Free cash flow remains highly volatile, swinging from a $63.2 million peak in 2024Q4 to a $3.6 million deficit in 2025Q2, frequently impacted by $16.8 million in quarterly stock-based compensation.
| Metric | TTM | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 | Jan'10 | Jan'09 | Jan'08 | Jan'07 | Jan'05 | Jan'04 | Jan'03 | Jan'02 |
|---|
| Cash from Operations | 138.3M | 157.45M | 150.64M | 139.82M | 125.6M | 253.85M | 237.9M | 215.25M | 176.33M | 172.41M | 156.9M | 193.72M | 178.28M | 123.39M | 106.5M | 70.52M | 100.84M | 53.63M | -299K | 9.1M | 57.1M | 27.39M | 36.29M | 6.87M |
| Operating CF Margin % | - | 17.32% | 16.55% | 15.5% | 14.36% | 19.93% | 18.25% | 17.5% | 15.53% | 16.23% | 13.88% | 17.17% | 19.65% | 14.7% | 13.61% | 9.7% | 14.33% | 8.01% | -0.06% | 2.47% | 22.86% | 14.21% | 23% | 5.69% |
| Operating CF Growth % | 407.34% | 4.52% | 7.74% | 11.32% | -50.52% | 6.7% | 10.52% | 22.07% | 2.27% | 9.89% | -19.01% | 8.66% | 44.49% | 15.86% | 51.02% | -30.07% | 88.01% | 18038.13% | -103.29% | -84.07% | 108.47% | -24.53% | 428.53% | - |
| Net Income | 61.43M | 83.1M | 38.61M | 15.66M | 15.65M | -107K | 35.68M | 70.22M | -3.45M | -26.25M | 22.23M | 36.4M | 58.78M | 58.8M | 40.63M | 28.59M | 17.1M | -80.39M | -198.61M | -40.52M | 19.07M | 17.94M | 10.15M | -10.54M |
| Depreciation & Amortization | 50.25M | 47.13M | 71.48M | 67.96M | 75.45M | 100.41M | 91.53M | 88.92M | 105.73M | 114.26M | 106.3M | 99.46M | 55.97M | 57.1M | 53.04M | 48.95M | 49.29M | 55.14M | 46.79M | 20.87M | 12.9M | 10.07M | 9.41M | 5.67M |
| Stock-Based Compensation | 69.1M | 78.64M | 67.62M | 76.05M | 65.25M | 45.21M | 64.8M | 66.66M | 69.3M | 65.42M | 58.03M | 46.31M | 30.17M | 21M | 21.78M | 28.78M | 31.2M | 32.04M | 31.01M | 18.13M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 2.76M | -3.94M | -17.64M | -9.54M | -11.32M | 1.4M | 4.12M | -3.02M | -7.53M | -16.94M | -5.64M | -47.33M | 2.55M | 328K | -11.1M | -1.09M | -62K | 17.77M | 19.99M | 25.42M | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -56.02M | 3.61M | 18.31M | 10.28M | 795K | 60.84M | 17.03M | 9.76M | 13.54M | 20.44M | 22.22M | 23.63M | 8.62M | -4.3M | 8.44M | 8.05M | 17M | 38.88M | 63.04M | -3.82M | 6.35M | 736K | 710K | 1.56M |
| Working Capital Changes | 10.17M | -51.09M | -27.75M | -20.59M | -20.22M | 29.01M | 6.84M | -17.28M | -1.25M | 15.48M | -46.23M | 35.25M | 22.2M | -9.54M | -6.29M | -42.76M | -13.69M | -9.81M | 37.47M | -10.99M | 18.78M | -1.35M | 16.03M | 10.18M |
| Change in Receivables | 26.75M | -7.72M | -15.76M | 3.06M | 11.71M | -2.29M | -6.89M | -21.52M | -23.51M | -353K | 3.43M | -54.92M | -23.39M | -13.81M | -2.94M | -24.57M | -13.91M | -3.33M | -20.18M | 7.07M | 0 | 0 | 0 | 0 |
| Change in Inventory | 384K | -1K | -1.81M | -7.75M | -713K | -1.51M | 1.75M | -8.21M | -2.87M | -286K | -3.26M | -4.22M | 3.1M | -1.96M | 1.08M | -3.47M | 5.69M | -2.76M | 1M | -1.94M | -1.33M | -6.3M | -203K | -4.96M |
| Change in Payables | 5.71M | -17.96M | -25.34M | 6.39M | -1.77M | 41.07M | -2.44M | -15.65M | 10.16M | -9.52M | -8.9M | 41.41M | 23.44M | -598K | -7.19M | 15.84M | 1.37M | -10.75M | 8.48M | 3.37M | 0 | 0 | 0 | 0 |
| Cash from Investing | -73.37M | -84.04M | -37.38M | -56.58M | -35.9M | -37.24M | -125.8M | -175.72M | -144.48M | -156.03M | -75.6M | -676.84M | -64.2M | -35.7M | -126.85M | -77.83M | -24.6M | -26.25M | -851.73M | -15.09M | -101.51M | -44.87M | -19.33M | -8.73M |
