Cash flow generation is inconsistent, with the OCF/NI ratio fluctuating from 0.01 in 2025Q3 to 56.06 in 2025Q4, reflecting the transactional nature of the evolving business model.
| Metric | TTM | May'25 | May'24 | May'23 | May'22 | May'21 | May'20 | May'19 | May'18 | May'17 | May'16 | May'15 | May'14 | May'13 | May'12 | May'11 | May'10 | May'09 | May'08 | May'07 | May'06 | May'05 |
|---|
| Cash from Operations | 905.7M | 896.59M | 1.12B | 971.01M | -1.28B | 1.13B | 804.46M | 805.65M | 781.13M | 618.14M | 517.89M | 374.14M | 361.35M | 283.63M | 249.3M | 215.82M | 141.89M | 97.18M | 76.71M | 59.54M | 25.81M | 20.39M |
| Operating CF Margin % | - | 18.3% | 26.03% | 32.39% | -41.24% | 26.43% | 22.48% | 26.02% | 31.92% | 34.35% | 35.03% | 30.01% | 31.73% | 29.55% | 32.31% | 38.69% | 36.73% | 33.22% | 38.16% | 43.64% | 26.25% | 26.24% |
| Operating CF Growth % | -84.01% | -20.14% | 15.62% | 175.83% | -213.31% | 40.48% | -0.15% | 3.14% | 26.37% | 19.36% | 38.42% | 3.54% | 27.4% | 13.77% | 15.52% | 52.1% | 46% | 26.69% | 28.83% | 130.71% | 26.56% | - |
| Net Income | 367.45M | 375.83M | 309.59M | 235.36M | -1.22B | 230.02M | 354.86M | 227.85M | 297.24M | 276.8M | 225.33M | 192.72M | 215.7M | 136.27M | 132.69M | 101.54M | 77.56M | 61.02M | 49.01M | 29.63M | 6.3M | 12.48M |
| Depreciation & Amortization | 0 | 145.89M | 106.82M | 122.7M | 194.43M | 230.44M | 151M | 114M | 79.03M | 55.39M | 48.52M | 47.39M | 43.81M | 39.19M | 26.36M | 17.02M | 12.35M | 10.6M | 7.8M | 7.05M | 5.34M | 2.95M |
| Stock-Based Compensation | 76.36M | 59.93M | 122.46M | 89.79M | 132.97M | 68.88M | 62.06M | 71.34M | 57.44M | 20.29M | 16.81M | 15.69M | 20.08M | 27.24M | 24.13M | 15.04M | 16.18M | 16.75M | 4.65M | 36.81M | 8.23M | 0 |
| Deferred Taxes | 0 | -29.32M | -21.23M | -31.53M | 89.56M | -44.64M | -8.57M | -17.27M | -14.82M | -518K | -1.94M | -5.55M | -2.19M | -3.63M | -3.25M | -1.15M | -1.87M | -1.14M | -195K | -416K | -287K | -232.95K |
| Other Non-Cash Items | 387.14M | 93.55M | 86.13M | 16.81M | 676.82M | 116.46M | 53.6M | 98.91M | -3.86M | 2.46M | 3.63M | 5.12M | 109K | 2.98M | 187K | 2.43M | 317K | -106K | 4.26M | -31.71M | 25K | 8.01M |
| Working Capital Changes | 75.19M | 250.71M | 518.87M | 537.88M | -1.15B | 528.92M | 191.5M | 310.82M | 366.1M | 263.73M | 225.55M | 118.78M | 83.84M | 81.57M | 69.2M | 80.94M | 37.35M | 10.06M | 11.18M | 18.17M | 6.2M | -2.81M |
| Change in Receivables | -16.95M | -17.85M | 3.34M | 10.37M | -8.11M | -4.63M | 12.68M | -3.53M | 5.02M | -75K | -187K | -2.1M | 443K | 213K | -2.16M | 314K | -410K | -661K | -179K | -1.41M | 817K | -2.71M |
| Change in Inventory | 12.43M | 12.43M | -41.21M | -21.9M | 1.82M | 3.75M | -3.28M | 6.03M | -5.86M | -5.38M | -5.65M | -1.75M | -481K | -1.66M | -1.75M | 91K | -1.98M | -4.31M | -3.43M | -1.65M | -1.34M | 120.58K |
| Change in Payables | 0 | -23M | 37.79M | 44.05M | -15.12M | 12.81M | 82K | -2.75M | 13.73M | 3.59M | 4.83M | 9.25M | 272K | -701K | -740K | -2.07M | 1.75M | 2.14M | 905K | 7.1M | 1.47M | 486.31K |
| Cash from Investing | -249.98M | -93.43M | -1.15B | -37.41M | 1.17B | -2.18B | -1.26B | -574.71M | -406.72M | -672.26M | -309.74M | -173.42M | -344.38M | -237.89M | -143.7M | -198.15M | -97.92M | -22.26M | -59.77M | -10.97M | -15M | -40.05M |
