Cash generation remains robust as evidenced by an OCF/NI ratio of 2.54 in 2026Q2, supporting the company's active share repurchase program which totaled $25.6 million in the same period.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 |
|---|
| Cash from Operations | 391.88M | 274.83M | 246.53M | 249.31M | 156.5M | 381.86M | 426.89M | 320.42M | 372.66M | 344.38M | 351M | 300.79M | 315.97M | 310.45M | 297.58M | 291.84M | 217.25M | 223.33M | 110.48M | 192.34M | 156.72M | 115.45M | 159.23M |
| Operating CF Margin % | - | 7.42% | 6.63% | 6.69% | 4.1% | 9.85% | 12.15% | 8.27% | 9.48% | 8.74% | 8.88% | 7.84% | 8.42% | 8.57% | 8.45% | 8.93% | 7.45% | 8.47% | 4.17% | 7.65% | 6.6% | 5.12% | 7.59% |
| Operating CF Growth % | 345.02% | 11.48% | -1.12% | 59.3% | -59.02% | -10.55% | 33.23% | -14.02% | 8.21% | -1.89% | 16.7% | -4.81% | 1.78% | 4.33% | 1.97% | 34.34% | -2.73% | 102.15% | -42.56% | 22.73% | 35.74% | -27.49% | - |
| Net Income | 183.91M | 195.88M | 153.41M | 184.6M | 183.55M | 239.86M | 113.25M | 271.62M | 258.05M | 215.08M | 222.94M | 235.09M | 245.99M | 261.15M | 233.06M | 213.72M | 143.83M | 99.12M | 77.58M | 44.49M | 110.19M | 116.46M | 105.31M |
| Depreciation & Amortization | 97.91M | 99.92M | 109.74M | 102.41M | 99.93M | 102.2M | 106.78M | 107.66M | 108.83M | 112.32M | 99.66M | 89.39M | 79.66M | 72.19M | 64.7M | 59.72M | 51.12M | 47.07M | 57M | 50.01M | 38.03M | 33.91M | 24.62M |
| Stock-Based Compensation | 22.48M | 19.25M | 17.17M | 15.86M | 9.94M | 11.66M | 8.43M | 9.18M | 10.52M | 10.51M | 12.58M | 16.78M | 22.11M | 19.2M | 16.85M | 15.56M | 12.82M | 6.48M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -4.43M | -12.2M | -1.66M | 9.63M | -17.59M | -7.34M | 13.69M | 5.53M | -20.54M | 14.12M | 21.46M | 7.12M | -815K | 10.48M | 2.39M | 459K | -662K | 10.27M | 3.06M | 4.44M | 2.36M | 9.71M | 7.12M |
| Other Non-Cash Items | 3.2M | -19.33M | 6.68M | 8.42M | 44.77M | 8.76M | 7.72M | -2.81M | 4.89M | 41.62M | 35.7M | -15.72M | -10.53M | -11.51M | 29.28M | 6.23M | 8.47M | 9.47M | 7.28M | 7.18M | 3.37M | 2.63M | 18.34M |
| Working Capital Changes | 88.82M | -8.69M | -38.81M | -71.61M | -164.1M | 26.72M | 177.03M | -70.77M | 10.91M | -49.27M | -41.33M | -31.86M | -20.44M | -41.06M | -48.7M | -3.85M | 1.67M | 50.93M | -34.55M | 84.39M | 1.15M | -48.94M | 3.83M |
| Change in Receivables | 3.21M | -23.94M | -14.59M | -1.86M | -9.18M | -11.05M | 51.49M | 4.4M | -1.95M | 702K | 936K | 774K | 4.02M | 3.05M | 4.29M | -8.13M | -17K | 3.71M | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 54.75M | 50.07M | -54.6M | -21.53M | -96.19M | -52.28M | 149.84M | -20.27M | -16.45M | -16.34M | -31.4M | -80.32M | -27.53M | -70.28M | -55.81M | -47.93M | -34.25M | 46.21M | -29.53M | 40.03M | -40.86M | -23.12M | -33.02M |
| Change in Payables | 26M | -31.77M | 15.02M | -29.7M | -46.29M | 79.85M | -26.88M | -42.72M | 4.59M | -19.6M | 13.62M | 19.57M | 2.73M | -7.06M | 16.73M | 49.11M | 35.57M | 7.16M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -127.46M | -58.28M | -108.91M | -99.78M | -102.42M | -76.02M | -123.78M | -95.87M | -95.31M | -89.63M | -174.83M | -112.82M | -81.75M | -106.98M | -112.51M | -146.74M | -85.02M | -118.56M | -98.16M | -121.36M | -52.16M | -126.05M | -139.92M |
| Capital Expenditures | -128.12M | -102.14M | -101.17M | -90.74M | -99.25M | -73.9M | -110.86M | -107.75M | -86.51M | -89.67M | -151.22M | -106.53M | -76.81M | -84.88M | -69.09M | -59.95M | -48.7M | -37.32M | -45.58M | -53.34M | -30.34M | -52.24M | -51.96M |
| CapEx % of Revenue | 3.44% | 2.76% | 2.72% | 2.43% | 2.6% | 1.91% | 3.15% | 2.78% | 2.2% | 2.28% | 3.83% | 2.78% | 2.05% | 2.34% | 1.96% | 1.83% | 1.67% | 1.42% | 1.72% | 2.12% | 1.28% | 2.32% | 2.48% |
