Weyco Group, Inc. (WEYS) Cash Flow Statement

The gap between net income and operating cash flow is the central signal here: in quarters like 2025Q2 and 2026Q1 operating cash flow ran far above earnings, while 2025Q3 and 2024Q3 showed negative operating cash flow despite positive net income of $6.6M and $8.1M. This pattern suggests that working capital timing, rather than underlying earnings power, is driving most of the period-to-period variation. Investors should monitor whether these swings reverse over a full cycle before treating reported earnings as a reliable proxy for cash generation.

Working capital movements are large relative to quarterly net income, which suggests that collections and inventory management explain much of the reported cash volatility. The reversal from heavy absorption in 2026Q3 to strong release in the following quarters may indicate timing rather than a structural deterioration, though this cannot be confirmed from the supplied data alone. Investors should monitor receivables and inventory trends in subsequent filings to assess whether the releases are sustainable.

The average free cash flow margin is pulled up sharply by the 2025Q4 and 2026Q1 results, while the majority of quarters show low single-digit or negative margins. Capital expenditures remain minimal at roughly 0.3% to 1.5% of revenue, so the swings reflect operating working capital rather than investment intensity. This suggests the business is capital-light, but also that sustained free cash flow depends on managing working capital effectively.

Over this window cash generation slightly outpaced net income, but the margin of difference is small relative to the quarter-to-quarter volatility, so the cumulative picture is not strongly reassuring. The result depends heavily on the timing of working capital releases in late 2025 and early 2026, which may reverse. Investors should not extrapolate this cumulative alignment without verifying that it reflects durable collections performance.