Cash flow remains sensitive to working capital fluctuations, as evidenced by the swing from a $74.1 million inflow in 2025Q2 to a $42.0 million outflow in 2025Q1, despite maintaining a disciplined CapEx profile of 1.8% of revenue in 2025Q3.
| Cash from Operations | 232.8M | 241.1M | 53.4M | 126.5M | 91.6M | 158.3M | 55.7M | 52.5M | -19.2M | 33.17M | 75.57M | 25.64M | 5.93M |
| Operating CF Margin % | - | 9.79% | 2.24% | 4.8% | 3.93% | 6.65% | 2.45% | 2.18% | -0.81% | 1.46% | 3.92% | 1.48% | 0.34% |
| Operating CF Growth % | 620.92% | 351.5% | -57.79% | 38.1% | -42.14% | 184.2% | 6.1% | 373.44% | -157.87% | -56.1% | 194.75% | 332.43% | - |
| Net Income | 108M | 95.2M | 257.6M | 45.3M | 15.2M | 44.4M | -30.5M | -13.1M | 13M | 31.37M | 30.19M | 22.88M | 1.49M |
| Depreciation & Amortization | 24.1M | 26M | 25.4M | 26.2M | 32.3M | 32M | 40.2M | 45.7M | 46M | 37.81M | 24.59M | 19.08M | 18.9M |
| Stock-Based Compensation | 14M | 12.3M | 12.7M | 14.4M | 8.7M | 7.8M | 7.8M | 7.2M | 6.3M | 26.63M | 19.69M | 3.24M | 859K |
| Deferred Taxes | -31.8M | -17.7M | -15.3M | -12.8M | -500K | 1.1M | -27.8M | -5M | -4.1M | 2.88M | -3.66M | -5.33M | -325K |
| Other Non-Cash Items | 9.7M | 38.4M | -274.5M | 1.9M | 1.8M | 12.8M | 15.9M | 9M | 34.5M | 12.6M | 2.62M | 2.58M | 956K |
| Working Capital Changes | 108.8M | 86.9M | 47.5M | 51.5M | 34.1M | 60.2M | 50.1M | 8.7M | -114.9M | -78.12M | 2.13M | -16.81M | -15.95M |
| Change in Receivables | 0 | -17.4M | 64.2M | 13.2M | -1.8M | 16.6M | 52.9M | 13.4M | -22.3M | -39.72M | -52.43M | 7.52M | -38.19M |
| Change in Inventory | 0 | 57.9M | 26.3M | -30.7M | -149.5M | 52.8M | 27.1M | -2.7M | -74.5M | -61.86M | -8.05M | -2.79M | 18.75M |
| Change in Payables | 0 | 5M | -11.7M | 44.4M | 47.8M | -49.7M | -36.7M | -17.2M | 6.1M | 54.7M | 44.8M | -15.83M | 284K |
| Cash from Investing | 21M | -50.3M | 348.5M | -29.9M | -14.8M | -10.2M | 1.7M | 200K | -119.6M | -229.1M | -84.43M | -15.62M | -12.82M |
| Capital Expenditures | -33.2M | -51.1M | -27.6M | -32.8M | -24.8M | -24.7M | -16.8M | -23.8M | -60.7M | -79.34M | -48.54M | -15.43M | -12.07M |
| CapEx % of Revenue | 1.39% | 2.07% | 1.16% | 1.24% | 1.06% | 1.04% | 0.74% | 0.99% | 2.55% | 3.5% | 2.52% | 0.89% | 0.7% |
| Acquisitions | 52M | 0 | 0 | 1.2M | 1.8M | 2M | 7.2M | 24M | -67.6M | -156.36M | -38.16M | 0 | -5.04M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 2.2M | 800K | 376.1M | 1.7M | 6.4M | 12.5M | 11.3M | 24M | 8.7M | 6.6M | 2.27M | -187K | 4.29M |
| Cash from Financing | -268.3M | -180.7M | -398.6M | -95.7M | -69.7M | -146.2M | -49.3M | -61.3M | 132.9M | 202.94M | 14.71M | -17.57M | 1.39M |
| Debt Issued (Net) | -125M | -45M | -65M | -80M | 15M | -135.4M | -38.4M | -42.3M | 191.5M | -43.58M | 37.5M | -13.97M | 1.58M |
| Equity Issued (Net) | -3M | -1000K | -1000K | 100K | -1000K | -1000K | 0 | -1000K | -1000K | 1000K | -1000K | -1000K | -1000K |
| Dividends Paid | -13.4M | -12.9M | -192M | -12.1M | -12.4M | -6.6M | -9.5M | -12.5M | -12.8M | -6.38M | 0 | -186K | 0 |
| Share Repurchases | -119.1M | -107.6M | -126.1M | -5.9M | -70M | -3.9M | -800K | -8.3M | -53.3M | 0 | -21.75M | -5.46M | -3.13M |
| Other Financing | -10.8M | -15.2M | -15.5M | -3.7M | -2.3M | -300K | -1.4M | 1.8M | 7.5M | -695K | -1.05M | 48K | 2.93M |
| Net Change in Cash | -14.5M | 10.1M | 3.3M | 900K | 7.1M | 1.9M | 8.1M | -8.6M | -5.9M | 7.02M | 5.85M | -7.55M | -5.51M |
| Free Cash Flow | 199.6M | 190M | 25.8M | 93.7M | 66.8M | 133.6M | 38.9M | 28.7M | -79.9M | -46.17M | 27.03M | 10.21M | -6.14M |
| FCF Margin % | 8.33% | 7.71% | 1.08% | 3.55% | 2.86% | 5.61% | 1.71% | 1.19% | -3.36% | -2.04% | 1.4% | 0.59% | -0.36% |
| FCF Growth % | 7884% | 636.43% | -72.47% | 40.27% | -50% | 243.44% | 35.54% | 135.92% | -73.06% | -270.82% | 164.75% | 266.32% | - |
