RELX Plc (RELX) Cash Flow Statement

The persistent OCF/NI ratio above 1.0 across all quarters suggests that reported earnings are backed by strong cash generation, with the gap widening in recent periods. The 2026Q2 ratio of 1.25, while slightly below the 1.38 seen in 2025Q4, still reflects a healthy quality of earnings. This pattern implies that non-cash charges like D&A and favorable working capital movements are boosting cash flow beyond net income, a sign of conservative accrual accounting.

The FCF trajectory shows a clear upward trend, with margins expanding from 20.3% to 30.0% over the observed period, despite quarterly volatility. This improvement outpaces net income growth, suggesting that working capital efficiency and lower capital intensity are amplifying cash generation. The 2026Q2 FCF of $1.5B aligns with the prior quarter's level, indicating stability at an elevated plateau rather than a temporary spike.

The capex-to-revenue ratio shows a generally low capital intensity, consistent with a digital-first business, though the near-zero capex in 2025Q2 and 2024Q2 appears anomalous and may reflect a shift in reporting or a period of minimal physical investment. The more recent 6.0% ratio in 2026Q2, up from 5.7% in 2025Q4, suggests a modest increase in investment, possibly in technology infrastructure. This implies that RELX is maintaining a lean asset base, with capital spending primarily directed toward growth initiatives rather than maintenance, given the low depreciation relative to revenue.

The working capital impact on cash flow has been consistently negative but small, ranging from -$7M to -$201M, which suggests that RELX's subscription-based model requires minimal incremental investment in receivables or inventory. The 2026Q2 change of -$10.1M is notably smaller than the -$201M in 2021Q4, indicating improved efficiency in collections and payables management. This stability implies that working capital is not a significant drag on cash generation, allowing operating cash flow to closely track EBITDA.

The capital deployment strategy shows aggressive shareholder returns, with buybacks of $1.8B in 2026Q2 alone, the highest in the observed period, alongside dividends of $857M. This level of distribution exceeds free cash flow, suggesting that RELX is leveraging its balance sheet to fund returns, consistent with its elevated debt-to-equity ratio. While this may signal management confidence in future cash flows, it also implies limited flexibility for acquisitions or organic investment without additional leverage.

The cumulative gap between operating cash flow and net income is substantial, with OCF exceeding NI by $3.6B over the observed period. This divergence is driven by consistent D&A add-backs and modest working capital outflows, suggesting that reported earnings understate the company's cash-generating ability. The pattern implies that RELX's accruals are conservative, and investors should view cash flow as a more reliable indicator of underlying profitability than net income.