Cash flow generation is robust with a trailing twelve-month operating cash flow to net income ratio of 1.32x, though quarterly FCF is volatile due to working capital swings, as seen in the negative $13.6 million result in 2025Q3 followed by a rebound to $115.9 million.
Academy Sports and Outdoors, Inc. (ASO) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 |
|---|
| Cash from Operations | 547.77M | 434.8M | 528.08M | 535.78M | 552M | 673.26M | 1.01B | 263.67M | 198.48M |
| Operating CF Margin % | - | 7.18% | 8.9% | 8.7% | 8.63% | 9.94% | 17.78% | 5.46% | 4.15% |
| Operating CF Growth % | 99.2% | -17.66% | -1.44% | -2.94% | -18.01% | -33.45% | 283.66% | 32.84% | - |
| Net Income | 395.85M | 376.77M | 418.45M | 519.19M | 628M | 671.38M | 308.76M | 120.04M | 21.44M |
| Depreciation & Amortization | 122.9M | 122.87M | 118.07M | 110.94M | 106.76M | 105.27M | 105.48M | 117.25M | 132.78M |
| Stock-Based Compensation | 17.13M | 21.18M | 26.63M | 24.38M | 21.18M | 39.26M | 31.62M | 7.88M | 4.63M |
| Deferred Taxes | 28.81M | 43.84M | 2.02M | -4.25M | 41.83M | 79.49M | 701K | 297K | -494K |
| Other Non-Cash Items | 77.76M | 33.38M | 26.26M | 20.6M | 5M | 2.23M | 17.34M | -34.04M | 4.82M |
| Working Capital Changes | -94.68M | -163.24M | -63.34M | -135.08M | -250.76M | -224.38M | 547.7M | 52.23M | 35.3M |
| Change in Receivables | -3.77M | -18M | 2.61M | -2.87M | 3.21M | -2.41M | -2.98M | 4.48M | 2.58M |
| Change in Inventory | -69.82M | -194.92M | -114.68M | 89.36M | -111.71M | -181.77M | 109.52M | 34.41M | 89.28M |
| Change in Payables | -35.02M | 27.34M | 65.76M | -142.35M | -55.4M | -50.63M | 361.52M | -2.9M | -70.03M |
| Cash from Investing | -175.6M | -172.04M | -186.12M | -206.14M | -108.81M | -76.02M | -33.14M | -66.78M | -99.03M |
| Capital Expenditures | -216.9M | -212.67M | -200.36M | -207.77M | -108.81M | -76.02M | -41.27M | -62.82M | -107.91M |
| CapEx % of Revenue | 3.5% | 3.51% | 3.38% | 3.37% | 1.7% | 1.12% | 0.73% | 1.3% | 2.26% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 23K | 10.43M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 41.3M | 40.63M | 14.24M | 1.63M | -502K | -215K | 8.13M | -3.99M | 8.88M |
| Cash from Financing | -374.82M | -221.37M | -400.95M | -318.87M | -592.05M | -488.85M | -750.23M | -123.19M | -54.81M |
| Debt Issued (Net) | 3.39M | -3M | -3M | -103M | -103M | -102.25M | -665.07M | -122.82M | -56.06M |
| Equity Issued (Net) | -272.66M | -189.39M | -364.91M | -202.8M | -463.18M | -359.05M | 206.97M | -473K | 0 |
| Dividends Paid | -36.25M | -34.66M | -31.46M | -27.22M | -24.63M | 0 | -257M | 0 | 0 |
| Share Repurchases | -280.45M | -198.98M | -364.91M | -202.8M | -489.48M | -411.41M | 0 | -473K | 0 |
| Other Financing | -69.29M | 5.68M | -1.58M | 14.15M | -1.24M | -27.56M | -35.13M | 100K | 1.25M |
| Net Change in Cash | -2.65M | 41.39M | -58.99M | 10.78M | -148.85M | 108.39M | 228.22M | 73.69M | 44.65M |
| Free Cash Flow | 330.88M | 222.13M | 328.49M | 327.49M | 443.2M | 597.25M | 970.33M | 200.85M | 90.58M |
| FCF Margin % | 5.34% | 3.67% | 5.54% | 5.32% | 6.93% | 8.82% | 17.06% | 4.16% | 1.89% |
| FCF Growth % | 38.59% | -32.38% | 0.31% | -26.11% | -25.79% | -38.45% | 383.11% | 121.75% | - |
| FCF per Share | 5.21 | 3.26 | 4.50 | 4.23 | 5.28 | 6.33 | 10.65 | 2.22 | 1.15 |
| FCF Conversion (FCF/Net Income) | 0.84x | 1.15x | 1.26x | 1.03x | 0.88x | 1.00x | 3.28x | 2.20x | 9.26x |
| Interest Paid | 33.04M | 35.09M | 34.9M | 45.45M | 43.25M | 44.71M | 87.16M | 93.56M | 108.21M |
| Taxes Paid | 27.75M | 37.82M | 88.4M | 132.13M | 168.18M | 125.04M | 15.53M | 2.59M | 2.45M |
Quick answers to the most common questions about buying ASO stock.
