Operating cash flow consistently exceeds net income with an average OCF/NI ratio of 1.4, indicating high-quality earnings, but free cash flow has been volatile, swinging from a $22.9M surplus to a $4.7M deficit due to significant working capital swings.
Ethan Allen Interiors Inc. (ETD) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | Jun'26 | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 |
|---|
| Cash from Operations | 52.48M | 61.7M | 80.19M | 100.66M | 69.36M | 129.91M | 52.7M | 55.25M | 42.5M | 78.63M | 58.37M | 55.11M | 59.89M | 61.3M | 37.7M | 63.16M | 51.33M | 21.93M | 86.14M | 119.19M | 131.59M | 103.33M | 125.53M | 100.48M | 125.32M | 87.59M | 104.85M | 86.7M | 87.6M | 77.4M |
| Operating CF Margin % | 9.06% | 10.04% | 12.41% | 12.72% | 8.48% | 18.96% | 8.93% | 7.4% | 5.54% | 10.3% | 7.35% | 7.3% | 8.02% | 8.41% | 5.17% | 9.3% | 8.7% | 3.25% | 8.79% | 11.86% | 12.34% | 10.89% | 13.14% | 11.08% | 14.05% | 9.69% | 12.25% | 11.38% | 12.9% | 13.54% |
| Operating CF Growth % | -14.94% | -23.07% | -20.33% | 45.14% | -46.61% | 146.53% | -4.62% | 30% | -45.96% | 34.72% | 5.92% | -7.99% | -2.3% | 62.6% | -40.31% | 23.05% | 134.04% | -74.54% | -27.73% | -9.42% | 27.34% | -17.68% | 24.93% | -19.82% | 43.08% | -16.47% | 20.94% | -1.03% | 13.18% | 27.09% |
| Net Income | 39.88M | 51.6M | 63.82M | 105.81M | 103.28M | 60.01M | 8.9M | 25.7M | 36.37M | 36.19M | 56.64M | 37.14M | 42.93M | 32.48M | 49.69M | 325K | -44.32M | -52.69M | 58.07M | 69.23M | 85.68M | 79.34M | 80.34M | 75.38M | 82.26M | 79.68M | 90.57M | 81.3M | 71.9M | 48.7M |
| Depreciation & Amortization | 0 | 15.52M | 15.96M | 15.61M | 15.99M | 16.39M | 16.86M | 19.64M | 19.83M | 20.11M | 19.35M | 19.14M | 17.93M | 18.01M | 18.58M | 20.82M | 29.4M | 25.64M | 24.67M | 23.01M | 21.6M | 21.34M | 21.28M | 21.3M | 19.31M | 20.22M | 16.98M | 16.3M | 15.9M | 16.4M |
| Stock-Based Compensation | 0 | 1.53M | 1.45M | 1.29M | 1.14M | 1.27M | 334K | 121K | 954K | 1.26M | 2.36M | 1.24M | 1.32M | 1.4M | 1.7M | 931K | 2.28M | 1.72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | -525K | -205K | -1.18M | -352K | 3.01M | 2.52M | -3.51M | -106K | 3.51M | 671K | 3.92M | -3.03M | 2.77M | -19.52M | -63K | 33.79M | -32.16M | -2.36M | 200K | -792K | 3.94M | 659K | 4.75M | 189K | 0 | -1.81M | 0 | 700K | 600K |
| Other Non-Cash Items | 12.59M | 32.98M | 30.82M | 25.97M | 24.36M | 30.15M | 25.82M | 18.35M | -49K | 1.03M | -3.56M | 8.57M | 2.51M | 5.54M | 1.61M | 29.44M | -1.29M | 56.64M | 1.26M | 5.35M | 7.75M | -1.41M | 6.82M | 10.37M | 3.17M | 1.28M | 474K | 2M | 2.3M | 500K |
| Working Capital Changes | 0 | -39.41M | -31.65M | -46.83M | -75.06M | 19.09M | -1.74M | -5.05M | -14.5M | 16.53M | -17.09M | -14.91M | -1.77M | 1.11M | -14.36M | 12.04M | 31.48M | 22.79M | 4.5M | 21.39M | 17.36M | 129K | 16.44M | -11.32M | 20.39M | -13.59M | -1.36M | -12.9M | -3.2M | 11.2M |
