Free cash flow generation is robust, with a 24.5% FCF margin in Q2 2026 and an operating cash flow to net income ratio of 1.60, indicating high-quality earnings conversion.
Williams-Sonoma, Inc. (WSM) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Feb'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'05 | Jan'04 | Jan'03 | Jan'02 | Jan'01 | Jan'00 | Jan'99 | Jan'98 | Jan'97 |
|---|
| Cash from Operations | 1.61B | 1.31B | 1.36B | 1.68B | 1.05B | 1.37B | 1.27B | 607.29M | 585.99M | 499.7M | 524.71M | 544.03M | 461.7M | 453.77M | 364.13M | 291.33M | 355.99M | 490.72M | 230.16M | 245.54M | 309.11M | 348.37M | 304.44M | 209.35M | 310.16M | 205.01M | 181.33M | 105.72M | 79.7M | 75.9M | 112.2M |
| Operating CF Margin % | - | 16.84% | 17.64% | 21.68% | 12.14% | 16.63% | 18.79% | 10.3% | 10.33% | 9.44% | 10.32% | 10.93% | 9.83% | 10.34% | 9.01% | 7.83% | 10.16% | 15.82% | 6.85% | 6.22% | 8.29% | 9.84% | 9.7% | 7.6% | 13.14% | 9.82% | 9.91% | 7.64% | 7.22% | 8.13% | 13.82% |
| Operating CF Growth % | 141.93% | -3.33% | -19.05% | 59.6% | -23.22% | 7.55% | 109.92% | 3.64% | 17.27% | -4.77% | -3.55% | 17.83% | 1.75% | 24.62% | 24.99% | -18.16% | -27.46% | 113.2% | -6.26% | -20.57% | -11.27% | 14.43% | 45.42% | -32.5% | 51.29% | 13.06% | 71.52% | 32.65% | 5.01% | -32.35% | 4575% |
| Net Income | 1.18B | 1.09B | 1.13B | 949.76M | 1.13B | 1.13B | 680.71M | 356.06M | 333.68M | 259.55M | 305.39M | 310.07M | 308.85M | 278.9M | 256.73M | 236.93M | 200.23M | 77.44M | 30.02M | 195.76M | 208.87M | 214.87M | 191.23M | 157.21M | 124.4M | 75.1M | 56.78M | 68.1M | 54.9M | 41.3M | 22.7M |
| Depreciation & Amortization | 288.16M | 231.45M | 229.8M | 232.59M | 214.15M | 196.09M | 188.66M | 187.76M | 188.81M | 183.08M | 173.19M | 167.76M | 162.27M | 149.79M | 134.45M | 130.55M | 144.63M | 151.8M | 148.08M | 111.3M | 106.35M | 98.29M | 89.09M | 80.27M | 82.71M | 71.87M | 51.53M | 36.51M | 26.4M | 24M | 20.9M |
| Stock-Based Compensation | 138.65M | 106.52M | 98.98M | 84.75M | 90.27M | 95.24M | 73.19M | 64.16M | 59.8M | 42.99M | 51.12M | 41.36M | 44.63M | 38.79M | 31.04M | 24.34M | 26.63M | 24.99M | 12.13M | 26.81M | 26.81M | 0 | 250K | 250K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 34.22M | 20.32M | -9.74M | -29.09M | -23.82M | 2.54M | -13.06M | -2.56M | 23.64M | 63.38M | 7.11M | -7.44M | -248K | -28.34M | -9.03M | 14.21M | 23.57M | -23.59M | 5.11M | -31.95M | -50.75M | -20.79M | -6.25M | -6.47M | -2.52M | -6.73M | 4.82M | -7K | 500K | 3.2M | -300K |
| Other Non-Cash Items | 56.6M | 256.7M | 258.86M | 274.36M | 254.13M | 213.91M | 242.69M | 209.82M | -16.57M | -23.62M | -23.49M | -20.14M | -21.02M | -22.54M | -18.26M | -24.16M | -33.59M | -2.95M | -7.42M | 8.62M | 19.66M | 28.23M | 14.25M | 22.53M | 16.18M | 13.16M | 2.18M | 9.56M | 7.5M | 100K | 400K |
| Working Capital Changes | -107.08M | -388.53M | -342.93M | 167.89M | -609.81M | -262.96M | 102.67M | -207.96M | -3.38M | -25.67M | 11.39M | 52.41M | -32.79M | 37.17M | -30.8M | -90.54M | -5.47M | 263.04M | 42.24M | -65M | -1.82M | 27.77M | 15.86M | -44.44M | 89.38M | 51.61M | 66.02M | -8.44M | -9.6M | 900K | 66.7M |
| Change in Receivables | -30.72M | -8.81M | 5M | -7.46M | 15.69M | 11.9M | -31.5M | -5.03M | -15.33M | 149K | -9.79M | -12.85M | -9.37M | 786K | -16.41M | -4.76M | 3.48M | -6.62M | 9.58M | 2.09M | 1.07M | -10.9M | 2.8M | 2.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -12.31M | -125.88M | -88.08M | 209.17M | -208.91M | -239.98M | 99.14M | 24.22M | -70.33M | -80.23M | 4.49M | -92.65M | -76.96M | -174.66M | -85.98M | -34.85M | -46.46M | 108.33M | 118.68M | -81.47M | -90.6M | -67.47M | -48.02M | -82.2M | -71.85M | 33.79M | -25.74M | -86.85M | -40.7M | -21.7M | 10.9M |
