Free cash flow remains volatile, ranging from negative 6.0% to positive 7.5% over the last ten quarters, reflecting the high capital expenditure requirements that peaked at 21.8% of revenue in 2025Q4.
| Cash from Operations | 369M | 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 % | 194.68% | 12.11% | 749.75% | -114.36% | -29.64% | 8.66% | 14.37% | 1.56% | 346.15% | -141.8% | -5.76% | 94.12% | - |
| Net Income | 93.5M | 210.7M | 214.5M | 199.4M | 109.4M | 200.1M | 69.6M | 208M | 166M | 304M | 273M | 196M | 173M |
| Depreciation & Amortization | 134.1M | 119.4M | 105.9M | 88.8M | 71.4M | 62.1M | 40.6M | 61M | 54M | 42M | 38M | 38M | 37M |
| Stock-Based Compensation | 5.2M | 10.5M | 12M | 12.2M | 14.4M | 13.7M | 12.1M | 9M | 12M | 9M | 0 | 0 | 0 |
| Deferred Taxes | 110M | 38.3M | 23.5M | 33.6M | 18M | 56.9M | 68.7M | 23M | 145M | 117M | 13M | -9M | -16M |
| Other Non-Cash Items | 55M | -46.7M | -57M | -423.5M | 197.9M | 187.2M | 241.1M | 54M | 22M | -481M | -35M | 48M | -2M |
| Working Capital Changes | 16.7M | -35M | -33.8M | 48.7M | -126.9M | -116.1M | -60.4M | -30M | -79M | -121M | 22M | 57M | -22M |
| Change in Receivables | 12M | -3.1M | -900K | 26.4M | -17.5M | -17.4M | 1.7M | -30M | -38M | -22M | -17M | 53M | -31M |
| Change in Inventory | -2.9M | -5.4M | -7.7M | -3.3M | -5.4M | -5.3M | -2.3M | -10M | -4M | -35M | -4M | -6M | 8M |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -49M | -7.3M | -8M |
| Cash from Investing | -910.8M | -201.1M | 136.8M | 2.04B | -207.6M | -399.9M | -222.6M | -188M | -213M | -135M | -148M | -26M | -38M |
| Capital Expenditures | -269M | -259.2M | -224.4M | -180.5M | -132M | -103.1M | -94M | -108M | -93M | -68M | -66M | -45M | -37M |
| CapEx % of Revenue | 14.47% | 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 | -699.5M | -65M | 18.8M | -36.3M | -50.7M | -281.7M | -40.1M | -78M | -125M | -68M | -83M | 18M | -2M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 66.7M | 127.6M | -4.1M | 2.62B | -24.9M | -15.1M | -88.5M | -2M | 5M | 1M | 1M | 1M | 1M |
| Cash from Financing | 563.8M | -112.9M | -746.3M | -1.67B | -218.9M | -535.5M | 450.3M | -71M | -209M | 295M | 10M | -304M | -132M |
| Debt Issued (Net) | 568.5M | -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 | -4.7M | -5.1M | -20.7M | -127.1M | 28M | -45.6M | 86.3M | -9M | -23M | 5M | -1.44B | -304M | -132M |
| Net Change in Cash | 25M | -17.1M | -344.4M | 329.2M | -147.5M | -529.1M | 601.1M | 63M | -105M | 29M | 172M | 0 | 0 |
| Free Cash Flow | 100M | 38M | 40.7M | -221.3M | 152.2M | 300.8M | 277.7M | 217M | 227M | -198M | 245M | 285M | 133M |
| FCF Margin % | 5.38% | 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 % | 340.53% | -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 | 0.78 | 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) | 1.07x | 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 |
EV adoption terminal risk
Based on reported financial statements, Valvoline's operating cash flow to net income ratio has fluctuated significantly, reaching 2.13 in 2026Q2, which suggests that reported earnings may not fully capture the underlying cash-generating capacity of the company's retail-focused service model following the recent divestiture of manufacturing assets.
The wide variance between net income and operating cash flow indicates that non-cash charges and working capital adjustments are heavily influencing the bottom line. Investors should monitor whether this divergence persists, as it may imply that accounting earnings are currently understating the actual cash flow potential of the core retail business.
As reported in recent filings, Valvoline's free cash flow margin has remained inconsistent, ranging from negative 6.0% to positive 7.5% over the last ten quarters, reflecting the capital-intensive nature of the company's aggressive retail expansion strategy and ongoing investments in its store footprint.
The inability to consistently generate positive free cash flow suggests that the company is currently prioritizing growth over immediate cash return. This trajectory warrants further investigation into whether the current level of capital expenditure is sustainable without requiring additional external financing or impacting the company's liquidity position.
According to historical data, Valvoline's capital expenditure as a percentage of revenue has remained elevated, peaking at 21.8% in 2025Q4, which highlights the significant investment required to maintain and expand its company-operated store network in a competitive automotive service market.
The high capital intensity suggests that the company is heavily reinvesting in its physical infrastructure to drive future revenue growth. Analysts should evaluate whether these investments are yielding the expected returns on invested capital, as the current spending levels appear to be a primary drag on free cash flow generation.
Based on the provided cash flow data, working capital changes have been highly volatile, with a significant $40.0 million outflow in 2024Q1 followed by varying quarterly shifts, indicating that the company's cash conversion cycle is sensitive to inventory management and the timing of service-related payments.
The erratic nature of these working capital swings suggests potential inefficiencies in managing inventory or collecting receivables across the retail network. Investors should monitor these trends closely, as persistent working capital outflows could further constrain the company's ability to fund its growth initiatives internally.
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.