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Operating cash flow of $895M in Q2 2026 (6.3x net income) shows cash generation, but the $16.6B acquisition outflow and persistent working capital drags (negative in 9 of 10 quarters) highlight capital allocation strain.
Keurig Dr Pepper Inc. (KDP) cash flow statement — 22-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 |
|---|
| Cash from Operations | 2.53B | 1.99B | 2.22B | 1.33B | 2.84B | 2.87B | 2.46B | 2.47B | 1.61B | 1.04B | 939M | 991M | 1.02B | 866M | 458M | 760M | 2.54B | 865M | 709M | 603M | 581M | 583M | 610M |
| Operating CF Margin % | - | 11.99% | 14.46% | 8.97% | 20.18% | 22.66% | 21.14% | 22.25% | 21.67% | 15.52% | 14.58% | 15.78% | 16.7% | 14.44% | 7.64% | 12.87% | 44.98% | 15.64% | 12.42% | 10.49% | 12.27% | 18.19% | 19.9% |
| Operating CF Growth % | 127.72% | -10.27% | 66.97% | -53.15% | -1.29% | 17.02% | -0.73% | 53.38% | 55.4% | 10.54% | -5.25% | -3.03% | 18.01% | 89.08% | -39.74% | -70.02% | 193.06% | 22% | 17.58% | 3.79% | -0.34% | -4.43% | - |
| Net Income | 1.43B | 2.08B | 1.44B | 2.18B | 1.44B | 2.15B | 1.32B | 1.25B | 589M | 1.08B | 847M | 764M | 703M | 624M | 629M | 606M | 528M | 555M | -312M | 497M | 510M | 477M | 446M |
| Depreciation & Amortization | 728M | 753M | 733M | 720M | 709M | 708M | 653M | 698M | 462M | 229M | 224M | 227M | 235M | 234M | 240M | 232M | 223M | 207M | 208M | 169M | 139M | 79M | 0 |
| Stock-Based Compensation | 114M | 97M | 98M | 116M | 52M | 88M | 85M | 64M | 35M | 36M | 45M | 44M | 48M | 37M | 35M | 34M | 29M | 19M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 19M | 45M | -254M | -4M | -289M | 31M | -51M | -23M | -81M | -201M | 29M | 29M | 43M | 138M | 91M | -498M | 37M | 103M | -241M | 55M | 14M | 56M | 0 |
| Other Non-Cash Items | 757M | 20M | 792M | 63M | 1.2B | -450M | 278M | 115M | 151M | -57M | -108M | -67M | -44M | -30M | -83M | -41M | 75M | 3M | 1.07B | 34M | 20M | -19M | 164M |
| Working Capital Changes | -586M | -1B | -591M | -1.75B | -275M | 351M | 166M | 366M | 457M | -45M | -98M | -6M | 37M | -137M | -454M | 427M | 1.64B | -22M | -37M | -79M | -61M | -10M | 0 |
| Change in Receivables | -155M | -202M | -209M | 70M | -398M | -152M | -5M | -7M | 82M | -47M | -31M | -26M | -5M | -13M | 36M | -73M | -2M | 5M | -4M | 0 | 0 | 0 | 0 |
| Change in Inventory | 144M | -405M | -92M | 182M | -426M | -133M | -107M | -24M | 185M | -3M | 3M | -11M | -8M | -3M | 17M | 29M | 19M | 3M | 57M | -14M | 13M | 18M | 0 |
| Change in Payables | -207M | -212M | -196M | -1.62B | 213M | 522M | 369M | 361M | 119M | 24M | 32M | -9M | 29M | -6M | 10M | -30M | -26M | 80M | -48M | 0 | 0 | 0 | 0 |
| Cash from Investing | -13.25B | -573M | -1.61B | -784M | -1.14B | 210M | -316M | -150M | -19.13B | -1.76B | -189M | -194M | -185M | -195M | -193M | -217M | -225M | -251M | 1.07B | -1.09B | -502M | 283M | 184M |
| Capital Expenditures | -559M | -486M | -563M | -481M | -379M | -455M | -517M | -365M | -180M | -208M | -182M | -180M | -171M | -184M | -200M | -218M | -246M | -317M | -304M | -230M | -158M | -44M | -71M |
| CapEx % of Revenue | 2.78% | 2.93% | 3.67% | 3.25% | 2.7% | 3.59% | 4.45% | 3.28% | 2.42% | 3.11% | 2.83% | 2.87% | 2.79% | 3.07% | 3.34% | 3.69% | 4.36% | 5.73% | 5.32% | 4% | 3.34% | 1.37% | 2.32% |
| Acquisitions | -12.69B | -149M | -1B | -316M | -912M | 578M | -5M | -24M | -18.98B | -1.55B | -4M | -20M | -19M | -10M | 0 | -2M | -1M | 0 | 0 | -30M | -435M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2M | 62M | -51M | 13M | 1.07B | 87M | 206M | 239M | 33M | -3M | -6M | 2M | 5M | -1M | 7M | 2M | 22M | 74M | 1.38B | -923M | 91M | 291M | 255M |
