Cash flow conversion remains inconsistent, evidenced by an operating cash flow to net income ratio that fluctuated from a low of 0.14 in 2025Q1 to a high of 2.65 in 2023Q4.
| 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 | 120.73M | 94.26M | 102.21M | 106.22M | 5.89M | 37.09M | 107.67M | 41.31M | 35.84M | 12.54M | 48.01M | 97.99M | 98.67M | 82.2M | 51.21M | 25.83M | 23.91M | 51.58M | 18.46M | -1.42M | -15K | -1.24M | 5.13M | 6.92M | 2.5M | 7.14M | -323K | 10.53M | 5.7M | 100K | 453K |
| Operating CF Margin % | - | 4.67% | 5.67% | 6.33% | 0.4% | 3.33% | 10.71% | 3.27% | 2.95% | 1.25% | 4.99% | 7.86% | 6.58% | 6.62% | 4.67% | 3.2% | 3.64% | 8.84% | 2.5% | -0.32% | -0.01% | -0.67% | 3.19% | 4.59% | 1.69% | 4.09% | -0.18% | 5.85% | 2.8% | 0.06% | 0.36% |
| Operating CF Growth % | 957.47% | -7.78% | -3.78% | 1702.21% | -84.11% | -65.55% | 160.67% | 15.25% | 185.71% | -73.87% | -51.01% | -0.69% | 20.04% | 60.52% | 98.26% | 8.03% | -53.64% | 179.42% | 1397.12% | -9386.67% | 98.79% | -124.09% | -25.94% | 177.25% | -65.02% | 2310.22% | -103.07% | 84.7% | 5600% | -77.92% | - |
| Net Income | 88.04M | 88.68M | 70.49M | 68.81M | 48.1M | 15.75M | -29.07M | 35.77M | 35.52M | 16.53M | 7.15M | -39.07M | -45.24M | 60.24M | 50.98M | 31.44M | 19.38M | -42.41M | 25.89M | 5.47M | 11.92M | 5.47M | 2.78M | 2.07M | -110K | 929K | -7.36M | -118K | 2.8M | 2.8M | 897K |
| Depreciation & Amortization | 41.77M | 38.85M | 33.41M | 30.11M | 30.34M | 27.14M | 22.68M | 25.17M | 26.16M | 27.79M | 29.99M | 33.24M | 35.08M | 21.66M | 18.08M | 10.08M | 9.57M | 11.48M | 10.99M | 990K | 1.75M | 990K | 992K | 1.06M | 1.16M | 1.38M | 1.95M | 2.02M | 1.8M | 1.3M | 964K |
| Stock-Based Compensation | 4.39M | 5.71M | 4.71M | 3.07M | 1.85M | 1.82M | 3.53M | 1.96M | 2.55M | 1.71M | 3.58M | 2.97M | 3.56M | 2.83M | 1.96M | 1.26M | 973K | 1.55M | 930K | 591K | 220K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 26.36M | 27.36M | -14.99M | -9.06M | -7.54M | 6.14M | -14.77M | 1.11M | 1M | -3.83M | 3.31M | -9.02M | -13.08M | 1.88M | 550K | 1.88M | 2.91M | -16.68M | 143K | 306K | -103K | 306K | 77K | 128K | 796K | 1.23M | -2.62M | -32K | 0 | -100K | -216K |
| Other Non-Cash Items | 796K | -7.44M | 3.89M | 4.88M | 3.38M | 1.8M | 64.71M | 1.95M | 3.15M | 5.54M | -3.6M | 71.96M | 119.93M | -2.81M | 654K | 0 | -403K | 66.48M | -1.48M | -934K | -3.9M | -155K | -43K | -2K | 1.73M | 5K | 8.87M | -6K | 0 | -100K | -600K |
| Working Capital Changes | -40.65M | -58.89M | 4.7M | 8.41M | -70.24M | -15.57M | 60.6M | -24.67M | -32.55M | -35.19M | 7.57M | 37.91M | -1.58M | -1.6M | -21.02M | -18.83M | -8.53M | 31.15M | -18.02M | -7.84M | -9.91M | -7.84M | 1.32M | 3.67M | -1.08M | 3.59M | -1.16M | 8.67M | 1.1M | -3.8M | -592K |
