.33M | 1.37M | 929K | 39.86M | -1.37M | -22.64M | -13.41M | -22.04M | -3.3M | -1.1M | -1.7M | -600K |
| Other Non-Cash Items | 4.78M | -3.69M | 8.55M | 99.23M | 962K | 18.83M | 22.05M | 38.06M | 386.93M | 11.68M | 69.26M | -1.09M | 22.3M | 3.25M | -7.27M | 39.9M | -171.12M | 4.8M | 70.82M | 3.38M | -546K | 377K | 1.39M | 1.9M | 5.99M | 33.96M | 66.37M | -500K | 1.1M | 800K | 200K |
| Working Capital Changes | -12.15M | -20.18M | -70.74M | -58.5M | 9.98M | -17.78M | -13.74M | -16.77M | -56.04M | 26.64M | -20.23M | -11.63M | 54.66M | 20.45M | 58.19M | -89.42M | 6.21M | 38.94M | 7.33M | 21.23M | -2.02M | 14.55M | -9.56M | 6.13M | -6.5M | -31.78M | -31.69M | -11.5M | -10.1M | -10.4M | -2M |
| Change in Receivables | -24.3M | -11.59M | -6.55M | 13.27M | -12.83M | -26.66M | -30.36M | 5.8M | 21.82M | 4.52M | -8.67M | 10.71M | -25.39M | 38.84M | 31.21M | 56.84M | -83.16M | -24.53M | 20.06M | 15.11M | 3.76M | -8.84M | 0 | 0 | 0 | 18.75M | -24.12M | 0 | 0 | 0 | 0 |
| Change in Inventory | -28.18M | -28.56M | -8.31M | -35.16M | -37.29M | -24.8M | -11.53M | 14.97M | -24.68M | 6.34M | -5.39M | -12.31M | 6.51M | 2.75M | 53.94M | -19.39M | -49.53M | 16.97M | 6.2M | -1.33M | -10.52M | 20.74M | -10.24M | 8.11M | 3.55M | -8.4M | -20.3M | -4.7M | -8.8M | -12.2M | -5.6M |
| Change in Payables | -5.13M | 4.23M | -338K | -8.81M | -13.12M | 20.23M | 15.96M | -26.95M | -19.67M | 12.2M | -24.2M | 9.47M | -7.78M | 7.54M | -12.11M | 8.1M | 7.3M | -542K | -7.92M | -4.05M | 9.15M | 6.05M | 0 | 0 | 0 | -14.97M | 7.05M | 0 | 0 | 0 | 0 |
| Cash from Investing | -38.31M | -64.55M | -64.55M | -53.33M | -68.88M | 44.53M | -71.79M | -75.87M | -18.3M | -357.84M | 46.71M | -7.08M | 8.1M | -168.06M | 48.32M | 106.29M | -121.62M | -154.76M | -23.68M | -8.78M | -18.74M | -24.56M | -12.75M | -131.24M | 2.93M | -75.36M | -4.66M | -61.6M | -8.1M | -13.5M | -3.8M |
| Capital Expenditures | -16.46M | -18.11M | -18.11M | -27.93M | -24.6M | -40.64M | -6.8M | -10.87M | -12.65M | -24.27M | -11.48M | -13.89M | -15.59M | -9.17M | -24.99M | -60.36M | -10.72M | -8.35M | -12.81M | -9.09M | -17.4M | -11.68M | -15.48M | -8.08M | -8.64M | -19.18M | -17.81M | -10.5M | -8.1M | -9.1M | -3.8M |
| CapEx % of Revenue | 2.51% | 2.73% | 2.53% | 4.19% | 3.81% | 6.97% | 1.5% | 2.59% | 2.33% | 5.01% | 3.45% | 2.91% | 3.97% | 2.77% | 4.84% | 6.17% | 1.15% | 2.2% | 2.89% | 2.26% | 3.95% | 2.85% | 3.96% | 2.89% | 2.89% | 4.27% | 4.61% | 4.26% | 3.92% | 5.5% | 3.93% |
| Acquisitions | 0 | 0 | 2.03M | -30.37M | 44.28M | 40.64M | 6.8M | 10.87M | -2.66M | -401.83M | 9.51M | -68K | -144.07M | -71.49M | 0 | -28.27M | 225.19M | -12.25M | -10.98M | 0 | -3.07M | -15.04M | -10.5M | -131.1M | 0 | -59.56M | -13.84M | 3.1M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 25.1M | 2.03M | 0 | 0 | -44.28M | -38.92M | 2.7M | -10.23M | -2.98M | 2.28M | -230K | 4.07M | 9.61M | 4.45M | 3.81M | 75.73M | 137.05M | 834K | 103K | 312K | 1.85M | 2.26M | 4.39M | 2.83M | 5.54M | 67.95M | 2.97M | -3.3M | 0 | -4.4M | 0 |
