Cash flow generation is robust but volatile, with 2027Q1 free cash flow margin at 63.1% contrasting sharply with historical deficits, and operating cash flow conversion (OCF/NI) fluctuating between 1.17 and 4.03.
TAL Education Group (TAL) cash flow statement — 18-year operating, investing & financing cash flows
| Metric | TTM | Feb'26 | Feb'25 | Feb'24 | Feb'23 | Feb'22 | Feb'21 | Feb'20 | Feb'19 | Feb'18 | Feb'17 | Feb'16 | Feb'15 | Feb'14 | Feb'13 | Feb'12 | Feb'11 | Feb'10 | Feb'09 |
|---|
| Cash from Operations | 732.34M | 603.71M | 397.92M | 306.17M | 7.36M | -939.18M | 954.73M | 855.85M | 194.36M | 685.29M | 359.56M | 187.72M | 147.58M | 101.56M | 65.41M | 73.4M | 53.82M | 27.18M | 23.47M |
| Operating CF Margin % | - | 19.99% | 17.68% | 20.56% | 0.72% | -21.35% | 21.17% | 26.15% | 7.6% | 39.73% | 34.54% | 30.28% | 34.01% | 32.35% | 28.95% | 41.35% | 48.58% | 39.21% | 62.49% |
| Operating CF Growth % | -9903.88% | 51.72% | 29.97% | 4061.08% | 100.78% | -198.37% | 11.55% | 340.34% | -71.64% | 90.59% | 91.54% | 27.2% | 45.31% | 55.26% | -10.88% | 36.37% | 98.06% | 15.8% | - |
| Net Income | 909.2M | 532.73M | 84.26M | -3.57M | -135.61M | -1.16B | -143.05M | -127.65M | 364.51M | 194.66M | 112.49M | 102.76M | 67.14M | 60.61M | 33.44M | 24.31M | 24.38M | 14.24M | 7.28M |
| Depreciation & Amortization | 0 | 72.69M | 52.3M | 29.87M | 40.7M | 189.86M | 165.34M | 117.99M | 88.83M | 59.21M | 33.56M | 19.18M | 12.47M | 10.01M | 7.37M | 5.69M | 3.47M | 2.11M | 1.02M |
| Stock-Based Compensation | 34.12M | 0 | 64.94M | 88.9M | 108.57M | 174.83M | 204.94M | 117.94M | 77.28M | 47.15M | 36.12M | 25.85M | 18.44M | 8.35M | 8.28M | 7.9M | 5.31M | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 400K | 304.23M | 159.94M | -58.34M | 5.18M | 5.18B | -3.34B | -787.58M | 0 | -636.48M | -673.51M | -673.51M | -544.1M | 0 | 0 |
| Other Non-Cash Items | -174.46M | -266.42M | -14.54M | 9.32M | 65.97M | 868.24M | -3.85M | 363.57M | -69.79M | -5.18B | 3.34B | 741.33M | -425.04K | 636.16M | 674.13M | 673.96M | 543.75M | 0 | 1.25M |
| Working Capital Changes | -36.51M | 264.71M | 210.97M | 181.65M | -72.68M | -1.31B | 571.42M | 442.33M | -271.65M | 383.59M | 185.24M | 86.18M | 49.95M | 22.92M | 15.7M | 35.04M | 21.02M | 10.82M | 13.92M |
| Change in Receivables | 0 | -40.15K | 264K | 5.08M | 14.64M | -4.29M | 72.61M | 174.76M | 108.36M | 26.88M | -7.78M | 16.54M | 5.49M | -6.26M | 1.19M | 35.29M | 22.41M | 11.74M | 0 |
| Change in Inventory | -89.15M | -89.49M | -54.07M | -34.84M | -20.43M | 5.12M | -17M | -18.33M | -2.37M | -2.5M | -2.22M | 207.01K | -362.33K | 228.41K | -186.56K | -105.78K | 9.51K | -120.69K | 3.6K |
| Change in Payables | 0 | 23.54M | 18.18M | 24.44M | -2.93M | -252.93M | 229M | 693K | 49.29M | 30.98M | 5.36M | 3.78M | 1.99M | 106.73K | -1.58M | 1.58M | -60.2K | 987.2K | 0 |
| Cash from Investing | 166.13M | -176.4M | -847.03M | 95.07M | -301.63M | 1.37B | -2.64B | -338.81M | -166.58M | -840.36M | -518.27M | -215.35M | -145.79M | -17.4M | -28.12M | -59.1M | -29.57M | -5.25M | -5.12M |
| Capital Expenditures | -386.44K | -93.93M | -111.73M | -112.74M | -110.33M | -246.42M | -245.74M | -188.06M | -355.01M | -128.42M | -71.11M | -35.09M | -30.84M | -10.86M | -6.93M | -74.52M | -5.16M | -3.79M | -3.57M |
