Free cash flow margins plummeted to -15.4% in 2026Q1, driven by $145.6 million in working capital outflows related to seasonal inventory accumulation.
| 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 |
|---|
| Cash from Operations | 308M | 300.5M | 283.4M | 297.5M | 217.2M | 210.8M | 229.4M | 130.8M | 78.1M | 16.3M | 72.9M | 71M | 52.7M | 41.8M |
| Operating CF Margin % | - | 6.39% | 6.24% | 6.92% | 5.41% | 6.07% | 8.48% | 5.55% | 3.7% | 0.88% | 4.42% | 4.89% | 4.48% | 3.9% |
| Operating CF Growth % | 47.51% | 6.03% | -4.74% | 36.97% | 3.04% | -8.11% | 75.38% | 67.48% | 379.14% | -77.64% | 2.68% | 34.72% | 26.08% | - |
| Net Income | 152.5M | 151.8M | 124.4M | 173.4M | 245.4M | 238.4M | 121.3M | 77.7M | 73.9M | 54.6M | 30.6M | 28.9M | 21.7M | 33.7M |
| Depreciation & Amortization | 140.9M | 142M | 139M | 127.7M | 103.8M | 83M | 67.2M | 59.5M | 52.3M | 43.1M | 37M | 31.2M | 20.3M | 10.2M |
| Stock-Based Compensation | 27.6M | 27M | 25M | 25.7M | 18.3M | 14.3M | 10.6M | 11.7M | 7.9M | 5.9M | 4.7M | 3M | 2.1M | 0 |
| Deferred Taxes | 500K | 0 | -11M | -14.5M | -5.2M | -3.1M | 400K | -3.4M | -7.1M | -16.5M | -9.9M | -7.5M | 600K | 22.1M |
| Other Non-Cash Items | -45M | -10M | 4.5M | -4.9M | 3.2M | 9.5M | 7.4M | 3.6M | 2.8M | 3.8M | 3.9M | 4.9M | 3.6M | 0 |
| Working Capital Changes | 24.4M | -10.3M | 1.5M | -9.9M | -148.3M | -131.3M | 22.5M | -18.3M | -51.7M | -74.6M | 6.6M | 10.5M | 4.4M | -24.2M |
| Change in Receivables | 8.7M | 3.6M | -52.8M | -6.5M | -44.6M | -88.6M | 3M | 6.1M | -43.4M | -40.5M | -18.7M | -11.4M | 4.1M | -11.6M |
| Change in Inventory | -42.1M | -42.8M | 19M | 38.1M | -99.3M | -156.9M | -7.9M | -3M | -38.5M | -31M | -600K | 3.7M | -6.4M | -6.1M |
| Change in Payables | 29.7M | 0 | 29.7M | -35.1M | 8.9M | 74.4M | -4.3M | -29M | 40.4M | 7.1M | 8.2M | -8.9M | 13.5M | 2.2M |
| Cash from Investing | -164M | -83.4M | -177.1M | -226M | -284.4M | -182M | -184.2M | -91.9M | -164.1M | -98.6M | -74.9M | -111M | -26.9M | -3M |
| Capital Expenditures | -61.9M | -53.7M | -44.8M | -32.1M | -41.7M | -37M | -25.8M | -21.4M | -19.9M | -16M | -8.8M | -10.5M | -4.3M | -3.2M |
| CapEx % of Revenue | 1.32% | 1.14% | 0.99% | 0.75% | 1.04% | 1.06% | 0.95% | 0.91% | 0.94% | 0.86% | 0.53% | 0.72% | 0.37% | 0.3% |
| Acquisitions | -106.7M | -37.9M | -138.2M | -192.7M | -244.9M | -147.2M | -159.4M | -71.5M | -147.7M | -82.9M | -66.4M | -100.7M | -22.7M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 4.6M | 8.2M | 5.9M | -1.2M | 2.2M | 2.2M | 1M | 1M | 3.5M | 300K | 300K | 200K | 100K | 200K |
| Cash from Financing | -117.3M | -134.6M | -80.9M | -18.3M | 43.4M | -30.4M | -9.1M | -37.3M | 86.8M | 82.5M | -1.8M | 49.7M | -34.2M | -33.1M |
| Debt Issued (Net) | -1.7M | -36M | -20M | 4M | 84.8M | -26.4M | -274.1M | -41.3M | 86.9M | 82.1M | 193.5M | 48.6M | -39.5M | -2.1M |
| Equity Issued (Net) | -105.6M | -98.3M | -45.7M | -6.8M | -20.8M | 9.3M | 271.5M | 8.4M | 6.7M | 2.7M | 0 | 2.1M | 5.3M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -189M | -53.7M | 0 | 0 |
| Share Repurchases | -114.5M | -98.3M | -51.3M | -12M | -24.4M | 0 | 0 | 0 | 0 | 0 | -200K | -100K | 0 | 0 |
| Other Financing | -10M | -300K | -15.2M | -15.5M | -20.6M | -13.3M | -6.5M | -4.4M | -6.8M | -2.3M | -6.3M | -1M | 0 | -31M |
| Net Change in Cash | 27.4M | 83.5M | 24.6M | 53.4M | -24.6M | -1.5M | 36.2M | 1.7M | 600K | 400K | -3.8M | 9.5M | -8.7M | 5.5M |
| Free Cash Flow | 246.1M | 246.8M | 238.6M | 261.5M | 175.5M | 173.8M | 203.6M | 109.4M | 58.2M | 300K | 64.1M | 60.5M | 48.4M | 38.6M |
| FCF Margin % | 5.23% | 5.25% | 5.25% | 6.08% | 4.37% | 5% | 7.53% | 4.64% | 2.76% | 0.02% | 3.89% | 4.17% | 4.11% | 3.6% |
| FCF Growth % | 21.59% | 3.44% | -8.76% | 49% | 0.98% | -14.64% | 86.11% | 87.97% | 19300% | -99.53% | 5.95% | 25% | 25.39% | - |
