Cash flow conversion remains inconsistent, evidenced by a negative 1.08 OCF/NI ratio in 2026Q1 despite the company continuing to execute $297.0 million in share repurchases.
| 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 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 138.7M | 542.8M | 425.1M | -472.4M | -610.1M | 1.8B | 746.3M | 524.5M | 519.7M | 148.9M | 90.9M | 79.55M | 30.97M | 32.06M | -212.48M | -766K | -21.33M | 9.94M | 85.17M | -49.21M | 37.94M | 72.62M | 77.12M | 88.57M | 48.9M | 41.18M | 24.98M | 22.4M | 9.3M | 19.8M | 1.5M |
| Operating CF Margin % | - | 1.44% | 1.17% | -1.52% | -2.16% | 7.87% | 5.69% | 4.14% | 4.4% | 1.48% | 1.05% | 1.01% | 0.57% | 0.8% | -6.41% | -0.03% | -1.05% | 0.56% | 4.13% | -1.74% | 1.53% | 2.67% | 2.97% | 3.6% | 2.15% | 2.2% | 1.51% | 1.8% | 1.3% | 6.19% | 1.05% |
| Operating CF Growth % | 65.59% | 27.69% | 189.99% | 22.57% | -133.95% | 140.81% | 42.29% | 0.92% | 249.03% | 63.81% | 14.27% | 156.89% | -3.41% | 115.09% | -27638.38% | 96.41% | -314.61% | -88.33% | 273.06% | -229.71% | -47.76% | -5.84% | -12.93% | 81.14% | 18.74% | 64.87% | 11.5% | 140.86% | -53.03% | 1220% | -74.58% |
| Net Income | 710.5M | 825.9M | 821.6M | 1.01B | 1.26B | 1.06B | 470.3M | 271.5M | 265.7M | 245.2M | 197.1M | 183M | 138.72M | 106M | 80.36M | 58.86M | 13.72M | 9.15M | -252.59M | 21.55M | 37.3M | 53.63M | 42.67M | 35.55M | 32.32M | 21.75M | 24.31M | 19.2M | 10.8M | 6M | 4M |
| Depreciation & Amortization | 190.6M | 0 | 389.8M | 264.6M | 228.1M | 166.3M | 121.3M | 114M | 75.4M | 57.7M | 49.3M | 41.6M | 26.36M | 20.04M | 17.31M | 16.95M | 17.59M | 18.82M | 20.72M | 16.86M | 13.38M | 14.5M | 13.14M | 10.29M | 7.81M | 9.28M | 7.61M | 5.6M | 3.5M | 2.5M | 1.8M |
| Stock-Based Compensation | 16.1M | 0 | 58.4M | 40.8M | 41.1M | 34.7M | 23.2M | 16.2M | 13.3M | 11.3M | 11M | 11.87M | 7.44M | 6.57M | 3.12M | 2M | 2.42M | 2.05M | 1.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 68.8M | 0 | 38.2M | 58.7M | 95.2M | 43.1M | 17.2M | 40.1M | 33M | -2.8M | 10.1M | 12.34M | 13.36M | 14.48M | 14.17M | 8.09M | -2.13M | 5.63M | -105.03M | 14.45M | 6.31M | 5.29M | 12.14M | 10.23M | 4.96M | -97K | 196K | -1.7M | 600K | 300K | -900K |
| Other Non-Cash Items | 81.1M | 578.9M | -49.5M | -35M | -26.9M | 76.1M | -53.8M | -7.2M | -13.6M | -5.5M | 8.6M | 14.41M | -9.81M | -8.33M | -2.81M | -10.04M | 15.23M | -3.64M | 357M | 13.5M | 8.35M | 987K | 246K | -1.18M | 250K | -107K | 116K | 300K | 100K | -1.7M | -400K |
| Working Capital Changes | -799.6M | -862M | -833.4M | -1.81B | -2.21B | 414.3M | 168.1M | 89.9M | 145.9M | -157M | -185.2M | -183.67M | -145.1M | -106.69M | -324.63M | -76.63M | -68.15M | -22.08M | 63.34M | -115.57M | -27.41M | -1.78M | 8.92M | 33.67M | 3.56M | 10.36M | -7.25M | -1M | -5.7M | 12.7M | -3M |
| Change in Receivables | -545.7M | -878.3M | -639.2M | -1.27B | -1.49B | -787.9M | -113.5M | 24.4M | 4.7M | -57.4M | -106M | -13.05M | -59.47M | -37.37M | -33.7M | -22.5M | -22.88M | 17.78M | 19.1M | 1.61M | -8.14M | -11.86M | 2.97M | -3.72M | -1.6M | -1.01M | -3.7M | 2.9M | -6.7M | -5.1M | -900K |
