Free cash flow generation has deteriorated to a -6.2% margin in 2026Q1, exacerbated by an $88.0M outflow in working capital that highlights ongoing liquidity pressures.
| Cash from Operations | 165M | 233M | 272M | 162M | -394M | -512M | -250M | 227M |
| Operating CF Margin % | - | 8.57% | 11.23% | 7.07% | -21.29% | -67.1% | -31.53% | 10.71% |
| Operating CF Growth % | -186.69% | -14.34% | 67.9% | 141.12% | 23.05% | -104.8% | -210.13% | - |
| Net Income | 86M | 111M | -134M | -136M | -229M | -475M | -619M | 138M |
| Depreciation & Amortization | 212M | 192M | 178M | 194M | 182M | 154M | 148M | 141M |
| Stock-Based Compensation | 74M | 76M | 77M | 75M | 39M | 3M | 3M | 6M |
| Deferred Taxes | -46M | -15M | 34M | -30M | -65M | -178M | -110M | 24M |
| Other Non-Cash Items | -87M | -96M | 49M | -16M | 24M | 22M | 2M | -31M |
| Working Capital Changes | -78M | -35M | 68M | 75M | -345M | -38M | 326M | -51M |
| Change in Receivables | -66M | -53M | 118M | 45M | -445M | -88M | 524M | -39M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 30M | -7M | -5M | 26M | 122M | 2M | -159M | 23M |
| Cash from Investing | -215M | -206M | -102M | -119M | -95M | -27M | -47M | -87M |
| Capital Expenditures | -139M | -129M | -107M | -113M | -94M | -44M | -47M | -62M |
| CapEx % of Revenue | 4.73% | 4.75% | 4.42% | 4.93% | 5.08% | 5.77% | 5.93% | 2.93% |
| Acquisitions | 44M | -104M | 0 | 0 | 0 | 20M | 0 | -25M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -138M | 27M | 5M | -6M | -1M | -3M | 816.81M | 0 |
| Cash from Financing | -54M | -128M | -85M | 120M | 292M | 478M | 384M | -65M |
| Debt Issued (Net) | 86M | -14M | 25M | 128M | 197M | 382M | 384M | -3M |
| Equity Issued (Net) | -106M | -65M | -55M | 0 | -168M | 150M | 834.35M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -1M | 0 | -58M |
| Share Repurchases | -110M | -73M | -55M | 0 | 0 | 0 | 0 | -58M |
| Other Financing | -34M | -49M | -55M | -8M | 263M | -53M | -834.35M | -4M |
| Net Change in Cash | -97M | -82M | 72M | 173M | -209M | -68M | 94M | 76M |
| Free Cash Flow | 26M | 104M | 165M | 49M | -488M | -556M | -297M | 165M |
| FCF Margin % | 0.89% | 3.83% | 6.81% | 2.14% | -26.36% | -72.87% | -37.45% | 7.79% |
| FCF Growth % | -84.43% | -36.97% | 236.73% | 110.04% | 12.23% | -87.21% | -280% | - |
| FCF per Share | 0.05 | 0.20 | 0.36 | 0.11 | -1.16 | -1.33 | -0.71 | 1.28 |
| FCF Conversion (FCF/Net Income) | 0.30x | 2.14x | -1.97x | -2.57x | 15.76x | - | 0.41x | 1.69x |
| Interest Paid | 41M | 0 | 99M | 142M | 96M | 47M | 0 | 14M |
| Taxes Paid | 48M | 0 | 14M | 2M | 0 | 0 | 0 | 49M |
NDC-driven margin compression
As reported in recent financial statements, GBTG's operating cash flow to net income ratio reached a concerning -0.29 in 2026Q1, highlighting a persistent inability to translate accounting profits into actual cash generation, a trend that warrants significant caution for investors evaluating the firm's underlying earnings quality.
The frequent divergence between net income and operating cash flow suggests that reported earnings are heavily influenced by non-cash items or timing differences in working capital. This disconnect implies that the company's profitability may be more fragile than headline figures suggest, necessitating a closer look at the sustainability of its cash-generating operations.
Based on the provided quarterly data, GBTG's free cash flow margin plummeted to -6.2% in 2026Q1, marking a sharp reversal from the positive margins observed throughout 2025 and indicating that the company is currently consuming rather than generating cash to support its ongoing business operations.
The shift into negative free cash flow territory suggests that the firm's capital requirements are currently outpacing its operational inflows. Investors should monitor whether this trend is a temporary byproduct of strategic investment or a more permanent structural issue related to the company's cost-heavy service model.
According to recent SEC filings, GBTG maintained a capital expenditure to revenue ratio of 4.4% in 2026Q1, reflecting a consistent commitment to platform development that remains a significant drag on free cash flow despite the company's ongoing efforts to automate its core travel management service offerings.
The sustained level of capital intensity suggests that the company must continue to reinvest heavily in its technology stack to remain competitive against modern, tech-native entrants. This ongoing requirement for capital expenditure may limit the firm's ability to achieve meaningful margin expansion in the near term.
As indicated by the $88.0M outflow in working capital during 2026Q1, GBTG is experiencing significant pressure on its cash conversion cycle, which appears to be a primary driver of the recent deterioration in the company's overall liquidity position compared to previous fiscal periods.
The volatility in working capital changes suggests that the company's cash flow is highly sensitive to the timing of supplier payments and client collections. This instability may indicate underlying inefficiencies in managing the cash cycle, which could exacerbate liquidity risks during periods of lower transaction volume.
Analysis of the cash flow statement reveals that stock-based compensation remains a recurring expense, with $17.0M recorded in 2026Q1, which effectively masks the true economic cost of operations and dilutes the cash-based returns available to shareholders over the long term.
By excluding these non-cash charges from operating expenses, the company's reported profitability may appear more robust than the actual cash-based performance warrants. Investors should treat these adjustments as a permanent operational cost that reduces the quality of the firm's reported earnings.
Quick answers to the most common questions about buying GBTG stock.
Global Business Travel Group, Inc. (GBTG) generated $233.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Global Business Travel Group, Inc. (GBTG) generated $104.0M 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.
Global Business Travel Group, Inc. (GBTG) spent $129.0M 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, Global Business Travel Group, Inc. (GBTG) spent $73.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.