Operating cash flow turned negative at -$71.1M in 2026Q2 despite $182.1M net income, driven by -$264.3M working capital swings, while buybacks persisted at $168.7M, underscoring cash generation challenges.
AutoNation, Inc. (AN) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 293.3M | 111.9M | 314.7M | 724M | 1.67B | 1.63B | 1.21B | 769.2M | 511M | 540.1M | 516M | 507.2M | 485.1M | 484.1M | 316.6M | 376.4M | 251.8M | 369.3M | 684.1M | 207.2M | 302.7M | 579.6M | 562M | 481.3M | 619.1M | 540.1M | 204.4M | -227.7M | 395M | -719.2M | -305.6M |
| Operating CF Margin % | - | 0.4% | 1.18% | 2.69% | 6.18% | 6.3% | 5.92% | 3.61% | 2.39% | 2.51% | 2.39% | 2.43% | 2.54% | 2.76% | 2.02% | 2.72% | 2.02% | 3.43% | 4.84% | 1.17% | 1.59% | 3.01% | 2.89% | 2.48% | 3.18% | 2.7% | 0.99% | -1.13% | 2.45% | -11.75% | -12.92% |
| Operating CF Growth % | 576.62% | -64.44% | -56.53% | -56.6% | 2.48% | 34.79% | 56.99% | 50.53% | -5.39% | 4.67% | 1.74% | 4.56% | 0.21% | 52.91% | -15.89% | 49.48% | -31.82% | -46.02% | 230.16% | -31.55% | -47.77% | 3.13% | 16.77% | -22.26% | 14.63% | 164.24% | 189.77% | -157.65% | 154.92% | -135.34% | -181.34% |
| Net Income | 774.7M | 649.1M | 692.2M | 1.02B | 1.38B | 1.37B | 381.6M | 450M | 396M | 434.6M | 430.5M | 442.6M | 418.7M | 374.9M | 316.4M | 281.4M | 226.6M | 233.1M | -1.21B | 288.7M | 316.9M | 496.5M | 433.6M | 479.2M | 381.6M | 232.3M | 329.9M | 282.9M | 487.9M | 209.7M | 24.9M |
| Depreciation & Amortization | 62.3M | 251.4M | 240.7M | 220.5M | 200.3M | 193.3M | 198.9M | 180.5M | 166.2M | 158.6M | 143.4M | 127.4M | 106.9M | 95.3M | 87.3M | 83.7M | 76.8M | 76.7M | 90.8M | 91.7M | 82.9M | 84.6M | 85.8M | 73.6M | 72.9M | 154.8M | 135.6M | 123.3M | 79.7M | 38.8M | 800.6M |
| Stock-Based Compensation | 3.6M | 46.5M | 36.5M | 39.7M | 31.5M | 35M | 30.2M | 31.1M | 25.5M | 20.6M | 25.1M | 24M | 26.3M | 21.3M | 18.6M | 18.4M | 15.9M | 13.5M | 21M | 15.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 42.4M | 11.2M | -1.4M | 20.1M | 1.3M | -17.4M | -38.9M | 45.8M | 14.5M | -19M | 3.7M | 10M | 9.5M | 9.9M | 26.8M | 31.1M | 12.8M | 59.2M | -267.3M | 10.6M | 17.4M | 32.5M | 0 | 0 | 26.9M | -46.1M | 91.3M | -127.2M | 12.2M | 75.9M | 0 |
| Other Non-Cash Items | -17.1M | 265.1M | 18.2M | 21.9M | 52.8M | -34.2M | 245M | -59.6M | -37.9M | -70.1M | -54.5M | -14.1M | -26.6M | -14.1M | -4.4M | -15.8M | 24.2M | -3.3M | 1.73B | 15.2M | 52.2M | -95.2M | 101.8M | 89M | 65.3M | 76.6M | -275.7M | -596M | 167.1M | -381.5M | -1.17B |
| Working Capital Changes | -679.9M | -1.11B | -671.5M | -599.3M | 4.8M | 78M | 390.8M | 121.4M | -53.3M | 15.4M | -32.2M | -82.7M | -49.7M | -3.2M | -128.1M | -22.4M | -104.5M | -9.9M | 326.7M | -214.3M | -166.7M | 61.2M | -59.2M | -160.5M | 72.4M | 122.5M | -76.7M | 89.3M | -351.9M | -662.1M | 43M |