| Change in Receivables | 0 | 700K | 4.81M | 5.44M | -7.99M | -934K | 6.02M | -565K | -682K | -2.83M | 2.93M | -559K | -149K | 1.92M | -456K | 187K | -4.2M | -776K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 1.12M | 6.19M | 27.31M | -32.53M | -18.52M | 33.34M | 957K | -11.88M | 13.51M | -9.98M | -5.04M | -9.02M | 18.57M | -12.53M | -5.28M | 22.86M | 31.43M | -91K | 14.53M | 3.48M | 757K | 13.17M | -13.97M | 16.64M | -18.96M | -9.24M | -25M | -6.8M | 2.7M |
| Change in Payables | 0 | -5.2M | -1.73M | -8.79M | 123K | 11.74M | -45.02M | -1.52M | 1.81M | 1.52M | -3.51M | -5.35M | 1.3M | -4.32M | 357K | 5.59M | -836K | -3.83M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 0 | -2.36M | -19.99M | -101.52M | -13.97M | -7.12M | -4.62M | -9.5M | -18.24M | -16.87M | -12.53M | 3.43M | -12.06M | -21.6M | -16.16M | -9.64M | -25.09M | -17.53M | -61.33M | -68.74M | -44.81M | -22.51M | -18.95M | -33.24M | -68.47M | -38.49M | -52.78M | -45.5M | -9.6M | -39.2M |
| Capital Expenditures | 0 | -11.27M | -9.61M | -13.88M | -13.39M | -12.03M | -15.71M | -9.12M | -12.49M | -17.64M | -23.13M | -19.79M | -19.3M | -19M | -22.88M | -9.09M | -9.92M | -22.54M | -60.04M | -59.07M | -41.51M | -30.3M | -23.04M | -27.21M | -31.08M | -38.52M | -42.06M | -47.8M | -29.7M | -23.4M |
| CapEx % of Revenue | - | 1.83% | 1.49% | 1.75% | 1.64% | 1.76% | 2.66% | 1.22% | 1.63% | 2.31% | 2.91% | 2.62% | 2.59% | 2.61% | 3.14% | 1.34% | 1.68% | 3.34% | 6.13% | 5.88% | 3.89% | 3.19% | 2.41% | 3% | 3.48% | 4.26% | 4.91% | 6.27% | 4.37% | 4.09% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | -1.35M | -534K | -6.29M | -676K | 0 | -1.99M | 0 | -770K | 1.35M | 239K | -50K | 5.02M | -7.78M | -15.3M | -7.79M | -4.08M | -1.44M | -11.33M | -42.4M | -9.72M | -12.63M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 49K | 9.91M | 10.61M | 4.91M | 12.44M | 154K | 0 | 1.45M | 10.61M | 25.21M | 0 | 5.26M | 3.66M | 4.55M | -3.96M | 6.38M | 6.48M | 5.63M | 4.48M | 11.87M | 5.53M | 5.3M | 5.02M | 9.75M | 1.92M | 2.3M | 2.1M | 2.2M |
| Cash from Financing | 0 | -52.6M | -52.33M | -47.59M | -49M | -90.99M | 3.7M | -47.34M | -66.89M | -57.34M | -69.11M | -90.96M | -11.25M | -46.57M | -20.88M | -49.08M | -6.04M | -25.04M | -98.55M | -76.56M | 83.55M | -105.06M | -160.96M | -61.08M | -29.28M | -15.01M | -47.02M | -51.6M | -80.5M | -26.3M |
| Debt Issued (Net) | 0 | -351K | -421K | -497K | -512K | -50.59M | 49.43M | -578K | -13.83M | -28.4M | -34.84M | -58.71M | -480K | -26.1M | -12.2M | -37.89M | -42K | -41K | -40K | -38K | 190.15M | 3.28M | -1.03M | -3.53M | -166K | -8.42M | 7.23M | -2.7M | -55M | -17.8M |
| Equity Issued (Net) | 0 | 43K | 509K | 75K | 1.12M | -75K | -24.32M | -46K | -23.12M | -10.25M | -19.35M | -17.55M | 0 | 0 | -1.35M | -5.38M | 1K | 2K | -75.1M | -56.63M | -81.76M | -88.71M | -33.8M | -48.48M | -22.91M | -310K | -47.26M | -44.4M | -22M | -6M |
