Cash flow generation is highly erratic, evidenced by a 2026Q1 free cash flow deficit of $228.3 million and a negative OCF/NI ratio of -0.74, suggesting that earnings quality is frequently obscured by non-cash accounting adjustments.
| Cash from Operations | 1.3B | 1.32B | 1.54B | 980.4M | 1.1B | 897.9M | 502.2M | 251M | -34.23M | 126.37M |
| Operating CF Margin % | - | 19.89% | 25.09% | 13.05% | 16.21% | 17.48% | 11.97% | 7.5% | -1.85% | 9.48% |
| Operating CF Growth % | -0.69% | -14.56% | 57.1% | -10.57% | 22.1% | 78.79% | 100.08% | 833.23% | -127.09% | - |
| Net Income | 208.8M | 3.83B | -737.7M | 45.4M | -311.1M | -606.8M | -1.1B | -451.7M | -483.34M | -100.98M |
| Depreciation & Amortization | 1.34B | 1.32B | 1.57B | 1.49B | 1.53B | 1.39B | 1.24B | 799.4M | 412.93M | 239.07M |
| Stock-Based Compensation | 35.3M | 0 | 104.7M | 124.8M | 55.1M | 45.7M | 37.9M | 14.5M | 20.8M | 5.09M |
| Deferred Taxes | -61.73M | 0 | -207.1M | -197.1M | -171.1M | -106M | -253.4M | -157.5M | -115.27M | -38.98M |
| Other Non-Cash Items | -88.49M | -3.78B | 830.4M | -513.4M | 83.4M | 218.1M | 561.4M | 121.2M | 1.03B | 52.31M |
| Working Capital Changes | -133.8M | -57.8M | -17.9M | 31M | -85.5M | -46.1M | 21.1M | -74.9M | -30.27M | -30.16M |
| Change in Receivables | 0 | 0 | -109.2M | 57.7M | -221M | -138M | -61.8M | -57.3M | -38.52M | -78.92M |
| Change in Inventory | 0 | 0 | 0 | 0 | 221M | 138M | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | -3.4M | 160.4M | 114.3M | 83.4M | 13.3M | 13.23M | 44.82M |
| Cash from Investing | -1.95B | 3.96B | -1.68B | -310.4M | -1.73B | -2.69B | -4.35B | -1.16B | -6.81B | -430.97M |
| Capital Expenditures | -1.21B | -1.14B | -1.19B | -1.06B | -780.1M | -647.2M | -428.3M | -457.8M | -160.28M | -203.14M |
| CapEx % of Revenue | 18.12% | 17.25% | 19.43% | 14.04% | 11.54% | 12.6% | 10.21% | 13.68% | 8.65% | 15.24% |
| Acquisitions | -990.66M | -983.2M | -563.5M | 682.9M | -1.32B | -2.3B | -3.94B | -721.3M | -6.65B | -240.11M |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 255.2M | 6.08B | 72.1M | 61.8M | 364.1M | 259.7M | 16M | 20.8M | 15.2M | 12.28M |
| Cash from Financing | 1.55B | -5.32B | 163.2M | -602.8M | 569M | 1.96B | 3.34B | 1.47B | 6.73B | 291.18M |
| Debt Issued (Net) | 2.55B | -2.3B | 224.6M | -533.8M | 610.9M | 1.66B | -1.63B | 1.51B | 3.49B | 302.38M |
| Equity Issued (Net) | -889.95M | -2.97B | 0 | 0 | 0 | 372.5M | 5.05B | -5.8M | 3.21B | 0 |
| Dividends Paid | -30.72M | -31.1M | -28.2M | -25M | -20.7M | -17.9M | -13.1M | 0 | 0 | 0 |
| Share Repurchases | -889.95M | -2.97B | 0 | 0 | 0 | 0 | -800K | -5.8M | -5.1M | 0 |
| Other Financing | -80.2M | -14.7M | -33.2M | -44M | -21.2M | -54.2M | -72.1M | -29.3M | 31.5M | -11.2M |
| Net Change in Cash | 901.38M | -48.2M | -1.9M | 53.6M | -108.3M | 163.2M | -547.6M | 567.4M | 7.43M | -14.49M |
| Free Cash Flow | 87.41M | 174.6M | 347.2M | -74.7M | 316.2M | 250.7M | 73.9M | -206.8M | -194.51M | -76.77M |
| FCF Margin % | 1.3% | 2.64% | 5.66% | -0.99% | 4.68% | 4.88% | 1.76% | -6.18% | -10.5% | -5.76% |
| FCF Growth % | -59.95% | -49.71% | 564.79% | -123.62% | 26.13% | 239.24% | 135.74% | -6.32% | -153.35% | - |
| FCF per Share | 0.24 | 0.46 | 0.91 | -0.20 | 0.86 | 0.69 | 0.21 | -1.15 | -0.62 | -0.24 |
| FCF Conversion (FCF/Net Income) | 0.42x | 0.34x | -2.13x | 21.59x | -3.52x | -1.48x | -0.46x | -0.56x | 0.07x | -1.25x |
| Interest Paid | 118.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High acquisition integration volatility
According to recent quarterly filings, GFL's operating cash flow frequently decouples from net income, evidenced by a 2026Q1 OCF/NI ratio of -0.74, which suggests that reported earnings are heavily influenced by non-cash accounting adjustments rather than actual cash generation from core environmental service operations.
