Free cash flow margins have deteriorated to 2.1% in 2025Q3, exacerbated by a $62.3 million outflow related to working capital changes.
| Metric | TTM | 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 | 160.24M | 194.42M | 422.16M | 458.16M | 252.84M | 174.95M | 254.51M | 210.84M | 125.22M | 102.47M | 171.7M | 98.54M | 117.42M | 92.92M | 74.87M | 37.65M | 45.23M | 61.51M | 80.58M | 76.59M | 51.63M | 35.85M | 31.5M | 12.56M | 27.63M | 41.35M | 11.8M | 28.69M | 39.45M | 19.33M |
| Operating CF Margin % | - | 4.93% | 10.05% | 8.58% | 5.97% | 5% | 6.94% | 5.72% | 3.1% | 2.87% | 4.87% | 2.76% | 3.48% | 2.97% | 2.72% | 2.05% | 2.99% | 3.31% | 4.86% | 4.76% | 3.37% | 2.51% | 2.32% | 0.94% | 2.09% | 2.99% | 7.27% | 20.74% | 30.38% | 21.11% |
| Operating CF Growth % | -159.67% | -53.95% | -7.86% | 81.21% | 44.52% | -31.26% | 20.71% | 68.37% | 22.2% | -40.32% | 74.24% | -16.08% | 26.37% | 24.11% | 98.83% | -16.75% | -26.47% | -23.67% | 5.21% | 48.35% | 44% | 13.82% | 150.72% | -54.54% | -33.17% | 250.39% | -58.86% | -27.29% | 104.12% | - |
| Net Income | 105.02M | 104.04M | 167.53M | 356.95M | 171.47M | 73.56M | 107.17M | 201.74M | 135.15M | 74.81M | 70.95M | 51.56M | 69.11M | 67.95M | 58.18M | 43.46M | 34.27M | 59.24M | 59.8M | 47.7M | 32.95M | 17.28M | 8.43M | 1.5M | 3.84M | 4.62M | 10.8M | 8.9M | 9.39M | 7M |
| Depreciation & Amortization | 187.92M | 192.56M | 184.45M | 153.73M | 130.63M | 123.68M | 116.89M | 83.91M | 62.17M | 44.71M | 37.04M | 29.38M | 21.3M | 21.57M | 16.34M | 8.57M | 8.2M | 7.37M | 7.2M | 8.17M | 10.03M | 11.83M | 10.8M | 11.48M | 16.99M | 12.62M | 10.08M | 7.66M | 5.69M | 2.79M |
| Stock-Based Compensation | 18.85M | 19.16M | 21.35M | 20.43M | 20.06M | 17.05M | 16.29M | 13.48M | 9.87M | 8.48M | 7.83M | 8.26M | 7.67M | 6.54M | 4.79M | 3.58M | 4.39M | 4.36M | 3.85M | 3.4M | 2.18M | 2.15M | 180K | 0 | 20.06M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 4.18M | -13.81M | 9.59M | 4.45M | -3.99M | 7.46M | 1.82M | 39.5M | -41.35M | 13.8M | 16.38M | 24.5M | 16.44M | 8.79M | 18.82M | 9.54M | 5.52M | 9.29M | 3.52M | 690K | 20.82M | 12.75M | 7.67M | 5.93M | 308K | 3.21M | 1.75M | 6.01M | 6.35M | 2.72M |
| Other Non-Cash Items | -416K | -1.27M | -4.82M | -18.3M | -19.17M | 7.29M | -745K | -143.96M | 441K | -1.31M | -210K | 11.84M | 2.72M | 79K | -17K | 85K | 50K | -22K | 6.55M | 18M | 5.39M | -166K | 398K | -524K | -19.48M | 175K | 10K | -38K | 120K | 51K |
| Working Capital Changes | -155.83M | -106.26M | 44.07M | -59.08M | -46.16M | -54.09M | 13.09M | 16.17M | -41.07M | -38.02M | 39.7M | -26.99M | 176K | -12.02M | -23.24M | -27.58M | -7.2M | -18.74M | -340K | -1.38M | -19.73M | -7.99M | 4.02M | -5.82M | 5.92M | 20.73M | -17.25M | -4.14M | 1M | -9.53M |
| Change in Receivables | 575K | 33.65M | 145.09M | 8.3M | -115.57M | -47.22M | 32.73M | -31.48M | -84.78M | -87.63M | 36.37M | -28.62M | -25.42M | -22.43M | -45.05M | -46.58M | -1.57M | 15.09M | -4.12M | 393K | -18.39M | -13.85M | 4.18M | 9.31M | 43.2M | -5.54M | -42.1M | -12M | -13.7M | -30M |