| Change in Receivables | -37.03M | -44.57M | -12.55M | 13.29M | -93.94M | -43.74M | 42.91M | 5.56M | -22.49M | -20.54M | 12.08M | 71.26M | -14.41M | -1.3M | -1.98M | -21.55M | -14.53M | 24.13M | -10.88M | -9.25M | -7.05M | -7.65M | 286K | -1.85M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -3.09M | 1.04M | 8.43M | -2.03M | 2.07M | -5.29M | 22.21M | -14.45M | -20.84M | -7.54M | 5.45M | 12.72M | -1.91M | 3.86M | -3.47M | -4.26M | 2.03M | 32.72M | -11.16M | -2.57M | -11.65M | -2.57M | 2.15M | 1.25M | 585K | -700K | -413K | 4.69M | -100K | 2.9M | -469K |
| Change in Payables | -5.07M | 532K | 7.55M | 10.6M | 35.97M | 34.23M | 3.29M | -16.92M | 4.25M | -8.6M | -8.83M | -45.56M | -164.34M | -13.36M | -182.82M | -97.77M | -88.45M | -111.49M | 3.65M | 7.21M | 11.34M | 5.47M | -1.23M | 4.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -175.17M | -99.25M | -181.69M | -22.65M | -53.42M | -69.02M | -121.8M | -22.09M | -17.58M | -2.81M | 27.81M | -29.49M | -310.26M | -69.01M | -159.09M | -24.1M | -18.15M | -2.07M | -78.92M | -5.7M | -12.26M | -5.7M | -1.86M | -417K | -379K | 481K | 2M | -1.38M | -16.3M | -6M | -2.28M |
| Capital Expenditures | -23.67M | -40.29M | -25.07M | -12.26M | -4.92M | -6M | -6.67M | -22.12M | -9.32M | -2.81M | -4.87M | -13.99M | -11.1M | -7.75M | -14.11M | -4.1M | -1.18M | -1.59M | -5.13M | -572K | -2.36M | -6.64M | -1.87M | -419K | -379K | -691K | -1.23M | -2.23M | -16.3M | -800K | -2.27M |
| CapEx % of Revenue | 1.15% | 2% | 1.39% | 0.73% | 0.33% | 0.54% | 0.66% | 1.75% | 0.77% | 0.28% | 0.51% | 1.12% | 0.74% | 0.62% | 1.29% | 0.51% | 0.18% | 0.27% | 0.7% | 0.13% | 0.84% | 3.58% | 1.16% | 0.28% | 0.26% | 0.4% | 0.67% | 1.24% | 8.01% | 0.47% | 1.81% |
| Acquisitions | -151.52M | -61.67M | -156.62M | -10.38M | -48.51M | -64.69M | -115.25M | 35K | -10.81M | 0 | 31.48M | -15.5M | -300.84M | -61.2M | -144.88M | -18.43M | -18.39M | -491K | -73.94M | -6.07M | -12.07M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 16K | 2.71M | 0 | 0 | 0 | 1.67M | 123K | 0 | 2.56M | 32.68M | 1.21M | 0 | 1.69M | -68K | -144.98M | 0 | 1.43M | 16K | 158K | 937K | 2.18M | 937K | 6K | 2K | 0 | 1.17M | 3.23M | 850K | 0 | -5.2M | -6K |
| Cash from Financing | 152.96M | 158.87M | 56.8M | 43.58M | 44.31M | -38.49M | 77.41M | -6.09M | -2.92M | 14.19M | -75.83M | -67.12M | 206.03M | -18.62M | 117.1M | -989K | -7.33M | -52.86M | 62.18M | 5.39M | 14.25M | 5.21M | -1.6M | -7.04M | -3.21M | -8.1M | -1.92M | -7.79M | 11.5M | 5.7M | 1.21M |
| Debt Issued (Net) | 190.12M | 188.14M | 95.03M | 118.14M | 101.43M | -3.3M | 85.63M | -4.34M | -3.38M | 26.42M | -125.88M | -59.93M | 217.02M | -43.54M | 119.93M | 348K | -7.58M | -53.05M | 60.8M | 67.84M | 10.12M | 8.48M | -1.8M | -6.95M | -3.08M | -8.01M | 179.89M | -6.71M | 11.84M | 6.32M | 0 |
| Equity Issued (Net) | -21.31M | -17.11M | -29.01M | -56.22M | -47.87M | -33.51M | 1.14M | 0 | 0 | 0 | 51.89M | -8.91M | -11.86M | 24.05M | -3.42M | -1.45M | 0 | 0 | 105K | 44.77M | 1.01M | 874K | 42K | -4K | -36K | 0 | -181.81M | -991K | -208K | -580K | 0 |
| Dividends Paid | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | -90K | 0 | -90K | -100K | -100K | -119K |
