Cash conversion remains inconsistent, highlighted by an OCF/NI ratio that fluctuated from 0.02 in 2025Q3 to 3.33 in 2025Q4, complicating the company's profile as a stable retail compounder.
| 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'09 | Jan'08 | Jan'07 | Jan'06 | Jan'04 | Jan'03 |
|---|
| Cash from Operations | 1.55B | 1.5B | 1.34B | 1.48B | 1.48B | 1.06B | 810.36M | 1.1B | 956.13M | 779.37M | 634.38M | 375.87M | 396.59M | 327.73M | 239M | 220.89M | 176.54M | 172.83M | 75.2M | 46.91M | 55.63M | 37.6M | 0 | 0 |
| Operating CF Margin % | - | 12.13% | 11.85% | 13.17% | 14.52% | 12.27% | 13.17% | 14.89% | 14.24% | 13.24% | 13.07% | 9.58% | 12.24% | 12.27% | 10.76% | 12.44% | 12.13% | 14.13% | 6.93% | 5.14% | 7.37% | 6.49% | - | - |
| Operating CF Growth % | 90.43% | 12.26% | -9.32% | -0.38% | 39.9% | 30.72% | -26.42% | 15.18% | 22.68% | 22.85% | 68.78% | -5.22% | 21.01% | 37.12% | 8.2% | 25.12% | 2.15% | 129.81% | 60.33% | -15.68% | 47.95% | - | - | - |
| Net Income | 1.19B | 1.15B | 1.2B | 1.29B | 1.24B | 985.84M | 175.84M | 705.95M | 658.56M | 555.23M | 409.76M | 320.01M | 257.13M | 202.85M | 172.55M | 120.26M | 71.03M | 39.36M | 25.27M | 25.34M | 22.54M | 15.97M | 0 | 0 |
| Depreciation & Amortization | 385.93M | 300.77M | 267.04M | 243.84M | 241.37M | 268.46M | 297.77M | 295.6M | 279.47M | 252.71M | 210.29M | 165.05M | 131.76M | 106.28M | 88.23M | 75.93M | 64.94M | 62.17M | 51.45M | 39.5M | 29.74M | 22.29M | 15.41M | 12.52M |
| Stock-Based Compensation | 46.48M | 37.43M | 42.79M | 48.25M | 43.04M | 47.26M | 27.58M | 25.05M | 26.64M | 24.4M | 19.34M | 15.59M | 14.92M | 16M | 13.38M | 11.61M | 11.15M | 5.95M | 3.88M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -7.56M | -3.24M | -43.33M | 30.57M | 15.65M | -25.67M | -24.01M | 5.5M | 34.08M | -27.09M | 26.97M | 5.81M | 9.25M | 3.87M | 8.67M | 10.83M | 7.74M | 3.14M | 22.58M | -3.28M | -3.08M | -3.04M | 0 | 0 |
| Other Non-Cash Items | 867.47M | 366.14M | 322.2M | 344.17M | 308.6M | 281.59M | 347.43M | 284.67M | 2.88M | 7.52M | 87K | -5.81M | 1.24M | -9.48M | -46.27M | -24.57M | -11.16M | -527K | -1.51M | 903K | -859K | 1.49M | -15.41M | -12.52M |
| Working Capital Changes | -1.16B | -351.8M | -451.22M | -481.57M | -369.16M | -498.21M | -14.26M | -215.47M | -45.51M | -33.4M | -32.07M | -124.78M | -17.71M | 8.2M | 2.44M | 26.84M | 32.84M | 62.74M | -26.46M | -15.55M | 7.29M | 899K | 0 | 0 |
| Change in Receivables | -34.54M | -71.38M | -15.39M | -8.52M | 34.26M | -40.57M | -53.77M | -20.64M | -36.39M | -11.09M | -23.64M | -12.55M | -5.39M | -5.53M | -15.36M | -3.86M | -8.81M | 4.79M | 2.38M | -2.17M | -2.72M | -830K | 0 | 0 |
| Change in Inventory | -525.1M | -135.8M | -226.08M | -138.69M | -104.23M | -331M | 125.49M | -79.37M | -122.02M | -152.45M | -182.18M | -180.56M | -123.3M | -96.81M | -116.48M | -26.13M | -11.57M | 6.65M | -37.49M | -46.87M | -19.86M | -5.13M | 0 | 0 |
| Change in Payables | 161.53M | 89.06M | 30.3M | -20.87M | 8.31M | 66.16M | 62.32M | 9.99M | 78.26M | 66.24M | 63.34M | 5.4M | 42.5M | 29.4M | 32.44M | -651K | 30.71M | 8.58M | -4.31M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -988.78M | -931.35M | -383.09M | -441.43M | -314.58M | -176.48M | -48.75M | -471.48M | -215.11M | -530.71M | -273.45M | -278.96M | -399.28M | -226.02M | -188.58M | -128.64M | -97.11M | -68.11M | -110.86M | -97.4M | -64.75M | -41.61M | 0 | 0 |
