Cash conversion efficiency remains inconsistent, with operating cash flow to net income ratios swinging from -0.04 in 2025Q4 to 1.65 in 2026Q1 due to working capital timing.
| 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 | 2.32B | 1.75B | 1.69B | 1.22B | 2.36B | 3.45B | 1.92B | 1.52B | 1.62B | 229.5M | 170.5M | 1.51B | 1.29B | 1.23B | 902.8M | 948.4M | 732.8M | 535.6M | 741.8M | 758M | 593.2M | 539.48M | 374.28M | 296.95M | 269M | 290.35M | 322.74M | 296.9M | 231.97M | 197.8M | 141.2M |
| Operating CF Margin % | - | 23.97% | 23.76% | 18.87% | 36.36% | 45% | 30.92% | 27.1% | 30.15% | 4.73% | 3.98% | 35.86% | 32.43% | 35.39% | 29.87% | 34.39% | 30.96% | 28.68% | 35.05% | 34.02% | 32.68% | 35.68% | 29.31% | 29.73% | 29.11% | 29.18% | 27.97% | 28.65% | 26.18% | 26.2% | 24.09% |
| Operating CF Growth % | 132.04% | 4.02% | 38.27% | -48.33% | -31.65% | 79.89% | 26.02% | -6% | 605.84% | 34.6% | -88.68% | 16.66% | 4.71% | 36.6% | -4.81% | 29.42% | 36.82% | -27.8% | -2.14% | 27.78% | 9.96% | 44.14% | 26.04% | 10.39% | -7.35% | -10.03% | 8.7% | 27.99% | 17.28% | 40.09% | 38.7% |
| Net Income | 2.09B | 2.21B | 2.14B | 1.84B | 1.45B | 3.1B | 2.52B | 2.25B | 1.77B | 1.58B | 1.25B | 1.22B | 1.23B | 1.05B | 883.6M | 773.2M | 672.2M | 433.6M | 490.8M | 670.6M | 529.6M | 431M | 337.26M | 227.49M | 194.25M | 195.87M | 269.03M | 239.4M | 174.14M | 144.4M | 98.5M |
| Depreciation & Amortization | 761M | 605.5M | 504.2M | 481.6M | 645.8M | 204.8M | 189.6M | 190.8M | 159.5M | 143.6M | 133.4M | 126.3M | 111.7M | 90.6M | 80.9M | 72.4M | 63M | 65.7M | 62.3M | 54M | 46.5M | 42.3M | 40.02M | 45.29M | 50.58M | 80.49M | 53.69M | 33.37M | 33.36M | 29M | 18.1M |
| Stock-Based Compensation | 178.4M | 216.9M | 247.3M | 265.6M | 285.4M | 274.6M | 246.2M | 206.6M | 197.1M | 152M | 161.6M | 149M | 133.4M | 114.6M | 104.1M | 98.7M | 89.5M | 89.1M | 85.5M | 79.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.16M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -1.14B | -1.45B | -1.21B | -1.56B | 118.5M | -193.3M | -1.13B | -1.23B | -617M | -1.87B | -1.38B | -69.9M | -146.6M | -52.1M | -135.8M | -4M | -7.6M | 36.1M | 91.3M | 300K | 44.3M | 3.2M | 0 | 45K | -298K | 13.64M | 9.94M | 26.04M | 32.37M | 14M | 4.6M |
| Working Capital Changes | 384M | 169.8M | 5.5M | 193.6M | -139.9M | 67.4M | 91.1M | 109.6M | 111.6M | 220.6M | 3.4M | 78M | 15.8M | 32M | -38.4M | 4.1M | -91.9M | -88.9M | 11.9M | -46.7M | -27.2M | 63.12M | -3M | 24.18M | 24.47M | 0 | -9.66M | 9.4M | 24.6M | 10.4M | 20M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12.7M | 0 | -9.3M | -3.2M | -31.5M | -44.7M | -49.7M | 2.8M | -62.5M | -69.3M | 89.4M | -42.7M | 0 | 0 | 0 | 0 | 0 | 0 | -8.59M | -22M | -13.9M | -13.8M | -17.4M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -18.8M | 0 | 0 | 0 | 0 | 0 | 0 | -4.67M | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 138.6M | 98.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 23.9M | 0 | 0 | 0 | 0 | 0 | 0 | 3.92M | 26.7M | 26.2M | 19M | 27.4M |
| Cash from Investing | 289.4M | 230.3M | -177.5M | 128.2M | -41.5M | -1.1B | -36.3M | -324.5M | -875.5M | 39M | 106.2M | 109M | -443.4M | -437.5M | -310.1M | -165M | -276.9M | -166.7M | -125M | -344.7M | -421.2M | -91.63M | -75.86M | -53.66M | -94.97M | -8.97M | -861.09M | -118.15M | -67.57M | -79.7M | -69.3M |
| Capital Expenditures | -192.2M | -274.2M | -423.4M | -307.9M | -237.6M | -239.1M | -214.6M | -204.6M | -168.5M | -186.1M | -148.3M | -151.3M | -126.2M | -105.8M | -76.9M | -82.3M | -118M | -133.9M | -144.1M | -145.6M | -94.4M | -52.3M | -43.07M | -31.74M | -26.05M | -41.38M | -85.61M | -77.42M | -56.56M | -70.1M | -58.8M |