| Dividends Paid | 0 | -50.08M | -50.27M | -46.36M | -48.26M | -43.29M | -21.47M | -46.99M | -29.51M | -20.03M | -16.65M | -13.35M | -11.3M | -22.22M | -8.06M | -5.75M | -5.8M | -23.62M | -25.5M | -24.8M | -23.13M | -19.63M | -125.78M | -9.07M | -6.2M | -6.28M | -6.47M | -4.4M | -3.5M | -2.3M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -75K | -24.32M | -46K | -23.12M | -10.25M | -19.35M | -17.55M | 0 | -1.3K | -1.35M | -5.38M | 0 | 0 | -75.58M | -57.15M | -84.11M | -94.36M | -38.35M | -50.7M | -24.67M | -1.07M | -49.61M | -45.1M | -23.3M | -7.2M |
| Other Financing | 0 | -2.21M | -2.15M | -812K | -1.35M | 2.96M | 53K | 276K | -429K | 1.33M | 1.72M | -1.35M | 525K | 1.76M | 738K | -61K | -199K | -1.38M | 2.09M | 4.91M | -1.72M | 0 | -349K | 0 | 0 | 0 | -524K | -100K | 0 | -200K |
| Net Change in Cash | 52.48M | 6.74M | 7.59M | -48.25M | 6.28M | 32.32M | 51.45M | -1.54M | -35.34M | 5.04M | -23.52M | -32.99M | 36.58M | -7.12M | 1.2M | 4.67M | 20.89M | -21.42M | -73.5M | -25.92M | 170.35M | -24.08M | -54.33M | 6.17M | 27.58M | 34.09M | 5.06M | -10.4M | -2.5M | 12.8M |
| Free Cash Flow | 52.48M | 50.43M | 70.59M | 86.78M | 55.97M | 117.88M | 36.99M | 46.13M | 23.72M | 60.99M | 35.4M | 35.32M | 40.58M | 42.3M | 14.82M | 54.07M | 41.41M | -604K | 26.1M | 60.12M | 90.08M | 73.03M | 102.5M | 73.27M | 94.25M | 49.07M | 62.79M | 38.9M | 57.9M | 54M |
| FCF Margin % | 9.06% | 8.2% | 10.92% | 10.97% | 6.84% | 17.21% | 6.27% | 6.18% | 3.09% | 7.99% | 4.46% | 4.68% | 5.44% | 5.8% | 2.03% | 7.96% | 7.02% | -0.09% | 2.66% | 5.98% | 8.45% | 7.7% | 10.73% | 8.08% | 10.56% | 5.43% | 7.33% | 5.1% | 8.52% | 9.44% |
| FCF Growth % | 4.06% | -28.56% | -18.66% | 55.05% | -52.52% | 218.71% | -19.81% | 94.43% | -61.1% | 72.27% | 0.24% | -12.97% | -4.05% | 185.46% | -72.6% | 30.57% | 6955.79% | -102.31% | -56.59% | -33.27% | 23.35% | -28.75% | 39.89% | -22.25% | 92.06% | -21.84% | 61.4% | -32.82% | 7.22% | 13.45% |
| FCF per Share | 2.05 | 1.97 | 2.75 | 3.39 | 2.19 | 4.65 | 1.42 | 1.72 | 0.86 | 2.18 | 1.25 | 1.21 | 1.39 | 1.45 | 0.51 | 1.87 | 1.43 | -0.02 | 0.89 | 1.86 | 2.64 | 2.02 | 2.68 | 1.90 | 2.36 | 1.22 | 1.53 | 0.92 | 1.31 | 1.25 |
| FCF Conversion (FCF/Net Income) | 1.32x | 1.20x | 1.26x | 0.95x | 0.67x | 2.17x | 5.92x | 2.15x | 1.17x | 2.17x | 1.03x | 1.48x | 1.40x | 1.89x | 0.76x | 2.16x | -1.16x | -0.42x | 1.48x | 1.72x | 1.54x | 1.30x | 1.56x | 1.33x | 1.52x | 1.10x | 1.16x | 1.07x | 1.23x | 1.59x |
| Interest Paid | 0 | 54K | 58K | 31K | 25K | 538K | 538K | 306K | 177K | 936K | 1.35M | 7.18M | 7.08M | -8.63M | -8.69M | 10.84M | 11.1M | 11.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 18.55M | 19.95M | 41.93M | 28.8M | 6.01M | 6.01M | 13.34M | 14.3M | 15.07M | 29M | 18.25M | 20.93M | -19.05M | -14.73M | 8.6M | 8.21M | 8.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying ETD stock.