| FCF per Share | 4.06 | 3.77 | 0.47 | 1.58 | 1.09 | 2.07 | 0.62 | 0.46 | -1.23 | -0.74 | 0.42 | 0.16 | -0.10 |
| FCF Conversion (FCF/Net Income) | 1.85x | 2.53x | 0.21x | 2.79x | 6.03x | 3.57x | -1.83x | -4.01x | -1.48x | 1.06x | 2.50x | 1.12x | 3.98x |
| Interest Paid | 14.7M | 17.8M | 23.8M | 24.2M | 0 | 14.8M | 23.2M | 30.3M | 23M | 26.8M | 25.8M | 24.64M | 0 |
| Taxes Paid | 53.2M | 44.5M | 108.3M | 8.8M | 0 | 3.8M | 5.5M | 9.1M | 15.8M | 11.3M | 5.8M | 18.39M | 0 |
Working capital volatility
According to recent financial filings, REVG's operating cash flow to net income ratio has fluctuated wildly, ranging from a negative 0.72 in 2025Q1 to a high of 6.16 in 2025Q2, suggesting that reported net income is a poor proxy for the company's underlying cash-generating capacity.
The significant divergence between accounting profits and cash inflows appears driven by the lumpy nature of municipal contract milestones and inventory management. Investors should monitor this disconnect, as it implies that earnings quality remains sensitive to the timing of vehicle deliveries rather than consistent operational performance.
Based on reported quarterly data, working capital changes have been the primary determinant of cash flow, with a notable $74.1 million inflow in 2025Q2 followed by a $42.0 million outflow in 2025Q1, highlighting the company's susceptibility to inventory build-ups and delayed municipal payment cycles.
The volatility in working capital suggests that the company's cash position is highly dependent on the efficient conversion of work-in-process inventory into finished goods. This pattern warrants further investigation into whether these swings represent structural inefficiencies in the assembly process or merely the inherent seasonality of the fire and emergency segment.
As reported in financial statements, REVG maintains a disciplined capital expenditure profile, with CapEx as a percentage of revenue consistently hovering between 0.9% and 1.9% over the last ten quarters, indicating a business model that does not require heavy reinvestment to sustain its current manufacturing footprint.
This low capital intensity suggests that the company functions primarily as an assembler, minimizing the need for significant property, plant, and equipment upgrades. While this supports free cash flow generation, it also implies that the company may lack the technological moat that would come from owning proprietary, high-cost manufacturing infrastructure.
Based on recent SEC filings, REVG has pivoted its capital deployment strategy, utilizing significant cash reserves for share repurchases, including an $88.4 million outlay in 2025Q2, which contrasts with the more conservative dividend-focused approach observed in earlier periods of the company's operational history.
The aggressive use of cash for buybacks appears to signal management's confidence in the company's simplified portfolio following recent divestitures. However, investors should monitor whether this capital return strategy is sustainable if the cyclical recreation segment experiences a prolonged downturn that pressures overall cash flow generation.
Quick answers to the most common questions about buying REVG stock.
REV Group, Inc. (REVG) generated $241.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
REV Group, Inc. (REVG) generated $190.0M 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.
REV Group, Inc. (REVG) spent $51.1M 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, REV Group, Inc. (REVG) returned $12.9M to shareholders via cash dividends and spent $107.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.