| Capital Expenditures | -7.83M | -15.34M | -16.11M | -35.55M | -24.52M | -40.32M | -52.25M | -39.01M | -38.66M | -29.88M | -30.29M | -29.22M | -22.39M | -19.96M | -16.48M | -11.06M | -7.68M | -15.66M | -18.87M | -15.66M | -7.41M | -6.18M | -4.86M | -4.7M |
| CapEx % of Revenue | 0.88% | 1.69% | 1.77% | 3.94% | 2.8% | 3.17% | 4.01% | 3.17% | 3.41% | 2.81% | 2.68% | 2.59% | 2.47% | 2.38% | 2.11% | 1.52% | 1.09% | 2.34% | 3.53% | 4.25% | 2.97% | 3.2% | 3.08% | 3.89% |
| Acquisitions | -107.09M | -58.98M | -10.28M | -21.93M | -57.02M | -12.44M | -74.1M | -90.02M | -102.98M | -141.8M | -31.36M | -605.28M | -32.77M | -660K | -109.78M | -23.48M | -96K | -3.09M | -953.15M | -42.47M | -45.63M | -6.12M | -9.71M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 41.23M | -9.03M | -10.98M | 808K | 167K | 45.55M | -14.46M | -22.08M | 1.86M | -36.58M | 6.63M | -38.67M | 10.25M | 2.7M | 479K | -5.97M | 5.31M | -9.95M | -173K | 1.46M | -4.19M | -4.58M | -4.77M | -4.04M |
| Cash from Financing | -100.2M | -99.68M | -153.35M | -157.91M | -430.12M | 71.93M | -111.32M | -21.88M | -5.5M | -56.92M | -10.2M | 395.71M | 54.53M | -29.31M | 2.08M | -6.94M | -10.49M | 11.89M | 885.02M | -1.09M | 11.99M | 84.26M | 67.11M | 5.42M |
| Debt Issued (Net) | -1.46M | -2.06M | -3.08M | -3.66M | -385.24M | -65.2M | 38.52M | -5.98M | 12.45M | -3.31M | -309K | 74.93M | 60.62M | -21.65M | 9.59M | -38.16M | -6.09M | 11.98M | 593.9M | -424K | 0 | -42.69M | -140K | 4.85M |
| Equity Issued (Net) | -4M | -1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -173K | 0 | -1000K | 232K | 1000K | 0 | 1000K | -1000K | -1000K | 0 | 0 | 1000K | 0 | 1000K | 1000K | 1000K | 327K |
| Dividends Paid | -16M | -20.08M | -20.8M | -20.8M | -12.86M | -1.59M | -5.49M | -4.41M | -3.3M | -2.42M | -3.2M | -4.19M | -3.58M | -3.07M | -1.93M | -2.19M | -4.14M | -2.14M | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -70.49M | -72.32M | -124.29M | -128.99M | -75.95M | -36.84M | -113.69M | -173K | 0 | -46.9M | 0 | -2.24M | 0 | -615K | -1.66M | -4.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -12.25M | -5.22M | -5.18M | -4.46M | -154.8M | -21.7M | -30.67M | -15.72M | -17.96M | -6.71M | -10.13M | 48.45M | -6.09M | -9.64M | -3.92M | 37.56M | -258K | -93K | -1.88M | -665K | -400K | 0 | 0 | 239K |
| Net Change in Cash | -33.7M | -26.96M | -39.49M | -76.71M | -341.26M | 288.48M | -1.04M | 14.49M | 30.58M | -44.74M | 67.03M | -93.55M | 168.65M | 59.31M | -19.24M | -14.43M | 68.41M | 32.7M | 33.91M | -6.41M | -32.42M | 66.78M | 84.07M | 3.48M |
| Free Cash Flow | 118.25M | 142.11M | 124.91M | 104.27M | 101.08M | 213.52M | 185.65M | 176.25M | 137.67M | 142.54M | 126.61M | 164.51M | 155.89M | 103.42M | 90.02M | 59.46M | 93.16M | 37.98M | -19.17M | -6.56M | 49.69M | 21.21M | 31.44M | 2.17M |
| FCF Margin % | 13.23% | 15.63% | 13.72% | 11.56% | 11.56% | 16.76% | 14.24% | 14.33% | 12.13% | 13.42% | 11.2% | 14.58% | 17.18% | 12.32% | 11.5% | 8.18% | 13.24% | 5.67% | -3.59% | -1.78% | 19.89% | 11.01% | 19.93% | 1.8% |
| FCF Growth % | -5.79% | 13.77% | 19.79% | 3.16% | -52.66% | 15.01% | 5.34% | 28.02% | -3.41% | 12.58% | -23.04% | 5.53% | 50.73% | 14.89% | 51.4% | -36.18% | 145.31% | 298.1% | -192.27% | -113.2% | 134.23% | -32.52% | 1347.47% | - |
| FCF per Share | 1.96 | 2.26 | 1.94 | 1.60 | 1.54 | 3.28 | 2.76 | 2.66 | 2.17 | 2.28 | 2.01 | 2.77 | 2.89 | 2.57 | 2.28 | 1.60 | 2.81 | 1.17 | -0.59 | -0.20 | 1.52 | 0.72 | 1.33 | 0.12 |
| FCF Conversion (FCF/Net Income) | 1.92x | 1.91x | 3.90x | 9.38x | 8.71x | -2372.39x | 8.29x | 3.26x | -26.61x | -5.87x | 8.90x | 6.26x | 3.32x | 2.28x | 2.88x | 2.76x | 6.46x | -0.67x | 0.00x | -0.22x | 2.99x | 1.53x | 3.58x | -0.65x |