| CapEx % of Revenue | 2.59% | 3.75% | 5.97% | 4.77% | 3.66% | 3.12% | 3.46% | 3.64% | 3.14% | 3.83% | 3.46% | 3.6% | 3.17% | 3.04% | 2.54% | 2.98% | 4.98% | 7.17% | 6.81% | 6.53% | 5.2% | 3.46% | 3.37% | 3.18% | 2.82% | 4.16% | 7.42% | 7.47% | 6.38% | 9.28% | 10.03% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 5.12B | 5.28B | 4.05B | 3.71B | 3.38B | 4.94B | 5.95B | 5.22B | 4.13B | 3.53B | 2.86B | 1.99B | 2.21B | 1.93B | 1.58B | 970.8M | 1.14B | 905.8M | 721.4M | 1B | 762.4M | 758.15M | 658.47M | 273.25M | 432.16M | 246.49M | 440.61M | 233.9M | 192.9M | 173.7M | 168.6M |
| Other Investing | -13.3M | -88.6M | -171.6M | -38.4M | -3.7M | 30.9M | 50.5M | 6.8M | 88.4M | -7.4M | -5.7M | -9.4M | -11.9M | -11.5M | -13.2M | -7.6M | -11.3M | -7.1M | -9.7M | -23.1M | -3.9M | -39.5M | 3.38M | 0 | -60.64M | -20.59M | 2.04M | 9.93M | 2.93M | 4.9M | 7.2M |
| Cash from Financing | -1.69B | -1.28B | -936.6M | -1.08B | -2.08B | -2.99B | -1.49B | -832.7M | -1.24B | 461.5M | -176.4M | -1.95B | -739.8M | -276.8M | -611.5M | -698.6M | -386.1M | -244.7M | -782.8M | -401.2M | -202.6M | -144.01M | -35.2M | -118.18M | -142.65M | -282.17M | 260.4M | -104.15M | -80.97M | -32.3M | -38.7M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -754.3M | -643.2M | -370.5M | -272.4M | -849.8M | -1.14B | -1.2B | -622.5M | -1.02B | -257M | -550.6M | -914.3M | -330.3M | 104.1M | -48.6M | -429.1M | -157M | -23.3M | -513.8M | -220.5M | -65.9M | -27.88M | 56.81M | 7.21M | -70.45M | -17.82M | 19.28M | -57.45M | -23.52M | 5.4M | -14.6M |
| Dividends Paid | -1.14B | -1.14B | -1.14B | -1.12B | -1.11B | -1.7B | -845.8M | -733.9M | -694.3M | -563.1M | -540.8M | -1.06B | -462.1M | -396.7M | -603.4M | -317.9M | -278.9M | -256.9M | -312.5M | -180.3M | -147.6M | -119.53M | -96.16M | -83.67M | -78.7M | -73.84M | -62.88M | -48.24M | -40.41M | -30.1M | -24.1M |
| Share Repurchases | -769.4M | -620.9M | -370.5M | -272.4M | -849.8M | -1.14B | -1.2B | -705.8M | -1.09B | -458.1M | -676.9M | -987.8M | -415.5M | -14.1M | -135.2M | -479.7M | -240M | -71M | -614.2M | -312.1M | -171M | -75.85M | -18.33M | -19.96M | -95.77M | -30.92M | 0 | -67.42M | -36.42M | -9.7M | -19.7M |
| Other Financing | 205.3M | 508.8M | 569.5M | 315.5M | -119.7M | -148.4M | 557.5M | 523.7M | 470.4M | 1.28B | 915M | 24.1M | 52.6M | 15.8M | 40.5M | 35.3M | 49.8M | 35.5M | 43.5M | -400K | 10.9M | 3.4M | 4.15M | 14.98M | 55.87M | 14.49M | 9.01M | -13.48M | -17.04M | -7.6M | 0 |
| Net Change in Cash | 931.4M | 704.4M | 569.1M | 269.1M | 250.5M | -632.3M | 398.2M | 363M | -510.5M | 735.3M | 98.2M | -333.8M | 108.1M | 518.9M | -18.8M | 84.8M | 69.8M | 124.2M | -166M | 12.1M | -30.6M | 303.84M | 263.22M | 125.11M | 31.68M | -785K | -277.95M | 74.7M | -81M | -32.3M | -38.7M |
| Free Cash Flow | 2.34B | 1.48B | 1.26B | 911.2M | 2.12B | 3.21B | 1.7B | 1.32B | 1.45B | 43.4M | 22.2M | 1.38B | 1.22B | 1.13B | 825.9M | 866.1M | 614.8M | 401.7M | 597.7M | 612.4M | 498.8M | 487.68M | 331.21M | 265.21M | 243.25M | 248.98M | 237.12M | 219.5M | 175.4M | 127.7M | 82.4M |
| FCF Margin % | 31.56% | 20.22% | 17.79% | 14.1% | 32.7% | 41.88% | 27.46% | 23.46% | 27.01% | 0.89% | 0.52% | 32.83% | 30.58% | 32.36% | 27.33% | 31.41% | 25.97% | 21.51% | 28.24% | 27.48% | 27.48% | 32.25% | 25.94% | 26.55% | 26.33% | 25.02% | 20.55% | 21.18% | 19.79% | 16.91% | 14.06% |
| FCF Growth % | 67.53% | 17.19% | 38.52% | -57.06% | -33.96% | 88.52% | 29.3% | -9.18% | 3244.24% | 95.5% | -98.39% | 13.26% | 8.01% | 36.51% | -4.64% | 40.88% | 53.05% | -32.79% | -2.4% | 22.77% | 2.28% | 47.24% | 24.88% | 9.03% | -2.3% | 5% | 8.03% | 25.14% | 37.35% | 54.98% | 5.78% |
