Free cash flow has deteriorated to a -10.5% margin in 2026Q4, reflecting a significant disconnect between accounting figures and actual cash generation capabilities.
| Metric | Mar'26 | Mar'25 | Mar'24 | Apr'23 | Apr'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 |
|---|
| Cash from Operations | 77M | 281M | 309M | 771M | 704M | 624M | 859M | 694M | 1.06B | 1.03B | 1.23B | 857.87M | 631.78M | 356.34M | 115.29M | 110.31M |
| Operating CF Margin % | 2.22% | 6.33% | 6.96% | 13.72% | 12.45% | 11.04% | 15.47% | 13.25% | 22.52% | 22.87% | 26.07% | 19.62% | 19.08% | 16.33% | 8.85% | 13.73% |
| Operating CF Growth % | -72.6% | -9.06% | -59.92% | 9.52% | 12.82% | -27.36% | 23.78% | -34.68% | 3.36% | -16.31% | 43.19% | 35.79% | 77.3% | 209.08% | 4.52% | - |
| Net Income | 80M | -1.18B | -229M | 619M | 823M | -62M | -225M | 542M | 592.1M | 551.5M | 837.7M | 881.02M | 661.49M | 397.6M | 147.36M | 72.51M |
| Depreciation & Amortization | 121M | 193M | 188M | 179M | 193M | 212M | 249M | 225M | 208.6M | 219.8M | 183.2M | 138.43M | 79.65M | 54.29M | 37.55M | 25.54M |
| Stock-Based Compensation | 34M | 59M | 72M | 78M | 85M | 0 | 70M | 60M | 49.6M | 33.9M | 48.4M | 48.94M | 29.08M | 20.93M | 27.02M | 0 |
| Deferred Taxes | -12M | 388M | -187M | -101M | -57M | -70M | -71M | -95M | 1.8M | -66.9M | -23M | -39.04M | -84.6M | -141.29M | -40.01M | 0 |
| Other Non-Cash Items | -124M | 688M | 507M | 78M | -49M | 266M | 704M | 127M | 53.3M | 215.3M | 21.2M | 12.61M | 11.95M | 6.52M | 6.82M | 21.31M |
| Working Capital Changes | -22M | 132M | -42M | -82M | -291M | 278M | 132M | -165M | 157.1M | 74.4M | 160.9M | -184.09M | -65.79M | 18.27M | -63.45M | -9.05M |
| Change in Receivables | 0 | 50M | 27M | 50M | -78M | -52M | -33M | -34M | 119.9M | -10.2M | 151.3M | -87.96M | 18.06M | 68.19M | -48.4M | 14.34M |
| Change in Inventory | 133M | -3M | 175M | 13M | -386M | 145M | 115M | -125M | 46M | 20.6M | -16.3M | -112.42M | -158.24M | -81.11M | -71.15M | -50.47M |
| Change in Payables | -76M | 128M | -119M | -100M | 69M | 50M | 63M | -48M | -20.9M | 37.5M | 14.2M | 5.81M | 49.03M | 16.3M | 14.89M | 18.04M |
| Cash from Investing | 1.22B | -53M | -135M | 183M | 58M | -124M | 62M | -2.13B | -1.53B | -650.9M | -381.1M | -388.37M | -215.52M | -139.1M | -88.19M | -57.83M |
| Capital Expenditures | -63M | -128M | -189M | -226M | -131M | -111M | -223M | -184M | -123.6M | -170.3M | -380.6M | -385.43M | -213.56M | -129.87M | -88.19M | -57.83M |
| CapEx % of Revenue | 1.81% | 2.88% | 4.25% | 4.02% | 2.32% | 1.96% | 4.02% | 3.51% | 2.62% | 3.79% | 8.08% | 8.82% | 6.45% | 5.95% | 6.77% | 7.2% |
| Acquisitions | 0 | -9M | 0 | 0 | 0 | -13M | -13M | -1.95B | -1.41B | -480.6M | -500K | -2.94M | -1.96M | -3.23M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 1.28B | 84M | 54M | 409M | 189M | 0 | 298M | 77M | 4.7M | -5M | -12.4M | -32.2M | -30.8M | -6M | -88.19M | 0 |
| Cash from Financing | -1.3B | -242M | -208M | -776M | -800M | -870M | -497M | 1.45B | 389.6M | -843.6M | -1.13B | -434.69M | 71.06M | 150.56M | 58.64M | -37.73M |
| Debt Issued (Net) | -1.22B | -218M | -102M | 587M | -187M | -872M | -394M | 1.64B | 736M | 147M | -7.2M | 0 | 0 | -22.67M | 9.91M | -37.45M |
| Equity Issued (Net) | -81M | -4M | -107M | -1.36B | -661M | 2M | -102M | -207M | -361M | -1B | -1.15B | -495.3M | -2.4M | 0 | 9.55M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -81M | -4M | -107M | -1.36B | -661M | -1M | -102M | -207M | -361M | -1B | -1.15B | -495.3M | -2.4M | 0 | 0 | 0 |
| Other Financing | -1M | -20M | 1M | 1M | 48M | 0 | -1M | 14M | 14.6M | 8M | 31.3M | 60.61M | 73.46M | 173.24M | 39.18M | -281K |
| Net Change in Cash | 29M | -30M | -51M | 84M | -62M | -360M | 420M | 9M | -66.2M | -472.4M | -276.9M | 7.73M | 482.63M | 366.16M | 85.29M | 15.4M |
| Free Cash Flow | 14M | 153M | 120M | 545M | 573M | 513M | 636M | 510M | 938.9M | 857.7M | 847.8M | 472.44M | 418.22M | 226.47M | 27.1M | 52.48M |
