Cash conversion remains robust with an OCF/NI ratio of 1.95 in 2026Q1, supporting an aggressive capital allocation strategy that included $836 million in share buybacks during the same period.
| 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 | 6.67B | 6.46B | 5.26B | 4.48B | 481M | -1.88B | -3.73B | 3.72B | 3.48B | 2.87B | 2.52B | 1.95B | 1.74B | 1.41B | 1.38B | 1.46B | 1.66B | 844.88M | 1.07B | 1.27B | 948.51M | 1.11B | 1.08B | 857.8M | 870.47M | 633.69M | 703.32M | 583.36M | 526.86M | 434.1M | 299.5M |
| Operating CF Margin % | - | 36.05% | 31.94% | 32.21% | 5.44% | -122.58% | -168.94% | 33.94% | 36.65% | 32.75% | 29.62% | 23.45% | 21.6% | 17.74% | 17.97% | 19.31% | 24.63% | 14.34% | 16.4% | 20.63% | 18.14% | 22.67% | 23.64% | 22.67% | 25.35% | 20.15% | 24.54% | 22.91% | 19.98% | 22.39% | 22.07% |
| Operating CF Growth % | 98.12% | 22.79% | 17.6% | 830.77% | 125.61% | 49.67% | -200.41% | 6.82% | 21.03% | 14.22% | 29.3% | 11.62% | 23.49% | 2.2% | -5.08% | -12.46% | 96.83% | -21.13% | -15.56% | 33.76% | -14.65% | 3.19% | 25.55% | -1.46% | 37.37% | -9.9% | 20.56% | 10.72% | 21.37% | 44.94% | 33.35% |
| Net Income | 4.48B | 4.29B | 2.9B | 1.7B | -2.16B | -5.26B | -5.78B | 1.91B | 1.82B | 1.63B | 1.28B | 665.78M | 764.15M | 473.69M | 18.29M | 607.42M | 515.65M | 162.42M | 573.72M | 603.4M | 633.92M | 715.96M | 474.69M | 280.66M | 351.28M | 254.46M | 445.36M | 383.85M | 299.74M | 177.5M | 150.9M |
| Depreciation & Amortization | 1.77B | 1.72B | 1.6B | 1.46B | 1.41B | 1.29B | 1.28B | 1.25B | 1.03B | 951.19M | 894.91M | 827.01M | 772.45M | 754.71M | 730.49M | 702.43M | 643.72M | 568.21M | 520.35M | 483.07M | 421.64M | 402.07M | 394.14M | 362.69M | 339.1M | 301.17M | 231.05M | 197.91M | 194.61M | -143.8M | -91.2M |
| Stock-Based Compensation | 160M | 0 | 267M | 126M | 36M | 64M | 39.78M | 75.93M | 46.06M | 69.46M | 32.66M | 36.07M | 26.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 18M | 0 | -8M | -22M | -43M | -8.79M | 7.75M | -2.68M | 1.73M | 2.61M | -10M | -41M | 1.48M | 28.94M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 392M | 89M | 298M | 29M | 243M | 588M | 2.06B | 34.46M | 152.02M | -111.19M | 41.77M | 460.48M | 92.17M | 67.78M | 441.64M | 20.49M | 182.58M | 49.74M | -3.69M | 3.67M | 17.9M | -50.98M | 52.56M | 48.87M | 173.9M | 36.06M | -26.2M | 0 | 32.03M | 285.2M | 174.6M |
| Working Capital Changes | -153M | 349M | 204M | 1.17B | 973M | 1.48B | -1.33B | 444.69M | 434.25M | 338.24M | 261.35M | -32.98M | 129.88M | 114.4M | 162.38M | 125.4M | 321.07M | 64.51M | -19.13M | 178.55M | -124.96M | 44.31M | 155.6M | 165.57M | 6.19M | 42M | 53.1M | 1.6M | 470K | 115.2M | 65.2M |
| Change in Receivables | -96M | -3M | 52M | 99M | -234M | -182M | 121.06M | -9.9M | -9.57M | -32.04M | 4.76M | 63.1M | 100.09M | 95.4M | 8.03M | 87.87M | 146.5M | -3.63M | 28.15M | -122.68M | -38.85M | -19.35M | -3.26M | 10.01M | -7.34M | -18.59M | -150K | -16.9M | -13.9M | 100K | -3.4M |
| Change in Inventory | -16M | 0 | -17M | -24M | -74M | -35M | 27.08M | -8.53M | -23.85M | 2.42M | -1.68M | 1.2M | 26.25M | -4.32M | -1.65M | -18.42M | -20.27M | -11.29M | -140K | -19.42M | -7.44M | 2.46M | -6.81M | -15.98M | -3.81M | -3.38M | -3.72M | 5.44M | 5.44M | -1.9M | -5.8M |
