Free cash flow remains volatile, swinging from -$49M in 2025Q1 to $115M in 2025Q4, with cumulative operating cash flow of $1.09B versus net income of $295M, suggesting earnings quality is masked by working capital swings.
GXO Logistics, Inc. (GXO) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Cash from Operations | 509M | 434M | 549M | 558M | 542M | 455M | 333M | 145M |
| Operating CF Margin % | - | 3.29% | 4.69% | 5.71% | 6.03% | 5.73% | 5.38% | 2.38% |
| Operating CF Growth % | 2448.8% | -20.95% | -1.61% | 2.95% | 19.12% | 36.64% | 129.66% | - |
| Net Income | 131M | 36M | 138M | 233M | 200M | 161M | -22M | 81M |
| Depreciation & Amortization | 470M | 457M | 415M | 361M | 329M | 335M | 323M | 302M |
| Stock-Based Compensation | 47M | 47M | 39M | 35M | 33M | 28M | 25M | 23M |
| Deferred Taxes | -5M | -29M | -38M | -41M | -7M | -48M | -27M | -2M |
| Other Non-Cash Items | 20M | 35M | 1M | 23M | -17M | -24M | 0 | 17M |
| Working Capital Changes | -158M | -112M | -6M | -53M | 4M | 3M | 34M | -276M |
| Change in Receivables | -169M | -88M | 118M | -17M | -71M | -243M | -122M | -173M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 46M | -61M | 23M | -3M | 45M | 114M | -13M | -41M |
| Cash from Investing | -199M | -196M | -1.16B | -410M | -1.15B | -207M | -280M | -147M |
| Capital Expenditures | -329M | -324M | -359M | -274M | -342M | -250M | -222M | -222M |
| CapEx % of Revenue | 2.41% | 2.46% | 3.07% | 2.8% | 3.8% | 3.15% | 3.58% | 3.64% |
| Acquisitions | 0 | 0 | -863M | -149M | -876M | 32M | -30M | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 153M | 152M | 61M | 16M | 48M | 11M | -28M | 75M |
| Cash from Financing | 276M | 111M | 636M | -186M | 787M | -241M | 67M | -102M |
| Debt Issued (Net) | 304M | 322M | 637M | -169M | 802M | 722M | -123M | -376M |
| Equity Issued (Net) | 196M | -200M | -8M | -12M | -16M | -1M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 189M | -200M | -8M | -12M | -16M | -1M | 0 | 0 |
| Other Financing | -224M | -11M | 7M | -5M | 1M | -962M | 190M | 532M |
| Net Change in Cash | 566M | 372M | 15M | -25M | 162M | 5M | 128M | -101M |
| Free Cash Flow | 180M | 110M | 190M | 284M | 200M | 205M | 111M | -77M |
| FCF Margin % | 1.32% | 0.83% | 1.62% | 2.9% | 2.22% | 2.58% | 1.79% | -1.26% |
| FCF Growth % | 93.55% | -42.11% | -33.1% | 42% | -2.44% | 84.68% | 244.16% | - |
| FCF per Share | 1.56 | 0.95 | 1.59 | 2.38 | 1.70 | 1.77 | 0.97 | -0.67 |
| FCF Conversion (FCF/Net Income) | 1.37x | 13.56x | 4.10x | 2.44x | 2.75x | 2.97x | -10.74x | 2.42x |
| Interest Paid | 0 | 128M | 97M | 57M | 34M | 22M | 32M | 29M |
| Taxes Paid | 0 | 59M | 43M | 84M | 111M | 75M | 27M | 40M |
Quick answers to the most common questions about buying GXO stock.
GXO Logistics, Inc. (GXO) generated $434.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
GXO Logistics, Inc. (GXO) generated $110.0M 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.
GXO Logistics, Inc. (GXO) spent $324.0M 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, GXO Logistics, Inc. (GXO) spent $200.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Labor inflation and integration risks
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Working Capital
Operating cash flow exceeded net income in most quarters, with OCF/NI reaching 3.04 in 2026Q2, but working capital swings of -$73M suggest cash conversion is volatile, per recent filings.