| Capital Expenditures | -168.47M | -241.94M | -249.39M | -143.04M | -150.74M | -436.35M | -309.55M | -276.88M | -219.61M | -105.74M | -64.4M | -55.32M | -31.7M | -61.47M | -71.69M | -49.55M | -19.56M | -16M | -11.36M | -8.13M | -12.24M | -41.69M |
| CapEx % of Revenue | 3.38% | 4.94% | 5.78% | 4.77% | 4.85% | 10.2% | 8.65% | 8.94% | 8.97% | 5.88% | 4.36% | 4.44% | 2.78% | 6.4% | 9.29% | 8.88% | 5.06% | 5.47% | 5.65% | 5.96% | 12.45% | 53.64% |
| Acquisitions | 0 | -10.53M | 0 | 886K | -33.91M | -12.7M | 13.95M | -46.16M | -999K | -908K | 3.02M | 47.75M | -16.08M | -16.4M | -3.47M | -631K | -549K | -470K | -2.02M | 0 | -261K | -516.16K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -81.52M | -23.38M | -34.96M | 1.05M | -24.34M | 62.62M | 18.06M | 1.76M | 10.24M | 1.13M | -1.98M | 659K | 201K | 5.51M | 586.87M | -9.36M | -77.82M | -5.79M | -73K | -2.84M | -2.5M | -689.66K |
| Cash from Financing | -460.91M | -584.97M | -160.44M | -246.87M | -230.86M | 1.65B | -17.86M | 266.65M | -74.88M | 4.79M | 5.5M | -44.3M | -54.11M | -70.85M | 945K | 6.43M | -17.55M | -30.13M | -19.26M | 126.69M | -19.82M | 31.94M |
| Debt Issued (Net) | 0 | 0 | -240K | -48.76M | -222M | 177.08M | 20M | 96.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8K | 0 | -23.6M | -13.08M | 18.92M |
| Equity Issued (Net) | -474.83M | -445.5M | -62.94M | -193.8M | 174.9K | 1.51B | 0 | 177.38M | -89.65M | 542K | 2.18M | -59.42M | -21.49M | -28.51M | 945K | 6.43M | -17.55M | -30.13M | -18.99M | 150.68M | 1.26M | 22.2M |
| Dividends Paid | -198.2M | -98.2M | 0 | 0 | 0 | 0 | 0 | 0 | -71.15M | 0 | -62.67M | 0 | -54.48M | -46.99M | 0 | 0 | 0 | 0 | 0 | 0 | -8M | -7.91M |
| Share Repurchases | -474.83M | -445.5M | -62.94M | -191.63M | 0 | 0 | 0 | -55.96M | -89.65M | 0 | 0 | -59.42M | -21.49M | -28.51M | 0 | 0 | -30M | -35.45M | -27.26M | 0 | 0 | 0 |
| Other Financing | 212.11M | -41.28M | -97.25M | -4.3M | -9.04M | -35.64M | -37.86M | -7.19M | 85.92M | 4.25M | 66M | 15.12M | 21.85M | 4.65M | 0 | 0 | 0 | 0 | -272K | -389.67K | -4.18K | -1.27M |
| Net Change in Cash | 189.5M | 228.03M | -216.32M | 610.9M | -437.6M | 712.7M | -498.8M | 431.46M | 342.3M | -67.02M | 177.91M | 159.71M | -45.57M | -11.1M | 111M | 36.16M | 26.33M | 46.33M | 4.04M | 170.16M | -7.56M | 40.59M |
| Free Cash Flow | 737.23M | 637.38M | 839.25M | 827.96M | -1.43B | 693.74M | 494.91M | 528.77M | 561.51M | 512.4M | 453.49M | 318.83M | 329.64M | 222.16M | 177.61M | 166.27M | 122.33M | 81.18M | 65.35M | 51.41M | 13.56M | -21.3M |
| FCF Margin % | 14.78% | 13.01% | 19.46% | 27.62% | -46.09% | 16.22% | 13.83% | 17.08% | 22.94% | 28.47% | 30.68% | 25.57% | 28.94% | 23.15% | 23.02% | 29.8% | 31.67% | 27.75% | 32.51% | 37.68% | 13.8% | -27.4% |
| FCF Growth % | 15.11% | -24.05% | 1.36% | 157.85% | -306.3% | 40.18% | -6.4% | -5.83% | 9.59% | 12.99% | 42.24% | -3.28% | 48.38% | 25.08% | 6.83% | 35.91% | 50.68% | 24.23% | 27.11% | 278.98% | 163.7% | - |
| FCF per Share | 4.61 | 3.94 | 5.03 | 4.91 | -8.44 | 4.20 | 3.10 | 3.32 | 3.54 | 3.24 | 2.88 | 2.03 | 2.09 | 1.41 | 1.13 | 1.06 | 0.79 | 0.53 | 0.42 | 0.36 | 0.12 | -0.20 |
| FCF Conversion (FCF/Net Income) | 2.01x | 2.41x | 3.63x | 5.48x | 1.08x | 3.38x | 1.95x | 3.38x | 2.64x | 2.25x | 2.30x | 1.94x | 1.68x | 2.08x | 1.88x | 2.12x | 1.82x | 1.59x | 1.57x | 2.01x | 4.19x | 1.19x |
