Free cash flow margins have deteriorated to -0.6% in 2026Q1, exacerbated by a $10.6 million working capital outflow that highlights inefficient cash conversion.
| Cash from Operations | 38.49M | 42.14M | 65.04M | 63.31M | 74.42M | 75M | -34.81M | 32.65M | 67.5M | 76.35M | 67.2M | 56.3M | 41.37M |
| Operating CF Margin % | - | 7.06% | 10.65% | 10.41% | 12.03% | 12.82% | -8.16% | 4.72% | 9.56% | 10.94% | 10.52% | 10.02% | 8.56% |
| Operating CF Growth % | -170.11% | -35.2% | 2.72% | -14.93% | -0.77% | 315.45% | -206.61% | -51.63% | -11.59% | 13.62% | 19.37% | 36.06% | - |
| Net Income | 20.89M | 27.89M | 39.48M | 36.2M | 42.17M | -28.14M | -139.4M | -128.57M | 30.52M | 55.37M | 24.07M | 2.4M | 10.3M |
| Depreciation & Amortization | 21.1M | 23.44M | 21.32M | 22.92M | 25.75M | 29.26M | 33.68M | 37.92M | 36.74M | 35.04M | 36.22M | 34.6M | 19.05M |
| Stock-Based Compensation | 5.66M | 5.38M | 6.51M | 3.76M | 3.5M | 2.61M | 2.16M | 4.6M | 4.01M | 782K | 624K | 609K | 5.15M |
| Deferred Taxes | 6.84M | 5.01M | -1.58M | 908K | -645K | -3.13M | -17.2M | -10.82M | -4.32M | -27.25M | -4.54M | -8.22M | -1.9M |
| Other Non-Cash Items | 38.14M | 1.02M | 10.13M | 15.48M | 6.74M | 62.62M | 75.04M | 134.31M | 1.59M | 6.21M | 4.03M | 97.56M | 6.52M |
| Working Capital Changes | -18.89M | -20.6M | -10.84M | -15.96M | -3.1M | 11.79M | 10.91M | -4.79M | -1.05M | 6.21M | 6.79M | 10.85M | 2.25M |
| Change in Receivables | 865K | 695K | 25K | 2M | -1.23M | 1.98M | -385K | -2.56M | 726K | -882K | -687K | 513K | -2.06M |
| Change in Inventory | -3.37M | -8.77M | -8.12M | -2.67M | 5.44M | 2.01M | 14.56M | 4.02M | 3.24M | -13.95M | -2.23M | -8.53M | -10.27M |
| Change in Payables | -409K | 5.74M | 10.71M | 1.8M | -10.63M | -6.22M | 13.44M | -11.34M | 471K | 15.32M | -2.63M | -3.68M | 3.07M |
| Cash from Investing | -18.98M | -18.91M | -17.75M | -16.93M | -15.07M | -5.47M | -3.81M | -18.22M | -24.71M | -38.37M | -37.08M | -419.71M | -24.14M |
| Capital Expenditures | -17.49M | -18.91M | -14.27M | -10.69M | -15.07M | -5.47M | -3.81M | -18.22M | -24.71M | -38.37M | -37.08M | -33.97M | -24.14M |
| CapEx % of Revenue | 2.98% | 3.17% | 2.34% | 1.76% | 2.44% | 0.94% | 0.89% | 2.64% | 3.5% | 5.5% | 5.8% | 6.04% | 4.99% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -385.74M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -16.19M | 0 | -3.49M | -6.25M | -5.88M | -3.28M | -2.23M | 0 | -24.71M | 0 | 0 | 0 | 0 |
| Cash from Financing | -14.46M | -17.64M | -74.03M | -71.26M | -8.26M | -37.98M | 21.5M | -59.11M | -2.57M | -25.47M | -44.16M | 390.85M | -17.14M |
| Debt Issued (Net) | -506K | -37K | -96.71M | -65.04M | -7.02M | -37.56M | 11.76M | -7.8M | -2.8M | -27.7M | 27.23M | 250.35M | -17.14M |
| Equity Issued (Net) | -4.22M | -2.38M | 26.91M | -2.53M | -1.25M | -415K | -176K | -1.4M | 0 | 0 | -305K | 0 | 0 |
| Dividends Paid | -4.98M | -4.86M | -2.9M | 0 | 0 | 0 | 0 | -50.15M | 0 | 0 | -70M | -8.56M | 0 |
| Share Repurchases | -4.22M | -2.38M | -2.54M | -2.53M | -1.25M | -415K | -176K | -1.4M | 0 | 0 | -305K | 0 | 0 |
| Other Financing | -4.76M | -10.37M | -1.33M | -3.69M | 0 | 0 | 9.91M | 248K | 232K | 2.23M | -1.08M | 140.5M | 0 |
| Net Change in Cash | 5.05M | 5.59M | -26.75M | -24.88M | 51.1M | 31.55M | -17.12M | -44.68M | 40.23M | 12.51M | -14.04M | 26.9M | 86K |
| Free Cash Flow | 20.23M | 25.21M | 50.77M | 46.38M | 59.36M | 69.53M | -38.62M | 14.43M | 42.79M | 37.98M | 30.12M | 22.33M | 17.23M |
| FCF Margin % | 3.44% | 4.23% | 8.31% | 7.63% | 9.6% | 11.88% | -9.05% | 2.09% | 6.06% | 5.44% | 4.71% | 3.97% | 3.56% |
