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Coherent cash flow, quarter by quarter

Latest: Q1 FY27 · from the cash-flow statements filed with the SEC

Free cash flow−$868M in Q1 FY27 · −$1.8B over twelve months

Operating cash flow−$92.7M
Capital spending−$776M
Free cash flow−$868M
Cash / net income-0.2×
Cash conversion cycle105 days

Analysis

In Q1 FY27, Coherent generated −$92.7M of operating cash flow and spent $776M on capital projects, leaving free cash flow of −$868M. That is $810M less than in Q1 FY26 (−$58.0M).

Over the twelve months to Sep 30, 2026, operating cash flow was −$59.1M; the largest uses were capital spending ($1.8B), other investing ($183M), taxes on employees’ shares ($169M); besides operations, cash came from other financing ($2.8B), shares issued ($52.0M); the cash balance rose by $583M.

Operating cash flow was −$92.7M against net income of $382M — -0.2× profit, less cash than reported earnings, worth checking against working capital. The largest differences: inventory −$737M, payables +$430M, deferred revenue +$269M.

Its cash conversion cycle was 105 days (receivables 57 + inventory 189 − payables 141).

Free cash flow

Coherent: free cash flow by quarterCoherent: free cash flow by quarter$81.7MQ2 FY25$51.1MQ3 FY25−$1.1MQ4 FY25−$58.0MQ1 FY26−$95.7MQ2 FY26−$383MQ3 FY26−$486MQ4 FY26−$868MQ1 FY27
Operating cash flow less capital spending.
Coherent: operating cash flow against capital spendingCoherent: operating cash flow against capital spendingOperating cash flowCapital spending$187M$106MQ2 FY25$163M$112MQ3 FY25$130M$131MQ4 FY25$46.0M$104MQ1 FY26$57.9M$154MQ2 FY26−$93.8M$290MQ3 FY26$69.5M$556MQ4 FY26−$92.7M$776MQ1 FY27
Latest (Q1 FY27): Operating cash flow −$92.7M, Capital spending $776M.

Capital allocation, year by year

Coherent: where the cash came from (up) and went (down), by fiscal yearCoherent: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedAsset salesCapital spendingAcquisitionsDividendsFY22: Operating cash flow $413MFY22: Net borrowing $927MFY22: Shares issued $17.9MFY22: Capital spending −$314MFY22: Dividends −$34.5M$1.4BFY22FY23: Operating cash flow $634MFY23: Net borrowing −$1.3BFY23: Shares issued $1.4BFY23: Capital spending −$436MFY23: Acquisitions −$5.5BFY23: Dividends −$27.6M$2.1BFY23FY24: Operating cash flow $546MFY24: Net borrowing −$230MFY24: Shares issued $42.3MFY24: Capital spending −$347M$588MFY24FY25: Operating cash flow $634MFY25: Net borrowing −$435MFY25: Shares issued $49.6MFY25: Asset sales $27.0MFY25: Capital spending −$441MFY25: Dividends −$11.4M$710MFY25FY26: Operating cash flow $79.5MFY26: Net borrowing −$1.8BFY26: Shares issued $2.1BFY26: Asset sales $437MFY26: Capital spending −$1.1BFY26: Dividends −$11.4M$2.6BFY26
Over these 5 years operating cash flow totalled $2.3B; the largest uses were acquisitions ($5.5B) and net borrowing ($3.7B). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$1.8B
Debt$4.0B
Net debt$2.2B
Due within a year$7.9M
Cash runway11 months

Coherent is burning cash: its operations consume cash, a free cash flow of −$1.8B a year at the current rate against $1.8B of cash and investments: a runway of about 11 months; $7.9M of debt also comes due within a year, which would need refinancing or new money before any new financing.

Coherent: debt maturities by year (FY26)Coherent: debt maturities by year (FY26)$7.9MYear 1$34.4MYear 2$93.6MYear 3$2.1BYear 4$986MYear 5
Principal due in each year as disclosed in the annual report, against $1.8B of cash and investments now.

Where the cash came from and went

Coherent: sources (+) and uses (−) of cash, Q1 FY27Coherent: sources (+) and uses (−) of cash, Q1 FY27Capital spending−$776MNet borrowing (+) / repaid (−)$775MOther investing$575MCash drawn (+) / kept (−)−$368MTaxes on employees’ shares−$129MOperating cash flow−$92.7MShares issued$19.4MExchange rates−$3.1MOther financing−$1.4M
Coherent: sources (+) and uses (−) of cash, TTM to Q1 FY27Coherent: sources (+) and uses (−) of cash, TTM to Q1 FY27Other financing$2.8BCapital spending−$1.8BCash drawn (+) / kept (−)−$583MOther investing−$183MTaxes on employees’ shares−$169MNet borrowing (+) / repaid (−)−$122MOperating cash flow−$59.1MShares issued$52.0MAsset & business sales$45.9MExchange rates−$9.2M

From profit to cash

Coherent: net income to operating cash flow, Q1 FY27Coherent: net income to operating cash flow, Q1 FY27Net income$382MDepreciation & amortization$77.7MStock-based pay$74.4MDeferred taxes−$55.7MGains on disposals$1.0MReceivables−$255MInventory−$737MPayables$430MEmployee-related liabilities−$90.2MDeferred revenue$269MIncome taxes payable−$33.0MOther operating capital−$227MOperating cash flow−$92.7M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q1 FY2757189141105
Q4 FY2656170117109
Q3 FY265615998116
Q2 FY265715190118
Q1 FY265814183116
Q4 FY255913175114
Q3 FY255712768116
Q2 FY255513669122

Every quarter

QuarterOperating cash flowCapital spendingDividendsNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q1 FY27−$92.7M−$776M—$775M$19.4M−$368M−$868M
Q4 FY26$69.5M−$556M——$584K$457M−$486M
Q3 FY26−$93.8M−$290M—−$161M$21.7M−$697M−$383M
Q2 FY26$57.9M−$154M—$41.3M$8.8M$24.1M−$95.7M
Q1 FY26$46.0M−$104M−$11.4M−$1.6B$21.3M$80.0M−$58.0M
Q4 FY25$130M−$131M−$11.4M−$51.1M$2.1M−$6.9M−$1.1M
Q3 FY25$163M−$112M—−$135M$18.2M$42.6M$51.1M
Q2 FY25$187M−$106M—−$133M$4.8M$114M$81.7M

Coherent: income statement and cash flow

Coherent, Q1 FY27: revenue $2.4B (+50% year over year), operating margin 15.1%. The chart follows the revenue to costs, profit and cash.

Coherent: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.