Cash flow generation remains highly erratic, evidenced by a free cash flow margin that swung from a negative 34.1% in 2023Q4 to a positive 9.4% in 2025Q3, complicated by elevated capital expenditures.
| 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 | 410.19M | 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 % | 2147.73% | 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% | 244.97% | -120.69% | 367.25% | -6788.39% | -107.04% | 144.89% | -185.56% | 158.7% | -550.31% | -77.62% | 350.65% | -73.64% | - |
| Net Income | 103.05M | 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 | 152.01M | 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 | 20.49M | 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 | 33.84M | 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 | 156.93M | 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 | -56.13M | -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 | -8.55M | 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 | 211.13M | 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 | -3.19M | 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 | -209.96M | -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 | -189.67M | -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 | 5.54% | 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 | -32.12M | -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 | 2.54M | 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 | -192.98M | -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) | -196.45M | -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) | 6.3M | 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 | -2.83M | -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 | 7.72M | 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 | 220.92M | 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 % | 6.45% | 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 % | 236.73% | 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% | 83.62% | -193.96% | 258.92% | -124.01% | 38.87% | -9.1% | -1139.64% | 105.73% | -7346% | 112.98% | 90.22% | -90.3% | - |
| FCF per Share | 11.72 | 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) | 2.14x | 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 |
High fixed cost leverage
As reported in recent financial filings, RH exhibits significant volatility in cash conversion, with the OCF/NI ratio fluctuating wildly from -15.48 in 2024Q1 to 11.76 in 2025Q1, suggesting that reported net income is a poor proxy for the company's actual underlying cash generation capabilities.
The extreme variance between net income and operating cash flow indicates that non-cash charges and working capital swings are heavily distorting the bottom line. Investors should monitor this disconnect, as it implies that the company's profitability may be more sensitive to accounting adjustments than to actual cash-generating retail operations.
Based on the provided cash flow data, RH's free cash flow trajectory remains highly erratic, swinging from a negative 34.1% margin in 2023Q4 to a positive 9.4% in 2025Q3, reflecting the company's struggle to maintain consistent cash flow generation amidst a cooling luxury housing market.
The inability to sustain positive free cash flow margins suggests that the company's capital-intensive gallery expansion strategy is placing immense pressure on liquidity. This inconsistency warrants further investigation into whether the current business model can support its high fixed-cost base during periods of cyclical revenue contraction.
According to quarterly cash flow statements, RH's capital expenditure remains elevated, with CapEx/Revenue ratios peaking at 18.6% in 2023Q4, which highlights the significant financial burden of maintaining and expanding the company's architecturally significant gallery footprint in a high-interest-rate environment.
The persistent level of capital spending relative to revenue suggests that the company is prioritizing long-term physical expansion over immediate cash preservation. This strategy appears to leave little room for error, as the high capital intensity limits the company's ability to pivot toward a leaner operating structure.
Financial disclosures reveal that RH's working capital management is a major source of cash flow instability, with a massive $193.6M outflow in 2023Q4, indicating that inventory and payables cycles are highly sensitive to shifts in consumer demand and supply chain timing.
The recurring negative working capital changes suggest that the company may be struggling to align its inventory procurement with actual sales velocity. This pattern appears to exacerbate liquidity risks, particularly when combined with the company's low cash reserves and reliance on external financing.
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.