| Change in Payables | -3M | 27M | 120M | 124M | 75M | 189M | -133.81M | 75.28M | 91.74M | 36.78M | 29.56M | -25.28M | -40.65M | 18.96M | 36.6M | 56.76M | -15.51M | 16.42M | 22.32M | 23.4M | -29.67M | -3.74M | -25.99M | 19.76M | 27.08M | -14.07M | 55.1M | -12.79M | 7.3M | 2M | -2.4M |
| Cash from Investing | -5.1B | -5.01B | -3.45B | -3.92B | -2.99B | -2.15B | -2.18B | -3.09B | -4.49B | -213.59M | -2.72B | -1.74B | -1.77B | -824.54M | -1.26B | -924.57M | -2.29B | -2.27B | -1.98B | -1.17B | -1.85B | -89.03M | -632.51M | -1.1B | -696.27M | -1.78B | -1.56B | -987.44M | -462.21M | -1.17B | -688.4M |
| Capital Expenditures | -5.3B | -5.23B | -3.27B | -3.9B | -2.71B | -2.23B | -1.97B | -3.02B | -3.66B | -564.14M | -2.49B | -1.61B | -1.81B | -763.78M | -1.29B | -1.17B | -2.19B | -2.48B | -2.22B | -1.32B | -1.18B | -429.9M | -630.67M | -1.03B | -689.99M | -1.74B | -1.29B | -972.48M | -651.45M | -1.26B | -722.4M |
| CapEx % of Revenue | 28.83% | 29.16% | 19.82% | 28.04% | 30.66% | 145.56% | 88.97% | 27.62% | 38.55% | 6.43% | 29.36% | 19.44% | 22.44% | 9.6% | 16.8% | 15.57% | 32.39% | 42.06% | 34.04% | 21.42% | 22.57% | 8.77% | 13.84% | 27.21% | 20.09% | 55.24% | 44.86% | 38.19% | 24.71% | 64.91% | 53.22% |
| Acquisitions | 26M | 0 | -67M | -31M | 0 | -70M | -100.61M | -25.57M | -930.09M | -10.4M | -9.15M | -56.16M | -188.59M | -70.63M | 0 | -110.66M | 0 | -181.68M | -923K | 100M | -653.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 208M | 197M | 5M | 56M | 26M | 185M | 32.63M | 20.04M | 122.51M | 297.72M | -8.17M | 105.13M | 297.71M | 27.2M | 39.06M | 343.41M | -9.4M | 273.94M | -22.61M | -12.57M | -15.19M | 340.87M | -1.84M | -73.11M | -6.28M | -46.5M | -278.78M | -14.96M | 189.25M | 88.1M | 34M |
| Cash from Financing | -1.44B | -1.02B | -1.92B | -1.99B | 1.74B | 3.04B | 9.35B | -670.37M | 1.2B | -2.68B | 243.81M | -253.51M | 17.48M | -576.63M | -179.62M | -676.51M | 756.96M | 1.31B | 1.08B | 36.61M | 879.71M | -1.53B | -145.99M | 332.34M | -658.8M | 1.7B | 975.45M | 294.63M | -2.52M | 806.7M | 398.1M |
| Debt Issued (Net) | 448M | 1.02B | -1.76B | -2B | 2.01B | 1.62B | 8.63B | 92.75M | 2.39B | -1.97B | 972.99M | 280.95M | 429.74M | -407.02M | -2.82M | -600.68M | 820M | 1.37B | 1.21B | 119.03M | 1.14B | -1.18B | -136.39M | 590.54M | -603.27M | 1.79B | 1.07B | -127.92M | -107.04M | 327.8M | 430.7M |
| Equity Issued (Net) | -1.75B | -1.16B | 0 | 0 | 0 | 1.62B | 1.43B | -99.58M | -575.04M | -225M | -299.96M | -200M | -236.07M | 0 | 0 | 0 | 0 | 0 | 0 | 19.63M | -141.56M | -227.13M | 98.32M | 45.96M | 0 | 0 | 0 | 487.4M | 165.53M | 531.6M | 0 |
| Dividends Paid | -386M | -264M | -107M | 0 | 0 | 0 | -326.42M | -602.67M | -527.49M | -437.45M | -346.49M | -280.21M | -198.95M | -143.63M | -117.71M | -21.71M | 0 | 0 | -128.04M | -98.3M | -124.46M | -118.76M | -104.52M | -98.32M | -100.13M | -99.95M | -94.42M | -81.57M | -67.73M | -50M | -34.4M |