| CapEx % of Revenue | 0.01% | 3.11% | 4.97% | 7.57% | 10.86% | 5.6% | 5.45% | 5.75% | 13.87% | 7.45% | 6.83% | 5.66% | 7.11% | 3.46% | 3.07% | 41.98% | 4.66% | 5.46% | 9.49% |
| Acquisitions | 1.61M | -94.26M | 80K | 0 | -250K | 24.52M | -11.9M | -7.03M | -66.92M | -14.01M | -27.2M | -21.83M | -5.97M | -28.91M | -675.33K | 0 | 1.46B | 0 | -1.55M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 164.9M | 66.25K | 497K | 4.3M | 20.76M | 5.53M | 389K | -39.47M | -24.82M | 62.48M | -108.58M | -17.48M | -11.56M | -609.41K | -1.28M | 15.55M | -25.87M | 0 | 0 |
| Cash from Financing | -531.08M | -645.91M | -13.17M | -233.09M | -66.18M | -2.77B | 4.79B | 131.23M | 475.02M | 428.15M | 198.3M | 645.99K | 201.84M | -41.47B | -41.47M | -470.02K | 96.61M | -902.62K | 5.25M |
| Debt Issued (Net) | 0 | 0 | -427K | 0 | 0 | -2.57B | 2.3B | 60.67M | -15.07M | 0 | 213M | 0 | 224.72M | 0 | 0 | -83.02K | -500K | 0 | 0 |
| Equity Issued (Net) | -645.91M | -645.91M | -13.15M | -233.56M | -66.37M | -196.28M | 2.49B | 0 | 500M | 500M | -19.46M | 645.99K | 0 | 0 | -2.44M | 0 | 129.55M | 0 | 4.89M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -41.17M | 0 | 0 | 0 | -39.03B | -39.03M | -30B | -30M | -1.44M | 0 |
| Share Repurchases | -646.49M | -646.49M | -13.15M | -233.56M | -66.37M | -196.28M | -9.85M | 0 | 0 | 0 | -19.46M | -9.44M | 0 | 0 | -2.44M | 0 | 0 | 0 | 0 |
| Other Financing | 114.83M | 0 | 407K | 462K | 184K | -402K | 8.18M | 70.56M | -9.91M | -30.68M | -14.7M | -9.44M | -22.89M | 0 | 0 | -387K | -2.44M | 539.4K | 365.51K |
| Net Change in Cash | 388.72M | -207.69M | -465.75M | 162.57M | -386.88M | -2.34B | 3.1B | 651.48M | 536M | 241.3M | 36.17M | -36.12M | 200.23M | 84.85M | -3.5M | 15.41M | 122.41M | 21.06M | 23.99M |
| Free Cash Flow | 946.88M | 510.17M | 285.66M | 184.88M | -102.97M | -1.19B | 708.99M | 667.79M | -160.65M | 556.87M | 288.45M | 152.63M | 116.74M | 90.7M | 58.48M | -1.13M | 48.66M | 23.39M | 19.9M |
| FCF Margin % | 29.61% | 16.89% | 12.69% | 12.41% | -10.13% | -26.95% | 15.72% | 20.41% | -6.28% | 32.29% | 27.71% | 24.62% | 26.9% | 28.9% | 25.88% | -0.63% | 43.92% | 33.75% | 52.99% |
| FCF Growth % | 144.55% | 78.59% | 54.52% | 279.55% | 91.32% | -267.22% | 6.17% | 515.68% | -128.85% | 93.06% | 88.98% | 30.74% | 28.71% | 55.1% | 5294.17% | -102.31% | 108.03% | 17.52% | - |
| FCF per Share | 5.08 | 2.64 | 4.22 | 2.76 | -1.47 | -16.72 | 10.55 | 10.21 | -2.43 | 8.68 | 4.64 | 2.53 | 2.16 | 1.72 | 1.13 | -0.02 | 1.09 | 0.57 | 0.47 |
| FCF Conversion (FCF/Net Income) | 1.04x | 1.13x | 4.70x | -85.75x | -0.05x | 0.83x | -8.21x | -7.77x | 0.53x | 3.43x | 3.08x | 1.82x | 2.20x | 1.68x | 1.96x | 3.02x | 2.23x | 1.91x | 3.22x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 9.43M | 8.38M | 6.71M | 12.56M | 13.8M | 7.33M | 5.75M | 2.78M | 0 | 0 | 0 | 53.01K | 0 | 0 |
| Taxes Paid | 0 | 72.38M | 18.88M | 2.48M | 5.57M | 117.62M | 158.78M | 122.27M | 61.81M | 71.02M | 36.65M | 21.03M | 12.37M | 15.83M | 2.4M | 6.69M | 2.85M | 4M | 335.44K |
Quick answers to the most common questions about buying TAL stock.