| Change in Inventory | -250.3M | 33.3M | -260.9M | -863.5M | -923M | 674.6M | 228.8M | -19.7M | -108.9M | -193.1M | -168.8M | -197.08M | -76M | -106.9M | -230.44M | -78.2M | -68.31M | 120.78M | 79.17M | -13.84M | 45.36M | -60.47M | -28.8M | 38.47M | -107.13M | 64.2M | 1.81M | -20.1M | -17.6M | -9M | -6.8M |
| Change in Payables | -29.1M | 0 | 9M | -19.9M | 25.3M | 78.4M | 28.2M | -1.8M | 15.1M | 20M | 16.4M | 674K | -3.1M | 8.48M | 8M | 6M | 4.96M | -2.79M | -18.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.15B | -1.03B | -1.85B | -1.27B | -1.33B | -2.89B | -1.61B | -463M | -557.1M | -538.2M | -351.7M | -169.73M | -736.33M | -130.32M | -99M | -39.42M | -19.97M | 21.09M | 4.29M | -80.63M | -174.78M | -86.65M | -122.02M | -108.64M | -123.51M | -61.23M | -80.47M | -40.7M | -38.2M | -33.7M | -6.6M |
| Capital Expenditures | -379.3M | -350.9M | -351.4M | -230.2M | -303.1M | -260.4M | -167.8M | -124.9M | -158M | -105.4M | -100.8M | -83.24M | -85.98M | -50.02M | -64.58M | -31.67M | -7.59M | -21.13M | -57.42M | -91.94M | -73.7M | -53.29M | -54.09M | -49.78M | -45.85M | -30.69M | -25.98M | -57.7M | -40.5M | -8.8M | 0 |
| CapEx % of Revenue | 1.01% | 0.93% | 0.97% | 0.74% | 1.08% | 1.14% | 1.28% | 0.99% | 1.34% | 1.04% | 1.16% | 1.06% | 1.6% | 1.25% | 1.95% | 1.2% | 0.37% | 1.19% | 2.78% | 3.26% | 2.98% | 1.96% | 2.08% | 2.02% | 2.02% | 1.64% | 1.57% | 4.64% | 5.67% | 2.75% | - |
| Acquisitions | -799.7M | -886.4M | -1.16B | -1.04B | -1.03B | -2.62B | -1.45B | -319.9M | -339.5M | -439.5M | -222.8M | -58.65M | -649.02M | -81.11M | -38.1M | -36.65M | -22.75M | 27.7M | 43.48M | 3.18M | -101.59M | -51.71M | -79.39M | -63.8M | -81.7M | -45.5M | -57.66M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 27.9M | 209.4M | 14.5M | 13.2M | 16.6M | 3.3M | 19M | -11M | 3.1M | 15.3M | 2.2M | 270K | 7.78M | 4.72M | 6.97M | 28.78M | 10.37M | 14.52M | 18.23M | 8.13M | 512K | 18.35M | 11.46M | 4.94M | 4.04M | 14.96M | 3.17M | 17M | 2.3M | -24.9M | -6.6M |
| Cash from Financing | 1B | 426M | 907.6M | 2.41B | 2.04B | 1.11B | 935.7M | -9.1M | 11.7M | 396.31M | 270.45M | 110.63M | 711.58M | 79.11M | 333.46M | 51.73M | 37.83M | -29.12M | -100.24M | 124.91M | 114.87M | 33.73M | -275K | 78.54M | 71.73M | 33.03M | 51.62M | 27.8M | 31.3M | 17M | 10.8M |
| Debt Issued (Net) | -11.14B | 1.5B | 1.32B | 2.52B | 2.76B | 256.1M | 225.3M | 14.1M | 179.4M | 487.2M | 396.2M | 150.76M | 739.7M | 86.13M | 354.05M | 69.24M | 38.91M | -74.66M | -95.61M | 134.39M | 122.56M | 33.45M | 839K | 76.53M | -6.17M | 31.18M | 49.88M | 27M | -11.3M | 13.1M | -7.6M |
| Equity Issued (Net) | -795.6M | -933.4M | -338.6M | -19.2M | -652.2M | 905.5M | 739.8M | 7.8M | -138.8M | -26.3M | -106M | -25.48M | -18.38M | -2.93M | -14.63M | -7.91M | 2.57M | 45.58M | 4.44M | 1.25M | 2.12M | 7.98M | 7.07M | 4.59M | 77.9M | 1.85M | 1.73M | 800K | 42.6M | 3.9M | 24.2M |