| Interest Paid | 1.51M | 7.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 24.7M | 36.54M | 30.68M | 150K | 0 | 0 | 0 | 0 |
| Taxes Paid | 9.79M | 27.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11.66M | 3.32M | 4.11M | 3.32M | 0 | 0 | 0 | 0 |
SBC Dilution and Volatility
According to quarterly cash flow statements, Verint's operating cash flow frequently decouples from net income, with stock-based compensation averaging $16.8 million per quarter, which often exceeds reported net income and suggests that GAAP earnings significantly understate the true cost of human capital to shareholders.
The persistent gap between net income and operating cash flow indicates that the company's reported profitability is heavily reliant on non-cash adjustments. Investors should monitor whether this reliance on equity-based compensation masks a lack of genuine operational leverage as the business transitions to a cloud-first model.
As reported in financial disclosures, Verint's free cash flow trajectory remains highly erratic, swinging from a peak of $63.2 million in 2024Q4 to a low of -$3.6 million in 2025Q2, highlighting the inherent instability of cash generation during the ongoing shift toward ratable cloud revenue.
The lack of a consistent free cash flow growth trend suggests that the company is struggling to balance the high upfront costs of cloud migration with the declining cash inflows from legacy maintenance contracts. This volatility warrants further investigation into the sustainability of current dividend and buyback programs.
Based on the provided cash flow data, working capital changes have been a significant source of quarterly volatility, with a $40 million outflow in 2024Q2 followed by a $22 million inflow in 2025Q3, indicating inconsistent efficiency in managing accounts receivable and deferred revenue cycles.
These sharp fluctuations in working capital suggest that the company's cash conversion cycle is sensitive to the timing of large enterprise contract renewals. Such variability makes it difficult to forecast near-term liquidity and may indicate underlying challenges in standardizing collections across the evolving cloud customer base.
As evidenced by recent filings, Verint has aggressively utilized cash for share repurchases, totaling $60.3 million in 2024Q1 alone, even as operating cash flow has shown significant quarterly contraction, raising questions about the strategic prioritization of buybacks over internal reinvestment in AI-driven product development.
The decision to return capital to shareholders during a period of stagnant revenue growth and margin compression appears to be a defensive move to support the stock price. Analysts should monitor whether this capital allocation strategy limits the company's ability to pivot effectively toward emerging consumption-based AI revenue models.
Quick answers to the most common questions about buying VRNT stock.
Verint Systems Inc. (VRNT) generated $157.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Verint Systems Inc. (VRNT) generated $142.1M 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.
Verint Systems Inc. (VRNT) spent $15.3M 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, Verint Systems Inc. (VRNT) returned $20.1M to shareholders via cash dividends and spent $72.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.