| Share Repurchases | -21.31M | -17.11M | -29.01M | -56.22M | -47.87M | -33.51M | 0 | -267K | -340K | -934K | 0 | -8.91M | -11.86M | -304K | -3.42M | -1.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4K | -36K | 0 | -90K | -1.09M | -224K | -580K | 0 |
| Other Financing | -15.76M | -12.08M | -9.13M | -18.26M | -9.16M | -1.59M | -9.27M | -1.66M | 550K | -12.14M | -1.99M | 988K | 960K | 958K | 680K | 198K | 340K | 276K | 1.36M | 3.2M | 3.21M | -4.05M | 252K | 0 | 0 | 0 | 0 | 0 | -38K | 63K | 1.33M |
| Net Change in Cash | 99.1M | 155.37M | -24.8M | 127.09M | -2.96M | -70.34M | 63.12M | 13.81M | 14.94M | 23.99M | -103K | 1.65M | -5.42M | -4.99M | 8.95M | 737K | -1.57M | -3.35M | 1.72M | -1.73M | 1.97M | -1.73M | 1.67M | -535K | -1.09M | -484K | -247K | 1.37M | 11.5M | 5.7M | -616K |
| Free Cash Flow | 97.07M | 53.98M | 77.14M | 93.96M | 978K | 31.09M | 101M | 19.19M | 26.52M | 9.73M | 43.14M | 84M | 87.57M | 74.45M | 37.1M | 21.73M | 22.72M | 49.98M | 13.32M | -2M | -2.38M | -7.88M | 3.26M | 6.5M | 2.12M | 6.45M | -1.55M | 8.3M | -10.6M | -700K | -1.82M |
| FCF Margin % | 4.71% | 2.68% | 4.28% | 5.6% | 0.07% | 2.79% | 10.05% | 1.52% | 2.18% | 0.97% | 4.48% | 6.74% | 5.84% | 6% | 3.38% | 2.69% | 3.46% | 8.57% | 1.81% | -0.45% | -0.85% | -4.25% | 2.03% | 4.32% | 1.43% | 3.7% | -0.85% | 4.62% | -5.21% | -0.41% | -1.45% |
| FCF Growth % | 168.84% | -30.03% | -17.9% | 9507.26% | -96.85% | -69.22% | 426.41% | -27.64% | 172.44% | -77.44% | -48.64% | -4.08% | 17.62% | 100.7% | 70.7% | -4.37% | -54.54% | 275.13% | 767.87% | 16.11% | 69.81% | -341.52% | -49.86% | 207.08% | -67.15% | 514.66% | -118.73% | 178.32% | -1414.29% | 61.5% | - |
| FCF per Share | 5.93 | 3.28 | 4.62 | 5.31 | 0.05 | 1.57 | 5.69 | 1.04 | 1.44 | 0.53 | 2.51 | 5.82 | 5.66 | 4.87 | 2.44 | 1.44 | 1.53 | 3.81 | 0.96 | -0.16 | -0.21 | -0.68 | 0.30 | 0.66 | 0.26 | 0.72 | -0.19 | 1.02 | -0.95 | -0.06 | -0.21 |
| FCF Conversion (FCF/Net Income) | 1.10x | 1.06x | 1.45x | 1.54x | 0.12x | 2.25x | -3.68x | 1.12x | 1.01x | 0.74x | 6.23x | -2.54x | -2.18x | 1.36x | 1.00x | 0.82x | 1.23x | -1.22x | 0.71x | -0.08x | -0.00x | -0.23x | 1.84x | 3.35x | -22.70x | 7.68x | 0.04x | -89.22x | 2.04x | 0.04x | 0.51x |
| Interest Paid | 13M | 0 | 67M | 48.95M | 25.32M | 19.53M | 13.32M | 17.62M | 19.13M | 15.21M | 13.71M | 9.72M | 11.64M | 5.49M | 4.29M | 3.49M | 5.24M | 5.34M | 6.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -20.33M | 0 | 20.43M | 21.84M | 26.18M | 6.12M | 6.28M | 13.32M | 8.3M | 714K | 4.78M | 13.79M | 28.78M | 35.7M | 32.31M | 14.19M | 8.34M | 15.05M | 9.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical working capital volatility
According to recent financial disclosures, DXPE's operating cash flow to net income ratio has fluctuated significantly, ranging from a low of 0.14 in 2025Q1 to a high of 2.65 in 2023Q4, highlighting a persistent disconnect between accounting profits and the actual cash generated from core operations.
