Free cash flow turned decisively positive with an 8.7% margin in Q2 2026, supported by disciplined capital expenditures of 5.8% of revenue, though quarterly cash conversion remains volatile due to working capital swings.
Ollie's Bargain Outlet Holdings, Inc. (OLLI) cash flow statement — 13-year operating, investing & financing cash flows
| 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 |
|---|
| Cash from Operations | 340.75M | 296.54M | 227.45M | 254.5M | 114.35M | 45.03M | 361.25M | 105.34M | 126.08M | 95.94M | 67.09M | 45.85M | 31.84M | 19.71M |
| Operating CF Margin % | - | 11.19% | 10.01% | 12.1% | 6.26% | 2.57% | 19.97% | 7.48% | 10.16% | 8.91% | 7.54% | 6.01% | 4.99% | 3.65% |
| Operating CF Growth % | 324.92% | 30.37% | -10.63% | 122.57% | 153.92% | -87.53% | 242.93% | -16.45% | 31.42% | 43% | 46.33% | 43.99% | 61.53% | - |
| Net Income | 273.58M | 240.6M | 199.76M | 181.44M | 102.79M | 157.46M | 242.7M | 141.13M | 135.01M | 127.59M | 59.76M | 35.84M | 26.91M | 19.54M |
| Depreciation & Amortization | 43.91M | 55.24M | 0 | 34.94M | 28.69M | 24.89M | 22.46M | 17.54M | 14.34M | 12.26M | 10.67M | 9.34M | 8.79M | 9.49M |
| Stock-Based Compensation | 0 | 0 | 19.45M | 12.24M | 9.95M | 8.04M | 6.5M | 7.3M | 7.29M | 7.41M | 6.68M | 5.04M | 3.76M | 3.44M |
| Deferred Taxes | 4.28M | 8.8M | 9.25M | 1.25M | 4.45M | 1.11M | 5.66M | 3.79M | -1.57M | -30.32M | 1.87M | -1.73M | -3.42M | -3.21M |
| Other Non-Cash Items | 31.76M | 11.86M | 42.5M | -760K | -69K | 43K | 254K | 222K | 2.18M | 3.35M | -7.42M | 9.22M | 3.85M | 5.13M |
| Working Capital Changes | -12.79M | -19.95M | -43.5M | 25.4M | -31.47M | -146.52M | 83.67M | -64.64M | -31.18M | -24.36M | -4.47M | -11.86M | -8.05M | -14.68M |
| Change in Receivables | -5.99M | -1.45M | -129K | 151K | -1M | -751K | 2.22M | -2.27M | 701K | -970K | -118K | 135K | 21K | -62K |
| Change in Inventory | -67.2M | -97.72M | -46.75M | -35.26M | -3.23M | -113.6M | -18.52M | -38.77M | -41.22M | -45.08M | -19.5M | -20.74M | -23.65M | -20.6M |
| Change in Payables | 23.74M | 38.58M | 4.05M | 38.25M | -20.38M | -11.12M | 55.57M | -15.51M | 3.56M | 22.95M | -1.82M | 1.54M | 13.11M | 321K |
| Cash from Investing | -272.57M | -179.93M | -255.34M | -150.09M | -111.45M | -31.83M | -30.45M | -34.12M | -73.85M | -19.16M | -16.42M | -14.34M | -14.01M | -9.55M |
| Capital Expenditures | -117.51M | 0 | -120.55M | -124.4M | -51.67M | -34.99M | -30.57M | -76.98M | -74.18M | -19.29M | -16.44M | -14.36M | -14.11M | -9.6M |
| CapEx % of Revenue | 4.21% | 3.85% | 5.31% | 5.92% | 2.83% | 2% | 1.69% | 5.47% | 5.98% | 1.79% | 1.85% | 1.88% | 2.21% | 1.77% |
| Acquisitions | 664K | 0 | 0 | 0 | 378K | 3.16M | 122K | 42.85M | 330K | 128K | 15K | 23K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | -179.93M | 402K | 409K | 378K | 3.16M | 77K | 42.85M | 330K | 128K | 15K | 23K | 103K | 43K |
| Cash from Financing | -178.58M | -62.06M | -33.25M | -48.74M | -39.27M | -213.35M | 26.37M | -33.21M | -39.52M | -136.23M | 17.76M | -23.2M | -8.05M | -2.59M |
| Debt Issued (Net) | -1.02M | -1.17M | -1.12M | -1.03M | -891K | -684K | -429K | -460K | -49M | -146.42M | -5.1M | -124.08M | 51.98M | 45.01M |
| Equity Issued (Net) | -172.48M | -55.19M | -53.01M | -52.54M | -37.8M | -211.34M | -1.26M | -30.93M | 0 | 0 | 0 | 149.75M | -29K | -46.2M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -48.85M | -57.95M | 0 |
| Share Repurchases | -182.55M | -73.85M | -53.01M | -52.54M | -41.83M | -219.97M | -301K | -40.01M | -702K | -219K | 0 | -57K | -29K | -46.2M |
| Other Financing | -5.07M | -5.7M | 20.88M | 4.82M | -582K | -1.33M | 28.06M | -1.82M | 9.48M | 10.19M | 22.86M | -29K | -2.05M | -1.4M |
| Net Change in Cash | -110.4M | 54.56M | -61.14M | 55.67M | -36.38M | -200.15M | 357.18M | 38.01M | 12.71M | -59.45M | 68.42M | 8.31M | 9.79M | 7.57M |
| Free Cash Flow | 223.24M | 194.66M | 106.9M | 130.09M | 62.68M | 10.04M | 330.68M | 28.36M | 51.9M | 76.65M | 50.65M | 31.49M | 17.73M | 10.12M |
| FCF Margin % | 7.99% | 7.35% | 4.71% | 6.19% | 3.43% | 0.57% | 18.28% | 2.01% | 4.18% | 7.12% | 5.69% | 4.13% | 2.78% | 1.87% |
| FCF Growth % | 54.76% | 82.1% | -17.83% | 107.55% | 524.04% | -96.96% | 1065.82% | -45.35% | -32.29% | 51.33% | 60.85% | 77.58% | 75.29% | - |
| FCF per Share | 3.71 | 3.15 | 1.73 | 2.10 | 1.00 | 0.15 | 5.02 | 0.43 | 0.79 | 1.18 | 0.81 | 0.56 | 0.32 | 0.19 |
| FCF Conversion (FCF/Net Income) | 0.82x | 1.23x | 1.14x | 1.40x | 1.11x | 0.29x | 1.49x | 0.75x | 0.93x | 0.75x | 1.12x | 1.28x | 1.18x | 1.01x |
| Interest Paid | 353K | 457K | 451K | 419K | 343K | 358K | 324K | 355K | 807K | 3.81M | 5.18M | 13.83M | 19.87M | 13.36M |
| Taxes Paid | 60.85M | 59.4M | 70.35M | 48.6M | 26.57M | 54.69M | 22.05M | 30.86M | 26.11M | 31.95M | 24.86M | 22.82M | 22.7M | 11.1M |
Quick answers to the most common questions about buying OLLI stock.
