Revvity, Inc. (RVTY) Cash Flow Statement

The consistently high OCF-to-net-income ratio largely reflects heavy D&A of roughly $100M per quarter, which is substantial relative to quarterly net income of $40M to $100M. This pattern suggests reported earnings understate cash generation, though the sharp quarter-to-quarter swings in the ratio imply that working capital timing, not underlying earnings power, is driving much of the variance. Investors should monitor whether the conversion ratio holds once amortization from the BioLegend acquisition normalizes.

The trajectory points to a recovery in cash generation, although FCF margins in 2025 were lower, between 16% and 17%, suggesting the current level may partly reflect favorable working capital timing rather than a durable step-up. Comparing FCF against reported net income, the company converts far more cash than it reports as earnings, which warrants further investigation into how much of this reflects structural depreciation versus one-time inflows.

Low and fairly stable capex intensity is consistent with a business that relies on asset-light reagent and informatics revenue alongside a manufactured instrument base. Because D&A runs near $100M per quarter while capex sits under $25M, the gap is notable and may reflect amortization of acquired intangibles rather than maintenance replacement needs, so investors should monitor whether underinvestment in manufacturing capacity emerges over time.

Capital deployment has been heavily weighted toward M&A rather than shareholder returns, with dividends steady near $8M per quarter and share repurchases largely offset by acquisition activity. This pattern suggests management prioritizes portfolio transformation, and the returns on large deals such as BioLegend will need to be validated against the cash they consume. The shift in 2026 toward smaller acquisition outlays may indicate a pause in dealmaking that investors should monitor.

The magnitude of working capital swings relative to net income indicates that timing of receivables collections, inventory builds, and payables is a major driver of reported cash flow rather than earnings quality alone. The large 2024Q4 inflow followed by sustained outflows in 2025 may reflect year-end collection pushes and subsequent rebuilding, which suggests investors should look through individual quarters to the trailing trend.