Capital intensity remains a significant drag on performance, evidenced by capital expenditures reaching 40.3% of revenue in 2025Q4, which frequently obscures the company's true operational cash conversion.
| 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 | 117.78M | 113.65M | 122.89M | 84.84M | 159.23M | 73.22M | 63.04M | 64.03M | 124.8M | 82.85M | 102.43M | 85.48M | 73.74M | 40.45M | 55.1M | 32.06M | 70.84M | 30.9M | 40.31M | 33.72M | 60.66M | 25.57M | 44.11M | 47.72M | 67.17M | 73.76M | 48.66M | 44.48M | 39.9M | 45.25M | 39.13M |
| Operating CF Margin % | - | 9.76% | 10.86% | 7.69% | 13.09% | 7% | 7.52% | 7.23% | 14.09% | 11.75% | 15.27% | 11.8% | 10.26% | 5.91% | 8.17% | 4.91% | 10.9% | 5.25% | 5.21% | 4.73% | 8.87% | 3.98% | 7.31% | 8.19% | 11.9% | 13.48% | 8.81% | 9.41% | 10.77% | 15.19% | 16.56% |
| Operating CF Growth % | 3.67% | -7.52% | 44.85% | -46.72% | 117.47% | 16.15% | -1.55% | -48.69% | 50.63% | -19.11% | 19.83% | 15.91% | 82.33% | -26.6% | 71.86% | -54.74% | 129.27% | -23.35% | 19.53% | -44.41% | 137.22% | -42.03% | -7.55% | -28.96% | -8.94% | 51.59% | 9.39% | 11.48% | -11.81% | 15.64% | 329.95% |
| Net Income | 5.1M | 7.24M | 35.92M | 54.63M | 108.68M | 60.73M | -42.72M | 8.48M | 42.5M | 55.44M | 16.84M | 42.09M | 17.81M | 5.24M | 6.07M | -14.27M | 3.29M | -25.03M | -53.39M | -16.73M | -1.38M | 5.19M | 3.38M | 11.29M | 9.16M | -6.66M | 11.88M | 22.28M | 18.28M | 13.7M | 8.98M |
| Depreciation & Amortization | 94.91M | 92.73M | 86.53M | 69.94M | 57.51M | 53.88M | 65.48M | 80.53M | 75.86M | 72.42M | 71.65M | 62.01M | 49.04M | 44.46M | 48.13M | 53M | 56.1M | 47.99M | 85.96M | 51.8M | 43.23M | 39.77M | -45M | -43.04M | -49.5M | -56.32M | 39.18M | 35.66M | 32.07M | 27.36M | 22.78M |
| Stock-Based Compensation | 3.49M | 3.57M | 3.69M | 7.1M | 6.59M | 9.06M | 2.27M | 819K | 5.18M | 1.2M | 1.38M | 1.5M | 1.39M | 381K | 1.28M | 1.23M | 1.12M | 695K | -55K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 5.86M | 2.78M | 3.29M | 16.48M | 13.44M | 18.08M | -14.93M | 3.35M | 13.8M | -22.57M | 186K | 20.7M | 13.85M | 8.33M | 6.74M | -2.59M | 17.42M | -8.66M | -2.46M | 4.41M | 3.66M | -6.25M | -12.06M | -9.61M | -1.54M | -5.67M | 6.18M | 9.14M | 4.15M | 4.35M | 4.05M |
| Other Non-Cash Items | 6.65M | 5.98M | -9.47M | -23.84M | -50.49M | -15.77M | 60.13M | -8.21M | -5.02M | 3.1M | -877K | -3.92M | -8.88M | -2.79M | -9.19M | 5.05M | -2.8M | 14.17M | 4.06M | -328K | 829K | 1.47M | 86.46M | 87.8M | 95.7M | 112.43M | -121K | 64K | -7 | -199.04K | 1.09M |
| Working Capital Changes | 1.77M | 1.35M | 2.93M | -39.46M | 23.49M | -52.77M | -7.19M | -20.93M | -7.51M | -26.74M | 13.26M | -36.9M | 542K | -15.18M | 2.08M | -10.36M | -4.29M | 1.74M | 6.19M | -7.46M | 16.39M | -14.6M | 7.04M | 1.27M | 8.08M | 28.91M | -8.45M | -22.65M | -13.17M | 449.11K | 2.46M |
| Change in Receivables | -10.53M | -9.71M | 2.75M | -22.42M | 39.47M | -36.54M | -60.85M | -6.71M | -27.2M | -23.67M | 21.21M | -28.12M | -17M | -4.31M | -10.41M | 0 | 0 | 0 | 0 | -7.63M | 14.45M | -4.84M | -9.45M | -4.19M | -1.32M | 16.61M | -3.96M | -11.97M | -12.55M | -2.58M | 3.01M |
