Free cash flow generation remains volatile, with margins ranging from -1.0% to 12.3%, largely driven by inventory-related working capital fluctuations.
| Cash from Operations | 437.93M | 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 % | -54.58% | -17.66% | -1.44% | -2.94% | -18.01% | -33.45% | 283.66% | 32.84% | - |
| Net Income | 383.39M | 376.77M | 418.45M | 519.19M | 628M | 671.38M | 308.76M | 120.04M | 21.44M |
| Depreciation & Amortization | 61.78M | 122.87M | 118.07M | 110.94M | 106.76M | 105.27M | 105.48M | 117.25M | 132.78M |
| Stock-Based Compensation | 18.7M | 21.18M | 26.63M | 24.38M | 21.18M | 39.26M | 31.62M | 7.88M | 4.63M |
| Deferred Taxes | 13.24M | 43.84M | 2.02M | -4.25M | 41.83M | 79.49M | 701K | 297K | -494K |
| Other Non-Cash Items | 121.67M | 33.38M | 26.26M | 20.6M | 5M | 2.23M | 17.34M | -34.04M | 4.82M |
| Working Capital Changes | -160.84M | -163.24M | -63.34M | -135.08M | -250.76M | -224.38M | 547.7M | 52.23M | 35.3M |
| Change in Receivables | -801K | -18M | 2.61M | -2.87M | 3.21M | -2.41M | -2.98M | 4.48M | 2.58M |
| Change in Inventory | -94.39M | -194.92M | -114.68M | 89.36M | -111.71M | -181.77M | 109.52M | 34.41M | 89.28M |
| Change in Payables | -26.46M | 27.34M | 65.76M | -142.35M | -55.4M | -50.63M | 361.52M | -2.9M | -70.03M |
| Cash from Investing | -160.05M | -172.04M | -186.12M | -206.14M | -108.81M | -76.02M | -33.14M | -66.78M | -99.03M |
| Capital Expenditures | -201.34M | -212.67M | -200.36M | -207.77M | -108.81M | -76.02M | -41.27M | -62.82M | -107.91M |
| CapEx % of Revenue | 3.28% | 3.51% | 3.38% | 3.37% | 1.7% | 1.12% | 0.73% | 1.3% | 2.26% |
| Acquisitions | 41.39M | 0 | 0 | 0 | 0 | 0 | 0 | 23K | 10.43M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -94K | 40.63M | 14.24M | 1.63M | -502K | -215K | 8.13M | -3.99M | 8.88M |
| Cash from Financing | -225.18M | -221.37M | -400.95M | -318.87M | -592.05M | -488.85M | -750.23M | -123.19M | -54.81M |
| Debt Issued (Net) | -3M | -3M | -3M | -103M | -103M | -102.25M | -665.07M | -122.82M | -56.06M |
| Equity Issued (Net) | -189.58M | -189.39M | -364.91M | -202.8M | -463.18M | -359.05M | 206.97M | -473K | 0 |
| Dividends Paid | -35.59M | -34.66M | -31.46M | -27.22M | -24.63M | 0 | -257M | 0 | 0 |
| Share Repurchases | -198.78M | -198.98M | -364.91M | -202.8M | -489.48M | -411.41M | 0 | -473K | 0 |
| Other Financing | 2.98M | 5.68M | -1.58M | 14.15M | -1.24M | -27.56M | -35.13M | 100K | 1.25M |
| Net Change in Cash | 52.71M | 41.39M | -58.99M | 10.78M | -148.85M | 108.39M | 228.22M | 73.69M | 44.65M |
| Free Cash Flow | 237.19M | 222.13M | 328.49M | 327.49M | 443.2M | 597.25M | 970.33M | 200.85M | 90.58M |
| FCF Margin % | 3.86% | 3.67% | 5.54% | 5.32% | 6.93% | 8.82% | 17.06% | 4.16% | 1.89% |
| FCF Growth % | -11.13% | -32.38% | 0.31% | -26.11% | -25.79% | -38.45% | 383.11% | 121.75% | - |
| FCF per Share | 3.60 | 3.26 | 4.50 | 4.23 | 5.28 | 6.33 | 10.65 | 2.22 | 1.15 |
| FCF Conversion (FCF/Net Income) | 0.62x | 1.15x | 1.26x | 1.03x | 0.88x | 1.00x | 3.28x | 2.20x | 9.26x |
| Interest Paid | 17M | 0 | 34.9M | 45.45M | 43.25M | 44.71M | 87.16M | 93.56M | 108.21M |
| Taxes Paid | 38.02M | 0 | 88.4M | 132.13M | 168.18M | 125.04M | 15.53M | 2.59M | 2.45M |
Regional economic concentration
According to recent quarterly filings, ASO's OCF/NI ratio has exhibited extreme volatility, ranging from 0.63 to 3.42, which suggests that reported net income is frequently decoupled from actual cash generation due to significant fluctuations in working capital requirements and non-cash adjustments across the reporting periods.
The wide variance in the OCF/NI ratio indicates that investors should be wary of relying on net income as a proxy for operational health. This divergence appears driven by the company's seasonal inventory cycles, which periodically mask the underlying cash-generating capability of the core retail business.
As reported in financial statements, ASO's free cash flow margins have fluctuated between -1.0% and 12.3% over the last ten quarters, highlighting a lack of consistent cash flow conversion that warrants further investigation into the sustainability of the company's current capital allocation and operational efficiency.
The inconsistency in FCF margins suggests that the company's cash flow profile is highly sensitive to seasonal inventory builds and capital expenditure timing. This volatility may complicate long-term valuation models that assume a steady-state conversion of earnings into free cash flow.
Based on ASO's reported figures, capital expenditures have remained relatively disciplined, averaging between 2.4% and 4.7% of revenue, which suggests that the company is balancing necessary store maintenance with strategic growth investments while avoiding excessive capital intensity that could otherwise pressure free cash flow generation.
The moderate capital intensity indicates that management is prioritizing store-level productivity over aggressive, capital-heavy expansion. Investors should monitor whether these expenditure levels are sufficient to maintain the competitive positioning of the existing store base against more digitally-integrated national competitors.
Analysis of recent quarterly data reveals that working capital changes have been a primary driver of cash flow volatility, with swings as large as $110.5 million in a single quarter, indicating that inventory management remains the most significant variable impacting the company's short-term liquidity position.
The recurring nature of these working capital outflows suggests that the company's cash flow is heavily tied to the timing of seasonal inventory procurement. This dynamic creates a structural reliance on effective inventory turnover to ensure that cash is not trapped in slow-moving seasonal goods.
As evidenced by the company's recent financial disclosures, ASO has prioritized share repurchases, with $98.4 million deployed in 2026Q1 alone, suggesting a management focus on returning capital to shareholders despite the inherent volatility in the company's quarterly free cash flow generation and regional market risks.
The commitment to share buybacks, even during periods of lower cash flow, implies a high degree of confidence in the company's long-term cash generation. However, this strategy warrants monitoring to ensure that it does not come at the expense of necessary investments in e-commerce or store modernization.
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.