| Change in Inventory | 0 | 0 | 0 | 0 | -8.14M | -11.71M | -1.34M | 41.29M | -24.45M | 13.67M | 28.23M | -17.55M | 1.5M | 5.87M | -836K | 3.97M | -11.6M | -13.11M | 13.21M | 24.36M | 3.08M | 17.45M | 15M | -12.94M | 12.11M | 7.9M | 8.31M | -2.31M | 5.5M | 223K |
| Change in Payables | -81.41M | -73.9M | 1.22M | -89.1M | 78.45M | 5.59M | -14.93M | 7.75M | 71.46M | 35.71M | -25.74M | 20.37M | 27.64M | 7.44M | 23.09M | 12.82M | 7.15M | -18.53M | 4.22M | 4.75M | 3.97M | -2.87M | -7.66M | -8.66M | -43.68M | 22.43M | 21.4M | 8.9M | 11.8M | 20.9M |
| Cash from Investing | -110.64M | -53.33M | -373.16M | -278.87M | -210.13M | -196.86M | -66.12M | -209.49M | -235.15M | -105.35M | -80.73M | -118.56M | -109.08M | -56.36M | -139.78M | -24.8M | -4.16M | -14.39M | -14.47M | -35.72M | -3.79M | -3.17M | -4.38M | -10.54M | -10.32M | -26.61M | -119.94M | -14.69M | -69.61M | -46.79M |
| Capital Expenditures | -46.82M | -50.85M | -140.07M | -219.14M | -132.95M | -115.31M | -94.85M | -199.79M | -74.54M | -107.41M | -83.04M | -119.17M | -110.92M | -56.88M | -55.01M | -25.62M | -4.25M | -10.73M | -10.2M | -8.37M | -4.37M | -3.17M | -4.38M | -6.54M | -10.32M | -26.61M | -11.23M | -3.98M | -8.49M | -6.82M |
| CapEx % of Revenue | 1.26% | 1.29% | 3.33% | 4.1% | 3.14% | 3.3% | 2.59% | 5.42% | 1.85% | 3.01% | 2.36% | 3.34% | 3.29% | 1.82% | 2% | 1.4% | 0.28% | 0.58% | 0.61% | 0.52% | 0.29% | 0.22% | 0.32% | 0.49% | 0.78% | 1.92% | 6.92% | 2.87% | 6.54% | 7.44% |
| Acquisitions | -19.6M | -14.64M | -260.81M | -102.66M | -122.36M | -84.84M | -734K | -248.66M | -165.93M | 2.06M | 0 | 0 | 0 | -550K | -85.18M | -170K | 0 | -5M | -5M | -39.94M | 0 | 0 | 0 | -4M | -122.36M | 0 | 0 | 0 | 0 | -2.51M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -44.23M | 12.16M | 27.72M | 42.93M | 45.18M | 3.29M | 29.46M | 238.96M | 5.33M | 2.06M | 2.31M | 612K | 1.84M | 1.07M | 410K | 988K | 84K | 1.34M | 725K | 12.6M | 579K | 0 | 0 | 0 | 122.36M | 0 | -108.71M | -10.72M | -61.12M | -37.46M |
| Cash from Financing | -89.28M | -201.33M | -148.41M | -52.46M | -7.41M | -22.3M | -81.09M | 31.55M | 11.07M | -77.36M | 7.15M | 60.82M | -10.13M | -14.88M | -1.13M | -24.59M | 7K | 680K | -71.6M | -35.32M | -28.51M | -15.88M | -27.11M | -2.02M | -17.32M | -16.6M | 94.83M | -10.87M | 28.32M | 41.35M |
| Debt Issued (Net) | -35.87M | -90.94M | 5.51M | 65.62M | 1.71M | -14.33M | -52.11M | 35.82M | 15.88M | 24.75M | 38.69M | 81.38M | 5.92M | -2.45M | -729K | 0 | 0 | 0 | 0 | 0 | 0 | -75.03M | -27.05M | -2.02M | -12.32M | 27K | 155.64M | -200K | -5.6M | -4.7M |
| Equity Issued (Net) | -24.7M | -79.06M | -153.92M | -109.77M | -9.12M | -7.96M | -28.98M | -4.27M | -3.41M | -102.49M | -31.74M | -21.22M | -16.43M | -13.02M | -1.52M | -25.07M | -1.1M | -2.63M | -76.31M | -47.66M | -28.51M | 59.16M | -60K | 0 | 2K | 31K | 605K | 300K | 54.9M | 52.9M |
