Cash generation remains inconsistent, highlighted by a 2026Q2 operating cash flow to net income ratio of 0.29 and a significant $156.3 million working capital outflow.
| Cash from Operations | 428.97M | 373.23M | 428.7M | 358.73M | 234.14M | 180.93M | 193.6M |
| Operating CF Margin % | - | 17.79% | 23.75% | 24.05% | 18.84% | 18.8% | 26.57% |
| Operating CF Growth % | 102.24% | -12.94% | 19.5% | 53.22% | 29.41% | -6.55% | - |
| Net Income | 356.88M | 348.33M | 191.6M | 75.02M | 187.11M | 84.21M | 101.32M |
| Depreciation & Amortization | 122.53M | 113.54M | 101.29M | 83.41M | 87.36M | 56.5M | 46.05M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 58.37M | 121.65M | 102.18M | 78.63M | 63.41M | 1.77M | 24.12M |
| Other Non-Cash Items | 50.88M | -56.66M | 121.87M | 202.12M | 41.27M | 13.6M | -8.69M |
| Working Capital Changes | -159.69M | -153.63M | -88.25M | -80.45M | -145.02M | 24.85M | 30.81M |
| Change in Receivables | -79.29M | -58.33M | -27.45M | -26.9M | -5.83M | -11.05M | -13.12M |
| Change in Inventory | -111.5M | -89.08M | -47.96M | -95.62M | -159.1M | 8.26M | 39.64M |
| Change in Payables | 33.68M | 0 | 0 | 10.74M | 12.36M | 20.75M | 0 |
| Cash from Investing | -110.14M | -93.18M | -58.8M | -100.73M | -71.65M | -18.15M | -3.5M |
| Capital Expenditures | -103.03M | -76.73M | -65.43M | -102.15M | -72.59M | -21.77M | -22.35M |
| CapEx % of Revenue | 4.7% | 3.66% | 3.63% | 6.85% | 5.84% | 2.26% | 3.07% |
| Acquisitions | -2.21M | 0 | 0 | 0 | -1.04M | 2.04M | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -4.9M | -16.46M | 6.64M | 1.42M | 1.98M | 1.53M | 18.85M |
| Cash from Financing | -344.54M | -307.44M | -355.05M | -199.28M | -105.32M | -84.74M | -130.25M |
| Debt Issued (Net) | -78.08M | -55.35M | -699.3M | -81.58M | -34.92M | 96.45M | -27.39M |
| Equity Issued (Net) | -172.16M | -194.72M | 435.93M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -156.1M | -100.39M |
| Share Repurchases | -172.16M | -194.72M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -94.31M | -57.37M | -91.68M | -117.71M | -70.39M | -25.08M | -2.47M |
| Net Change in Cash | -26.33M | -10.48M | 11.44M | 37.33M | 71.73M | 234.91M | 57.22M |
| Free Cash Flow | 320.64M | 288.28M | 354.8M | 255.79M | 161.54M | 159.65M | 171.26M |
| FCF Margin % | 14.63% | 13.74% | 19.66% | 17.14% | 13% | 16.59% | 23.51% |
| FCF Growth % | 0.26% | -18.75% | 38.71% | 58.34% | 1.19% | -6.78% | - |
| FCF per Share | 1.74 | 1.55 | 1.89 | 1.40 | 0.88 | 0.87 | 0.91 |
| FCF Conversion (FCF/Net Income) | 0.90x | 1.07x | 2.24x | 4.78x | 1.25x | 1.55x | -1.82x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
As indicated by the provided financial data, Birkenstock's operating cash flow to net income ratio has fluctuated wildly, reaching a low of 0.29 in 2026Q2, which suggests that reported accounting profits are not consistently translating into actual cash generation for the business during this period.
The significant divergence between net income and operating cash flow suggests that accruals and non-cash adjustments are playing an outsized role in the company's reported profitability. Investors should monitor whether this trend reflects a structural shift in earnings quality or merely temporary timing differences in revenue recognition.
Based on the reported quarterly figures, Birkenstock's free cash flow margin has exhibited extreme instability, swinging from a peak of 46.6% in 2024Q3 to a negative 16.3% in 2026Q1, highlighting the company's difficulty in maintaining consistent cash generation amidst its current operational scaling phase.
This erratic trajectory implies that the company's cash flow profile is highly sensitive to seasonal working capital requirements and capital expenditure cycles. The inability to sustain positive free cash flow margins suggests that the business model may require more intensive capital support than previously anticipated by the market.
According to the cash flow statements, Birkenstock experienced a substantial working capital outflow of $156.3 million in 2026Q2, which appears to be a recurring pattern of liquidity pressure that significantly offsets the cash generated from core operations during peak inventory build-up periods.
The recurring negative working capital changes suggest that the company is struggling to optimize its cash conversion cycle, potentially due to inventory accumulation or delayed collections. This pattern warrants further investigation into whether the firm is over-producing in anticipation of demand that may be softening.
As reported in recent filings, Birkenstock's capital expenditure reached $37.1 million in 2026Q1, representing a capital intensity of 9.2% of revenue, which indicates a heavy investment phase likely tied to the expansion of the Pasewalk manufacturing facility and other production infrastructure.
This elevated level of capital expenditure suggests that the company is prioritizing long-term capacity growth over immediate cash preservation. Analysts should evaluate whether these investments will yield sufficient operating leverage to justify the current high fixed-cost base as the company scales.
Based on the provided data, Birkenstock's capital deployment has been characterized by significant share repurchases, notably the $168.7 million outflow in 2025Q3, which appears aggressive given the company's inconsistent ability to generate positive free cash flow during other quarters of the observed period.
The decision to prioritize share buybacks while simultaneously managing volatile cash flows may indicate a management focus on supporting equity valuation. Investors should consider whether these capital returns are sustainable if the current trend of working capital outflows and margin compression continues.
Quick answers to the most common questions about buying BIRK stock.
Birkenstock Holding plc (BIRK) generated $373.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Birkenstock Holding plc (BIRK) generated $288.3M 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.
Birkenstock Holding plc (BIRK) spent $76.7M 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, Birkenstock Holding plc (BIRK) spent $194.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.