| Change in Inventory | -1.66M | -678K | -800K | -317K | -193K | -204K | 1.09M | -143K | 168K | -252K | 24K | 398K | 316K | -168K | 61K | -130K | -477K | -110K | 286K | 865K | -283K | -1.08M | 46.64M | -356K | 245K | -522K | 97K | -750K | -617K | -156K | -79K |
| Change in Payables | 20.35M | 9.32M | -4.41M | -9.19M | -6.22M | 16.34M | 19.83M | -15.51M | 19.23M | -3.42M | -5.12M | -10.56M | 5.56M | -6.29M | 3.82M | 0 | 0 | 0 | 0 | 400K | 2.19M | 278K | -6.83M | 1.34M | 11.78M | 10.74M | -228K | -6.61M | 1.07M | 2.79M | 1.71M |
| Cash from Investing | -91.76M | -140.06M | -107.67M | -235.92M | -86.21M | 10.34M | 138.05M | -93.03M | -120.9M | -62.05M | -47.29M | -147.68M | -84.6M | -84.4M | 13.15M | -50.74M | -82.27M | -63.01M | -62.65M | -11.11M | -100.61M | -43.93M | -32.44M | -25.88M | -56.35M | -31.32M | -41.22M | -80.83M | -59.06M | -27.6M | -38.92M |
| Capital Expenditures | 22.05M | -147.57M | -152.96M | -217.61M | -100.47M | -35.28M | -94.05M | -138.27M | -75.14M | -110.8M | -112.79M | -181.96M | -163.68M | -135.9M | -41.79M | -114.8M | -137.35M | -113.06M | -89.02M | -64.26M | -162.75M | -109.92M | -81.61M | -94.36M | -70.72M | -55.47M | -71.43M | -101.65M | -80.52M | -55.28M | -49.14M |
| CapEx % of Revenue | 1.83% | 12.67% | 13.52% | 19.72% | 8.26% | 3.37% | 11.22% | 15.62% | 8.49% | 15.72% | 16.82% | 25.12% | 22.77% | 19.85% | 6.2% | 17.59% | 21.14% | 19.21% | 11.5% | 9.02% | 23.8% | 17.09% | 13.52% | 16.2% | 12.53% | 10.14% | 12.93% | 21.5% | 21.73% | 18.56% | 20.8% |
| Acquisitions | -27.05M | 8.46M | 45.88M | -107.93M | -38.5M | -13K | 108.38M | 0 | -105.95M | 48.75M | 65.51M | 0 | 307K | -435K | -2.58M | -1.5M | 0 | -250K | 0 | -333K | -39.14M | 0 | 0 | 0 | 0 | -564K | -7.66M | -25.81M | -6.29M | -4.35M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -86.76M | -956K | -597K | 91.82M | 53M | 44.15M | 120.84M | 46.61M | 61.69M | 48.75M | 65.51M | 34.29M | 78.78M | 51.93M | 57.52M | 65.56M | 55.08M | 50.3M | 26.38M | 53.49M | 101.28M | 65.99M | 49.18M | 68.49M | 14.37M | 24.7M | -5.31M | 46.63M | 27.76M | 32.02M | 10.22M |
| Cash from Financing | -26.02M | -4.26M | 18.11M | 84.71M | -12.77M | -83.56M | -236.27M | 49.46M | 3.87M | -13.19M | -51.88M | 45.36M | 22.92M | 46.37M | -65.3M | 13.21M | 8.57M | 38.03M | 24.14M | -23.52M | 41.74M | 16.91M | -9.92M | -18.58M | -11.16M | -44.34M | -6.2M | 34.46M | 19.47M | -18.52M | 2.83M |
| Debt Issued (Net) | 19.61M | 45.8M | 30.04M | 129.66M | 77.46M | -71.88M | -218.49M | 50.57M | 4.12M | -12.25M | -50.66M | 51.78M | -40.62M | 47.18M | -65.27M | 13.6M | 7.69M | 29.83M | 24.14M | -22.82M | 41.7M | 28.11M | -9.48M | -21.88M | -15.04M | -45.52M | -5.51M | 31M | -8.09M | -18.7M | 2.96M |
| Equity Issued (Net) | -910K | -36.17M | 0 | -25.43M | -84.72M | -10.35M | -17.49M | 0 | 0 | 0 | 0 | -4.99M | 62.98M | 0 | 0 | 0 | 0 | -115K | 0 | 0 | 246K | -11.21M | -29K | 3.62M | 3.88M | 1.27M | 30K | 0 | 27.48M | 200K | 0 |
| Dividends Paid | -7.06M | -7.16M | -5.8M | -5.78M | -4.29M | 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 | -1.01M | -36.57M | 0 | -25.43M | -84.72M | -10.35M | -17.49M | 0 | -242K | -785K | -1.14M | -4.99M | 0 | -340K | -9K | 0 | 0 | -115K | 0 | 0 | 0 | -11.66M | -1.99M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -37.66M | -6.73M | -6.14M | -13.74M | -1.22M | -1.33M | -297K | -1.11M | -252K | -945K | -1.22M | -1.43M | 551K | -807K | -35K | -386K | 881K | 8.32M | 0 | -697K | -209K | 6K | -404K | -315K | 0 | -95K | -717K | 3.46M | 80.25K | -22.91K | -132.22K |