| Dividends Paid | -30.01M | -30.25M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -454K | -10.48M | -10.94M | -20.92M | -6.92M |
| Share Repurchases | -24.7M | -79.06M | -153.92M | -118.08M | -9.12M | -7.96M | -28.98M | -4.27M | -3.41M | -102.49M | -31.74M | -21.22M | -16.43M | -13.02M | -1.52M | -25.07M | -1.1M | -2.63M | -76.31M | -49.62M | -33.24M | -4.11M | -292K | 0 | 0 | 0 | 0 | 0 | 0 | -2K |
| Other Financing | 1.3M | -1.09M | 0 | -8.31M | 0 | 0 | 0 | 0 | -1.4M | 372K | 195K | 652K | 377K | 592K | 1.12M | 480K | 1.11M | 3.31M | 4.71M | 12.34M | 0 | 0 | 0 | 0 | -5M | -16.21M | -50.93M | -33K | -79K | -5.75M |
| Net Change in Cash | -39.63M | -60.32M | -99.37M | 126.86M | 35.28M | -44.22M | 107.29M | 32.88M | -98.85M | -80.34M | 97.98M | 40.8M | -1.8M | 21.67M | -66.05M | -11.72M | 41.06M | 47.8M | -5.49M | 7.36M | 19.33M | -15.88M | 0 | 0 | 35.28M | -16.6M | -13.31M | 3.12M | -1.84M | 13.89M |
| Free Cash Flow | 113.42M | 143.57M | 282.09M | 239.02M | 119.88M | 59.65M | 159.66M | 11.05M | 50.68M | -4.94M | 88.66M | -20.63M | 6.5M | 36.03M | 19.86M | 12.04M | 40.98M | 50.77M | 70.38M | 68.22M | 47.26M | 32.69M | 27.11M | 6.03M | 17.32M | 14.74M | 567K | 24.71M | 30.97M | 12.51M |
| FCF Margin % | 3.04% | 3.64% | 6.71% | 4.48% | 2.83% | 1.71% | 4.35% | 0.3% | 1.26% | -0.14% | 2.51% | -0.58% | 0.19% | 1.15% | 0.72% | 0.66% | 2.71% | 2.73% | 4.24% | 4.24% | 3.09% | 2.29% | 1.99% | 0.45% | 1.31% | 1.06% | 0.35% | 17.86% | 23.85% | 13.67% |
| FCF Growth % | -47.41% | -49.1% | 18.02% | 99.38% | 100.98% | -62.64% | 1345.17% | -78.2% | 1126.72% | -105.57% | 529.74% | -417.38% | -81.96% | 81.48% | 64.94% | -70.63% | -19.29% | -27.86% | 3.18% | 44.36% | 44.58% | 20.55% | 350.02% | -65.2% | 17.49% | 2499.12% | -97.71% | -20.2% | 147.46% | - |
| FCF per Share | 1.88 | 2.35 | 4.41 | 3.56 | 1.77 | 0.89 | 2.38 | 0.16 | 0.76 | -0.07 | 1.23 | -0.28 | 0.09 | 0.48 | 0.27 | 0.16 | 0.55 | 0.68 | 0.90 | 0.84 | 0.57 | 0.44 | 0.43 | 0.10 | 0.28 | 0.24 | 0.01 | 0.40 | 0.59 | 0.30 |
| FCF Conversion (FCF/Net Income) | 1.08x | 1.87x | 2.52x | 1.28x | 1.47x | 2.38x | 2.37x | 1.05x | 0.93x | 1.37x | 2.42x | 1.91x | 1.70x | 1.37x | 1.29x | 0.87x | 1.32x | 1.04x | 1.35x | 1.57x | 1.57x | 2.07x | 3.74x | 8.39x | 62.38x | 8.96x | 1.25x | 3.22x | 4.15x | 2.76x |
| Interest Paid | 12.47M | 14.6M | 12.51M | 7.99M | 7.6M | 9.46M | 11.26M | 9.68M | 6.16M | 3.67M | 2.98M | 1.53M | 1.2M | 1.2M | 541K | 54K | 91K | 102K | 106K | 114K | 923K | 3M | 6.36M | 0 | 0 | 12.52M | 8.29M | 2.3M | 2.1M | 100K |
| Taxes Paid | 9.96M | 38.2M | 34.88M | 128.81M | 58.59M | 18.39M | 40.29M | 13.61M | 13.15M | 33.23M | 6.99M | 20.19M | 29.73M | 28.64M | 18.63M | 16.03M | 17.26M | 27.2M | 22.19M | 16.8M | 6.81M | 591K | 441K | 0 | 0 | 567K | 2.47M | 2.7M | 400K | 2.3M |
Cyclical freight volume volatility
