Cash conversion remains robust with an operating cash flow to net income ratio frequently exceeding 1.8x, although free cash flow margins remain volatile, swinging from -13.2% to 23.1% due to inventory-heavy cycles.
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 |
|---|
| Cash from Operations | 680.99M | 586.43M | 430.65M | 499.62M | 314.93M | 327.91M | 365.97M | 187.03M | 184.13M | 167.38M | 106.62M | 87.91M | 61.43M | 31.19M | 30.36M | 46.7M | 15.04M |
| Operating CF Margin % | - | 12.31% | 11.11% | 14.04% | 10.24% | 11.51% | 18.65% | 10.13% | 11.81% | 13.1% | 10.66% | 10.57% | 9.03% | 5.83% | 7.25% | 15.72% | 7.63% |
| Operating CF Growth % | -38.94% | 36.17% | -13.8% | 58.65% | -3.96% | -10.4% | 95.67% | 1.57% | 10.01% | 56.99% | 21.28% | 43.11% | 96.97% | 2.71% | -34.98% | 210.37% | - |
| Net Income | 440.55M | 358.64M | 253.61M | 301.11M | 261.53M | 278.81M | 123.36M | 175.06M | 149.65M | 102.45M | 71.84M | 57.68M | 48.02M | 32.14M | 20.02M | 16.08M | 7.02M |
| Depreciation & Amortization | 196.68M | 192.12M | 167.45M | 130.75M | 105.62M | 84.83M | 69.34M | 54.98M | 41.45M | 33.24M | 26.63M | 22.23M | 17.2M | 13.47M | 9.6M | 7.07M | 4.8M |
| Stock-Based Compensation | 16.31M | 0 | 15.59M | 17.86M | 23.58M | 25.79M | 9.55M | 12.38M | 12.02M | 16.37M | 11.95M | 11.17M | 5.93M | 10.09M | 12.32M | 1.2M | 2.1M |
| Deferred Taxes | -4.01M | -9.88M | -6.85M | 7.59M | 23M | 7.25M | 20.2M | 14.84M | 550K | 4.36M | -2.53M | -626K | -3.06M | -5.07M | 3.81M | 56K | -716K |
| Other Non-Cash Items | 18.12M | 37.66M | 1.31M | 351K | 409K | 708K | 2.57M | 117K | 44K | 138K | 109K | 59K | 444K | 1.03M | 1.95M | 350K | 544K |
| Working Capital Changes | 13.33M | 7.88M | -459K | 41.96M | -99.21M | -69.47M | 140.94M | -70.35M | -19.57M | 10.81M | -1.38M | -2.6M | -7.11M | -20.47M | -17.35M | 21.94M | 1.28M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 57.67M | -24.62M | -7.99M | 7.71M | 2.3M | 6.14M | 10.44M | -4.39M | -6.4M | 14.5M | 2.02M |
| Change in Inventory | -111.25M | -187.11M | -74.87M | -56.91M | -72.62M | -173.84M | 42.76M | -80.39M | -56.6M | -32.59M | -6.08M | -32.72M | -26.27M | -28.55M | -22.04M | -12.04M | -10.71M |
| Change in Payables | 70.55M | 105.52M | 9.46M | 35.13M | 24.89M | 61.56M | 11.15M | 20.74M | 32.87M | 19.81M | -5.45M | 17.58M | 3.06M | 4.08M | 3.37M | 12.48M | 3.68M |
| Cash from Investing | -453.56M | -186.18M | -232.94M | -556.34M | -3.94M | -465.6M | -286.89M | -193.58M | -39.47M | -139.15M | -86.76M | -99.39M | -32.32M | -25.93M | -22.89M | -18.56M | -14.88M |
| Capital Expenditures | -175.72M | -174.74M | -323.99M | -335.05M | -251.95M | -288.17M | -200.19M | -212.3M | -113.72M | -67.8M | -44.79M | -53.06M | -32.32M | -25.93M | -22.89M | -18.56M | -14.88M |
| CapEx % of Revenue | 3.46% | 3.67% | 8.36% | 9.41% | 8.19% | 10.12% | 10.2% | 11.5% | 7.29% | 5.3% | 4.48% | 6.38% | 4.75% | 4.84% | 5.47% | 6.25% | 7.55% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 177.43M | 200.19M | 212.3M | 113.72M | 67.8M | 44.79M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | -177.43M | -200.19M | -212.3M | -113.72M | -67.8M | -44.79M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -16M | -8.27M | -45.74M | -95.86M | -43.63M | -66.13M | -12.78M | -42.71M | -5.58M | 8.35M | 3.15M | 1.38M | -16.11M | -11.15M | 7.32M | 1M | -445K |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -19.5M | -15M | 34.45M | 0 | 250K |
| Equity Issued (Net) | -4.62M | 943K | -45.74M | -95.86M | -43.39M | -66.52M | -16.58M | -42.71M | -9.61M | -1.5M | -1.9M | -322K | -135K | 148K | 73.2M | 1.11M | 191.85M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -99.45M | 0 | -192.42M |
| Share Repurchases | -5.08M | 0 | -47.16M | -97.13M | -44.99M | -67.34M | -16.58M | -47.25M | -9.98M | -1.5M | -1.9M | -322K | -314K | 0 | 0 | 0 | 0 |
| Other Financing | -11.38M | -9.21M | 0 | 0 | -248K | 390K | 3.8M | 0 | 4.03M | 9.85M | 5.05M | 1.7M | 3.53M | 3.7M | -882K | -107K | -133K |
| Net Change in Cash | 211.43M | 391.98M | 151.97M | -152.57M | 267.35M | -203.81M | 66.29M | -49.26M | 139.08M | 36.58M | 23.01M | -10.11M | 13M | -5.9M | 14.79M | 29.14M | -283K |
