Cash conversion appears strong with a 10-quarter average OCF/NI ratio of 2.38, yet free cash flow generation remains highly sensitive to working capital fluctuations, as seen in the $169.8 million cash drain from operations in 2024Q3.
Rh (RH) cash flow statement — 27-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 | Jan'13 | Jan'12 | Jan'11 | Jan'10 | Jan'08 | Jan'07 | Jan'06 | Jan'05 | Jan'04 | Jan'03 | Jan'02 | Jan'01 | Jan'00 | Jan'99 |
|---|
| Cash from Operations | 425.64M | 452.24M | 17.09M | 202.21M | 403.69M | 662.11M | 500.77M | 339.19M | 249.6M | 555.1M | 78.84M | 126.7M | 82.49M | 87.52M | -3.86M | 17.12M | -11.81M | 57.07M | -21.35M | -310K | 4.4M | -9.8M | 11.46M | -19.52M | 4.33M | 19.37M | 4.3M | 16.31M |
| Operating CF Margin % | - | 13.15% | 0.54% | 6.68% | 11.24% | 17.61% | 17.58% | 12.81% | 9.96% | 22.75% | 3.69% | 6.01% | 4.42% | 5.64% | -0.32% | 1.79% | -1.53% | 9.12% | -2.96% | -0.04% | 0.76% | -1.86% | 2.61% | -4.88% | 1.18% | 5.24% | 1.46% | 7.79% |
| Operating CF Growth % | 1098.56% | 2545.46% | -91.55% | -49.91% | -39.03% | 32.22% | 47.64% | 35.89% | -55.03% | 604.04% | -37.77% | 53.6% | -5.75% | 2365.04% | -122.57% | -70% | -120.69% | 367.25% | -6788.39% | -107.04% | 144.89% | -185.56% | 158.7% | -550.31% | -77.62% | 350.65% | -73.64% | - |
| Net Income | 111.51M | 124.79M | 72.41M | 127.56M | 528.64M | 688.55M | 271.81M | 220.38M | 135.73M | 2.18M | 5.4M | 91.1M | 91M | 18.2M | -12.79M | 20.59M | -7.05M | -28.65M | -51.94M | 3.25M | -29.31M | 1.7M | -2.94M | -3.6M | -33.87M | -3.09M | -3.04M | 4.87M |
| Depreciation & Amortization | 158.31M | 148.5M | 130.19M | 118.99M | 183.77M | 168.5M | 164.17M | 165.93M | 159.98M | 70.14M | 56.99M | 44.59M | 34.46M | 27.65M | 26.75M | 29.19M | 31.26M | 43.06M | 23.12M | 21.7M | 19.6M | 15.95M | 18.02M | 18.64M | 20.62M | 15.91M | 10.79M | 6.48M |
| Stock-Based Compensation | 32.98M | 43.88M | 44.19M | 39.38M | 0 | 0 | 0 | 0 | 0 | 0 | 29.21M | 24.22M | 17.07M | 0 | 116.18M | 1.56M | 1.12M | 592K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 32.48M | 25.63M | -1.49M | 25.27M | -91.99M | -6.92M | -4.92M | -7.71M | -5.02M | 6.57M | -221K | -6.01M | 2.69M | 5.6M | -4.69M | 4.3M | -427K | -179K | -197K | -554K | 25.86M | -2.44M | -2.27M | -4.11M | -7.62M | -3.54M | -2.98M | 214K |
| Other Non-Cash Items | 157.3M | 158.62M | 186.35M | 147.1M | 281.66M | 90.74M | 176.48M | 41.13M | 141.56M | 138.88M | 64.84M | 15.31M | -7.11M | 69.87M | -56.32M | 13.6M | 2.31M | -6.39M | 7.85M | 4.9M | 294K | 0 | 0 | 921K | 12.76M | 0 | 0 | 0 |
| Working Capital Changes | -66.94M | -49.18M | -414.55M | -256.08M | -498.4M | -278.75M | -106.78M | -80.54M | -182.66M | 337.33M | -77.38M | -42.52M | -55.63M | -33.8M | -73M | -52.11M | -39.02M | 48.63M | -194K | -29.6M | -12.05M | -25.01M | -1.35M | -31.38M | 12.44M | 10.08M | -474K | 4.75M |
| Change in Receivables | -17.88M | 250K | -8.48M | 4.69M | -1.85M | 1.56M | -10.48M | -7.31M | -8.58M | 2.76M | 588K | -2.63M | -3.99M | -5M | -5.28M | -7.28M | 68K | 3.8M | -1.24M | -1.28M | 1.8M | -1.2M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 183.97M | 213.78M | -268.57M | 47.27M | -77.19M | -190.07M | -104.62M | 93.27M | -7.4M | 220.77M | -4.3M | -166.5M | -106.04M | -100.94M | -107.45M | -39.48M | -57.1M | 34.95M | -7.58M | -34.16M | -14.46M | -41.26M | -8.43M | -32.91M | 21.78M | 4.78M | -20.5M | -22.83M |
| Change in Payables | 31.55M | 0 | 46.78M | -41.07M | -56.26M | 43.44M | 63.58M | 7.45M | 10.15M | 64.46M | -50.31M | 29.2M | 25.47M | 57.32M | 36.15M | 14.37M | 5.47M | 8.2M | 7.34M | 15.31M | -1.4M | 18.63M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -132.45M | -223.69M | -240.41M | -307.43M | -171.07M | -194.35M | -197.6M | -122.55M | -79.99M | 64.04M | -321.5M | -227.4M | -200.55M | -93.87M | -49.37M | -25.59M | -39.91M | -2.02M | -13.28M | -14.69M | -29.7M | -13.38M | -9.23M | -19.39M | 1.53M | -23.62M | -47.21M | -44.16M |