| Acquisitions | 658K | 287K | -7.75M | -9.03M | -3.17M | -2.35M | -12.97M | -3.42M | -9.18M | 41K | -26.14M | -6.47M | -5.2M | -22.22M | -43.53M | -87.16M | -36.46M | -81.46M | -52.87M | -76.41M | -22.41M | -96.92M | -123.74M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 43.57M | 0 | 0 | 0 | 235K | 53K | 15.31M | 369K | 41K | 2.53M | 182K | 258K | 120K | 108K | 384K | 143K | 217K | 288K | 8.39M | 596K | 559K | 830K |
| Cash from Financing | -166.02M | -178.42M | -153.73M | -100.82M | -373.68M | -419.97M | 139.76M | -229.31M | -263.28M | -278.39M | -229.03M | -151.96M | -173.73M | -396.77M | -8.68M | -140.05M | -126.51M | -149.26M | 48.07M | -141.88M | -32.2M | 3.74M | -34M |
| Debt Issued (Net) | -82.04M | -119.12M | -84.14M | -81.18M | -250.28M | -422.24M | 204.58M | -184.03M | -97.93M | 60.61M | -39.28M | -831K | 122.14M | 74.05M | 180.21M | -149.31M | -127.57M | -149.72M | 45.05M | 1.77B | -27.17M | 15.57M | 1.41M |
| Equity Issued (Net) | -79.88M | -54M | -60.39M | -15.15M | -130.33M | 3.57M | -61.36M | -47.43M | -166.7M | -346.87M | -209.07M | -227.56M | -333.29M | -509.7M | -200M | 0 | -70K | -33K | 935K | 475.8M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.39B | -5.66M | -11.84M | 0 |
| Share Repurchases | -80.16M | -54M | -60.39M | -15.15M | -130.33M | 0 | -61.36M | -47.43M | -166.7M | -346.87M | -209.07M | -227.56M | -333.29M | -509.7M | -200M | 0 | -70K | -33K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -4.09M | -5.3M | -9.21M | -4.5M | 6.93M | -1.3M | -3.46M | 2.16M | 1.35M | 8.96M | 16.22M | 76.44M | 37.41M | 38.88M | 11.11M | 9.26M | 1.13M | 493K | 2.08M | -50.15M | -5.03M | 0 | -35.41M |
| Net Change in Cash | 102.44M | 41.2M | -15.04M | 52.44M | -330.4M | -113.19M | 442.66M | -5.8M | 13.54M | -22.86M | -53.42M | 33.46M | 59.46M | -193.1M | 176.74M | 3.99M | 5.05M | -45.34M | 61.52M | -69.3M | 68.96M | -6.84M | -15.26M |
| Free Cash Flow | 263.76M | 172.69M | 145.36M | 158.57M | 57.25M | 307.96M | 316.03M | 212.66M | 286.15M | 254.71M | 199.78M | 194.25M | 239.16M | 225.57M | 228.5M | 231.89M | 168.54M | 186.01M | 64.9M | 138.99M | 126.38M | 63.22M | 107.27M |
| FCF Margin % | 7.08% | 4.67% | 3.91% | 4.25% | 1.5% | 7.95% | 8.99% | 5.49% | 7.28% | 6.47% | 5.05% | 5.07% | 6.37% | 6.23% | 6.48% | 7.09% | 5.78% | 7.05% | 2.45% | 5.53% | 5.33% | 2.8% | 5.11% |
| FCF Growth % | 78.69% | 18.8% | -8.33% | 176.98% | -81.41% | -2.56% | 48.61% | -25.68% | 12.34% | 27.49% | 2.85% | -18.78% | 6.02% | -1.28% | -1.46% | 37.58% | -9.39% | 186.6% | -53.3% | 9.98% | 99.91% | -41.06% | - |
| FCF per Share | 2.65 | 1.66 | 1.36 | 1.45 | 0.52 | 2.70 | 2.76 | 1.77 | 2.31 | 1.84 | 1.34 | 1.23 | 1.46 | 1.28 | 1.21 | 1.23 | 0.92 | 1.01 | 0.36 | 0.76 | 0.70 | 0.35 | 0.60 |
| FCF Conversion (FCF/Net Income) | 1.43x | 1.40x | 1.61x | 1.35x | 0.85x | 1.59x | 3.77x | 1.18x | 1.44x | 1.60x | 1.57x | 1.28x | 1.28x | 1.19x | 1.28x | 1.37x | 1.51x | 2.25x | 1.42x | 4.32x | 1.42x | 0.99x | 1.51x |
| Interest Paid | 59.28M | 64.1M | 86.72M | 71.94M | 82.07M | 88.98M | 83.12M | 95.17M | 90.08M | 141.88M | 138.96M | -113.04M | -107.88M | 105.64M | 110M | 102.06M | 108.73M | 130.2M | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -22.06M | 94.3M | 35.99M | 63.81M | 82.61M | 79.77M | 49.87M | 83.78M | 70.25M | 114.55M | 123.74M | -107.59M | -138.85M | 111.42M | 135.59M | 123.75M | 83.53M | 67.46M | 0 | 0 | 0 | 0 | 0 |
Professional brand leakage risk
According to the provided cash flow statements, SBH consistently reports operating cash flow significantly higher than net income, with an OCF/NI ratio reaching 2.54 in 2026Q2, suggesting that non-cash charges and working capital adjustments are providing a substantial tailwind to the company's reported cash generation profile.