| Dividends Paid | -54.2M | -55.3M | -56.5M | -52.8M | -45.2M | -38.8M | -29.1M | -27.6M | -27.7M | -26.54M | -24.13M | -19.98M | -15.93M | -10.09M | -12.07M | -6.82M | -3.92M | 0 | -9.44M | -11.02M | -10.18M | -7.7M | -5.63M | -2.58M | 0 | 0 | 0 | 0 | 0 | 0 | -6.4M |
| Share Repurchases | -1.11B | -960.9M | -365.9M | -48.9M | -688.3M | -230.7M | -50.6M | -3.2M | -148.9M | -33.75M | -112.94M | -31.55M | -22.97M | -7.9M | -23.28M | -13.57M | -1.63M | -1K | -2K | -5.25M | -4.72M | -10K | -13K | -215K | -4.37M | 0 | -481K | 0 | 0 | 0 | 0 |
| Other Financing | 13B | -88.9M | -21.6M | -38.6M | -23.4M | -16.1M | -300K | -3.4M | -1.2M | -38.1M | 0 | 0 | 6.19M | 5.99M | 6.1M | -2.77M | 264K | -45K | 368K | 283K | 369K | 0 | -2.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 600K |
| Net Change in Cash | -7.1M | -60.4M | -539.2M | 694.7M | 71.9M | 14.6M | 76.2M | 52.4M | -25.65M | 6.97M | 5.27M | 15.11M | 6.21M | -19.15M | 21.99M | 11.54M | -3.47M | 1.9M | -10.79M | -4.93M | -21.97M | 48.57M | 0 | 58.48M | -2.88M | 12.99M | -3.88M | 9.5M | 2.4M | -15.4M | -9.7M |
| Free Cash Flow | 1.89B | 191.9M | 73.7M | -702.6M | -913.2M | 1.54B | 578.5M | 399.6M | 361.7M | 43.5M | -9.9M | -3.69M | -55.02M | -17.97M | -277.06M | -32.44M | -28.92M | -11.19M | 27.74M | -141.15M | -35.76M | 19.33M | 23.03M | 38.8M | 3.04M | 10.49M | -1.01M | -35.3M | -31.2M | 11M | 1.5M |
| FCF Margin % | 5.02% | 0.51% | 0.2% | -2.26% | -3.24% | 6.73% | 4.41% | 3.15% | 3.06% | 0.43% | -0.11% | -0.05% | -1.02% | -0.45% | -8.35% | -1.23% | -1.42% | -0.63% | 1.34% | -5% | -1.45% | 0.71% | 0.89% | 1.58% | 0.13% | 0.56% | -0.06% | -2.84% | -4.37% | 3.44% | 1.05% |
| FCF Growth % | 1556.87% | 160.38% | 110.49% | 23.06% | -159.42% | 165.65% | 44.77% | 10.48% | 731.49% | 539.39% | -168.07% | 93.29% | -206.22% | 93.52% | -754.1% | -12.17% | -158.39% | -140.34% | 119.65% | -294.72% | -285.01% | -16.07% | -40.64% | 1174.93% | -71% | 1143.14% | 97.15% | -13.14% | -383.64% | 633.33% | -72.22% |
| FCF per Share | 80.93 | 7.56 | 2.72 | -25.46 | -32.27 | 52.99 | 24.00 | 17.08 | 14.76 | 1.73 | -0.39 | -0.14 | -2.09 | -0.69 | -10.59 | -1.22 | -1.10 | -0.50 | 1.39 | -6.39 | -1.62 | 0.89 | 1.15 | 2.11 | 0.17 | 0.77 | -0.07 | -2.94 | -3.29 | 1.50 | 0.19 |
| FCF Conversion (FCF/Net Income) | 2.67x | 0.66x | 0.53x | -0.47x | -0.49x | 1.70x | 1.59x | 1.93x | 1.96x | 0.61x | 0.46x | 0.43x | 0.22x | 0.30x | -2.68x | -0.01x | -1.55x | 1.09x | -0.34x | -2.28x | 1.02x | 1.35x | 1.69x | 2.49x | 1.51x | 1.89x | 1.03x | 1.17x | 0.86x | 3.30x | 0.38x |
| Interest Paid | 355.8M | 0 | 739.7M | 514.3M | 209.9M | 130.1M | 107.7M | 135.8M | 117.1M | 68.9M | 49.7M | 41.1M | 24.61M | 21M | 22.98M | 24.96M | 25.36M | 29.74M | 50.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 130.6M | 0 | 242.7M | 222.1M | 449.3M | 369.1M | 135M | 38.4M | 32.9M | 127.3M | 57.2M | 86.53M | 63.83M | 42.68M | 36.58M | 33.72M | 8M | 15M | 4.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Inventory financing cost volatility