| Capital Expenditures | -178.05M | -202.94M | -230.79M | -269.36M | -173.64M | -185.38M | -111.13M | -93.62M | -79.99M | -112.49M | -157.97M | -133.8M | -120.06M | -93.87M | -49.37M | -25.59M | -39.91M | -2.02M | -13.28M | -15.15M | -29.7M | -13.38M | -9.23M | -19.39M | -3.8M | -23.51M | -46.62M | -38.55M |
| CapEx % of Revenue | 5.16% | 5.9% | 7.26% | 8.89% | 4.84% | 4.93% | 3.9% | 3.54% | 3.19% | 4.61% | 7.4% | 6.34% | 6.43% | 6.05% | 4.14% | 2.67% | 5.16% | 0.32% | 1.84% | 2.13% | 5.11% | 2.54% | 2.1% | 4.84% | 1.04% | 6.36% | 15.81% | 18.41% |
| Acquisitions | 0 | -32.12M | 0 | 0 | 5.29M | 0 | 7.11M | 24.08M | 0 | 15.12M | -116.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 464K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 2.27M | 2.08M | 0 | 0 | 0 | 0 | -12.86M | -53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.33M | -110K | -592K | -5.61M |
| Cash from Financing | -202.31M | -219.4M | 130.59M | -1.28B | -902.48M | 1.61B | -243.91M | -174.8M | -188.99M | -688.41M | -2.24M | 286.78M | 253.8M | 11.51M | 53.05M | 3.37M | 51.6M | -51.05M | 33.83M | 14.65M | 25.4M | 23.54M | -2.58M | 18.23M | 13.85M | 2.23M | 39.32M | 35.14M |
| Debt Issued (Net) | -206.71M | -218.04M | 112.22M | -41.85M | 266.02M | 1.6B | -249.94M | 9.75M | -18.19M | 293.15M | 0 | 293.87M | 183.71M | 369K | -44.64M | 3.37M | 51.6M | -56.05M | 33M | 9.86M | 24.35M | 22.99M | -4.3M | 17.27M | -41.58M | 1.43M | 37.45M | -12.14M |
| Equity Issued (Net) | 7.14M | 4.39M | 18.92M | -1.24B | -768.7M | 32.05M | 14.38M | -172.67M | -154.96M | -975.43M | 3.26M | 56M | 53.67M | 7.45M | 97.69M | 0 | 0 | 0 | 830K | 4.89M | 1.62M | 704K | 1.11M | 1.77M | 56.91M | 583K | 2.15M | 47.59M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -11.99M | -1.25B | -1B | 0 | 0 | -250.03M | -250M | -1B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -2.74M | -5.75M | -547K | -400K | -399.8M | -20.67M | -8.35M | -11.89M | -15.85M | -6.14M | -5.5M | -63.08M | 16.42M | 3.69M | 0 | 1K | 0 | 5M | 0 | -101K | -575K | -161K | 616K | -806K | -1.48M | 218K | -274K | -315K |
| Net Change in Cash | 90.93M | 10.78M | -93.28M | -1.39B | -670.1M | 2.08B | 55.44M | 41.85M | -12.1M | -69.12M | -244.44M | 182.53M | 135.54M | 5.04M | -158K | 8.51M | -13.19M | 13.19M | -232K | -529K | 1.99M | 0 | 373K | -20.66M | 19.68M | -2.02M | -3.57M | 7.29M |
| Free Cash Flow | 247.73M | 252.4M | -213.69M | -67.14M | 230.04M | 476.73M | 389.64M | 245.56M | 169.61M | 442.65M | -78.8M | -6.76M | -37.12M | -6.35M | -52.92M | -8.47M | -51.72M | 55.04M | -34.64M | -15.46M | -25.29M | -23.18M | 2.23M | -38.91M | 537K | -4.14M | -42.32M | -22.24M |
| FCF Margin % | 7.18% | 7.34% | -6.72% | -2.22% | 6.41% | 12.68% | 13.68% | 9.28% | 6.77% | 18.14% | -3.69% | -0.32% | -1.99% | -0.41% | -4.44% | -0.88% | -6.69% | 8.8% | -4.8% | -2.17% | -4.35% | -4.41% | 0.51% | -9.72% | 0.15% | -1.12% | -14.35% | -10.62% |
| FCF Growth % | 586.66% | 218.11% | -218.27% | -129.19% | -51.75% | 22.35% | 58.67% | 44.78% | -61.68% | 661.74% | -1066.36% | 81.8% | -484.81% | 88.01% | -524.67% | -115.39% | -193.96% | 258.92% | -124.01% | 38.87% | -9.1% | -1139.64% | 105.73% | -7346% | 112.98% | 90.22% | -90.3% | - |
| FCF per Share | 12.59 | 12.75 | -10.69 | -3.11 | 8.66 | 15.32 | 14.27 | 10.11 | 6.39 | 15.13 | -1.93 | -0.16 | -0.90 | -0.16 | -1.56 | -0.26 | -1.61 | 1.71 | -0.89 | -0.39 | -0.71 | -0.54 | 0.07 | -1.50 | 0.02 | -0.25 | -2.53 | -1.90 |
| FCF Conversion (FCF/Net Income) | 2.22x | 3.62x | 0.24x | 1.59x | 0.76x | 0.96x | 1.84x | 1.54x | 1.66x | 254.63x | 14.60x | 1.39x | 0.91x | 4.81x | 0.30x | 0.83x | 1.46x | -1.99x | 0.41x | -0.10x | -0.15x | -5.75x | -3.90x | 5.42x | -0.13x | -6.27x | -1.41x | 3.35x |
| Interest Paid | 0 | 217.11M | 219.69M | 246.21M | 133.82M | 39.47M | 27.25M | 43.28M | 31.15M | 28.18M | 16.61M | 13.37M | 8.61M | 5.04M | 5.38M | 3.74M | 2.07M | 2.76M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 12.79M | 21.08M | 14.28M | 41.35M | 158.91M | 74.22M | 40.13M | 41.29M | 4.03M | 48.46M | 29.14M | 60.12M | 1.52M | 1.86M | 1.7M | 744K | 354K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying RH stock.
