Free cash flow turned sharply positive to $87.0M in Q3 2026 (13.2% FCF margin) from negative levels in early 2025, supported by reduced capex intensity of 3.3% of revenue and working capital tailwinds.
Vestis Corporation (VSTS) cash flow statement — 5-year operating, investing & financing cash flows
| Metric | TTM | Oct'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 |
|---|
| Cash from Operations | 191.8M | 64.23M | 471.79M | 256.98M | 232.85M | 244.34M |
| Operating CF Margin % | - | 2.35% | 16.81% | 9.1% | 8.67% | 9.95% |
| Operating CF Growth % | 1766.38% | -86.39% | 83.59% | 10.36% | -4.7% | - |
| Net Income | -5.3M | -40.22M | 20.97M | 213.16M | 141.68M | 74.27M |
| Depreciation & Amortization | 137.52M | 143.02M | 140.78M | 136.5M | 134.35M | 133.31M |
| Stock-Based Compensation | 9.56M | 11.56M | 16.34M | 14.47M | 17.4M | 15.43M |
| Deferred Taxes | 10.43M | -13.4M | -19.58M | 14.37M | 20.6M | -615K |
| Other Non-Cash Items | 18.4M | 6.88M | 10.62M | -44.13M | 26.18M | 34.47M |
| Working Capital Changes | 21.18M | -43.61M | 302.69M | -77.39M | -107.37M | -12.53M |
| Change in Receivables | 31.76M | 14M | 215.81M | -40.25M | -94.22M | -20.52M |
| Change in Inventory | 35.59M | -24.37M | 12.99M | 3.6M | -42.86M | -4.01M |
| Change in Payables | -25.75M | -267K | 21.66M | -32.89M | 31.4M | 10.3M |
| Cash from Investing | -47.75M | -19.82M | -73.64M | -14.75M | -86.13M | -103.16M |
| Capital Expenditures | -55.39M | -58.46M | -78.91M | -77.87M | -76.45M | -90.14M |
| CapEx % of Revenue | 2.05% | 2.14% | 2.81% | 2.76% | 2.85% | 3.67% |
| Acquisitions | 7.42M | 37.66M | 0 | 51.87M | -17.2M | -15.77M |
| Investments | - | - | - | - | - | - |
| Other Investing | 222K | 984K | 5.27M | -40.61M | 7.52M | 2.75M |
| Cash from Financing | -110.77M | -46.06M | -402.98M | -230.27M | -162.54M | -125.51M |
| Debt Issued (Net) | -100.57M | -28.5M | -370.11M | 1.47B | -28.04M | -29.92M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | -13.82M | -19.85M | -1.69B | -134.5M | -95.6M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -10.2M | -3.74M | -13.02M | -13.75M | -134.5M | -95.6M |
| Net Change in Cash | 33.92M | -1.26M | -5.04M | 12.31M | -17.37M | 16.77M |
| Free Cash Flow | 136.41M | 5.77M | 392.88M | 179.11M | 156.4M | 154.2M |
| FCF Margin % | 5.06% | 0.21% | 14% | 6.34% | 5.82% | 6.28% |
| FCF Growth % | -47.06% | -98.53% | 119.36% | 14.52% | 1.43% | - |
| FCF per Share | 1.02 | 0.04 | 2.98 | 1.37 | 1.20 | 1.18 |
| FCF Conversion (FCF/Net Income) | -25.75x | -1.60x | 22.50x | 1.21x | 1.64x | 3.29x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -5.6M | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying VSTS stock.
Vestis Corporation (VSTS) generated $64.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Vestis Corporation (VSTS) generated $5.8M 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.
Vestis Corporation (VSTS) spent $58.5M 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, Vestis Corporation (VSTS) returned $13.8M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Persistent revenue decline and thin margins
Metrics are mathematically derived from official filings.
Cash Conversion Diverges from Losses
Despite cumulative net losses over the past year, operating cash flow turned positive, with Q3 2026 OCF/NI at 5.88x, indicating significant non-cash charges and working capital tailwinds, as per reported figures.
The gap between net income and operating cash flow is stark: in quarters like 2025Q2, net income was -$27.8M while OCF was +$6.7M, driven by D&A of ~$36M and working capital swings. This suggests earnings quality is low, with cash generation not yet translating to profitability, but the recent positive OCF may indicate stabilization.
FCF Inflection Points to Recovery
Free cash flow turned positive in Q3 2026 at $87.0M, a sharp reversal from negative FCF in early 2025, with FCF margin expanding to 13.2% from -1.6% a year earlier, based on quarterly data.
The FCF trajectory shows a clear inflection: from -$11.0M in 2025Q1 to +$87.0M in 2026Q3, driven by improved operating cash flow and disciplined capex. However, this recovery is from a low base, and the sustainability depends on revenue stabilization, as FCF margins remain below peer Cintas's 16.7%.
Capex Discipline Amidst Revenue Decline
Capital expenditure intensity has been reduced to 3.3% of revenue in Q3 2026, down from 4.1% in 2024Q4, suggesting management is prioritizing cash preservation over growth investments, as per financial statements.
The reduction in capex as a percentage of revenue, from 4.1% to 3.3%, indicates a shift toward maintenance spending rather than growth. This may support near-term FCF but could impair long-term competitiveness if route density and service quality suffer, especially given the need to close the margin gap with Cintas.
Working Capital Volatility Masks Core Trends
Working capital changes swung from +$258.2M in 2024Q4 to -$20.5M in 2026Q3, indicating significant volatility that has distorted quarterly cash flows, as reported in the cash flow statement.
The extreme working capital swings, particularly the $258.2M inflow in 2024Q4, appear to be one-time events, likely related to the spin-off. Excluding these, the underlying working capital drag is modest, but the recent negative change in 2026Q3 suggests some pressure on collections or inventory, which warrants monitoring.
No Capital Returns Yet
Vestis has not paid dividends or repurchased shares in recent quarters, with all cash flow retained for debt reduction and operations, as indicated by zero buybacks and dividends in the cash flow data.
The absence of shareholder returns is consistent with a company in transition, prioritizing balance sheet repair and operational stabilization. However, as FCF improves, investors will likely expect a capital return policy, especially given the peer group's dividend yields, but management has not signaled such plans.
Cumulative Cash Generation Outpaces Earnings
Over the last ten quarters, cumulative operating cash flow of $645.5M far exceeds cumulative net income of -$23.9M, highlighting a persistent divergence driven by non-cash charges and working capital timing, based on reported data.
The cumulative gap between net income and operating cash flow is substantial, with OCF totaling $645.5M versus net losses of $23.9M. This suggests that the business generates cash at the operational level, but reported earnings are burdened by non-cash items like D&A and possibly one-time charges. Investors should focus on cash generation as a more reliable indicator of underlying health, though the sustainability of this gap depends on future working capital dynamics.
What Could Invalidate the Base Case
The Q3 2026 EPS beat may be unsustainable, as management lowered full-year guidance and revenue continues to decline, suggesting the beat could be driven by one-off items or aggressive cost cuts, according to recent filings.
The cash flow statement obscures potential one-time benefits, such as the $258.2M working capital inflow in 2024Q4, which may not recur. Additionally, the negative net margin and thin operating margin indicate that cash flow improvements could be temporary if revenue decline persists. Investors should monitor whether the positive FCF is sustainable or merely a result of deferred maintenance and cost cutting that could harm long-term competitiveness.