Cash flow generation remains inconsistent, highlighted by an operating cash flow to net income ratio of -1.49 in 2025Q4 despite a $676.8 million working capital inflow.
| Cash from Operations | 2.37B | 2.68B | 2.66B | 2.85B | 3.51B | 3.9B | 1.9B | 1.69B | 1.02B | 1.81B | 901.6M | -165.1M |
| Operating CF Margin % | 2.85% | 3.33% | 3.36% | 3.68% | 4.89% | 5.6% | 3.05% | 2.79% | 1.7% | 3.04% | 1.54% | -0.61% |
| Operating CF Growth % | -11.71% | 0.79% | -6.81% | -18.77% | -9.97% | 104.97% | 12.8% | 65.68% | -43.82% | 101.14% | 646.09% | - |
| Net Income | 217.4M | 958.6M | 1.3B | 1.51B | 1.62B | 850.2M | 466.4M | 131.1M | 46.3M | -373.3M | -502.2M | -1.23B |
| Depreciation & Amortization | 2.64B | 2.5B | 2.44B | 2.46B | 2.31B | 2.12B | 2.26B | 1.74B | 1.9B | 1.8B | 1.61B | 718.1M |
| Stock-Based Compensation | 0 | 106.2M | 104.5M | 138.3M | 101.2M | 59M | 32.8M | 47.7M | 45.9M | 53.3M | 97.8M | 344.1M |
| Deferred Taxes | -208.7M | -105.1M | -112.6M | 12.9M | 219M | -112.3M | -5.9M | -81.5M | -1.09B | -219.5M | -90.4M | -170.1M |
| Other Non-Cash Items | 108.6M | 32.1M | 91.7M | 81.8M | -57M | -96.4M | -275.1M | -324.4M | 344.7M | 296.3M | 249.2M | 207.3M |
| Working Capital Changes | -391.5M | -810.3M | -1.16B | -1.35B | -674.6M | 1.08B | -575.9M | 176.2M | -222.1M | 251.9M | -466.5M | -39.3M |
| Change in Receivables | -96.9M | -113.8M | -36.3M | -127.1M | -22.4M | 400K | 60.8M | 0 | 21.7M | 0 | 0 | 0 |
| Change in Inventory | -250.9M | -72.4M | -215.3M | -549.1M | -313.8M | 9.2M | -38.1M | 80.3M | 45.6M | 2.7M | -245M | -52.4M |
| Change in Payables | 12.8M | -170.1M | 100.5M | -164.2M | 679.5M | 787.4M | 85.3M | 0 | -158.2M | 0 | 0 | 0 |
| Cash from Investing | -1.68B | -1.89B | -1.75B | -1.98B | -1.54B | -1.57B | -378.5M | -86.8M | -469.6M | -1.08B | -811.8M | -5.95B |
| Capital Expenditures | -1.84B | -1.93B | -2.03B | -2.15B | -1.61B | -1.63B | -1.48B | -1.36B | -1.55B | -1.41B | -960M | -328.2M |
| CapEx % of Revenue | 2.21% | 2.4% | 2.56% | 2.77% | 2.23% | 2.34% | 2.36% | 2.25% | 2.58% | 2.37% | 1.63% | 1.21% |
| Acquisitions | 109.5M | 0 | 0 | 195.2M | -25.4M | -97.9M | 1.1B | 0 | 195.4M | -220.6M | -710.8M | -5.67B |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 50.5M | 39.4M | 284.6M | -18.6M | 93M | 156.1M | -100K | 1.28B | 882M | 559.3M | 859M | 56.6M |
| Cash from Financing | -782.2M | -684.1M | -1.18B | -3.37B | -789.5M | -1.04B | -2.01B | -1.31B | -1.1B | -97.8M | -635.9M | 6.93B |
| Debt Issued (Net) | 1.11B | -261.5M | -870.1M | 927.6M | -408.9M | -432.6M | -1.91B | -1.21B | -550.2M | 9.5M | -569.9M | 5.91B |
| Equity Issued (Net) | -1.48B | -82.5M | -38.8M | -44M | -29.4M | -282.1M | -18.8M | -41.1M | -17.5M | -17.4M | 0 | 0 |
| Dividends Paid | -322.7M | -295.1M | -277M | -4.24B | -322M | -159.7M | 0 | 0 | -250M | 0 | 0 | -34.5M |
| Share Repurchases | -1.48B | -82.5M | -38.8M | -44M | -29.4M | -1.88B | -18.8M | -25.8M | -17.5M | -17.4M | 0 | 0 |
| Other Financing | -87.5M | -45M | 2.5M | -11.7M | -29.2M | -167.4M | -83.5M | -60M | -280.4M | -89.9M | -66M | 1.05B |
| Net Change in Cash | -99.3M | 104.7M | -270.6M | -2.49B | 1.19B | 1.29B | -488.8M | 286.9M | -548.9M | 639.5M | -546.1M | 818.8M |
| Free Cash Flow | 527.3M | 749.4M | 628.2M | 700M | 1.91B | 2.27B | 428.8M | 325.3M | -528.2M | 398.6M | -58.4M | -493.3M |
| FCF Margin % | 0.63% | 0.93% | 0.79% | 0.9% | 2.65% | 3.26% | 0.69% | 0.54% | -0.88% | 0.67% | -0.1% | -1.81% |
| FCF Growth % | -29.64% | 19.29% | -10.26% | -63.29% | -16.08% | 429.92% | 31.82% | 161.59% | -232.51% | 782.53% | 88.16% | - |
| FCF per Share | 0.96 | 1.28 | 1.08 | 1.31 | 4.01 | 3.93 | 0.74 | 0.56 | -0.90 | 0.68 | -0.10 | -0.85 |
| FCF Conversion (FCF/Net Income) | 10.89x | 2.80x | 2.05x | 1.89x | 2.17x | 4.59x | 4.08x | 12.87x | 22.00x | -4.86x | -1.80x | 0.13x |
| Interest Paid | 0 | 444.3M | 484.2M | 395.3M | 480.3M | 574.3M | 718.5M | 805.9M | 813.5M | 924.2M | 964.3M | 581.4M |
| Taxes Paid | 0 | 168.4M | 405.4M | 220.9M | 240.9M | 366.2M | 228.8M | 18.2M | 15.8M | 129.2M | 78.3M | 21.5M |