| Share Repurchases | -1.75B | -1.16B | 0 | 0 | 0 | 0 | 0 | -99.58M | -575.04M | -225M | -299.96M | -200M | -236.07M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -164.58M | -249.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 248M | -612M | -57M | 12M | -268M | -202M | -385.4M | -60.86M | -91.46M | -45.22M | -82.73M | -54.25M | 22.77M | -25.98M | -59.09M | -54.13M | -63.04M | -56.48M | -552K | -3.76M | 7.58M | 590K | -3.4M | -205.83M | 44.6M | 10.82M | 2.96M | 16.72M | 6.71M | -2.7M | 1.8M |
| Net Change in Cash | 126M | 437M | -109M | -1.44B | -767M | -982M | 3.44B | -44.11M | 167.74M | -12.49M | 11.04M | -67.68M | -15.45M | 9.83M | -67.33M | -157.74M | 135.31M | -118.26M | 172.09M | 126.26M | -20.86M | -503.19M | 298.49M | 87.5M | -484.59M | 549.37M | 114.34M | -109.45M | 62.13M | 70.4M | 9.1M |
| Free Cash Flow | 1.37B | 1.24B | 2B | 580M | -2.23B | -4.11B | -5.7B | 691.7M | -180.89M | 2.31B | 22.33M | 333.03M | -67.64M | 648.29M | 90.23M | 282.11M | -524.17M | -1.63B | -1.15B | -48.69M | -232.07M | 681.46M | 446.32M | -171.73M | 180.48M | -1.1B | -582.33M | -389.12M | -124.59M | -824.5M | -422.9M |
| FCF Margin % | 7.46% | 6.89% | 12.11% | 4.17% | -25.21% | -268.15% | -257.91% | 6.32% | -1.91% | 26.32% | 0.26% | 4.01% | -0.84% | 8.14% | 1.17% | 3.74% | -7.76% | -27.72% | -17.64% | -0.79% | -4.44% | 13.9% | 9.8% | -4.54% | 5.26% | -35.09% | -20.32% | -15.28% | -4.73% | -42.52% | -31.16% |
| FCF Growth % | -35.02% | -38.11% | 244.31% | 126.02% | 45.74% | 27.89% | -923.59% | 482.39% | -107.83% | 10248.13% | -93.3% | 592.36% | -110.43% | 618.45% | -68.01% | 153.82% | 67.89% | -41.69% | -2266.71% | 79.02% | -134.06% | 52.68% | 359.9% | -195.15% | 116.35% | -89.54% | -49.65% | -212.31% | 84.89% | -94.96% | -108.43% |
| FCF per Share | 5.06 | 4.53 | 7.16 | 2.05 | -8.74 | -16.31 | -26.58 | 3.29 | -0.86 | 10.71 | 0.10 | 1.51 | -0.30 | 2.93 | 0.41 | 1.29 | -2.41 | -7.58 | -5.38 | -0.23 | -1.08 | 3.10 | 2.12 | -0.87 | 0.92 | -5.73 | -3.02 | -2.09 | -0.69 | -5.37 | -3.31 |
| FCF Conversion (FCF/Net Income) | 0.31x | 1.51x | 1.83x | 2.64x | -0.22x | 0.36x | 0.64x | 1.98x | 1.92x | 1.77x | 1.96x | 2.92x | 2.28x | 2.98x | 75.56x | 2.40x | 3.23x | 5.20x | 1.87x | 2.10x | 1.50x | 1.55x | 2.27x | 3.06x | 2.48x | 2.49x | 1.58x | 1.52x | 1.59x | 2.48x | 1.98x |
| Interest Paid | -279M | 0 | 1.21B | 1.44B | 960M | 834M | 418.16M | 246.31M | 252.47M | 249.62M | 256.77M | 248.61M | 276.93M | 319.48M | 341.05M | 360.89M | 297.48M | 288.46M | 321.21M | 285.21M | 376.82M | 236.48M | 266.04M | 219.6M | 236.52M | 203.04M | 146.43M | 133.9M | 170.3M | 127.5M | 65.1M |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High Capital Intensity Exposure
As reported in financial statements, RCL consistently generates operating cash flow significantly exceeding net income, with an OCF/NI ratio reaching 1.95 in 2026Q1, which suggests that non-cash depreciation charges and customer deposit inflows are the primary drivers of the company's reported cash generation capabilities.
The persistent gap between net income and operating cash flow indicates that accounting earnings may understate the actual cash-generative capacity of the business model. Investors should monitor whether this conversion quality remains sustainable as the company moves past its peak post-pandemic recovery phase.