Ollie's Bargain Outlet Holdings, Inc. (OLLI) generated $296.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ollie's Bargain Outlet Holdings, Inc. (OLLI) generated $194.7M 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.
Ollie's Bargain Outlet Holdings, Inc. (OLLI) spent $0.0M 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, Ollie's Bargain Outlet Holdings, Inc. (OLLI) spent $73.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Closeout supply chain dependency
Metrics are mathematically derived from official filings.
Earnings Quality Strong, But Volatile
Ollie's operating cash flow conversion has been inconsistent, with a trailing twelve-month OCF/NI ratio of 1.07, but quarterly swings from 0.10 to 2.13 suggest working capital timing is a major driver of reported cash generation.
The significant gap between net income and operating cash flow in quarters like 2025Q3 (OCF of $4.8M vs. NI of $46.2M) and 2025Q4 (OCF of $182.4M vs. NI of $85.6M) indicates that the quality of earnings is heavily influenced by the timing of inventory purchases and collections. This volatility is inherent to the closeout model, where large, lumpy inventory buys can temporarily consume cash before converting to sales and profit. Investors should monitor the OCF/NI ratio over a full cycle to assess the underlying cash generation power of the business model.
FCF Trajectory Improving on Capex Discipline
Free cash flow has turned decisively positive, with Q2 2026 FCF of $64.8 million and an 8.7% margin, a stark improvement from negative FCF in the prior year's third quarter, suggesting the business is scaling more efficiently.
The FCF trajectory shows a clear inflection point, moving from a negative $35.4 million in 2024Q3 to a positive $64.8 million in 2026Q2. This improvement is driven by both stronger operating cash flow and a moderation in capital expenditures as a percentage of revenue, which fell from 6.6% in 2024Q2 to 5.8% in 2026Q2. The trend implies that the company's expansion is becoming more capital-efficient, allowing a greater portion of operating profits to convert into free cash flow available for strategic deployment.
Working Capital Swings Drive Cash Volatility
Working capital changes have been the primary driver of quarterly cash flow volatility, with a massive $74.9 million positive swing in 2025Q4 followed by a $58.8 million negative swing in 2025Q3, highlighting the lumpy nature of inventory management.
The working capital dynamics are a direct reflection of Ollie's opportunistic procurement model. The large positive swing in 2025Q4 likely represents the cash conversion of inventory built in prior quarters, while the negative swings in quarters like 2025Q3 and 2026Q1 suggest periods of significant inventory accumulation ahead of peak selling seasons. This pattern indicates that management is actively timing purchases to secure the best closeout deals, which creates short-term cash flow noise but is essential to the business model's profitability.
Aggressive Buybacks Signal Confidence
Ollie's has deployed significant capital to share repurchases, spending $84.0 million in Q2 2026 alone, which represents a major shift from the minimal buyback activity seen in 2024 and suggests management's confidence in the stock's value.
The acceleration in share repurchases, from just $5.7 million in 2024Q4 to $84.0 million in 2026Q2, indicates a strategic decision to return capital to shareholders rather than hoard cash or pursue acquisitions. This deployment is notable given the company's continued investment in new stores and distribution capacity. The move suggests management believes the stock is undervalued and that reinvestment in the business through buybacks offers a superior return compared to other capital allocation options at the current valuation.
Cash Flow Masked by Inventory Timing
The cash flow statement obscures the true economic cost of inventory, as capitalization of freight costs and the potential for future markdowns on slow-moving closeouts are not fully reflected in current operating cash flow.
Ollie's reported operating cash flow benefits from the capitalization of inbound freight costs into inventory, which delays the cash impact of shipping rate increases. Furthermore, the quality of the inventory on the balance sheet is critical; if a significant portion of closeout merchandise fails to sell within its intended season, future Lower of Cost or Market (LCM) adjustments could impair profitability without a corresponding cash charge in the period of sale. These factors mean that the strong current cash flow generation may not fully account for the latent risks embedded in the inventory portfolio.