| Capital Expenditures | -501.35M | -434.83M | -374.46M | -435.27M | -312.13M | -172.19M | -151.87M | -298.53M | -319.4M | -440.71M | -373.45M | -299.17M | -249.07M | -226.02M | -188.58M | -128.64M | -97.11M | -68.11M | -110.86M | -101.87M | -62.33M | -41.61M | -30.35M | -27.43M |
| CapEx % of Revenue | 3.95% | 3.51% | 3.32% | 3.88% | 3.06% | 1.99% | 2.47% | 4.04% | 4.76% | 7.49% | 7.69% | 7.62% | 7.68% | 8.46% | 8.49% | 7.24% | 6.68% | 5.57% | 10.22% | 11.17% | 8.25% | 7.19% | 7.16% | 7.57% |
| Acquisitions | -386.81M | -386.81M | 0 | 0 | 0 | 0 | -1.22M | 0 | -15.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -5.18M | -39.7M | -8.63M | -6.16M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.47M | -2.41M | 0 | 30.35M | 27.43M |
| Cash from Financing | -886.98M | -850.67M | -1.02B | -1.01B | -861.01M | -1.5B | -107.93M | -646.74M | -609.21M | -356.22M | -321.77M | -140.22M | -27.64M | -2.7M | 16.31M | 50.3M | 27.74M | -104.34M | 35.51M | 50.64M | 9.92M | 3.84M | 0 | 0 |
| Debt Issued (Net) | 606.49M | 0 | 0 | 0 | 0 | 0 | -1.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -106.05M | 31.28M | 24.03M | 5.36M | 3M | 0 | 0 |
| Equity Issued (Net) | -1.25B | -901.39M | -1.03B | -1.02B | -907.02M | -1.54B | -118.25M | -690.52M | -622.34M | -371.82M | -347.11M | -169.37M | -41.51M | -37.97M | -79K | -3.24M | 17.1M | 1.23M | 2.46M | 118.04M | -795K | 630K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -62.48M | 0 | 0 | 0 | 0 | -93.01M | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.27B | -901.39M | -1.03B | -1.02B | -907.02M | -1.54B | -118.25M | -690.52M | -622.34M | -371.82M | -347.11M | -169.37M | -41.51M | -37.97M | -79K | -3.24M | 0 | 0 | -59K | -6.74M | -2.22M | 0 | 0 | 0 |
| Other Financing | -247.3M | 50.72M | 8.18M | 12.18M | 46.01M | 40.39M | 12.23M | 43.78M | 13.12M | 15.61M | 25.35M | 29.14M | 13.87M | 35.27M | 78.88M | 53.54M | 10.64M | 476K | 1.77M | 1.57M | 5.36M | 213K | 0 | 0 |
| Net Change in Cash | -326.15M | -278.96M | -63.39M | 28.72M | 306.32M | -614.49M | 653.73M | -16.93M | 131.81M | -107.56M | 39.17M | -43.31M | -30.33M | 99M | 66.74M | 142.55M | 107.17M | 379K | -151K | 144K | 806K | -165K | 0 | 0 |
| Free Cash Flow | 1.05B | 1.07B | 964.15M | 1.04B | 1.17B | 887.08M | 658.49M | 802.76M | 636.73M | 338.65M | 260.94M | 76.71M | 147.53M | 101.7M | 50.42M | 92.25M | 79.43M | 104.72M | -35.66M | -54.96M | -6.7M | -4.01M | 0 | 0 |
| FCF Margin % | 8.25% | 8.62% | 8.54% | 9.29% | 11.46% | 10.28% | 10.7% | 10.85% | 9.48% | 5.75% | 5.37% | 1.95% | 4.55% | 3.81% | 2.27% | 5.19% | 5.46% | 8.56% | -3.29% | -6.03% | -0.89% | -0.69% | - | - |
| FCF Growth % | 1.1% | 10.77% | -7.38% | -11.01% | 31.87% | 34.71% | -17.97% | 26.08% | 88.02% | 29.78% | 240.17% | -48% | 45.06% | 101.7% | -45.34% | 16.14% | -24.15% | 393.67% | 35.12% | -720.18% | -67.27% | - | - | - |
| FCF per Share | 23.84 | 23.74 | 20.34 | 20.99 | 22.61 | 16.18 | 11.64 | 13.82 | 10.58 | 5.46 | 4.15 | 1.19 | 2.28 | 1.58 | 0.78 | 1.46 | 1.30 | 1.77 | -0.60 | -1.03 | -0.13 | -0.08 | - | - |
| FCF Conversion (FCF/Net Income) | 0.88x | 1.30x | 1.11x | 1.14x | 1.19x | 1.07x | 4.61x | 1.56x | 1.45x | 1.40x | 1.55x | 1.17x | 1.54x | 1.62x | 1.39x | 1.84x | 2.49x | 4.39x | 2.98x | 1.85x | 2.47x | 2.35x | - | - |
