Cash conversion remains inconsistent, evidenced by an operating cash flow to net income ratio that fluctuated from 0.19 in 2024Q1 to 2.02 in 2025Q4.
| 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 | 2.06B | 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 % | -14.33% | -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 | 1.83B | 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 | 581M | 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 | 105M | 97M | 98M | 116M | 52M | 88M | 85M | 64M | 35M | 36M | 45M | 44M | 48M | 37M | 35M | 34M | 29M | 19M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 55M | 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 | 360M | 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 | -870M | -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 | -248M | -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 | -267M | -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 | -168M | -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 | 3.33B | -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 | -482M | -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 | 2.84% | 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 | -149M | -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 | 3.96B | 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 | 12.7B | -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) | 14.36B | 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) | -9M | -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 | -938M | -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 | -717M | -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 | 17.96B | 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 | 1.58B | 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 % | 9.33% | 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 % | -11.68% | -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 | 1.16 | 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) | 0.86x | 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 | -93M | 0 | 494M | 443M | 363M | 477M | 515M | 521M | 231M | 143M | 117M | 94M | 94M | 107M | 115M | 104M | 125M | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -60M | 0 | 331M | 507M | 686M | 506M | 582M | 433M | 210M | 291M | 431M | 346M | 345M | 310M | 724M | 278M | 188M | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in quarterly financial statements, KDP's operating cash flow to net income ratio has fluctuated wildly, ranging from a low of 0.19 in 2024Q1 to a high of 2.02 in 2025Q4, indicating significant disconnects between accounting profits and the actual cash generated by core operations.
The frequent divergence between net income and operating cash flow suggests that non-cash items and accruals are heavily influencing reported earnings. Investors should monitor whether this volatility stems from seasonal inventory builds or more structural issues in revenue recognition within the Coffee Systems segment.
Based on the provided cash flow data, KDP consistently experiences significant cash outflows from working capital, with a notable $572 million drain in 2024Q1, suggesting that the company's operational cycle requires substantial liquidity to support its inventory and distribution requirements throughout the fiscal year.
The recurring negative working capital changes imply that the company is either aggressively building inventory or facing extended collection cycles from its retail partners. This persistent cash drag warrants further investigation into whether the distribution-as-a-service model is becoming increasingly capital-intensive to maintain.
According to recent SEC filings, KDP's free cash flow margins have demonstrated extreme volatility, swinging from a negative 3.0% in 2024Q1 to a peak of 16.6% in 2024Q4, which highlights the difficulty in forecasting cash generation given the company's lumpy capital expenditure and working capital needs.
This inconsistency in free cash flow generation may indicate that the business model is highly sensitive to timing differences in hardware sales and pod replenishment. The inability to maintain a stable FCF margin suggests that the company's cash-generating engine is not yet as predictable as its mature beverage peers.
As evidenced by the company's financial disclosures, KDP has maintained a consistent dividend payout of approximately $312 million per quarter despite significant fluctuations in free cash flow, suggesting a management priority to return capital to shareholders even when operational cash generation is temporarily constrained.
While the dividend appears prioritized, the sporadic nature of share repurchases and acquisitions suggests that management is cautious about deploying excess cash when operational performance is uneven. Investors should monitor whether this dividend commitment limits the company's flexibility to pursue necessary strategic investments in the coffee ecosystem.
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.