| FCF Margin % | 0.4% | 3.44% | 2.7% | 9.7% | 10.13% | 9.07% | 11.46% | 9.74% | 19.9% | 19.09% | 17.99% | 10.81% | 12.63% | 10.38% | 2.08% | 6.53% |
| FCF Growth % | -90.85% | 27.5% | -77.98% | -4.89% | 11.7% | -19.34% | 24.71% | -45.68% | 9.47% | 1.17% | 79.45% | 12.96% | 84.67% | 735.59% | -48.35% | - |
| FCF per Share | 0.12 | 1.29 | 1.03 | 4.07 | 3.76 | 3.36 | 4.22 | 3.36 | 6.05 | 5.10 | 4.48 | 2.29 | 2.03 | 1.12 | 0.14 | 0.29 |
| FCF Conversion (FCF/Net Income) | 0.84x | -0.24x | -0.26x | 1.25x | 0.86x | 0.76x | -3.85x | 1.28x | 1.79x | 1.86x | 1.46x | 0.97x | 0.96x | 0.90x | 0.78x | 1.52x |
| Interest Paid | 45M | 87M | 96M | 58M | 37M | 0 | 80M | 45M | 11M | 4M | 1.5M | 700K | 700K | 484K | 1.27M | 1.2M |
| Taxes Paid | 102M | 125M | 156M | 133M | 43M | 0 | 98M | 172M | 104M | 171M | 273M | 373.3M | 280.7M | 70.5M | 84.39M | 27.25M |
Structural cash flow volatility
As reported in recent financial statements, CPRI's operating cash flow to net income ratio has exhibited extreme volatility, reaching 16.25 in 2026Q4, which highlights a significant disconnect between accounting profits and actual cash generation that warrants deep skepticism regarding the sustainability of current operational performance.
The wide variance between net income and operating cash flow suggests that non-cash charges and accruals are heavily distorting the company's reported profitability. Investors should monitor whether this divergence is a result of aggressive revenue recognition or simply the byproduct of a business model struggling to convert sales into liquid assets.
Based on the provided quarterly data, Capri's free cash flow margin has plummeted to -10.5% in 2026Q4, reflecting a rapid deterioration in the company's ability to fund its operations and capital requirements internally without relying on external financing or balance sheet depletion.
The consistent swing between positive and negative FCF quarters indicates that the company lacks a stable cash-generating engine. This instability suggests that the business is highly sensitive to seasonal inventory cycles and may be unable to maintain its current capital structure if these negative trends persist.
According to the latest cash flow filings, working capital changes have become a primary source of cash flow instability, evidenced by a $102 million outflow in 2026Q4, which suggests that the company is struggling to manage inventory levels and collection cycles effectively during this downturn.
The erratic nature of these working capital swings implies that the company is likely forced to carry excess inventory as demand softens, leading to cash being trapped in unsold goods. This dynamic creates a recurring drag on liquidity that complicates the company's ability to manage its fixed-cost obligations.
As indicated by the reported figures, Capri's capital expenditure as a percentage of revenue reached 4.0% in 2026Q4, a level that appears disproportionately high given the sharp contraction in top-line growth and the company's current inability to generate meaningful free cash flow.
Maintaining this level of capital intensity during a period of revenue decline suggests that the company is either committed to long-term store investments or is unable to scale back its physical footprint quickly enough. This rigidity in capital spending may further pressure the balance sheet if revenue does not stabilize.
Quick answers to the most common questions about buying CPRI stock.
Capri Holdings Limited (CPRI) generated $77.0M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Capri Holdings Limited (CPRI) generated $14.0M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Capri Holdings Limited (CPRI) spent $63.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Capri Holdings Limited (CPRI) spent $81.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.