Operational efficiency is evidenced by a robust OCF/NI ratio of 1.97 in 2026Q1, supporting a free cash flow margin that has expanded to 24.7% from 6.2% in 2024Q1.
| Cash from Operations | 2.6B | 2.11B | 1.32B | 900.5M | -152.8M | 210.9M | 208.9M | 9.72M | -710.39K | -49.6M | -25K |
| Operating CF Margin % | - | 20.66% | 16.47% | 13.12% | -2.68% | 4.22% | 4.78% | 0.22% | -0.02% | -1.28% | -0% |
| Operating CF Growth % | 309.41% | 60.22% | 46.51% | 689.33% | -172.45% | 0.96% | 2048.46% | 1468.73% | 98.57% | -198300% | - |
| Net Income | 1.56B | 1.33B | 495.8M | 460.2M | 76.6M | 119.6M | -327.3M | 4.39M | 5.03M | -1.28K | -303.42K |
| Depreciation & Amortization | 133.2M | 97.1M | 277M | 271M | 302.4M | 227M | 203.1M | 202.9M | 242.5M | 396.3M | 160.6M |
| Stock-Based Compensation | 51.7M | 45.9M | 34.6M | 25M | 24.7M | 23.2M | 13M | 0 | 0 | 0 | 0 |
| Deferred Taxes | -38.9M | 22.6M | -54.5M | -131.6M | -8.6M | -121.3M | 19.9M | -13.8M | 0 | 0 | 0 |
| Other Non-Cash Items | -759.6M | 217.4M | 452.3M | 209.2M | -98.7M | 95.2M | 361M | -189.1M | -247.38M | -445.9M | -160.6M |
| Working Capital Changes | 771.3M | 398M | 114.1M | 66.7M | -449.2M | -132.8M | -60.8M | 5.33M | -858K | 1.28K | 278.42K |
| Change in Receivables | -686.8M | -547.5M | -280.3M | -277.2M | -368M | -117.4M | -114.8M | 360.23K | -1.25M | 0 | -25K |
| Change in Inventory | -420.3M | -164.7M | -369.3M | -54M | -211.4M | -125.7M | -38.5M | 85.5M | 0 | 0 | 0 |
| Change in Payables | 497.5M | 381.2M | 343.1M | -17.7M | 132.8M | 105.1M | 78.2M | 5.42M | 642.93K | 1.28K | 0 |
| Cash from Investing | -1.86B | -1.5B | -201.7M | -139.1M | -112.1M | -1.22B | -45.7M | -65.3M | -690M | 1.06B | -30.2M |
| Capital Expenditures | -293.8M | -220M | -184.1M | -134.6M | -111M | -84.6M | -52.7M | -70.3M | -64.6M | -36.7M | -34M |
| CapEx % of Revenue | 2.71% | 2.15% | 2.3% | 1.96% | 1.95% | 1.69% | 1.21% | 1.59% | 1.51% | 0.95% | 0.86% |
| Acquisitions | -1.21B | -1.18B | -17.6M | -16.9M | -5M | -1.14B | 7M | 5M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 76.4M | -6.4M | 0 | 12.4M | 3.9M | 9.8M | 0 | 0 | 64.6M | 1.09B | 3.8M |
| Cash from Financing | -35.5M | -72.3M | -652.1M | -247.5M | 100.2M | 914.9M | 140.7M | 2M | 691.55M | -874.1M | 25K |
| Debt Issued (Net) | 8.3M | -20.9M | -21.1M | -262.1M | 218.6M | 828.2M | -1.49B | 14.8M | 245.1M | 232.5M | 0 |
| Equity Issued (Net) | 37M | 26.4M | -566.9M | 27.4M | 3.1M | 111.6M | -341.6M | 0 | 705.8M | 0 | 25K |
| Dividends Paid | -76.3M | -66.6M | -42.2M | -9.5M | -3.8M | -3.8M | -3.3M | -360.23B | -4.88M | -1.02B | 0 |
| Share Repurchases | -11.6M | 0 | -599.9M | 0 | 0 | 0 | -341.6M | 0 | 0 | 0 | 0 |
| Other Financing | -4.5M | -11.2M | -21.9M | -3.3M | -117.7M | -21.1M | 1.98B | 360.21B | -254.47M | -82.6M | 0 |
| Net Change in Cash | 715.1M | 557.6M | 443.6M | 515.4M | -173.9M | -95.5M | 308.9M | 11.72M | 835.54K | 123.9M | 274.3M |
| Free Cash Flow | 2.31B | 1.89B | 1.14B | 765.9M | -263.8M | 126.3M | 156.2M | 9.72M | 4.17M | -86.3M | -25K |
| FCF Margin % | 21.3% | 18.51% | 14.17% | 11.16% | -4.63% | 2.53% | 3.57% | 0.22% | 0.1% | -2.22% | -0% |
| FCF Growth % | 77.83% | 66.83% | 48.22% | 390.33% | -308.87% | -19.14% | 1506.46% | 133.02% | 104.84% | -345100% | - |
| FCF per Share | 5.89 | 4.85 | 2.94 | 1.98 | -0.70 | 0.36 | 0.51 | 0.08 | 0.05 | -1.00 | -0.00 |
| FCF Conversion (FCF/Net Income) | 1.48x | 1.59x | 2.66x | 1.96x | -1.99x | 1.76x | -0.64x | -0.07x | -0.14x | 38871.47x | 0.08x |