Based on RCL's reported figures, free cash flow trajectory remains highly erratic, swinging from a negative $1.5 billion in 2023Q4 to a positive $1.3 billion in 2026Q1, reflecting the heavy impact of lumpy capital expenditures on the company's ability to retain cash from operations.
The extreme variance in FCF margins suggests that the company's cash position is highly sensitive to the timing of fleet expansion and dry-docking cycles. This volatility complicates the assessment of long-term dividend sustainability and the capacity for consistent share repurchases.
According to recent SEC filings, RCL's capital intensity remains elevated, with CapEx/Revenue ratios peaking as high as 77.1% in 2023Q4, highlighting the massive ongoing investment required to maintain the competitive advantage of the Icon-class fleet and proprietary land-based infrastructure like CocoCay.
The high level of capital expenditure suggests that a significant portion of operating cash flow is effectively pre-committed to asset maintenance and growth. This structural requirement may limit the company's financial flexibility during periods of cyclical downturn or unexpected increases in maritime regulatory compliance costs.
As indicated by the quarterly data, working capital changes have frequently provided a positive tailwind to cash flow, with a $349 million contribution in 2026Q1, reflecting the company's ability to leverage customer deposits as a form of interest-free financing for its ongoing operations.
This reliance on advance bookings suggests that the company's liquidity is intrinsically tied to consumer confidence and the strength of the booking window. Any material shift in consumer sentiment could lead to a rapid reversal of this working capital benefit, pressuring the company's cash position.
Based on the provided financial data, RCL has pivoted toward aggressive capital deployment, utilizing $836 million for share buybacks in 2026Q1, which appears to signal management's confidence in the company's ability to generate surplus cash despite the ongoing demands of its capital-intensive business model.
The simultaneous pursuit of fleet expansion and shareholder returns warrants careful investigation into the sustainability of the company's leverage profile. Investors should monitor whether these buybacks are funded by operational success or if they rely on the company's ability to access capital markets.
Quick answers to the most common questions about buying RCL stock.
Royal Caribbean Cruises Ltd. (RCL) generated $6.46B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Royal Caribbean Cruises Ltd. (RCL) generated $1.24B 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.
Royal Caribbean Cruises Ltd. (RCL) spent $5.23B 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, Royal Caribbean Cruises Ltd. (RCL) returned $264.0M to shareholders via cash dividends and spent $1.16B on share repurchases. This shows the company's commitment to returning capital to its equity investors.