Operating cash flow of $284.6M in 2026Q3 was 4.4x net income, but FCF of $112.3M was dwarfed by $652.5M in acquisition outflows, and capex intensity rose to 31.6% of revenue, indicating a heavy investment phase.
Valvoline Inc. (VVV) cash flow statement — 12-year operating, investing & financing cash flows
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 |
|---|
| Cash from Operations | 406.5M | 297.2M | 265.1M | -40.8M | 284.2M | 403.9M | 371.7M | 325M | 320M | -130M | 311M | 330M | 170M |
| Operating CF Margin % | - | 17.38% | 16.37% | -2.83% | 22.99% | 38.94% | 51.13% | 13.6% | 14% | -6.24% | 16.12% | 16.78% | 8.33% |
| Operating CF Growth % | 222.89% | 12.11% | 749.75% | -114.36% | -29.64% | 8.66% | 14.37% | 1.56% | 346.15% | -141.8% | -5.76% | 94.12% | - |
| Net Income | 101.5M | 210.7M | 214.5M | 199.4M | 109.4M | 200.1M | 69.6M | 208M | 166M | 304M | 273M | 196M | 173M |
| Depreciation & Amortization | 142.1M | 119.4M | 105.9M | 88.8M | 71.4M | 62.1M | 40.6M | 61M | 54M | 42M | 38M | 38M | 37M |
| Stock-Based Compensation | 9.3M | 10.5M | 12M | 12.2M | 14.4M | 13.7M | 12.1M | 9M | 12M | 9M | 0 | 0 | 0 |
| Deferred Taxes | 109.9M | 38.3M | 23.5M | 33.6M | 18M | 56.9M | 68.7M | 23M | 145M | 117M | 13M | -9M | -16M |
| Other Non-Cash Items | 6.9M | -46.7M | -57M | -423.5M | 197.9M | 187.2M | 241.1M | 54M | 22M | -481M | -35M | 48M | -2M |
| Working Capital Changes | 36.3M | -35M | -33.8M | 48.7M | -126.9M | -116.1M | -60.4M | -30M | -79M | -121M | 22M | 57M | -22M |
| Change in Receivables | -1.8M | -3.1M | -900K | 26.4M | -17.5M | -17.4M | 1.7M | -30M | -38M | -22M | -17M | 53M | -31M |
| Change in Inventory | -5.9M | -5.4M | -7.7M | -3.3M | -5.4M | -5.3M | -2.3M | -10M | -4M | -35M | -4M | -6M | 8M |
| Change in Payables | -700K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -49M | -7.3M | -8M |
| Cash from Investing | -890.5M | -201.1M | 136.8M | 2.04B | -207.6M | -399.9M | -222.6M | -188M | -213M | -135M | -148M | -26M | -38M |
| Capital Expenditures | -271.2M | -259.2M | -224.4M | -180.5M | -132M | -103.1M | -94M | -108M | -93M | -68M | -66M | -45M | -37M |
| CapEx % of Revenue | 13.81% | 15.16% | 13.86% | 12.5% | 10.68% | 9.94% | 12.93% | 4.52% | 4.07% | 3.26% | 3.42% | 2.29% | 1.81% |
| Acquisitions | -685.4M | -65M | 18.8M | -36.3M | -50.7M | -281.7M | -40.1M | -78M | -125M | -68M | -83M | 18M | -2M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 70.6M | 127.6M | -4.1M | 2.62B | -24.9M | -15.1M | -88.5M | -2M | 5M | 1M | 1M | 1M | 1M |
| Cash from Financing | 500.2M | -112.9M | -746.3M | -1.67B | -218.9M | -535.5M | 450.3M | -71M | -209M | 295M | 10M | -304M | -132M |
| Debt Issued (Net) | 522.1M | -31M | -498.8M | 100K | -15.1M | -272.1M | 508.1M | 18M | 197M | 380M | 735M | 0 | 0 |
| Equity Issued (Net) | 0 | -76.8M | -226.8M | -1.52B | -142.6M | -126.9M | -59.8M | 0 | -325M | -50M | 719M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | -21.8M | -89.2M | -90.9M | -84.3M | -80M | -58M | -40M | 0 | 0 | 0 |
| Share Repurchases | 0 | -76.8M | -226.8M | -1.52B | -142.6M | -126.9M | -59.8M | 0 | -325M | -50M | 0 | 0 | 0 |
| Other Financing | -21.9M | -5.1M | -20.7M | -127.1M | 28M | -45.6M | 86.3M | -9M | -23M | 5M | -1.44B | -304M | -132M |
| Net Change in Cash | 18.5M | -17.1M | -340.4M | 329.2M | -147.5M | -529.1M | 601.1M | 63M | -105M | 29M | 172M | 0 | 0 |
| Free Cash Flow | 135.3M | 38M | 40.7M | -221.3M | 152.2M | 300.8M | 277.7M | 217M | 227M | -198M | 245M | 285M | 133M |
| FCF Margin % | 6.89% | 2.22% | 2.51% | -15.33% | 12.31% | 29% | 38.2% | 9.08% | 9.93% | -9.5% | 12.7% | 14.49% | 6.52% |
| FCF Growth % | 201.34% | -6.63% | 118.39% | -245.4% | -49.4% | 8.32% | 27.97% | -4.41% | 214.65% | -180.82% | -14.04% | 114.29% | - |
| FCF per Share | 1.05 | 0.30 | 0.31 | -1.36 | 0.84 | 1.64 | 1.48 | 1.15 | 1.15 | -0.97 | 1.44 | 1.43 | 0.67 |
| FCF Conversion (FCF/Net Income) | 1.33x | 1.41x | 1.25x | -0.03x | 0.67x | 0.96x | 1.17x | 1.56x | 1.93x | -0.43x | 1.14x | 1.68x | 0.98x |
| Interest Paid | 0 | 56.1M | 78.2M | 69.6M | 59.4M | 62.1M | 64.9M | 67M | 53M | 35M | 0 | 0 | 0 |
| Taxes Paid | 0 | 35.8M | 31.3M | 373.8M | 73.9M | 72.3M | 43.6M | 25M | 26M | 26M | 17M | 0 | 0 |
Quick answers to the most common questions about buying VVV stock.