| FCF per Share | 10.46 | 6.61 | 5.65 | 4.05 | 9.34 | 14.04 | 7.37 | 5.52 | 5.88 | 0.18 | 0.09 | 5.29 | 4.55 | 4.23 | 3.16 | 3.29 | 2.32 | 1.53 | 2.21 | 2.19 | 1.79 | 1.79 | 1.23 | 1.03 | 0.95 | 0.97 | 0.92 | 0.85 | 0.67 | 0.50 | 0.33 |
| FCF Conversion (FCF/Net Income) | 1.12x | 0.84x | 0.80x | 0.68x | 1.51x | 1.12x | 0.81x | 0.71x | 0.88x | 0.15x | 0.14x | 1.23x | 1.05x | 1.18x | 1.02x | 1.23x | 1.09x | 1.24x | 1.51x | 1.13x | 1.12x | 1.25x | 1.11x | 1.31x | 1.39x | 1.48x | 1.20x | 1.24x | 1.33x | 1.37x | 1.43x |
| Interest 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 |
| 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 |
Secular active-to-passive migration
As reported in financial statements, TROW's operating cash flow to net income ratio exhibits extreme volatility, swinging from a negative 0.04 in 2025Q4 to a robust 1.65 in 2026Q1, which suggests that reported net income is a poor proxy for immediate cash generation capabilities.
The significant gap between net income and operating cash flow appears driven by periodic working capital swings and non-cash adjustments. Investors should monitor whether these fluctuations represent temporary timing differences or a structural degradation in the firm's ability to convert advisory fee accruals into realized cash.
Based on TROW's reported figures, free cash flow margins have fluctuated wildly between negative 21.6% and positive 48.5% over the last ten quarters, indicating that the firm's cash trajectory is highly sensitive to seasonal working capital requirements rather than a steady operational decline.
While the negative FCF periods in Q4 of 2023, 2024, and 2025 appear concerning, they correlate with significant working capital outflows that typically reverse in subsequent quarters. This pattern suggests that the firm's core cash-generating engine remains intact despite the headline volatility in quarterly cash flow statements.
According to recent SEC filings, TROW experienced a massive $529.4 million working capital outflow in 2024Q4, which directly contributed to the period's negative free cash flow, highlighting the firm's susceptibility to lumpy cash movements inherent in its institutional asset management business model.
These working capital swings appear to be the primary source of noise in the firm's cash flow profile rather than operational inefficiency. The consistent reversal of these outflows in following quarters suggests that management maintains effective control over receivables and payables despite the periodic headline distortions.
As evidenced by the consistent dividend payments of approximately $280 million per quarter, TROW utilizes its robust balance sheet to prioritize shareholder returns, even during periods where operating cash flow temporarily dips into negative territory due to working capital timing.
The firm's ability to maintain dividend payouts and share repurchases despite volatile quarterly cash flows underscores the strength of its liquidity position. This capital allocation strategy suggests management prioritizes long-term shareholder value over the preservation of cash during temporary operational fluctuations.
Quick answers to the most common questions about buying TROW stock.
T. Rowe Price Group, Inc. (TROW) generated $1.75B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
T. Rowe Price Group, Inc. (TROW) generated $1.48B 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.
T. Rowe Price Group, Inc. (TROW) spent $274.2M 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, T. Rowe Price Group, Inc. (TROW) returned $1.14B to shareholders via cash dividends and spent $620.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.