| Free Cash Flow | 505.27M | 411.69M | 106.65M | 164.57M | 62.97M | 39.74M | 165.78M | -25.27M | 70.41M | 99.59M | 61.83M | 34.85M | 29.11M | 5.26M | 7.47M | 28.14M | 162K |
| FCF Margin % | 9.95% | 8.64% | 2.75% | 4.62% | 2.05% | 1.4% | 8.45% | -1.37% | 4.51% | 7.79% | 6.18% | 4.19% | 4.28% | 0.98% | 1.78% | 9.47% | 0.08% |
| FCF Growth % | 91% | 286% | -35.19% | 161.34% | 58.44% | -76.02% | 756.07% | -135.89% | -29.29% | 61.07% | 77.39% | 19.74% | 453.81% | -29.67% | -73.44% | 17268.52% | - |
| FCF per Share | 9.09 | 7.40 | 1.93 | 2.96 | 1.13 | 0.71 | 2.96 | -0.45 | 1.25 | 1.79 | 1.12 | 0.64 | 0.53 | 0.10 | 0.21 | 0.56 | 0.00 |
| FCF Conversion (FCF/Net Income) | 1.15x | 1.64x | 1.70x | 1.66x | 1.20x | 1.18x | 2.97x | 1.07x | 1.23x | 1.63x | 1.48x | 1.52x | 1.28x | 0.97x | 1.52x | 2.90x | 2.14x |
| Interest Paid | 0 | 0 | 420K | 496K | 537K | 590K | 757K | 0 | 3K | 4K | 10K | 25K | 129K | 1.26M | 2.06M | 24K | 53K |
| Taxes Paid | 0 | 0 | 81.66M | 68.28M | 75.56M | 59.55M | 19.26M | 45.52M | 45.59M | 51.41M | 31.76M | -36.9M | 21.59M | 25.04M | 10.8M | 1.16M | 111K |
Seasonal working capital volatility
As reported in recent financial filings, FIVE's operating cash flow to net income ratio frequently exceeds 1.8x, suggesting that the company's reported earnings are consistently supported by strong cash generation, though this relationship is heavily distorted by the extreme seasonality of its inventory-heavy business model.
The significant premium of operating cash flow over net income indicates that non-cash charges and working capital inflows are primary drivers of reported liquidity. Investors should monitor whether this conversion quality persists outside of the peak holiday-driven quarters, as the current reliance on seasonal inventory liquidation may mask underlying accrual volatility.
Based on historical cash flow statements, FIVE exhibits a highly erratic free cash flow trajectory, with margins swinging from a negative 13.2% in 2024Q3 to a positive 23.1% in 2025Q4, reflecting the company's intense reliance on fourth-quarter holiday sales to fund its annual capital requirements.
The wide variance in free cash flow margins suggests that the company's ability to self-fund its aggressive store expansion is tethered to short-term holiday performance. This cyclicality warrants caution, as any disruption in Q4 foot traffic could rapidly constrain the capital available for ongoing unit growth initiatives.
According to recent quarterly data, FIVE's capital expenditure as a percentage of revenue has moderated from a peak of 12.5% in 2024Q2 to 2.9% in 2026Q1, indicating a potential improvement in the efficiency of its store-build processes as the company scales its domestic footprint.
The reduction in capital intensity suggests that management is successfully optimizing the cost of new store openings, which is critical for maintaining return on invested capital. However, analysts should investigate whether this decline in capex intensity reflects a genuine efficiency gain or a temporary deferral of infrastructure investment.
Financial statements reveal that FIVE experiences massive working capital swings, with a $147.4 million inflow in 2025Q4 followed by a $170.6 million outflow in 2025Q3, highlighting the company's structural dependence on inventory build-up cycles to prepare for its critical holiday selling periods.
These dramatic fluctuations in working capital are inherent to the company's retail model and underscore the importance of precise inventory management. Any failure to clear seasonal stock effectively could lead to significant cash traps, potentially forcing the company to rely on external financing to bridge its mid-year liquidity gaps.
Quick answers to the most common questions about buying FIVE stock.
Five Below, Inc. (FIVE) generated $586.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Five Below, Inc. (FIVE) generated $411.7M 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.
Five Below, Inc. (FIVE) spent $174.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.