Forgent Power Solutions, Inc. (FPS)

Price$41.35Cached quoteAs of 2026-10-06 21:21 UTC

AI: Overvalued

Price checkThe valuation still assumes unusually strong profit growth and leaves little room for disappointment.

The market value is roughly 48 times management's fiscal 2026 adjusted net-income midpoint, a demanding multiple that already assumes strong growth and margin gains.

Big pictureRevenue growth is exceptional, but durable free cash generation still trails the expansion.

Fiscal 2025 revenue reached $753 million, yet $65 million of operating cash flow was below $84 million of capital spending, producing negative free cash flow.

Business strengthRecord backlog supports future sales, but substantial debt weakens the balance-sheet cushion.

March backlog reached $1.98 billion, while cash was about $94 million against $584 million of debt, leaving roughly $490 million of net debt.

What could change the storyLower expansion spending could unlock cash, while weaker data-center orders would challenge today's valuation.

Falling capital spending could improve cash flow sharply, but slower bookings, project delays, or weaker backlog conversion would reduce factory utilization and pressure earnings expectations.

AI: News

Record orders and higher guidanceStrong May results showed accelerating demand and prompted management to raise its full-year outlook.

On May 14, quarterly revenue reached $379 million, bookings hit $867 million, backlog rose to $1.98 billion, and management increased fiscal 2026 guidance.

Large July share offeringA large July offering increased public share supply and showed continued selling by sponsor-controlled owners.

On July 1, Forgent priced 43.65 million Class A shares, including about 29.1 million sold by Neos-controlled holders and 14.6 million issued.

Loading local price history

Revenue

2023

2024

2025

Net income

2023

2024

2025

Free cash flow

2023

2024

2025

Total cash / debt

CashTotal debt

2024

2025

Financial statements

	2025	2024	2023
Revenue	$753.2M	$181.3M	$64.5M
Gross profit	$278.1M	$67.7M	$23.8M
Gross margin	36.92%	37.36%	36.93%
Operating expenses	$205.8M	$72.5M	$11.4M
Operating income	$72.2M	−$4.8M	$12.4M
Operating margin	9.59%	−2.62%	19.23%
EBITDA	$137.1M	$16.5M	$12.8M
EBITDA margin	18.20%	9.13%	19.81%
Net income	$17.4M	−$19.2M	$8.5M
Net profit margin	2.32%	−10.59%	13.12%
Basic EPSper basic share	-$0.03	-$0.08	—
Diluted EPSper diluted share	-$0.03	-$0.08	—

Review official source filings ↗

Owners

Reported shareholders

Ownership data is not available for this listing yet.

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)9$649.91M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 1, 2026Form 4	Neos Partners, LP +5Director,TenPercentOwner	SellClass A common stock · indirect	48.62M	—	—	112.45M
Jun 1, 2026Form 4	Neos Partners I LP +7Director,TenPercentOwner	SellClass A common stock · indirect	48.62M	—	—	112.45M
Jun 1, 2026Form 4	Neos Partners, LP +8Director,TenPercentOwner	SellClass A common stock · indirect	48.62M	—	—	112.45M
Mar 30, 2026Form 4	Gofer Sergey +5Director,TenPercentOwner	SellClass A common stock · indirect	34.50M	—	—	145.22M
Mar 30, 2026Form 4	Neos Partners I Expansion LP +7Director,TenPercentOwner	SellClass A common stock · indirect	34.50M	—	—	145.22M