Gentherm Inc filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $1.6 billion, rising 8.8% on the year before. That growth rate was up 0.1 percentage points compared to the quarter earlier.

The main points

Capital spending fell 20.4% while operating cash flow dropped 47.8%, leaving less of the generated cash as a surplus. Revenue increased 8.8%, yet the operating margin declined by 2.6 percentage points, indicating that sales are rising faster than profit.

What the company earns

The company is selling more but retaining less from each sale. The trailing gross margin stood at 23.7%. Meanwhile, the trailing operating margin was 3.4%, down 2.6 percentage points from a year earlier. At the same time, the trailing net margin reached 0.6%. Net income over the twelve months totaled $9.0 million, falling 70.5% on the year before.

Cash flow

Operating cash flow over the twelve months was $65.0 million, down 47.8% on the year before. Capital spending amounted to $44.9 million, or 2.8% of revenue. Consequently, free cash flow, defined as operating cash flow less capital spending, stood at $20.1 million, down 70.4% on the year before. This represented a free-cash-flow margin of 1.3%, which is down 3.4 percentage points from a year earlier.

Share count

The average diluted share count rose 0.6% over the year.

Against its own history

Set against the company’s own record, today’s free-cash-flow margin of 1.3% is higher than 10% of past quarterly readings, which have ranged from −2.1% to 13.2%. Additionally, today’s twelve-month revenue growth rate of 8.8% is higher than 62% of past readings spanning −18.0% to 38.5%.

What it means for our valuation

These trends feed directly into what the shares are worth in our model. In our calculations, a growth rate 5 percentage points lower would reduce value by 30.0%, while a rate 5 percentage points higher would increase it by 39.0%. A free-cash-flow margin 1 percentage point lower would decrease value by 96.2%.

What to watch

The next filing will show whether the trends above continue, slow or reverse.