| Net Change in Cash | 6K | -30.67M | 33.33M | -66.37M | 60.25M | 5K | -35.18M | 20.46M | 7.77M | 7.61M | 3.26M | -16.84M | 12.07M | 2.42M | 2.95M | -5.47M | -2.86M | 5.92M | 1.8M | -907K | 1.79M | -1.45M | 1.76M | 3.26M | -341K | -1.9M | 1.24M | -1.88M | 316.62K | -882.02K | 3.03M |
| Free Cash Flow | 139.84M | -33.92M | -30.07M | -132.77M | 58.76M | 37.93M | -31.01M | -74.24M | 49.66M | -27.95M | -10.36M | -96.49M | -89.94M | -95.45M | 13.31M | -82.74M | -66.51M | -82.17M | -48.72M | -30.54M | -102.09M | -84.34M | -37.5M | -46.65M | -3.55M | 18.3M | -22.77M | -57.17M | -40.62M | -10.03M | -10.02M |
| FCF Margin % | 11.63% | -2.91% | -2.66% | -12.03% | 4.83% | 3.63% | -3.7% | -8.39% | 5.61% | -3.96% | -1.55% | -13.32% | -12.51% | -13.94% | 1.97% | -12.68% | -10.24% | -13.96% | -6.29% | -4.29% | -14.93% | -13.12% | -6.21% | -8.01% | -0.63% | 3.35% | -4.12% | -12.09% | -10.96% | -3.37% | -4.24% |
| FCF Growth % | 1265.01% | -12.81% | 77.35% | -325.94% | 54.91% | 222.33% | 58.23% | -249.51% | 277.67% | -169.67% | 89.26% | -7.28% | 5.78% | -816.92% | 116.09% | -24.4% | 19.06% | -68.66% | -59.52% | 70.08% | -21.03% | -124.91% | 19.6% | -1212.86% | -119.42% | 180.37% | 60.18% | -40.74% | -304.9% | -0.15% | 84.18% |
| FCF per Share | 5.29 | -1.36 | -1.08 | -4.80 | 1.89 | 1.11 | -0.89 | -1.99 | 1.34 | -0.76 | -0.28 | -2.63 | -2.90 | -3.17 | 0.45 | -2.82 | -2.29 | -2.91 | -1.74 | -1.09 | -3.65 | -2.96 | -1.26 | -1.59 | -0.12 | 0.65 | -0.78 | -1.90 | -1.41 | -0.38 | -0.38 |
| FCF Conversion (FCF/Net Income) | 27.44x | 15.70x | 3.42x | 1.54x | 1.47x | 1.21x | -1.48x | 7.55x | 2.94x | 1.49x | 6.08x | 2.03x | 4.14x | 7.71x | 9.09x | -2.25x | 21.54x | -1.23x | -0.75x | -2.02x | -43.93x | 4.93x | 13.07x | 3.93x | 8.12x | -11.07x | 4.10x | 2.00x | 2.18x | 3.30x | 4.36x |
| Interest Paid | 3.15M | 13.14M | 5.67M | 5.32M | 3.31M | 2.76M | 7.37M | 11.03M | 0 | 0 | 8.45M | -8.37M | 10.92M | 10.33M | 12.97M | 16.24M | 16.71M | 13.02M | 9.3M | 11.97M | 7.49M | 4.25M | 3.03M | 2.33M | 4.02M | 7.88M | 10.41M | 5.82M | 6.02M | 6.15M | 5.91M |
| Taxes Paid | 0 | 4.67M | 7.27M | 4.19M | 16.65M | 10.24M | 870K | 752K | 0 | 0 | 6.41M | 8.11M | 571K | 320K | 342K | 295K | 7.93M | 239K | 12.48M | 11.29M | 1.49M | 16.26M | 20.87M | 22.8M | 12.39M | 967K | 2.65M | 12.11M | 5.67M | 2.93M | 795K |
High capital intensity requirements
As reported in financial statements, CVLG's operating cash flow consistently exceeds net income, with OCF/NI ratios frequently surpassing 3.0x, which suggests that non-cash charges like depreciation are significantly inflating the reported cash generation relative to the company's actual bottom-line profitability and earnings quality.
The persistent gap between net income and operating cash flow indicates that the company's reported earnings are heavily influenced by non-cash accounting items rather than pure operational efficiency. Investors should monitor this divergence, as it implies that the company's ability to generate actual cash is structurally lower than headline income figures might suggest.