| Interest Paid | 0 | 0 | 155.5M | 176.7M | 132.8M | 75.1M | 167M | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 272.5M | 153M | 104.6M | 97.3M | 64.7M | 0 | 0 | 0 | 0 |
Hyperscale customer concentration risk
According to recent quarterly filings, Vertiv consistently generated operating cash flow exceeding net income, with the OCF/NI ratio reaching 1.97 in 2026Q1, which suggests that the company's reported earnings are underpinned by high-quality cash inflows rather than aggressive accounting accruals or non-cash adjustments.
The persistent gap between net income and operating cash flow indicates that the company is effectively managing its cash cycle despite rapid top-line growth. Investors should interpret this as a sign of operational discipline, as the cash conversion remains robust even during periods of significant scaling.
As reported in financial statements, Vertiv's free cash flow margin has demonstrated a clear upward trajectory, climbing from 6.2% in 2024Q1 to 24.7% in 2026Q1, reflecting the company's ability to translate increased revenue into meaningful liquidity as it scales its high-margin liquid cooling product portfolio.
This expansion in FCF margins suggests that the business is successfully leveraging its existing infrastructure to support higher volumes without requiring proportional increases in overhead. The trend warrants further investigation to determine if this margin profile is sustainable as the product mix shifts toward more complex, custom-engineered solutions.
Based on Vertiv's reported figures, capital expenditures as a percentage of revenue have remained relatively contained, fluctuating between 1.6% and 4.2% over the last ten quarters, which indicates that the company is achieving significant growth without becoming overly burdened by heavy, asset-intensive maintenance or expansion requirements.
The relatively low capital intensity suggests that Vertiv's competitive advantage is driven more by intellectual property and specialized engineering than by massive physical plant expansion. This capital-light approach appears to be a key driver of the company's ability to generate strong free cash flow even while demand for its data center infrastructure accelerates.
Data from recent financial statements reveals that working capital changes have frequently provided a positive tailwind to cash flow, with a notable $227.8M contribution in 2026Q1, suggesting that the company is effectively managing its receivables and payables in alignment with its project-based revenue recognition cycles.
While positive working capital changes are currently boosting cash flow, investors should monitor whether this is a sustainable result of efficient supply chain management or a temporary benefit from customer deposit timing. Any reversal in these trends could signal a shift in the company's ability to collect cash ahead of project completion.
Quick answers to the most common questions about buying VRT stock.
Vertiv Holdings Co (VRT) generated $2.11B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Vertiv Holdings Co (VRT) generated $1.89B 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.
Vertiv Holdings Co (VRT) spent $220.0M 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, Vertiv Holdings Co (VRT) returned $66.6M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.