Cash conversion is strong, with OCF/NI at 1.5x in 2026Q3 and cumulative OCF of $717.8M exceeding net income of $453.2M, while buybacks of $25.6M in the quarter underscore a shareholder-friendly capital allocation.
Sally Beauty Holdings, Inc. (SBH) cash flow statement — 22-year operating, investing & financing cash flows
| 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 | 368.34M | 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 % | 247.99% | 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 | 192.26M | 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 | 99.46M | 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 | 22.55M | 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 | 2.31M | -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 | 4.6M | -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 | 47.16M | -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 | -21.14M | -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 | 5.62M | 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 | 38.21M | -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 | -129.6M | -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 | -127.13M | -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 | 3.41% | 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 | -2.47M | 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 | -179.14M | -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) | -81M | -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) | -91.9M | -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 | -92.59M | -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 | -6.25M | -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 | 60.3M | 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 | 241.21M | 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 % | 6.47% | 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 % | 43.58% | 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 | 2.46 | 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) | 1.25x | 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 | 57.42M | 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 | -27.16M | 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 |
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.
Key Metrics
Top Statement Risk
Professional brand leakage risk
Metrics are mathematically derived from official filings.
Cash Conversion Strengthens Despite EPS Miss
Operating cash flow exceeded net income by 1.5x in 2026Q3, per recent SEC filings, indicating robust cash conversion despite the EPS miss, with OCF/NI averaging 1.5 over the last four quarters.
The OCF/NI ratio of 1.50 in 2026Q3, up from 1.30 in 2025Q2, suggests that earnings are well-backed by cash generation, with non-cash charges like D&A and SBC providing a cushion. The gap between net income and operating cash flow is positive and widening, implying that accruals are not inflating earnings, which supports the quality of reported profits.
Free Cash Flow Rebounding from Seasonal Lows
FCF margin improved to 6.6% in 2026Q3 from 1.4% in 2025Q1, as reported in financial statements, reflecting a recovery from a working capital-driven trough, though still below the 8.2% peak in 2025Q4.
The FCF trajectory shows a clear seasonal pattern, with Q4 typically strongest due to working capital releases, but the 2026Q3 FCF of $61.6M is up 25% YoY, indicating underlying operational improvement. However, FCF margins remain below the 8.2% seen in 2025Q4, suggesting that the company has not yet fully regained its peak cash generation efficiency, possibly due to elevated capex or working capital needs.
Capital Intensity Remains Disciplined
Capex as a percentage of revenue averaged 2.8% over the last four quarters, per company filings, indicating a maintenance-heavy spending profile that supports stable FCF generation without aggressive expansion.
Capex/Revenue has been relatively stable, ranging from 1.6% to 4.5%, with the most recent quarter at 2.1%, suggesting that management is prioritizing efficiency over growth. The low capital intensity, combined with D&A of ~$25M per quarter, implies that capex is roughly in line with depreciation, indicating that the company is maintaining its asset base rather than investing heavily in new stores or digital infrastructure.
Working Capital Swings Drive Cash Flow Volatility
Working capital changes swung from -$31.3M in 2025Q1 to +$45.2M in 2025Q4, as per quarterly reports, highlighting the seasonal nature of inventory and payables that drives quarterly cash flow variability.
The working capital line is the primary source of quarterly FCF volatility, with negative changes in most quarters indicating cash outflows for inventory or receivables, and positive changes in Q4 reflecting seasonal paydowns. This pattern suggests that management is effectively managing inventory levels, but the swings warrant monitoring as they can obscure underlying cash generation trends.
Buybacks Outpace Dividends in Capital Return
Share repurchases totaled $25.6M in 2026Q3, with no dividends paid, as reported in cash flow statements, indicating a clear preference for buybacks as the primary capital return mechanism.
The company has consistently repurchased shares each quarter, with buybacks increasing from $9.9M in 2024Q4 to $25.6M in 2026Q3, while dividends remain zero. This suggests that management views the stock as undervalued and is using excess cash to support EPS growth, which aligns with the prior income statement finding of EPS growth outpacing net income. However, the lack of dividends may not appeal to income-focused investors.
Cumulative Cash Generation Exceeds Net Income
Over the last ten quarters, cumulative operating cash flow of $717.8M surpassed cumulative net income of $453.2M, per financial statements, indicating strong cash conversion and a healthy accrual ratio.
The cumulative OCF/NI ratio of 1.58 over the period suggests that earnings are of high quality, with non-cash charges and working capital management contributing to cash generation. This divergence is a positive signal, as it implies that the company is not relying on aggressive accruals to report profits, and it provides a cushion for debt service and shareholder returns.
What Could Invalidate the Base Case
Despite strong cash conversion, the cash flow statement may obscure the impact of share-based compensation and potential brand leakage, as per recent filings, which could pressure future cash flows if competitive dynamics worsen.
While SBC is added back to operating cash flow, it represents a real economic cost to shareholders, and the increasing buyback activity may be masking underlying operational challenges. Additionally, the risk of professional brand leakage to retail channels could erode the company's competitive moat, potentially leading to lower revenue and cash generation than currently projected. Investors should monitor these factors alongside the reported cash flow metrics.