Free cash flow was negative -$44.7M in the latest quarter as capital expenditures of $33.8M (10.2% of revenue) outpaced operating cash generation, highlighting a heavy investment phase that is consuming available liquidity.
Covenant Logistics Group, Inc. (CVLG) 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 | 85.02M | 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 % | -143.67% | -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 | 3.79M | 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 | 94.61M | 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 | 2.8M | 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 | 8.02M | 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 | 2.21M | 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 | -26.41M | 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 | -11.85M | -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 | -1.32M | -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 | -9.41M | 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 | -87.32M | -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 | 24.69M | -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 | 2% | 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 | -84.38M | -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 | 4.77M | -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) | 21.23M | 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) | -473K | -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 | -7.04M | -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 | -8.95M | -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 | 2.47M | -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 | 109.71M | -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 % | 8.9% | -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 % | 6761.41% | -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 | 4.14 | -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) | 28.94x | 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 | 0 | 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 | 112K | 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 |
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.
Key Metrics
Top Statement Risk
Cash flow volatility from capex swings
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Cash Flow Volatility
The relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -1.27 to 6.55 over the last two quarters, suggesting significant non-cash items and working capital distortions are obscuring underlying cash generation.
The wide dispersion in the OCF/NI ratio indicates that reported net income is a poor proxy for actual cash generation in any given period. For instance, in 2026Q2, a $8.5M net loss was accompanied by a $10.9M operating cash outflow, while in 2026Q1, a $4.4M profit generated $29.0M in cash. This volatility, driven by large swings in working capital and depreciation, warrants caution when assessing the sustainability of earnings.
FCF Negative Amid Heavy Investment Cycle
Free cash flow has been negative in six of the last ten quarters, with the latest quarter showing a -$44.7M deficit, as capital expenditures consistently outpace operating cash generation, indicating a heavy investment phase that is consuming all available cash.
The FCF margin has been predominantly negative, averaging approximately -3.5% over the last ten quarters, which contrasts sharply with the company's reported net income. This persistent negative FCF trajectory suggests the business is in a capital-intensive growth or renewal phase, requiring external financing or balance sheet drawdowns to fund operations and investments. The trend is inconsistent with a mature, cash-generative business model.
Capital Intensity Surges, Raising ROI Questions
Capital expenditures have surged to 10.2% of revenue in 2026Q2, up from 3.7% in 2026Q1, and have averaged over 15% of revenue across the last ten quarters, indicating a significant and potentially unsustainable level of investment relative to the company's scale.
The CapEx/Rev ratio is highly volatile, spiking to 40.3% in 2025Q4 and remaining elevated, which suggests large, lumpy investments rather than steady maintenance spending. This level of capital intensity, especially when compared to peers like Schneider (SNDR) which operates with a lower capital burden, raises questions about the return on invested capital and whether these expenditures are generating commensurate revenue growth or are primarily for fleet replacement in a challenging market.
Working Capital Swings Drive Cash Flow Instability
Working capital changes have been a major source of cash flow volatility, with a -$37.6M drag in 2026Q2 following a +$2.1M source in the prior quarter, indicating unpredictable collection cycles or inventory management that significantly impacts quarterly liquidity.
The erratic pattern in working capital, swinging from a $22.9M source in 2024Q3 to a $20.9M use in 2024Q2, suggests operational inefficiencies or inconsistent billing and collection practices. This volatility makes it difficult to forecast operating cash flow and implies that the company's cash conversion cycle is not well-managed, adding a layer of risk to its financial profile.
Cash Flow Statement Obscures True Investment Burden
The cash flow statement may understate the true economic cost of operations, as stock-based compensation of $228K in 2026Q2 is a non-cash expense that reduces reported earnings but does not consume cash, while the large depreciation charge of $22.8M suggests significant ongoing asset replacement needs.
While SBC is a minor factor, the substantial depreciation relative to net income indicates that the company's assets are aging and require continuous reinvestment. The cash flow statement does not distinguish between maintenance and growth capex, making it difficult to assess whether the heavy spending is for sustaining operations or expanding capacity. This lack of transparency obscures the true free cash flow available to shareholders after accounting for necessary reinvestment.