| Cash from Financing | 12.01B | -999M | -223M | -832M | -1.73B | -2.76B | -1.99B | -2.36B | 17.58B | -907M | 130M | -114M | -747M | -880M | -603M | -152M | -2.28B | -554M | -1.63B | 515M | -72M | -815M | -799M |
| Debt Issued (Net) | 8.5B | 575M | 2.25B | 1.08B | -205M | -1.77B | -1.17B | -1.52B | 8.32B | -84M | 1.03B | 741M | -66M | -185M | 50M | 600M | -978M | -552M | 456M | -610M | 30M | -155M | 0 |
| Equity Issued (Net) | 4.39B | -9M | -1.11B | -706M | -394M | 140M | 29M | 0 | 9B | -379M | -505M | -491M | -400M | -385M | -400M | -522M | -1.11B | 1M | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -1.3B | -1.25B | -1.19B | -1.14B | -1.08B | -955M | -846M | -844M | -232M | -414M | -386M | -355M | -317M | -302M | -284M | -251M | -194M | 0 | -2.06B | -213M | -80M | 0 | 0 |
| Share Repurchases | -9M | -9M | -1.11B | -706M | -379M | 0 | 0 | 0 | 0 | -399M | -519M | -521M | -400M | -400M | -400M | -522M | -1.11B | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 428M | -315M | -164M | -68M | -49M | -172M | 0 | 5M | 493M | -30M | -10M | -9M | 36M | -8M | 31M | 21M | 5M | -3M | -16M | 1.34B | -22M | -660M | -799M |
| Net Change in Cash | 988M | 454M | 341M | -268M | -33M | 313M | 144M | -28M | 44M | -1.63B | 876M | 674M | 84M | -213M | -335M | 386M | 35M | 66M | 147M | 32M | 7M | 9M | -5M |
| Free Cash Flow | 1.97B | 1.5B | 1.66B | 848M | 2.46B | 2.42B | 1.94B | 2.11B | 1.43B | 830M | 757M | 811M | 851M | 682M | 258M | 542M | 2.29B | 548M | 405M | 373M | 423M | 539M | 539M |
| FCF Margin % | 9.82% | 9.06% | 10.79% | 5.72% | 17.49% | 19.07% | 16.69% | 18.97% | 19.26% | 12.41% | 11.75% | 12.91% | 13.9% | 11.37% | 4.3% | 9.18% | 40.61% | 9.91% | 7.09% | 6.49% | 8.93% | 16.82% | 17.59% |
| FCF Growth % | 24.1% | -9.12% | 95.28% | -65.5% | 1.61% | 24.75% | -8.06% | 47.17% | 72.65% | 9.64% | -6.66% | -4.7% | 24.78% | 164.34% | -52.4% | -76.32% | 317.7% | 35.31% | 8.58% | -11.82% | -21.52% | 0% | - |
| FCF per Share | 1.45 | 1.10 | 1.21 | 0.60 | 1.72 | 1.69 | 1.36 | 1.49 | 1.31 | 4.54 | 4.06 | 4.22 | 4.41 | 3.33 | 1.26 | 2.45 | 9.44 | 2.15 | 1.59 | 1.47 | 1.67 | 2.12 | 2.12 |
| FCF Conversion (FCF/Net Income) | 1.38x | 0.96x | 1.54x | 0.61x | 1.98x | 1.34x | 1.85x | 1.97x | 2.75x | 0.96x | 1.11x | 1.30x | 1.45x | 1.39x | 0.73x | 1.25x | 4.80x | 1.56x | -2.27x | 1.21x | 1.14x | 1.22x | 1.37x |
| Interest Paid | -180M | 594M | 494M | 443M | 363M | 477M | 515M | 521M | 231M | 143M | 117M | 94M | 94M | 107M | 115M | 104M | 125M | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -276M | 460M | 331M | 507M | 686M | 506M | 582M | 433M | 210M | 291M | 431M | 346M | 345M | 310M | 724M | 278M | 188M | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying KDP stock.
Keurig Dr Pepper Inc. (KDP) generated $1.99B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Keurig Dr Pepper Inc. (KDP) generated $1.50B 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.
Keurig Dr Pepper Inc. (KDP) spent $486.0M 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, Keurig Dr Pepper Inc. (KDP) returned $1.25B to shareholders via cash dividends and spent $9.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Coffee segment margin pressure
Metrics are mathematically derived from official filings.
Cash Conversion Volatility Signals Distress
KDP's operating cash flow to net income ratio swung from 6.30 in Q2 2026 to 0.40 in Q1 2025, indicating erratic earnings quality. According to recent SEC filings, the gap between net income and operating cash flow widened dramatically in Q2 2026.