As reported in recent financial filings, Lithia's operating cash flow frequently decouples from net income, evidenced by a volatile OCF/NI ratio that reached a negative 1.08 in 2026Q1, suggesting that reported accounting profits are not being efficiently converted into the liquid cash necessary for operations.
The recurring divergence between net income and operating cash flow suggests that significant non-cash items or working capital swings are masking the underlying cash-generating capacity of the business. Investors should monitor whether this disconnect is a temporary byproduct of inventory management or a structural issue regarding the quality of earnings.
Based on the provided cash flow statements, Lithia's free cash flow trajectory remains highly erratic, with margins swinging from a negative 4.7% in 2023Q4 to a positive 20.8% in 2026Q1, indicating that the company's ability to generate sustainable surplus cash is currently compromised by inconsistent operational performance.
The extreme variance in free cash flow suggests that the company's capital-intensive model is highly sensitive to external market conditions and inventory cycles. This lack of predictability complicates long-term valuation and may indicate that the business requires substantial cash injections to maintain its current scale.
According to quarterly data, Lithia has faced persistent working capital outflows, including a substantial $368.7 million drain in 2025Q2, which suggests that the company's inventory management and collection cycles are currently acting as a significant headwind to overall cash flow generation and liquidity management.
The consistent negative working capital changes imply that the company is struggling to optimize its inventory turnover, likely due to the challenges of integrating new acquisitions while managing a bloated vehicle stock. This trend warrants further investigation into whether the company is over-leveraging its balance sheet to carry excess inventory.
As indicated by financial statements, Lithia continues to prioritize share repurchases and acquisitions despite inconsistent cash flow, with buybacks totaling $297.0 million in 2026Q1, a strategy that appears increasingly risky given the company's recent struggles to maintain positive operating cash flow and stable net income levels.
The decision to return capital to shareholders while simultaneously funding an aggressive acquisition pipeline suggests a management focus on maintaining market sentiment over strengthening the balance sheet. This approach may leave the company vulnerable if the current cyclical downturn in auto retail persists longer than anticipated.
Quick answers to the most common questions about buying LAD stock.
Lithia Motors, Inc. (LAD) generated $542.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Lithia Motors, Inc. (LAD) generated $191.9M 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.
Lithia Motors, Inc. (LAD) spent $350.9M 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, Lithia Motors, Inc. (LAD) returned $55.3M to shareholders via cash dividends and spent $960.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.