What is a cash flow waterfall?

A cash flow waterfall is a bar chart that walks from operating cash flow through capital expenditure to free cash flow, then shows how the remaining cash is allocated — acquisitions, buybacks, dividends, debt, and other financing — ending at the net change in cash. Each step is colour-coded: green bars add to the running total, red bars subtract.

How does Toll Brothers (TOL) spend its free cash flow?

For TTM through Q2 2026, Toll Brothers generated $1.31B of operating cash flow and $1.22B of free cash flow — a free cash flow margin of 92.6% of operating cash flow. The waterfall breaks down how the remaining cash was allocated across investing and financing activities.

How much did Toll Brothers (TOL) return via buybacks and dividends?

The waterfall shows buybacks (share repurchases) and dividends paid as separate steps in the financing section. Together these represent Toll Brothers's shareholder returns for TTM through Q2 2026. You can compare these against free cash flow to assess the capital-return payout ratio.

Toll Brothers (TOL) Cash Flow Waterfall

Operating CF

$1.31B

Capex

-$96.6M

Free Cash Flow

$1.22B

FCF Margin

+92.6%

Cash flow waterfall for Toll Brothers (TOL) — TTM through Q2 2026

Free cash flow: $1.22B

Cash flow breakdown for Toll Brothers (TOL) — TTM through Q2 2026

Line item	Amount	Running total
Operating Cash Flow	$1.31B	$1.31B
Capital Expenditure	-$96.6M	$1.22B
Free Cash Flow	$1.22B	$1.22B
Acquisitions	$117M	$1.33B
Other Investing	$507K	$1.33B
Share Buybacks	-$676M	$656M
Dividends Paid	-$97.5M	$559M
Net Debt Change	-$139M	$420M
Other Financing & FX	-$9.4M	$410M
Net Cash Increase	$410M	$410M

Operating Cash Flow$1.31B
Capital Expenditure-$96.6M
Free Cash Flow$1.22B
Acquisitions$117M
Other Investing$507K
Share Buybacks-$676M
Dividends Paid-$97.5M
Net Debt Change-$139M
Other Financing & FX-$9.4M
Net Cash Increase$410M

Want to see what drove the FCF change?Free Cash Flow Bridge

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