Cash conversion efficiency appears strained, as evidenced by a negative $214.5 million operating cash flow in 2026Q4 despite reporting $246.5 million in net income.
| Metric | 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 | 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 % | 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 | 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 | 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 | 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 | 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 | -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 | 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 | -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 | -89.49M | -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 | 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 | -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 | -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 | 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 | -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 | 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 | -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 | -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 | -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 | -41.17M | 0 | 0 | 0 | -39.03B | -39.03M | -30B | -30M | -1.44M | 0 |
| Share Repurchases | -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 | 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 | -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 | 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 % | 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 % | 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 | 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) | 1.13x | 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 | 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 | 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 |
Regulatory and Policy Sensitivity
As reported in recent financial statements, TAL's operating cash flow frequently decouples from net income, evidenced by a 2026Q4 operating cash flow of negative $214.5 million despite a net income of $246.5 million, suggesting that reported earnings may not be translating into actual liquidity.
The significant divergence between net income and operating cash flow suggests that the company's accounting profits are heavily influenced by non-cash items or timing differences in revenue recognition. Investors should monitor whether this pattern indicates aggressive accrual accounting or simply the inherent volatility of a business model transitioning toward hardware-heavy revenue streams.
Based on the provided quarterly data, TAL's free cash flow trajectory remains highly erratic, with periods of significant cash generation, such as the $378 million reported in 2025Q3, frequently offset by substantial cash outflows in subsequent quarters, indicating a lack of consistent operational cash flow stability.
The inconsistency in free cash flow generation appears to be driven by the lumpy nature of hardware sales and the seasonal requirements of the education services business. This volatility makes it difficult to rely on current cash flow trends as a predictable indicator of long-term self-funding capability.
According to recent SEC filings, TAL has prioritized significant capital deployment through share repurchases, including a $646.5 million outflow in 2026Q4, which stands in stark contrast to the company's negative operating cash flow during the same period, warranting further investigation into the sustainability of this strategy.
The decision to return substantial capital to shareholders while operating cash flow is negative suggests that management is relying on its existing cash reserves rather than organic cash generation to fund these buybacks. This approach may provide short-term support for the stock price but could limit the company's flexibility if future regulatory or operational headwinds emerge.
Analysis of the cash flow statement reveals that share-based compensation, which consistently remains in the $10 million to $22 million range per quarter, acts as a persistent non-cash expense that masks the true underlying cash burn associated with retaining essential R&D talent during the pivot.
While share-based compensation is a standard tool for talent retention, its consistent presence suggests that the company's reported cash flow figures are being bolstered by the exclusion of these costs. Investors should consider the dilutive impact of these grants alongside the cash flow reality to gain a more accurate picture of the company's true economic performance.
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.