| Interest Paid | 0 | 311K | 355K | 798K | 5.05M | 4.22M | 4.67M | 833K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 147.55M | 109.15M | 55.2M | 53.05M | 144.38M | 135.68M | 75.35M | 57.01M | 36.66M | 32.04M | 23.9M | 26.99M | 12.53M | 11.18M | 7.98M | 5.82M | 7.43M | 3.1M | 0 | 0 | 0 |
Regulatory and operational volatility
As reported in financial statements, the OCF/NI ratio has exhibited extreme volatility, ranging from 0.01 in 2025Q3 to 56.06 in 2025Q4, suggesting that reported net income is a poor proxy for the actual cash-generating capacity of the company's evolving business model.
The significant gap between net income and operating cash flow indicates that non-cash items and working capital fluctuations are heavily distorting the bottom line. Investors should monitor this divergence closely, as it implies that the company's accounting earnings may not reflect the underlying cash reality of its e-commerce and education segments.
Based on recent quarterly data, FCF margins have fluctuated wildly between -4.3% and 34.6%, highlighting the inherent instability in cash generation as the firm transitions from a predictable tutoring model to a more transactional and promotion-sensitive e-commerce revenue structure.
The inconsistency in FCF generation suggests that the company's cash flow trajectory is currently tied to the success of seasonal promotional cycles rather than steady-state operational efficiency. This volatility warrants further investigation into whether the current cost structure can support consistent cash conversion during periods of lower retail activity.
According to historical filings, the company's CapEx/Revenue ratio has varied significantly, peaking at 16.6% in 2023Q4, which indicates that the firm is still in a phase of heavy investment to support its physical and digital infrastructure requirements.
The fluctuating capital intensity suggests that management is actively recalibrating its physical footprint to align with the new business mix. Analysts should consider whether these capital outlays are truly growth-oriented or if they represent ongoing maintenance costs required to sustain the legacy education infrastructure.
As evidenced by the $474.8 million in share repurchases during 2025Q4, the company has demonstrated a willingness to return capital to shareholders, though this appears to be opportunistic rather than a consistent, long-term dividend-based capital allocation strategy.
The reliance on large, episodic buybacks suggests that management prioritizes flexibility in its cash deployment, likely to preserve liquidity for potential regulatory or operational pivots. Investors should monitor whether these repurchases are intended to signal confidence in the face of market volatility or if they represent a lack of internal reinvestment opportunities.
Quick answers to the most common questions about buying EDU stock.
New Oriental Education & Technology Group Inc. (EDU) generated $896.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
New Oriental Education & Technology Group Inc. (EDU) generated $637.4M 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.
New Oriental Education & Technology Group Inc. (EDU) spent $241.9M 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, New Oriental Education & Technology Group Inc. (EDU) returned $98.2M to shareholders via cash dividends and spent $445.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.