| Interest Paid | 0 | 0 | 4.16M | 3.33M | 2.14M | 2.13M | 6.99M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.44M | 4.76M | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 322.85M | 0 | 386.06M | 328.21M | 429.85M | 370.65M | 19.45M | 133.86M | 195.87M | 254.62M | 212.51M | 179.25M | 137.18M | 101.6M | 45.35M | 24.16M | 49.87M | 3.71M | 6.51M | 0 | 0 | 0 | 0 | 0 |
Working Capital Volatility
As reported in recent financial statements, ULTA's OCF/NI ratio has exhibited significant volatility, ranging from a low of 0.02 in 2025Q3 to a high of 3.33 in 2025Q4, indicating that reported net income frequently diverges from the actual cash generated by core retail operations.
The persistent gap between net income and operating cash flow suggests that accrual-based accounting may be masking underlying cash flow instability. Investors should monitor whether this divergence is driven by seasonal inventory management or more structural issues in revenue recognition and expense timing.
Based on the provided cash flow data, ULTA's FCF margin has fluctuated wildly between -6.8% in 2024Q3 and 28.0% in 2023Q4, highlighting a lack of consistent cash generation that complicates the company's profile as a stable, mature retail compounder in the current competitive landscape.
The extreme swings in free cash flow appear to be heavily influenced by working capital shifts rather than operational efficiency alone. This inconsistency may indicate that the company's cash generation is highly sensitive to inventory procurement cycles and the timing of promotional activities.
According to quarterly filings, ULTA has experienced significant working capital outflows in most periods, with a notable $388 million drain in 2025Q3, suggesting that the company's inventory and payables management is currently acting as a material headwind to overall cash flow conversion efficiency.
The recurring negative working capital changes suggest that the company may be struggling to optimize its inventory levels relative to sales velocity. This trend warrants further investigation into whether the company is over-stocking in anticipation of demand that is failing to materialize as expected.
As indicated by recent cash flow statements, ULTA has consistently prioritized share repurchases, with outflows reaching $557.1 million in 2026Q1, even during periods where free cash flow was significantly lower, suggesting a management preference for returning capital over retaining cash for potential operational reinvestment.
The reliance on share buybacks as a primary capital deployment tool appears to be a strategy to support EPS in the face of slowing organic growth. Investors should consider whether this capital allocation is sustainable if the current volatility in operating cash flow persists.
Quick answers to the most common questions about buying ULTA stock.
Ulta Beauty, Inc. (ULTA) generated $1.50B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ulta Beauty, Inc. (ULTA) generated $1.07B 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.
Ulta Beauty, Inc. (ULTA) spent $434.8M 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, Ulta Beauty, Inc. (ULTA) spent $901.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.