The wide variance in the OCF/NI ratio suggests that reported earnings are frequently decoupled from cash inflows, likely due to the timing of project-based revenue recognition in the IPS segment. Investors should monitor whether this volatility reflects genuine operational friction or merely the accounting treatment of long-term fabrication contracts.
As reported in quarterly filings, working capital changes have been a major drag on cash flow, with a peak outflow of $25.4 million in 2025Q1, indicating that the company's cash position is highly sensitive to inventory build-ups and the timing of customer collections across its distribution network.
The recurring negative impact of working capital changes suggests that DXPE must tie up significant liquidity to support its inventory-heavy distribution model. This trend implies that during periods of slowing demand, the company may struggle to convert its revenue growth into meaningful free cash flow.
Based on the provided data, DXPE's capital expenditure as a percentage of revenue has remained generally low, peaking at 4.2% in 2025Q1, which suggests that the business model does not require massive, recurring investments in fixed assets to maintain its current industrial distribution and service center footprint.
While the company maintains a lean asset base, the occasional spikes in CAPEX warrant investigation to determine if they represent necessary maintenance or strategic investments in fabrication capacity. The overall low capital intensity provides a buffer, allowing the company to prioritize cash for acquisitions rather than heavy infrastructure spending.
Data from recent cash flow statements indicates that DXPE consistently prioritizes inorganic growth, with net acquisition outflows reaching as high as $102.7 million in 2026Q1, which significantly outweighs the cash returned to shareholders through dividends or share repurchases during the same ten-quarter observation period.
The heavy reliance on acquisitions to drive growth suggests that management views the fragmented industrial distribution market as a primary value-creation lever. However, this strategy necessitates constant cash availability, which may leave the company vulnerable if integration costs escalate or if the acquired entities fail to deliver expected synergies.
Quick answers to the most common questions about buying DXPE stock.
DXP Enterprises, Inc. (DXPE) generated $94.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
DXP Enterprises, Inc. (DXPE) generated $54.0M 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.
DXP Enterprises, Inc. (DXPE) spent $40.3M 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, DXP Enterprises, Inc. (DXPE) returned $0.1M to shareholders via cash dividends and spent $17.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.