Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Fastenal's fourth quarter free cash flow was higher than the year-ago period but slightly lower than the third quarter. The free cash flow margin improved from the prior year while remaining near the previous quarter's level.
- Operating cash flow was higher than the prior year but lower than the previous quarter, while capital expenditure remained relatively flat. This resulted in free cash flow and margin that strengthened year over year but weakened slightly from the third quarter.
- Compared to the third quarter, revenue and operating cash flow were lower, leading to a slightly reduced free cash flow and margin. Versus the same quarter last year, all metrics were higher, with the free cash flow margin showing notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$308.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$368.1M
Cash generated by operations before capital spending.
CapEx
$60.0M
Capital spending and related asset purchases.
FCF margin
15.2%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2025-03-31 | $2.0B | $262.2M | $55.7M | $206.5M | 10.5% |
| 2025-06-30 | $2.1B | $278.6M | $69.3M | $209.3M | 10.1% |
| 2025-09-30 | $2.1B | $386.9M | $60.3M | $326.6M | 15.3% |
| 2025-12-31 | $2.0B | $368.1M | $60.0M | $308.1M | 15.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $151.8M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-Year Free Cash Flow Margin Growth
Free cash flow margin increased compared to the year-ago quarter, supported by a larger increase in operating cash flow relative to revenue and stable capital spending.
This suggests enhanced cash generation efficiency from the company's operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior year but lower than the previous quarter, while capital expenditure remained relatively flat. This resulted in free cash flow and margin that strengthened year over year but weakened slightly from the third quarter.
Compared to the third quarter, revenue and operating cash flow were lower, leading to a slightly reduced free cash flow and margin. Versus the same quarter last year, all metrics were higher, with the free cash flow margin showing notable improvement.
Monitor the trajectory of operating cash flow relative to revenue to assess the sustainability of free cash flow.