| Cash from Financing | -14.75M | -12.58M | -12.58M | -4.68M | -4.55M | -122.03M | 29.1M | 126K | -11.46M | 325.94M | -14.63M | -10.2M | 9.69M | -5.77M | 5.55M | -249.94M | 25.5M | 141.87M | -33M | -59.48M | -4.35M | 1.78M | 5.38M | 2.65M | 12.01M | 191.23M | 25.58M | 53.2M | 1.4M | 1.9M | 100K |
| Debt Issued (Net) | -5.23M | -5.23M | 0 | 1.71M | 0 | -115.6M | 38.85M | 0 | 0 | 334.56M | -340K | -314K | -290K | -269K | -248K | -105.8M | -213K | -196K | -32.66M | -60.71M | -19.78M | -355K | -333K | -317K | 11.52M | 185.34M | -9.32M | -5.15M | 9.56M | 6.8M | -200K |
| Equity Issued (Net) | 3.32M | 4.72M | 5.3M | 4.62M | 3.7M | 3.4M | 2.88M | 3.11M | -8.39M | 123K | -11.69M | -6.67M | 12.06M | 2.2M | 5.41M | -151.36M | 7.07M | 142.67M | 681K | 3.17M | 15.52M | 2.13M | 5.72M | 2.97M | 1.76M | 5.96M | 31.27M | 65.4M | 3.79M | 5M | 300K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -11.46M | -2.87M | -13.35M | -8.91M | 0 | 0 | 0 | -162.08M | -38.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -12.84M | -12.07M | -17.88M | -11.01M | -8.25M | -9.83M | -12.63M | -2.98M | -3.07M | -8.74M | -2.6M | -3.21M | -2.08M | -7.7M | 394K | 7.23M | 18.65M | -607K | -1.02M | -371K | -99K | 0 | 0 | 0 | -1.28M | -68K | 3.63M | -98K | -2.13M | -10.2M | -14.1M |
| Net Change in Cash | 4.47M | -13.3M | -13.3M | 3.65M | 35M | -9.81M | 332K | -83.13M | -67.5M | 2.29M | 8.21M | -1.58M | 60.01M | -173.76M | 166.63M | -27.21M | 96.63M | 44.79M | -13.28M | -29.96M | 22.55M | 24.22M | -6.55M | -107.47M | 11.14M | 139.74M | 33.57M | 5.9M | 3.1M | -5M | 3.6M |
| Free Cash Flow | 42.89M | 45.7M | 45.7M | 33.74M | 83.88M | 27.1M | 36.22M | -18.29M | -50.39M | 9.87M | -35.32M | 1.9M | 26.48M | -8.45M | 86.97M | 55.08M | 183.49M | 49.5M | 31.46M | 30.09M | 28.61M | 33.23M | -14.48M | 13.69M | -10.8M | 2.56M | -7.5M | 3.5M | 2.7M | -2.3M | 3.4M |
| FCF Margin % | 6.54% | 6.88% | 6.37% | 5.06% | 12.98% | 4.65% | 7.97% | -4.36% | -9.3% | 2.04% | -10.63% | 0.4% | 6.74% | -2.55% | 16.85% | 5.63% | 19.66% | 13.02% | 7.1% | 7.48% | 6.49% | 8.1% | -3.71% | 4.9% | -3.61% | 0.57% | -1.94% | 1.42% | 1.31% | -1.39% | 3.51% |
| FCF Growth % | -22.82% | 0% | 35.44% | -59.77% | 209.53% | -25.18% | 298.04% | 63.71% | -610.35% | 127.95% | -1957.15% | -92.82% | 413.5% | -109.71% | 57.9% | -69.98% | 270.67% | 57.36% | 4.54% | 5.17% | -13.9% | 329.56% | -205.73% | 226.78% | -521.42% | 134.18% | -314.23% | 29.63% | 217.39% | -167.65% | 240% |
| FCF per Share | 0.71 | 0.75 | 0.74 | 0.63 | 1.28 | 0.51 | 0.75 | -0.39 | -1.07 | 0.22 | -0.90 | 0.05 | 0.67 | -0.22 | 2.23 | 1.34 | 4.32 | 1.52 | 1.00 | 0.97 | 0.92 | 1.11 | -0.49 | 0.47 | -0.37 | 0.10 | -0.30 | 0.16 | 0.14 | -0.25 | 0.51 |
| FCF Conversion (FCF/Net Income) | 1.86x | 1.80x | 0.87x | -2.03x | 0.65x | 2.60x | -5.13x | 0.09x | 0.09x | -0.76x | 0.20x | -0.49x | -0.63x | -0.02x | 3.62x | 0.90x | 0.54x | -3.72x | -0.62x | -2.26x | 3.08x | -50.07x | -0.02x | -2.23x | 0.02x | 2.11x | -0.58x | 0.69x | 0.85x | 0.55x | 0.90x |
| Interest Paid | 0 | 0 | 9.5M | 11.78M | 10.14M | 0 | 12.7M | 9.41M | 9.71M | 4.67M | 225K | 485K | 159K | 357K | 209K | 1.39M | 4.73M | 4.93M | 6.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 3.03M | 5.09M | 1.43M | 0 | 329K | 2.93M | 4.8M | 1.94M | 1.67M | 7.09M | 3.32M | 8M | 11.57M | 89.75M | 9.93M | 1.81M | 3.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical Revenue and Export Controls