The persistent gap between net income and operating cash flow, particularly in quarters like 2025Q2 where OCF was just $3M against $26M net income, indicates that earnings quality is heavily influenced by working capital timing. The negative working capital changes in several quarters, such as -$133M in 2025Q2, suggest that cash collections lag revenue recognition, potentially due to the pass-through nature of contracts. Investors should monitor whether these swings normalize as the company integrates acquisitions and scales automation.
Free Cash Flow Remains Choppy
Free cash flow swung from -$49M in 2025Q1 to $115M in 2025Q4, with FCF margin averaging near zero, as reported in financial statements, indicating limited sustainable cash generation.
The trajectory of free cash flow is highly erratic, with negative FCF in four of the last ten quarters, including -$44M in 2025Q2. This volatility appears tied to aggressive capex and working capital swings, rather than a stable operational improvement. The FCF margin of 0.3% in 2026Q2 is far below the peer average of around 4-5%, suggesting that GXO's capital intensity is not yet translating into shareholder cash returns.
Capital Intensity Pressures Cash Flow
Capital expenditures averaged 2.6% of revenue over the past year, with a spike to 4.2% in 2025Q3, as per SEC filings, indicating significant investment in automation and expansion.
The elevated capex, particularly the $144M in 2025Q3, reflects management's commitment to automation and new facility rollouts, which is essential for long-term margin expansion but strains near-term free cash flow. The depreciation and amortization of $110-120M per quarter is roughly double the capex in some quarters, suggesting that the asset base is aging and may require replacement. This capital intensity, combined with thin margins, implies that GXO must achieve significant operational efficiencies to justify the investment.
Working Capital Swings Signal Inefficiency
Working capital changes were negative in seven of the last ten quarters, with a -$133M swing in 2025Q2, as reported in financial statements, indicating potential collection or inventory management issues.
The consistent negative working capital changes, particularly the large outflows in 2025Q2 and 2026Q1, suggest that GXO is funding growth through cash, possibly due to delayed client payments or inventory build-up ahead of peak seasons. The positive working capital contribution in 2025Q3 ($38M) and 2024Q3 ($61M) may indicate seasonal improvements, but the overall trend points to a structural drag on cash flow. This warrants investigation into the company's receivables aging and inventory turnover relative to its contract terms.
Acquisitions and Buybacks Shape Cash Use
Cash deployment shows a $848M acquisition outflow in 2024Q2 and $207M buybacks in 2025Q3, while dividends remain zero, based on reported figures, indicating a growth-focused capital allocation.
The significant acquisition spending, particularly the $848M in 2024Q2 likely related to the Wincanton deal, underscores management's aggressive roll-up strategy, which may strain liquidity. Share repurchases have been inconsistent, with notable buybacks in 2025Q3 ($207M) and 2025Q1 ($112M), but none in other quarters, suggesting opportunistic rather than systematic returns. The absence of dividends indicates that all available cash is being reinvested into growth, which may be appropriate given the company's expansion phase but leaves little buffer for shareholders.
Cumulative Earnings Outpace Cash Generation
Over the last ten quarters, cumulative net income of $295M contrasts with cumulative operating cash flow of $1.09B, as per financial statements, indicating a large positive divergence favoring cash flow.
The cumulative operating cash flow of $1.09B versus net income of $295M suggests that depreciation and amortization, totaling over $1.1B, are significant non-cash add-backs, but also that working capital has been a source of cash in some periods. However, this divergence is not necessarily positive, as it may reflect aggressive use of working capital or one-time items. The gap between earnings and cash flow warrants scrutiny to determine if it is sustainable or if it will reverse as the company matures.
Cash Flow Statement Obscures Integration Costs
Stock-based compensation of $10-13M per quarter and acquisition-related outflows, such as $848M in 2024Q2, are not fully transparent in operating cash flow, as per SEC filings, potentially understating true cash costs.
The cash flow statement does not separately disclose integration costs or the cash impact of acquisitions beyond the investing section, which may obscure the true cost of the roll-up strategy. Additionally, the pass-through nature of revenue means that operating cash flow includes client-funded expenses, which can inflate apparent cash generation. Investors should adjust for these items to assess the underlying cash-generating ability of the core logistics operations.