Rh (RH) generated $452.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Rh (RH) generated $252.4M 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.
Rh (RH) spent $202.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Working capital volatility and margin instability
Metrics are mathematically derived from official filings.
Strong Cash Conversion Lifts Earnings Quality
RH's operating cash flow consistently outpaces net income, with a 10-quarter average OCF/NI ratio of 2.38, indicating strong cash earnings quality despite GAAP volatility driven by stock-based compensation and working capital swings.
The company's most recent quarter (2026Q2) shows operating cash flow of $145.2 million against net income of $60.2 million, a 2.41x conversion ratio. This pattern of cash flow exceeding accounting earnings is a positive signal for underlying business cash generation, though the significant gap also highlights the impact of non-cash charges like D&A and SBC on reported net income.
FCF Inflection Following Working Capital Drag
After four quarters of negative free cash flow driven by large working capital investments, RH has generated positive FCF for six consecutive periods, with the 2026Q2 FCF margin rebounding to 10.8% from a low of -11.8% in 2024Q3.
The trajectory shows a dramatic swing from severe cash burn to robust generation, largely driven by the normalization of working capital outflows. However, the recovery in FCF margin to double digits in the latest quarter is now being supported by improving operating profitability, not just working capital benefits. Investors should monitor whether this margin can be sustained as revenue growth moderates.
Working Capital Drives Cash Flow Volatility
RH's cash flow profile is highly sensitive to working capital management, as evidenced by the massive $169.8 million cash drain from working capital in 2024Q3 that was a primary driver of negative free cash flow during that period.
The data shows extreme volatility in the working capital line, swinging from a $169.8 million use of cash in 2024Q3 to a $48.5 million use in 2025Q4. This suggests that inventory and receivables management are critical levers for the company's cash flow, and the recent stabilization in this line (smaller outflows in recent quarters) is a key reason for the FCF recovery. The pattern implies a business model with lumpy cash conversion cycles.
Reduced Capex Intensity Aids Cash Flow
Capital expenditure as a percentage of revenue has been deliberately reduced from a peak of 9.1% in 2024Q1 to a consistent 4.9% in recent quarters, significantly lowering the cash outflow required to maintain operations and supporting free cash flow generation.
The reduction in capital intensity appears to be a strategic shift, as D&A remains relatively stable in the mid-$30M range per quarter while cash capex has fallen from over $60M to around $45M. This suggests the company has completed a phase of higher growth-related investments and is now in a more maintenance-focused capex cycle. However, this reduced investment level warrants monitoring for implications on future store refreshes and competitive positioning.
Cash Flow Obscured by SBC and Accounting
Stock-based compensation added $12.5 million to cash flows in 2026Q2, and its growing use may mask underlying cash costs, while the significant volatility in working capital makes trailing FCF a poor predictor of future generation.
The cash flow statement, while strong, benefits from add-backs like SBC that represent a real economic cost to shareholders through dilution, even if non-cash for GAAP. Furthermore, the extreme swings in the working capital line (e.g., the $169.8M outflow in 2024Q3) indicate that a single quarter's operating cash flow or FCF figure is highly influenced by balance sheet timing, not just core operational performance. This makes short-term cash flow analysis less reliable for valuation.