According to recent financial disclosures, Veeco's operating cash flow to net income ratio reached a volatile -24.49 in 2026Q1, highlighting a significant divergence between accounting profitability and actual cash generation that warrants close scrutiny from investors evaluating the sustainability of the company's current operational model.
The extreme variance in the OCF/NI ratio suggests that net income is currently a poor proxy for the company's underlying cash-generating capacity. This disconnect appears driven by the interplay between non-cash charges and the timing of working capital requirements, which frequently obscures the true economic performance of the business.
As reported in quarterly filings, Veeco's free cash flow margin has fluctuated significantly, dropping to a mere 1.8% in 2026Q1 from a peak of 13.1% in 2025Q4, reflecting the inherent difficulty in maintaining consistent cash conversion during periods of top-line contraction and operational transition.
The erratic nature of FCF margins suggests that the company lacks the scale to absorb cyclical downturns without sacrificing cash flow stability. Investors should monitor whether this volatility is a temporary byproduct of inventory management or a structural limitation of the current product mix.
Based on the provided cash flow statements, Veeco's working capital changes have swung from a $13.8 million inflow in 2025Q4 to a neutral position in 2026Q1, indicating that the company's cash cycle is highly sensitive to the timing of customer shipments and payment terms.
The lack of consistent working capital management suggests that the company may be struggling to optimize its cash conversion cycle amidst shifting demand. This inconsistency complicates cash flow forecasting and may indicate that the company is forced to carry higher inventory levels to support customer evaluation programs.
Financial statements reveal that Veeco consistently records stock-based compensation expenses near $9 million per quarter, a figure that significantly impacts cash flow quality by masking the true cost of operations during periods where net income is already under pressure from revenue declines.
The persistent reliance on stock-based compensation as a primary component of the cost structure suggests that the company is effectively diluting shareholders to preserve cash. This practice warrants further investigation, as it may be artificially inflating the reported cash flow figures relative to the actual economic value generated.
Quick answers to the most common questions about buying VECO stock.
Veeco Instruments Inc. (VECO) generated $63.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Veeco Instruments Inc. (VECO) generated $45.7M 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.
Veeco Instruments Inc. (VECO) spent $18.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.