| Change in Receivables | -456.4M | -1.07B | -903M | -408.1M | -129.2M | 114.9M | 70M | 56.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -127.4M | 0 | 0 | 303.4M | 78.4M | -30.4M | 0 | -10.8M | -10.1M | 18.2M | 74.9M | -86.9M | -79.5M | -400.4M | -125.5M | -94.5M |
| Change in Inventory | -179.6M | 14M | -398.5M | -950.1M | -175.5M | 800.4M | 703.6M | 296M | 0 | 39.3M | 259.1M | 0 | 0 | 0 | 0 | 70.1M | 0 | 0 | 345.7M | 700K | 259.3M | 0 | 217.1M | -388.3M | -366.1M | 544.7M | -37.2M | -380.8M | 66.5M | -207.6M | -21.4M |
| Change in Payables | 196.7M | -4M | 521.1M | 821.5M | 392.2M | -1B | -531.6M | -258.2M | 0 | -63.9M | -202.2M | 525.7M | -19.7M | 400.9M | 0 | 19M | 364.4M | 0 | -68.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -904.4M | -687M | 12.3M | -569.9M | -479.3M | -460.3M | -73.7M | -115.8M | -295.3M | -227M | -493M | -509.4M | -376M | -257.8M | -297.8M | -206.2M | -200.2M | 14M | -75.1M | -90.5M | -308.6M | -41.8M | -330M | -73.6M | -245.2M | -43.5M | 28.5M | 825.6M | 298.7M | 417.9M | -531.3M |
| Capital Expenditures | -281.2M | -309.4M | -328.5M | -410.3M | -329M | -215.7M | -156M | -269.3M | -400.8M | -313.4M | -249.5M | -257.8M | -209.6M | -202.7M | -177.4M | -162.9M | -161.8M | -75.4M | -110.4M | -157.9M | -175.6M | -140.9M | -132.9M | -122.4M | -162.9M | -163.6M | -138.7M | -242.3M | -971.4M | -294.6M | -157.4M |
| CapEx % of Revenue | 1.02% | 1.12% | 1.23% | 1.52% | 1.22% | 0.83% | 0.77% | 1.26% | 1.87% | 1.46% | 1.15% | 1.24% | 1.1% | 1.16% | 1.13% | 1.18% | 1.3% | 0.7% | 0.78% | 0.89% | 0.92% | 0.73% | 0.68% | 0.63% | 0.84% | 0.82% | 0.67% | 1.2% | 6.03% | 4.81% | 6.65% |
| Acquisitions | -357.6M | -443M | 156M | -240.3M | -136.4M | -384M | 8.6M | 110.9M | 106M | 27.8M | -260M | -277.6M | -163.8M | -77.8M | -134.8M | -59.3M | -60.1M | 65.7M | 17.4M | 48.4M | -142.7M | 39.1M | -195M | -48.8M | -166.5M | -92M | -313.3M | -914M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -253.9M | 65.4M | 88.8M | 79.3M | -3.7M | 35.5M | 18.3M | 42.6M | 49.5M | 58.6M | 16.5M | 26M | -3.1M | 22.7M | 14M | 16M | 20.4M | 18.6M | 6.9M | 9.9M | 2.8M | 70.5M | -6.9M | 45.1M | -75.7M | 366.6M | 389.6M | 1.95B | 1.37B | 610.2M | -416.2M |
| Cash from Financing | 646.1M | 557.5M | -300.6M | -172.5M | -1.15B | -1.68B | -606.7M | -660.3M | -237.4M | -307.4M | -35.6M | 900K | -102.9M | -226.8M | -35.7M | -178.7M | -130M | -319.9M | -532.3M | -136.4M | -188.1M | -403.1M | -300.5M | -415.7M | -327M | -453.1M | -386.5M | -1.09B | -49M | 85.8M | 823.8M |
| Debt Issued (Net) | 1.22B | 1.38B | 179.8M | 734M | 580.5M | 613.2M | -273.1M | -625.3M | -150M | 102.4M | 469.6M | 196.7M | 337.7M | -185.9M | 505.3M | 313.3M | 352.8M | -41M | -462.8M | 395.3M | 1.11B | -278.1M | -13.8M | 170.4M | -4M | -205.3M | -251M | 41.2M | 54.8M | -475.2M | 385.7M |