Academy Sports and Outdoors, Inc. (ASO) generated $434.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Academy Sports and Outdoors, Inc. (ASO) generated $222.1M 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.
Academy Sports and Outdoors, Inc. (ASO) spent $212.7M 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, Academy Sports and Outdoors, Inc. (ASO) returned $34.7M to shareholders via cash dividends and spent $199.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Consumer Spending Pressure
Metrics are mathematically derived from official filings.
Earnings Quality Exceeds Cash Flow Volatility
Despite quarterly volatility in operating cash flow, ASO's trailing twelve-month conversion ratio remains strong at 1.32x, suggesting that reported net income translates into robust underlying cash generation.
The quarterly OCF/NI ratio swings wildly from 0.63x to 3.42x, primarily driven by the large, non-cash seasonal swings in working capital. For example, the $110.5M working capital use in 2025Q2, likely from inventory builds, depressed OCF to $78.6M despite $125.4M net income. However, these swings are clearly cyclical, as evidenced by the $63.7M working capital source in 2026Q1. The ability to generate 37% more operating cash flow than net income in the most recent quarter, according to SEC filings, indicates high earnings quality where accrual-based accounting isn't masking poor cash generation.
FCF Trajectory Recovering from Seasonal Trough
After a negative FCF quarter in 2025Q3, free cash flow has rebounded sharply to $115.9M in 2026Q2, driven by both earnings growth and improved working capital management.
The negative FCF in 2025Q3 was an anomaly caused by a $67.8M working capital drag coinciding with a heavier CapEx quarter. The subsequent recovery to $121.7M FCF in 2026Q1 and $115.9M in 2026Q2 demonstrates the business's underlying cash generation capability. The FCF margin has expanded from 1.4% to 7.0% over the last two quarters, a positive trend that suggests the company is translating its stable revenue growth and strong margins into tangible shareholder value. This trajectory appears sustainable if the current pace of CapEx investment is maintained.
Working Capital Drives Cash Flow Volatility
Seasonal inventory dynamics create significant working capital swings, with cash usage of $110.5M in 2025Q2 followed by a $63.7M source in 2026Q1, representing the primary driver of quarterly cash flow unpredictability.
The working capital pattern reveals the highly seasonal nature of ASO's business, where inventory builds ahead of key selling seasons consume cash. The large outflows in 2025Q2 and 2025Q3 likely represent pre-positioning for the summer and fall outdoor seasons. The subsequent inflows in Q1 periods suggest efficient sell-through and collection. Investors should monitor whether the scale of these seasonal swings is normalizing as the company grows, as persistent large outflows could signal inventory management challenges. The pattern suggests management is actively managing the working capital cycle to support sales.
Disciplined Capital Return with Growth Investment
ASO allocates cash primarily to share repurchases ($82.1M in 2026Q2) and CapEx ($72.5M in 2026Q2), while maintaining minimal dividends, signaling a focus on growth and shareholder returns over income.
The capital deployment pattern shows a clear hierarchy: reinvestment in the business via CapEx, followed by aggressive share buybacks. The $99.9M buyback in 2025Q4 and $98.4M in 2026Q1 indicate a commitment to returning capital. The lack of acquisition activity suggests management prefers organic growth. This deployment strategy is consistent with the company's low debt levels and appears designed to enhance EPS growth. The increasing CapEx from $32.4M in 2024Q1 to $72.5M in 2026Q2 suggests acceleration in store expansion or renovation, which will be critical for the 'Stable' growth narrative.
What the Cash Flow Statement Obscures
The robust cash flow may understate true economic costs due to minimal stock-based compensation and the potential for underinvesting in e-commerce capabilities required for long-term competitiveness.
While the low SBC levels mean reported cash flow is not artificially inflated, this also suggests the company may not be adequately investing in digital talent and platform development compared to peers like DKS. The heavy focus on CapEx for physical stores, as shown in the CapEx/Rev ratio of 4.4%, could represent a strategic misallocation if consumer behavior continues shifting online. Furthermore, the large vendor allowances and volume rebates, which contribute to cash flow, may not be fully visible and could mask underlying margin pressures if promotional activity increases to drive traffic in a weak consumer environment.