TAL Education Group (TAL) generated $603.7M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
TAL Education Group (TAL) generated $510.2M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
TAL Education Group (TAL) spent $93.9M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, TAL Education Group (TAL) spent $646.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Regulatory reclassification risk
Earnings Quality Masked by Non-Operating Items
The 2027Q1 OCF/NI ratio of 1.17 suggests solid cash conversion, but the 2026Q3 ratio of 4.03 indicates net income is heavily distorted by non-cash or non-operating items, making the underlying earnings quality difficult to assess consistently.
The wide dispersion in the OCF/NI ratio across quarters, from -0.87 to 11.12, implies that net income is not a reliable proxy for operational cash generation. This volatility likely stems from the recognition of interest income on the large cash pile and potential one-time gains, which inflate net income without corresponding operating cash inflows. Investors should focus on the operating cash flow trend itself, which shows strong seasonal generation but is punctuated by quarters of significant cash burn.
FCF Volatility Driven by Seasonal and Strategic Shifts
Free cash flow exhibits extreme seasonality, swinging from a $478.2M surplus in 2027Q1 to a $338.1M deficit in 2025Q4, indicating that reported net income significantly overstates the company's consistent cash generation ability.
The FCF margin is highly erratic, ranging from -55.4% to 68.4%, which reflects the business's seasonal cash collection cycle and lumpy capital deployment. The negative FCF quarters coincide with periods of significant share repurchases (e.g., $646.5M in 2026Q4) and occasional capex, suggesting that strategic capital allocation decisions, not just operational performance, drive the bottom-line cash figure. The trajectory is not linear but is defined by large, episodic cash inflows followed by deliberate outflows.
Working Capital Swings Signal Cash Flow Timing
Significant negative working capital changes, such as the $51.5M outflow in 2025Q4 and $38.8M in 2024Q4, appear to be a primary driver of operating cash flow deficits in those periods, highlighting the importance of collection and payment timing.
The working capital dynamics are material to understanding the cash flow profile. The large negative swings in Q4 periods suggest a build-up of receivables or inventory ahead of seasonal demand, followed by a cash collection lag. This pattern indicates that while the business is profitable on an accrual basis, its cash conversion cycle is elongated, requiring careful management of short-term liquidity. The absence of working capital changes in other quarters suggests these are concentrated, quarter-end events.
Capital Deployment Prioritizes Buybacks Over Growth
Management has deployed over $893M in cash for share repurchases across 2024Q4 and 2026Q4, a significant return of capital that contrasts with minimal acquisition activity and sporadic capex, signaling a conservative, shareholder-focused allocation strategy.
The capital deployment pattern reveals a clear priority: returning cash to shareholders via buybacks rather than funding aggressive inorganic growth. The $646.5M repurchase in 2026Q4 alone represents a massive commitment, especially when operating cash flow was negative. This suggests management views the stock as undervalued or is seeking to offset dilution from SBC. The minimal acquisition spend ($1.6M in 2026Q4) indicates a lack of appetite for M&A, focusing instead on organic growth and balance sheet strength.
Cash Flow Obscured by SBC and Interest Income
The reported net income and operating cash flow are significantly influenced by non-cash SBC expenses and substantial interest income from the $1.75B cash pile, which may overstate the core operational cash generation of the business.
Share-based compensation, while a non-cash expense, is a real cost to shareholders through dilution and is not reflected in operating cash flow. Furthermore, the large cash balance generates significant interest income, which flows through net income but is not part of core operations. This creates a disconnect where a company with minimal capex and volatile operating cash flow can report strong net margins. Analysts must adjust for these items to understand the true cash generation from the education and hardware business itself.