| FCF Growth % | -34.11% | -50.35% | 9.47% | -21.87% | -14.62% | 280.04% | -367.59% | -66.28% | 12.67% | 26.09% | 34.9% | 29.59% | - |
| FCF per Share | 1.35 | 1.65 | 3.35 | 3.22 | 4.16 | 5.59 | -4.22 | 1.65 | 4.84 | 4.36 | 3.44 | 2.55 | 2.01 |
| FCF Conversion (FCF/Net Income) | 0.97x | 1.51x | 1.65x | 1.75x | 1.76x | -2.66x | 0.25x | -0.25x | 2.21x | 1.38x | 2.79x | 23.41x | 4.02x |
| Interest Paid | 0 | 8.95M | 15.43M | 25.95M | 11.72M | 14.01M | 14.21M | 18.11M | 18M | 16.39M | 16.41M | 0 | 12.53M |
| Taxes Paid | 0 | 10.82M | 15.56M | 13.36M | 19.69M | 9.28M | 20K | 7.19M | 23.09M | 20.52M | 15.5M | 0 | -12.6M |
Volatile working capital cycles
As reported in recent financial statements, JILL's operating cash flow to net income ratio has fluctuated wildly, reaching a low of 0.36 in 2026Q1, which suggests that reported earnings are frequently decoupled from actual cash generation due to significant accrual-based adjustments and working capital volatility.
The wide variance in the OCF/NI ratio indicates that accounting profits are not consistently translating into liquidity. Investors should monitor whether this disconnect stems from aggressive revenue recognition or timing mismatches in inventory procurement, as the current trend suggests a weakening quality of earnings.
Based on JILL's quarterly filings, free cash flow margins have deteriorated from a peak of 11.9% in 2024Q1 to negative 0.6% in 2026Q1, reflecting a concerning inability to sustain positive cash flow generation amidst the company's ongoing top-line revenue contraction and persistent operational cost pressures.
The shift into negative FCF territory highlights the vulnerability of the business model when revenue growth stalls. This trajectory suggests that the company may struggle to fund internal initiatives or debt obligations without relying on external financing or further depleting existing cash reserves.
According to recent SEC filings, JILL experienced a significant working capital outflow of $10.6 million in 2026Q1, a trend that frequently hampers cash flow and suggests that inventory management or collection cycles are becoming increasingly inefficient as the company navigates a challenging retail environment.
The recurring negative impact of working capital changes on operating cash flow implies that the company is struggling to optimize its cash conversion cycle. This pattern warrants further investigation into whether inventory is accumulating in response to slowing demand or if supplier payment terms are tightening.
As disclosed in financial reports, JILL has continued to prioritize dividends and share repurchases despite the recent deterioration in free cash flow, with $2.3 million deployed toward these activities in 2026Q1, a strategy that may be unsustainable if current cash flow trends do not reverse.
The decision to return capital to shareholders while operating cash flow remains volatile suggests a management focus on maintaining investor sentiment. However, this approach may limit the company's flexibility to invest in store modernization or digital infrastructure, potentially exacerbating long-term competitive disadvantages.
Quick answers to the most common questions about buying JILL stock.
J.Jill, Inc. (JILL) generated $42.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
J.Jill, Inc. (JILL) generated $25.2M 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.
J.Jill, Inc. (JILL) spent $18.9M 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, J.Jill, Inc. (JILL) returned $4.9M to shareholders via cash dividends and spent $2.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.