| Equity Issued (Net) | -577.6M | -790.9M | -460M | -874.4M | -1.7B | -2.32B | -367.2M | -44.7M | -100M | -434.9M | -512.2M | -237.3M | -487.7M | -67.3M | -575.6M | -579.8M | -524.4M | -136.1M | -58.8M | -644.2M | -1.3B | -124.3M | -142.6M | -457.1M | -311.2M | -256.8M | -188.9M | -1.16B | -136M | 552.7M | 550.9M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -577.7M | -791.6M | -460M | -874.4M | -1.7B | -2.32B | -367.2M | -44.7M | -100M | -434.9M | -512.2M | -237.3M | -487.7M | -67.3M | -575.6M | -579.8M | -524.4M | -136.1M | -58.8M | -644.2M | -1.38B | -237.1M | -236.8M | -575.2M | -389.9M | -256.8M | -188.9M | -1.16B | -136M | 0 | 0 |
| Other Financing | 3.6M | -35.8M | -20.4M | -32.1M | -35M | 28.5M | 33.6M | 9.7M | 12.6M | 25.1M | 7M | 41.5M | 47.1M | 26.4M | 34.6M | 87.8M | 41.6M | -142.8M | -10.7M | 112.5M | 9.8M | -700K | -144.1M | -129M | -11.8M | 9M | 53.4M | 29M | 32.2M | 8.3M | -112.8M |
| Net Change in Cash | 35M | -17.6M | 26.4M | -18.4M | 34.8M | -509.1M | 527.2M | -6.9M | -21.7M | 5.7M | -12.6M | -1.3M | 6.2M | -500K | -16.9M | -8.5M | -78.4M | 63.4M | 76.8M | -19.7M | -194M | 134.6M | -68.5M | -8M | 46.9M | 43.5M | -153.6M | -489.9M | 644.7M | -215.5M | -357.8M |
| Free Cash Flow | 12.1M | -197.5M | -13.8M | 313.7M | 1.34B | 1.41B | 1.05B | 499.9M | 110.2M | 226.7M | 266.5M | 249.4M | 275.5M | 281.4M | 139.2M | 213.5M | 90M | 293.9M | 573.7M | 47.5M | 127.1M | 438.7M | 429.1M | 358.9M | 456.2M | 376.5M | 65.7M | -470M | -576.4M | -1.01B | -463M |
| FCF Margin % | 0.04% | -0.71% | -0.05% | 1.16% | 4.96% | 5.46% | 5.16% | 2.34% | 0.51% | 1.05% | 1.23% | 1.2% | 1.44% | 1.61% | 0.89% | 1.54% | 0.72% | 2.73% | 4.06% | 0.27% | 0.67% | 2.28% | 2.21% | 1.85% | 2.34% | 1.88% | 0.32% | -2.34% | -3.58% | -16.56% | -19.57% |
| FCF Growth % | 102.68% | -1331.16% | -104.4% | -76.57% | -5.16% | 34.27% | 110.36% | 353.63% | -51.39% | -14.93% | 6.86% | -9.47% | -2.1% | 102.16% | -34.8% | 137.22% | -69.38% | -48.77% | 1107.79% | -62.63% | -71.03% | 2.24% | 19.56% | -21.33% | 21.17% | 473.06% | 113.98% | 18.46% | 43.14% | -118.96% | 61% |
| FCF per Share | 0.36 | -5.18 | -0.34 | 6.99 | 23.62 | 18.83 | 11.86 | 5.52 | 1.21 | 2.31 | 2.57 | 2.19 | 2.32 | 2.28 | 1.11 | 1.45 | 0.57 | 1.67 | 3.23 | 0.24 | 0.55 | 1.64 | 1.57 | 1.25 | 1.42 | 1.12 | 0.18 | -1.09 | -1.22 | -2.35 | -1.38 |
| FCF Conversion (FCF/Net Income) | 0.02x | 0.17x | 0.45x | 0.71x | 1.21x | 1.19x | 3.16x | 1.71x | 1.29x | 1.24x | 1.20x | 1.15x | 1.16x | 1.29x | 1.00x | 1.34x | 1.11x | 1.87x | -0.55x | 0.74x | 0.96x | 1.17x | 1.30x | 1.00x | 1.62x | 2.33x | 0.62x | -0.80x | 0.79x | -1.64x | 45.61x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying AN stock.