The OCF/NI ratio of 6.30 in Q2 2026 is extraordinary, suggesting that net income of $142M was far below operating cash flow of $895M, likely due to non-cash charges or working capital timing. Conversely, Q1 2025 showed OCF/NI of 0.40, where operating cash flow lagged net income, indicating accrual-based earnings not yet converted to cash. This volatility implies that reported earnings may not reliably predict cash generation, warranting close monitoring of accrual components.
FCF Margin Recovery Masks Underlying Weakness
Free cash flow margin rebounded to 9.8% in Q2 2026 from a negative 3.0% in Q1 2024, but remains below the 16.6% peak in Q4 2024. Based on reported figures, FCF generation has been inconsistent, with a notable dip in Q1 2025.
The FCF margin trajectory shows a recovery from the trough in Q1 2024, but the recent quarter's 9.8% is still below the 12-13% range seen in mid-2025. The negative FCF in Q1 2024 was driven by heavy working capital outflows and elevated capex, while Q2 2026's improvement is partly due to a large acquisition-related cash outflow that distorted the base. Investors should assess whether the underlying business can sustain FCF margins above 10% given the integration of JDE Peet's and potential margin dilution.
Capital Intensity Rising with Acquisition
CapEx as a percentage of revenue increased to 2.5% in Q2 2026 from 2.5% in Q2 2025, but the absolute spend rose to $181M. As reported in financial statements, capital intensity remains moderate, yet the acquisition may elevate maintenance capex needs.
CapEx/Revenue has hovered around 2.5-3.5% over the past ten quarters, indicating a relatively asset-light model. However, the absolute CapEx of $181M in Q2 2026 is the highest in the period, likely reflecting integration-related investments. The moderate capital intensity suggests that KDP can generate strong FCF if revenue growth persists, but the acquisition may require additional capex for synergies and capacity expansion, which could pressure near-term FCF.
Working Capital Drags Persist Across Quarters
Working capital changes were negative in nine of the last ten quarters, with the largest outflow of -$572M in Q1 2024. According to recent disclosures, inventory and receivable build-ups continue to consume cash, offsetting operating income.
The consistent negative working capital changes indicate that KDP is investing heavily in inventory and receivables, possibly due to distribution expansion and the JDE Peet's integration. The Q1 2024 outflow of -$572M was particularly severe, and while Q2 2026 showed a smaller -$43M, the trend suggests ongoing cash absorption. This may reflect seasonality or deliberate inventory builds, but investors should monitor whether these outflows are yielding revenue growth or signaling inefficiency.
Dividends Steady, Buybacks Minimal, Acquisitions Dominate
Dividends paid remained stable at ~$300M per quarter, while buybacks were negligible, and acquisitions consumed $16.6B in Q2 2026. Based on reported cash flow data, capital deployment is heavily skewed toward M&A, with limited shareholder returns via buybacks.
KDP's dividend payments have been consistent, indicating a commitment to returning cash to shareholders. However, buybacks have been minimal, with the largest repurchase of $1.1B in Q1 2024, which was an outlier. The $16.6B acquisition outflow in Q2 2026 reflects the JDE Peet's deal, which has significantly increased leverage and reduced financial flexibility. This deployment strategy suggests management prioritizes growth through acquisitions over direct shareholder returns, which may be a concern if integration fails to deliver expected synergies.
Cumulative Earnings vs Cash: A Widening Gap
Over the last ten quarters, cumulative net income totaled $3.9B, while operating cash flow reached $5.4B, a positive divergence of $1.5B. As reported in financial statements, this suggests that cash generation has outpaced earnings, but the trend is volatile.
The cumulative OCF exceeding net income by $1.5B indicates that KDP has been generating strong cash flows relative to accounting earnings, partly due to non-cash charges like D&A and SBC. However, this divergence is not consistent, with some quarters showing OCF below net income. The recent acquisition may distort this relationship, as large non-cash adjustments and working capital swings can temporarily inflate or deflate OCF. Investors should assess whether this cash generation is sustainable or a result of one-time items.
What the Cash Flow Statement Obscures
The $16.6B acquisition outflow in Q2 2026 masks underlying cash generation, while SBC of $32M and D&A of $332M add back non-cash items. According to recent filings, the cash flow statement may overstate operational health due to acquisition-related distortions.
The cash flow statement's operating cash flow of $895M in Q2 2026 includes significant non-cash add-backs like D&A and SBC, which may not reflect true cash-generating ability. The massive acquisition outflow of $16.6B in the same quarter obscures the fact that core operations generated only $714M in FCF, which is barely enough to cover dividends. Additionally, the negative working capital changes across most quarters suggest that cash is being absorbed by inventory and receivables, potentially indicating inefficiencies that are not immediately visible in the headline OCF figure. Investors should adjust for these items to assess the underlying cash generation capacity.