Based on recent SEC filings, CVLG's free cash flow trajectory remains highly erratic, with margins swinging from a negative 26.9% in 2023Q4 to a positive 5.7% in 2026Q1, highlighting the company's struggle to maintain consistent cash generation amidst fluctuating freight demand and heavy equipment investment cycles.
The inability to sustain positive free cash flow suggests that the company is frequently forced to reinvest the majority of its operating cash back into the business just to maintain its fleet. This pattern warrants further investigation into whether the current capital expenditure levels are truly growth-oriented or merely necessary to offset rapid asset depreciation.
According to quarterly data, CVLG's capital expenditure as a percentage of revenue has reached as high as 40.3% in 2025Q4, indicating that the company's asset-heavy model requires massive, recurring capital outlays that frequently overwhelm the cash generated from core logistics operations.
The high capital intensity appears to be a structural burden that limits the company's financial flexibility. Because the business relies on a modern tractor fleet to maintain its expedited service niche, management may have little discretion over these expenditures, effectively tethering cash flow to the ongoing need for fleet renewal.
As observed in historical cash flow statements, CVLG experiences significant quarterly volatility in working capital, with changes ranging from a $22.9M inflow in 2024Q3 to a $20.9M outflow in 2024Q2, suggesting that the company's cash position is highly sensitive to the timing of collections and payables.
These fluctuations may indicate challenges in managing the cash conversion cycle, particularly during periods of shifting freight volumes. Investors should monitor whether these working capital swings are indicative of broader operational inefficiencies in managing receivables or if they are merely a byproduct of the company's cyclical business model.
Based on reported figures, the company's cash flow statement often obscures underlying operational performance through the inclusion of asset-related adjustments, which may periodically inflate cash flow metrics and mask the true, lower-margin reality of the core expedited and dedicated freight services.
The reliance on gains from equipment sales to bolster cash flow suggests that the core business may not be generating sufficient organic cash to support its operations. This practice warrants further investigation, as it may be hiding a structural decline in the profitability of the company's primary logistics segments.
Quick answers to the most common questions about buying CVLG stock.
Covenant Logistics Group, Inc. (CVLG) generated $113.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Covenant Logistics Group, Inc. (CVLG) reported negative free cash flow of $33.9M in 2025, indicating capital requirements exceeded cash from operations.
Covenant Logistics Group, Inc. (CVLG) spent $147.6M 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, Covenant Logistics Group, Inc. (CVLG) returned $7.2M to shareholders via cash dividends and spent $36.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.