The persistent gap between net income and operating cash flow suggests that the company's accounting earnings may be conservative relative to its actual cash-generating capacity. Investors should monitor whether this conversion efficiency is driven by sustainable operational improvements or merely by aggressive management of non-cash accruals and depreciation schedules.
As reported in financial statements, SBH's free cash flow margins have fluctuated significantly, ranging from a low of 1.4% in 2025Q1 to a peak of 8.8% in 2026Q2, indicating that the company's ability to convert revenue into discretionary cash remains highly sensitive to seasonal and operational cycles.
The volatility in FCF margins appears to mirror the company's ongoing store rationalization efforts and shifting promotional intensity. This inconsistency warrants further investigation into whether the recent margin expansion is a durable trend or a temporary byproduct of reduced capital expenditure during the current fleet optimization phase.
Based on the company's reported figures, capital intensity has remained relatively contained, with CapEx/Revenue ratios oscillating between 1.6% and 4.5% over the last ten quarters, reflecting a disciplined approach to reinvestment that prioritizes maintenance over aggressive expansion of the physical store footprint.
The relatively low capital intensity suggests that the company is successfully avoiding over-investment in a declining or stagnant retail environment. However, analysts should consider whether this level of spending is sufficient to maintain the competitive relevance of the store fleet against more digitally-native beauty retailers.
Data from recent filings indicates that working capital changes have been a primary driver of cash flow variability, with swings ranging from a $45.2 million inflow in 2025Q4 to a $31.3 million outflow in 2025Q1, highlighting the company's reliance on inventory and payables management for liquidity.
The significant quarterly fluctuations in working capital suggest that the company's cash position is highly susceptible to inventory procurement cycles and vendor payment terms. Investors should monitor these shifts closely, as they may mask underlying operational pressures or indicate changes in the company's ability to leverage its supplier relationships.
As evidenced by the cash flow data, SBH has consistently utilized its free cash flow to fund share repurchases, with buybacks totaling $25.6 million in 2026Q2 alone, signaling a management priority toward returning capital to shareholders despite the ongoing challenges in the broader specialty retail sector.
The commitment to share repurchases appears to be a central pillar of the company's capital allocation strategy, potentially aimed at offsetting dilution from stock-based compensation. This approach suggests confidence in the company's long-term cash flow stability, though it may limit the resources available for strategic acquisitions or digital transformation initiatives.
Quick answers to the most common questions about buying SBH stock.
Sally Beauty Holdings, Inc. (SBH) generated $274.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sally Beauty Holdings, Inc. (SBH) generated $172.7M 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.
Sally Beauty Holdings, Inc. (SBH) spent $102.1M 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, Sally Beauty Holdings, Inc. (SBH) spent $54.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.