| FCF per Share | 5.52 | 5.47 | 5.23 | 5.72 | 3.83 | 3.79 | 4.62 | 2.56 | 1.37 | 0.01 | 2.11 | 4.25 | 3.50 | 2.71 |
| FCF Conversion (FCF/Net Income) | 1.61x | 1.98x | 2.29x | 1.72x | 0.89x | 0.88x | 1.89x | 1.68x | 1.06x | 0.30x | 2.38x | 2.46x | 2.43x | 1.24x |
| Interest Paid | 37M | 34.7M | 29.8M | 26.8M | 15.5M | 15.6M | 27.3M | 30.3M | 26.2M | 23.9M | 16.5M | 8.4M | 5.3M | 500K |
| Taxes Paid | 39.3M | 0 | 57.6M | 46M | 82.1M | 55.8M | 25.2M | 16M | 14.5M | 35.9M | 24.3M | 21.9M | 25.6M | 200K |
Seasonal Working Capital Volatility
According to quarterly financial data, SiteOne's operating cash flow to net income ratio reached 4.59 in 2026Q1, highlighting a significant disconnect between accounting profits and cash generation that warrants further investigation into the timing of accruals and the impact of seasonal inventory build-ups on reported earnings.
The wide variance between net income and operating cash flow suggests that GAAP earnings are poor proxies for the company's underlying cash-generating capacity during the first quarter. Investors should monitor whether this divergence is purely a function of seasonal working capital cycles or if it reflects a more persistent degradation in the quality of earnings.
As reported in recent financial statements, SiteOne's free cash flow margin plummeted to -15.4% in 2026Q1, mirroring the negative trajectory observed in the same period of the prior year and underscoring the company's extreme sensitivity to seasonal revenue troughs and the associated cash burn.
The recurring negative free cash flow in the first quarter indicates that the business model requires significant upfront cash to prepare for the peak spring and summer seasons. This pattern suggests that the company's ability to fund operations is heavily back-weighted, leaving little room for error during the critical second and third quarters.
Based on the provided cash flow statements, working capital changes consumed $145.6 million in 2026Q1, a trend that appears consistent with the company's historical pattern of aggressive inventory accumulation ahead of the peak landscaping season, which significantly pressures short-term liquidity and operational cash flow.
The substantial cash outflow related to working capital changes suggests that SiteOne is heavily reliant on managing its inventory levels to meet contractor demand. If sales growth fails to materialize as expected during the peak season, this inventory build-up may lead to increased carrying costs and potential obsolescence risks.
As evidenced by recent filings, SiteOne utilized $75.9 million for acquisitions in 2026Q1 while simultaneously repurchasing $20.0 million in shares, indicating a dual-track capital deployment strategy that balances aggressive market consolidation with a commitment to returning capital to shareholders despite seasonal cash flow deficits.
The decision to continue share repurchases during a period of negative free cash flow suggests management's confidence in the long-term cash-generating potential of the business. However, investors should monitor whether this level of acquisition spending remains sustainable if organic growth continues to decelerate and interest costs remain elevated.
Quick answers to the most common questions about buying SITE stock.
SiteOne Landscape Supply, Inc. (SITE) generated $300.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SiteOne Landscape Supply, Inc. (SITE) generated $246.8M 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.
SiteOne Landscape Supply, Inc. (SITE) spent $53.7M 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, SiteOne Landscape Supply, Inc. (SITE) spent $98.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.