Ethan Allen Interiors Inc. (ETD) generated $52.5M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Ethan Allen Interiors Inc. (ETD) generated $52.5M 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.
Ethan Allen Interiors Inc. (ETD) spent $0.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Sustained revenue contraction eroding cash generation
Metrics are mathematically derived from official filings.
Strong Cash Conversion Despite Earnings Volatility
Ethan Allen's operating cash flow consistently exceeds net income, with an OCF/NI ratio averaging 1.4 over the last ten quarters, suggesting high-quality earnings and effective cash collection from operations.
The persistent gap between operating cash flow and net income, highlighted by the 2.54x ratio in 2026Q3, indicates that non-cash charges like depreciation and stock-based compensation are significant add-backs, and working capital management is generally a source of cash. This strong conversion provides a buffer against the reported net income volatility, implying the underlying business generates more cash than the bottom line suggests.
FCF Volatility Driven by Working Capital Swings
Free cash flow has been highly erratic, swinging from a $22.9M surplus in 2025Q4 to a $4.7M deficit in 2026Q2, with the latest quarter's 15.3% FCF margin masking underlying instability in cash generation.
The FCF trajectory is not a smooth trend but a series of sharp reversals, primarily dictated by large, unpredictable swings in working capital rather than consistent operational performance. This volatility complicates forecasting and suggests that the company's cash generation is less about sustainable growth and more about the timing of inventory and receivable cycles, which warrants close monitoring.
Working Capital as Primary Cash Flow Driver
Working capital changes have been the dominant factor in quarterly cash flow, with a massive $26.0M cash outflow in 2026Q2 followed by a $645K inflow in 2025Q4, indicating significant volatility in the cash conversion cycle.
The erratic working capital movements, particularly the large negative swings in 2026Q2 and 2025Q1, suggest potential inefficiencies or strategic shifts in inventory and receivables management. This pattern implies that the company's cash flow is highly sensitive to short-term operational decisions, which may be masking underlying demand weakness and could lead to future cash flow surprises if not managed carefully.
Minimal Capital Intensity Preserves Cash
Capital expenditures have remained consistently low, averaging just 1.9% of revenue over the past ten quarters, indicating a business model that requires minimal reinvestment to maintain operations.
The consistently low CapEx/Rev ratio, which peaked at only 6.1% in 2026Q3, suggests that Ethan Allen's operations are not capital-intensive and that the company is not investing heavily in growth assets. This low reinvestment requirement is a key factor supporting its ability to generate positive free cash flow despite revenue declines, but it also raises questions about long-term competitiveness and innovation.
Shareholder Returns Dominate Cash Deployment
Ethan Allen has consistently returned cash to shareholders through dividends, with quarterly payouts ranging from $9.2M to $20.2M, while maintaining zero share repurchases and minimal acquisition activity.
The company's capital allocation strategy is heavily skewed towards dividends, which have been maintained at a high level even during quarters with negative free cash flow, such as 2026Q2. This commitment to dividends, combined with the absence of buybacks or significant acquisitions, suggests a conservative approach focused on income generation rather than growth, but it may also limit financial flexibility if cash flows deteriorate further.
Cash Flow Statement Obscures True Cost Structure
The cash flow statement may understate the true economic cost of operations by capitalizing certain expenses, as indicated by the minimal reported CapEx relative to the company's asset base and depreciation.
The extremely low capital expenditure figures, especially when compared to the depreciation and amortization charges, suggest that some costs may be being capitalized rather than expensed, which could inflate operating cash flow. This practice, if occurring, would make the cash conversion ratio appear stronger than the underlying economics warrant, and investors should scrutinize the balance sheet for corresponding asset growth.