The persistent gap between net income and operating cash flow indicates that GAAP earnings are not a reliable proxy for the company's underlying cash-generative capacity. Investors should monitor whether this divergence stems from aggressive capitalization of costs or the inherent volatility of acquisition-related accounting, which appears to obscure the true cash conversion efficiency.
As reported in financial statements, GFL's free cash flow trajectory remains erratic, swinging from a $248.1 million surplus in 2024Q4 to a $228.3 million deficit in 2026Q1, highlighting the difficulty in maintaining consistent cash flow margins amidst an aggressive and capital-intensive acquisition-led growth strategy.
The inability to sustain positive free cash flow suggests that the company's capital requirements often outpace its operational cash inflows. This trend warrants further investigation into whether the business model can achieve self-funding status without continued reliance on external financing or divestiture proceeds to bridge the cash gap.
Based on GFL's reported figures, capital expenditures as a percentage of revenue reached 23.6% in 2026Q1, a high level that suggests significant ongoing investment is required to maintain the asset base and support the integration of acquired infrastructure within the competitive Canadian waste management market.
The elevated capex intensity appears to be a structural feature of the company's integrated service model, which requires constant reinvestment in fleet and disposal facilities. This high capital burden may limit the company's ability to generate meaningful free cash flow compared to less asset-heavy industry peers.
As indicated by quarterly data, working capital changes have fluctuated significantly, ranging from a $200.6 million inflow in 2023Q4 to a $117.5 million outflow in 2026Q1, which suggests that the company's cash conversion cycle is highly sensitive to the timing of project-based soil remediation and municipal contract payments.
The volatility in working capital management may indicate challenges in aligning cash collections with the operational demands of the liquid and soil remediation segments. Investors should monitor whether these fluctuations are indicative of broader inefficiencies in the collection process or simply a reflection of the seasonal nature of the company's infrastructure projects.
Based on recent financial disclosures, GFL has prioritized significant capital toward acquisitions and share repurchases, including a $5.7 billion net acquisition inflow in 2025Q1, which suggests that management remains focused on inorganic growth despite the resulting pressure on the company's overall cash flow and balance sheet stability.
The heavy reliance on acquisitions to drive growth appears to be the primary driver of the company's complex capital allocation profile. While this strategy has scaled the business rapidly, it may also be masking underlying operational weaknesses by prioritizing top-line expansion over the consistent generation of organic free cash flow.
Quick answers to the most common questions about buying GFL stock.
GFL Environmental Inc. (GFL) generated $1.32B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
GFL Environmental Inc. (GFL) generated $174.6M 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.
GFL Environmental Inc. (GFL) spent $1.14B 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, GFL Environmental Inc. (GFL) returned $31.1M to shareholders via cash dividends and spent $2.97B on share repurchases. This shows the company's commitment to returning capital to its equity investors.