Valvoline Inc. (VVV) generated $297.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Valvoline Inc. (VVV) generated $38.0M 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.
Valvoline Inc. (VVV) spent $259.2M 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, Valvoline Inc. (VVV) spent $76.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Acquisition-driven cash flow volatility
Metrics are mathematically derived from official filings.
Cash Conversion Spikes on Working Capital
Operating cash flow hit $284.6M in 2026Q3, 4.4x net income, per the latest quarterly report, driven by a $38.2M working capital inflow and heavy D&A, suggesting earnings quality is supported by non-cash charges.
The OCF/NI ratio of 4.41 in 2026Q3 is exceptionally high, but it follows a negative ratio in 2026Q1, indicating volatility. The working capital contribution of $38.2M in 2026Q3 contrasts with outflows in prior quarters, suggesting timing effects rather than sustained efficiency. Investors should monitor whether this conversion is repeatable or a one-off.
FCF Rebound Masks Underlying Volatility
Free cash flow swung from -$12.4M in 2025Q1 to $112.3M in 2026Q3, as per reported figures, with FCF margin expanding to 20.6%, but the trajectory is uneven, reflecting acquisition-related cash outflows and capex spikes.
The 2026Q3 FCF margin of 20.6% is a sharp improvement from the 7.5% in 2026Q2, but it is inflated by a working capital release and lower capex intensity. Over the past year, FCF has been negative in two quarters, indicating that the company's cash generation is not yet stable. The gap between net income and FCF is narrowing, but the reliance on working capital timing warrants caution.
Capex Intensity Surges with Expansion
Capital expenditures reached $172.3M in 2026Q3, representing 31.6% of revenue, according to the latest financials, up from 12.5% in 2025Q3, suggesting a significant investment phase that may be tied to store growth or acquisitions.
The capex-to-revenue ratio of 31.6% in 2026Q3 is more than double the historical average of around 12-16%, indicating a deliberate push into growth capex. However, this surge may be partly related to acquisition-related capital spending, as the company also reported $652.5M in acquisition outflows in the same quarter. If this elevated capex is not matched by revenue growth, FCF could remain pressured.
Working Capital Swings Signal Timing Effects
Working capital changes contributed $38.2M to cash flow in 2026Q3, per the cash flow statement, after a $17.8M outflow in 2025Q2, indicating that cash conversion is heavily influenced by timing of payables and receivables.
The volatility in working capital changes, ranging from -$17.8M to +$38.2M over the past year, suggests that the company's cash flow is not purely driven by earnings but by operational timing. This could reflect seasonal patterns or deliberate management of payables. Investors should assess whether the company is stretching payables or if this is a natural cycle.
Acquisitions Dominate Capital Deployment
Cash outflows for acquisitions totaled $652.5M in 2026Q3, as reported, dwarfing the $112.3M FCF generated, while dividends and buybacks were absent, indicating a strategy focused on inorganic growth over shareholder returns.
The $652.5M acquisition outflow in 2026Q3 is a massive deployment of capital, likely funded by debt or cash reserves, given the lack of buybacks and dividends. This suggests management is prioritizing expansion through M&A, which could enhance long-term growth but also increases integration risk. The absence of shareholder returns may be a deliberate choice to preserve cash for deals.
Cumulative Cash Generation Lags Net Income
Over the last ten quarters, cumulative operating cash flow of $987M exceeds cumulative net income of $466M, per the cash flow data, but the gap is driven by D&A and working capital, not sustainable earnings growth.
The cumulative OCF is more than double cumulative net income, which is typical for asset-heavy businesses with significant D&A. However, the divergence is also influenced by large working capital swings and acquisition-related cash flows. This suggests that reported earnings may understate cash generation, but the volatility in OCF indicates that the quality of earnings is not consistently high.
What the Cash Flow Statement Obscures
The cash flow statement shows large acquisition outflows and capex spikes, but it may obscure the true cost of growth, as SBC is minimal and D&A may not fully reflect maintenance needs, per the reported data.
The reported SBC is small relative to net income, but it is still a non-cash expense that reduces reported earnings without affecting cash flow. The elevated capex in 2026Q3 may include growth investments, but the distinction between maintenance and growth capex is not disclosed, which could overstate the sustainability of FCF. Additionally, the $652.5M acquisition outflow in 2026Q3 may be funded by debt, but the cash flow statement does not reveal the resulting leverage or integration risks, which warrants further investigation.