As reported in recent financial filings, Hub Group's operating cash flow to net income ratio plummeted to 0.98 in 2025Q3, signaling a significant disconnect between accounting profits and actual cash generation that warrants close scrutiny from investors concerned with the sustainability of current earnings levels.
The sharp decline from historical ratios often exceeding 2.0 suggests that the company is struggling to convert its reported net income into tangible cash. This divergence may indicate that earnings are increasingly reliant on non-cash adjustments or that working capital requirements are consuming the liquidity generated by core operations.
Based on the company's quarterly data, free cash flow margins have contracted significantly, falling to 2.1% in 2025Q3 from a peak of 9.0% in 2023Q2, which highlights the company's diminishing ability to retain cash after accounting for necessary capital expenditures during this prolonged freight downturn.
The consistent downward trend in FCF margins suggests that the business model is facing structural pressure as revenue declines. Investors should monitor whether this compression is a temporary cyclical phenomenon or a permanent shift in the company's ability to generate surplus cash in a competitive logistics environment.
According to recent SEC filings, Hub Group experienced a substantial $62.3 million cash outflow related to working capital changes in 2025Q3, a trend that has consistently hampered cash flow performance and suggests potential inefficiencies in managing receivables or inventory levels during periods of lower freight demand.
The recurring negative impact of working capital changes on operating cash flow implies that the company is struggling to optimize its cash conversion cycle. This persistent drag suggests that the firm may be forced to tie up liquidity in operations, limiting its flexibility to navigate the current freight recession.
As indicated by financial statements, Hub Group's capital expenditure as a percentage of revenue has remained relatively low at 0.9% in 2025Q3, which may suggest a defensive posture aimed at preserving cash rather than investing in the fleet expansion necessary for future growth in intermodal volumes.
While lower capital intensity preserves cash in the short term, it may also indicate a lack of investment in the specialized trailing equipment that forms the core of the company's competitive moat. Analysts should investigate whether this reduced spending is sufficient to maintain asset quality and service levels.
Quick answers to the most common questions about buying HUBG stock.
Hub Group, Inc. (HUBG) generated $194.4M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Hub Group, Inc. (HUBG) generated $143.6M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Hub Group, Inc. (HUBG) spent $50.8M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, Hub Group, Inc. (HUBG) returned $30.2M to shareholders via cash dividends and spent $79.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.