Regulatory Merger Blockage Risk
As reported in recent financial filings, ACI's operating cash flow to net income ratio reached -1.49 in 2025Q4, highlighting a significant disconnect between accounting losses and cash generation that warrants careful scrutiny by investors evaluating the company's underlying ability to fund operations through internal cash flows.
The stark divergence between net income and operating cash flow suggests that non-cash charges and working capital fluctuations are heavily distorting the reported bottom line. Investors should monitor whether this negative conversion ratio is a temporary artifact of accounting adjustments or a structural indicator of deteriorating earnings quality.
Based on the provided cash flow data, ACI's free cash flow margin has fluctuated significantly, reaching a low of -0.4% in 2023Q3 and a high of 6.2% in 2025Q3, which suggests that the company's ability to retain cash after capital expenditures remains highly sensitive to operational cycles.
The inconsistency in free cash flow generation implies that ACI struggles to maintain a predictable cash surplus, likely due to the capital-intensive nature of its store fleet and pharmacy operations. This volatility complicates the assessment of the company's long-term capacity to sustain dividends and debt reduction without external financing.
According to recent SEC filings, ACI's capital expenditure as a percentage of revenue has remained relatively consistent, averaging approximately 2.4% over the last ten quarters, which indicates a sustained commitment to maintaining its physical store footprint despite the ongoing pressures on operating margins.
The persistent level of capital intensity suggests that ACI must continue to reinvest heavily in its legacy infrastructure to remain competitive against more digitally agile peers. This ongoing requirement for capital expenditure may limit the company's financial flexibility, particularly if revenue growth fails to outpace the rising costs of store modernization.
As reported in financial statements, ACI experienced a substantial working capital inflow of $676.8 million in 2025Q4, a sharp reversal from the $866.0 million outflow observed in 2025Q3, which suggests that the company's cash position is highly susceptible to timing differences in inventory and payables management.
The erratic nature of these working capital swings indicates that ACI's cash flow is frequently impacted by seasonal inventory builds and the timing of vendor payments. Such fluctuations may mask the true underlying cash-generative capacity of the business and require investors to look at multi-quarter averages to gauge operational health.
Based on reported figures, ACI has continued to prioritize shareholder returns through dividends and buybacks, with $76.0 million in dividends and $128.5 million in share repurchases in 2025Q4, even as the company navigates a period of significant net income volatility and strategic uncertainty.
The decision to maintain these capital returns while facing thin operating margins and potential regulatory hurdles appears aggressive. Investors should monitor whether this allocation strategy remains sustainable if the proposed merger with Kroger faces further delays or if the company's cash flow profile continues to exhibit such pronounced instability.
Quick answers to the most common questions about buying ACI stock.
Albertsons Companies, Inc. (ACI) generated $2.37B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Albertsons Companies, Inc. (ACI) generated $527.3M 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.
Albertsons Companies, Inc. (ACI) spent $1.84B 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, Albertsons Companies, Inc. (ACI) returned $322.7M to shareholders via cash dividends and spent $1.48B on share repurchases. This shows the company's commitment to returning capital to its equity investors.