AutoNation, Inc. (AN) generated $111.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
AutoNation, Inc. (AN) reported negative free cash flow of $197.5M in 2025, indicating capital requirements exceeded cash from operations.
AutoNation, Inc. (AN) spent $309.4M 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, AutoNation, Inc. (AN) spent $791.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Working capital swings and leverage
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Working Capital
AutoNation's operating cash flow turned negative at -$71.1M in 2026Q2 despite $182.1M net income, per reported figures, as working capital swings of -$264.3M overwhelmed accrual-based earnings.
The OCF/NI ratio of -0.39 in 2026Q2, compared to 0.87 in 2025Q4, indicates that earnings are not being converted to cash, likely due to inventory build-up and receivable timing. This suggests that reported profitability may overstate the company's near-term cash generation capacity, warranting close monitoring of working capital efficiency.
Free Cash Flow Turns Negative
Free cash flow deteriorated to -$140.7M in 2026Q2 from +$64.2M in 2025Q4, as per financial statements, with FCF margin falling to -2.0% from 0.9%, reflecting a sharp reversal in cash generation.
The negative FCF in 2026Q2, driven by weak operating cash flow and sustained capex, suggests that the company is not generating sufficient cash to cover its investment needs. This trend, if sustained, could pressure the company's ability to fund shareholder returns and service debt, especially given the elevated leverage ratio.
Capital Intensity Remains Elevated
Capital expenditures averaged $75M per quarter over the last five quarters, with capex/revenue around 1.0-1.4%, as reported, indicating a stable but high level of investment relative to sales.
The consistent capex levels suggest that AutoNation is investing in both maintenance and growth, likely for new dealerships and technology. However, with FCF turning negative, the company may be relying on external financing to fund these investments, which could increase financial risk if cash flows do not recover.
Working Capital Swings Drive Volatility
Working capital changes were -$264.3M in 2026Q2, following -$155.7M in 2026Q1, per recent filings, indicating significant cash outflows from inventory and receivables that are pressuring operating cash flow.
The persistent negative working capital changes, particularly in 2025Q2 (-$468.3M) and 2026Q2 (-$264.3M), suggest that AutoNation is building inventory or extending credit, possibly in anticipation of demand or due to supply chain factors. This pattern may indicate a deliberate strategy to maintain inventory levels, but it also highlights the cyclicality of cash flows in the auto retail sector.
Buybacks Persist Despite Cash Strain
Share repurchases totaled $168.7M in 2026Q2 and $301.0M in 2026Q1, as per cash flow statements, even as operating cash flow turned negative, indicating a continued commitment to returning capital to shareholders.
The aggressive buyback program, combined with negative FCF, suggests that AutoNation is financing shareholder returns through debt or existing cash reserves. This strategy may be sustainable in the short term but could become problematic if cash generation does not improve, especially given the high debt-to-equity ratio of 4.35.
Cumulative Earnings Outpace Cash
Over the last ten quarters, cumulative net income reached $1.73B while operating cash flow totaled only $0.48B, based on reported data, revealing a significant gap between accrual earnings and cash generation.
The cumulative divergence of $1.25B between net income and operating cash flow suggests that a substantial portion of earnings has not been converted to cash, likely due to working capital build-up and other non-cash adjustments. This raises questions about the quality of earnings and the sustainability of dividends or buybacks funded by debt rather than operating cash flow.
What the Cash Flow Statement Obscures
Stock-based compensation added $8.7M in 2026Q2, per reported figures, but the larger concern is that negative working capital changes may reflect strategic inventory builds rather than operational deterioration, obscuring underlying cash generation.
The cash flow statement shows significant outflows from working capital, but these may be influenced by timing of inventory purchases and OEM incentives, which are not fully transparent. Additionally, the company's aggressive buybacks and acquisitions, such as the $329.2M net acquisition outflow in 2026Q2, may mask the true cost of growth initiatives. Investors should monitor whether these cash outflows are generating returns or simply consuming capital.