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Cash conversion remains strong with OCF/NI of 1.65 in Q2 2026, but heavy capex (56.6% of revenue) drove negative FCF of -$877M, reflecting the shipbuilding cycle.
Royal Caribbean Cruises Ltd. (RCL) cash flow statement — 30-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 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 6.79B | 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 % | 93.65% | 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 | 4.4B | 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 | 1.81B | 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 | 151M | 175M | 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 | -1M | 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 | 693M | -120M | 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 | -304M | 383M | 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 | 48M | -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 | -20M | 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 | 9M | 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 | -7.07B | -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 | -7.2B | -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 | 38.55% | 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 | -44M | 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 | 102M | 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 | 428M | -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) | 2.64B | 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) | -1.95B | -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 | -590M | -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 | -1.95B | -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 | 331M | -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 | 140M | 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 | -416M | 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 % | -2.23% | 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 % | -111.6% | -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 | -1.54 | 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) | -0.09x | 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 | 143M | 864M | 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 |
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.
Key Metrics
Top Statement Risk
Leverage discrepancy and EPS miss
Metrics are mathematically derived from official filings.
Cash Conversion Remains Robust
RCL's operating cash flow exceeded net income in every quarter, with OCF/NI ranging from 0.81 to 3.69, as per the latest cash flow statement, indicating high earnings quality despite the Q2 2026 EPS miss.
The consistent OCF/NI ratio above 1.0, except for Q3 2025 and Q3 2024, suggests that reported earnings are well-backed by cash generation. The Q2 2026 OCF/NI of 1.65, despite a net income of $1.1B, implies that the EPS miss may be timing-related rather than a deterioration in cash profitability. Investors should monitor whether this conversion strength persists as the company's working capital needs evolve.
FCF Volatility Mirrors Shipbuilding Cycle
Free cash flow swung from -$989M in Q3 2025 to $1.3B in Q1 2026, as reported in the cash flow data, reflecting the lumpy nature of capital expenditures tied to new ship deliveries.
The FCF margin has been highly volatile, ranging from -19.2% to 30.0%, driven by the timing of large capex outlays. The Q2 2026 negative FCF of -$877M, despite strong operating cash flow, underscores the capital-intensive nature of the business. This pattern suggests that investors should evaluate FCF on a trailing twelve-month basis rather than quarterly, as the company's growth investments will continue to cause periodic cash outflows.
Capex Intensity Reflects Fleet Expansion
Capital expenditures reached 56.6% of revenue in Q2 2026, as per the cash flow statement, indicating a heavy investment phase that may pressure near-term free cash flow but support future yield growth.
The elevated capex/revenue ratio in Q2 2026 and Q3 2025 aligns with the delivery of new Icon-class vessels, which are expected to generate higher returns. However, the high capital intensity also increases the company's sensitivity to demand fluctuations and financing costs. Given the reported debt/equity of 2.21% appears implausibly low for a cruise line, the true leverage may be higher, amplifying the risk of this investment cycle.
Working Capital Swings Signal Booking Strength
Working capital changes were positive in most quarters, with a $529M inflow in Q1 2025, as reported in the cash flow data, suggesting strong customer deposits and efficient collections.
The positive working capital changes in most quarters indicate that RCL is collecting cash from customers ahead of service delivery, a common feature in the cruise industry. The negative working capital change of -$743M in Q3 2025 may reflect seasonal booking patterns or increased payables. This dynamic supports the company's liquidity but also means that a slowdown in bookings could quickly reverse these inflows.
Capital Returns Resume Amidst Debt Priorities
Dividends and buybacks totaled $603M in Q2 2026, as per the cash flow statement, marking a return of capital to shareholders while the company continues to invest heavily in new ships.
The resumption of dividends and buybacks, which were absent in 2024, suggests management's confidence in cash flow generation. However, the scale of capital returns remains modest relative to the company's capex and debt obligations. Given the potential understatement of leverage, investors should monitor whether these distributions are sustainable without compromising the balance sheet.
Cash Flow Obscures True Leverage
The cash flow statement does not reveal the full extent of RCL's debt obligations, as the reported debt/equity of 2.21% appears inconsistent with industry norms, according to the data.
While operating cash flow is strong, the company's capital structure may be more leveraged than reported, given the typical financing needs for cruise ships. The cash flow statement also capitalizes dry-docking costs, which are amortized over time, potentially understating near-term cash outflows. Investors should scrutinize the debt maturity schedule and off-balance-sheet commitments to assess the true financial flexibility.