| Change in Payables | 66.47M | -31.8M | 15.36M | 99.04M | -113.52M | 56.67M | 25.49M | -11.05M | 62.38M | 2.55M | 3.17M | 60.51M | 4.46M | 135.09M | 22.46M | -21.15M | 35.95M | 29.2M | -27.53M | -30.07M | 11.98M | 17.77M | -11.36M | -11.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -265.46M | -260.58M | -221.21M | -188.26M | -353.95M | -226.25M | -168.88M | -185.55M | -187.9M | -269.76M | -196.97M | -202.17M | -188.6M | -190.62M | -206.81M | -157.7M | -63.99M | -71.23M | -144.04M | -197.25M | -189.29M | -151.79M | -181.45M | -211.98M | -155.45M | -155.31M | -233.38M | -116.4M | -76.7M | -59.1M | -46M |
| Capital Expenditures | -357.13M | -259.44M | -221.57M | -188.46M | -354.12M | -226.52M | -169.51M | -186.28M | -190.1M | -189.71M | -197.41M | -202.94M | -204.8M | -193.95M | -205.4M | -130.35M | -61.91M | -72.26M | -191.79M | -212.02M | -190.98M | -151.79M | -181.45M | -211.98M | -156.18M | -155.99M | -234.85M | -120.21M | -78.9M | -59.3M | -47.6M |
| CapEx % of Revenue | 4.46% | 3.32% | 2.87% | 2.43% | 4.08% | 2.75% | 2.5% | 3.16% | 3.35% | 3.58% | 3.88% | 4.08% | 4.36% | 4.42% | 5.08% | 3.5% | 1.77% | 2.33% | 5.71% | 5.37% | 5.12% | 4.29% | 5.78% | 7.7% | 6.62% | 7.48% | 12.84% | 8.69% | 7.15% | 6.35% | 5.86% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -80.53M | 0 | 0 | 0 | 0 | 0 | -25.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 91.67M | -1.14M | 360K | 201K | 162K | 270K | 629K | 728K | 2.2M | 480K | 439K | 769K | 16.2M | 3.33M | -1.41M | -1.99M | -2.09M | 1.03M | 493K | 14.49M | 1.1M | 0 | 0 | 0 | 731K | 673K | 1.47M | 3.81M | 2.2M | 200K | 1.6M |
| Cash from Financing | -1.3B | -1.25B | -1.18B | -598.31M | -1.18B | -1.49B | -343.02M | -327.23M | -450.07M | -51.71M | -305.81M | -369.38M | -379.02M | -355.38M | -236.44M | -259.04M | -178.31M | -55.5M | -52.16M | -208.48M | -206.03M | -75.81M | -48.21M | -28.23M | -36.74M | 6.18M | -21.06M | -3.79M | 7.1M | 1.7M | 8.4M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | -300M | 0 | 0 | 0 | 300M | 0 | -1.97M | -1.78M | -1.72M | -1.8M | -1.63M | -1.59M | -14.7M | -3.14M | -2.7M | -4.68M | -9.23M | 5.21M | -7.61M | -7.38M | -12.51M | -5.98M | -6.48M | -600K | -600K | 8.9M |
| Equity Issued (Net) | -951.75M | -853.96M | -807.48M | -313M | -880.04M | -899.43M | -150M | -148.83M | -295.3M | -196.18M | -151.27M | -225M | -224.38M | -239.27M | -140.44M | -184.81M | -109.26M | 8.24M | 0 | -162.02M | -171.57M | -65.92M | -53.13M | -20.57M | -28.81M | 18.69M | -14.2M | 2.69M | 7.7M | 2.3M | 1M |
| Dividends Paid | -335.93M | -316.48M | -280.06M | -232.47M | -217.34M | -187.54M | -157.65M | -150.64M | -140.32M | -135.01M | -133.54M | -127.64M | -125.76M | -111.58M | -87.85M | -68.88M | -59.16M | -51.13M | -50.52M | -48.86M | -34.44M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -951.75M | -853.96M | -807.48M | -313M | -880.04M | -899.43M | -150M | -148.83M | -295.3M | -196.18M | -151.27M | -225M | -224.38M | -239.27M | -155.08M | -194.43M | -125M | 0 | 0 | -190.38M | -185.51M | -93.92M | -79.32M | -59.7M | -48.36M | 0 | -18.54M | -4.74M | 0 | 0 | 0 |
| Other Financing | -15.93M | -81.93M | -96.69M | -52.83M | -81.29M | -105.01M | -35.37M | -27.75M | -14.44M | -20.52M | -21M | -14.78M | -27.1M | -2.8M | -6.36M | -3.72M | -8.3M | 2.1M | 1.5M | 5.1M | 4.66M | -654K | -288K | -41K | -549K | 0 | -877K | 0 | 0 | 0 | -1.5M |
| Net Change in Cash | 43.11M | -193.18M | -49.03M | 894.66M | -482.99M | -350M | 768.17M | 93.21M | -51.18M | 176.42M | 20.07M | -29.28M | -107.19M | -94.43M | -78.2M | -125.65M | 114.46M | 365.12M | 29.87M | -156.48M | -85.55M | 121.77M | 75.3M | -29.59M | 118.12M | 55.64M | -73.11M | -14.46M | -97.2M | -78.8M | -4.2M |
| Free Cash Flow | 1.35B | 1.06B | 1.14B | 1.49B | 698.71M | 1.14B | 1.11B | 421.02M | 395.88M | 309.99M | 327.3M | 341.09M | 256.9M | 259.82M | 158.72M | 160.98M | 294.08M | 418.45M | 38.37M | 33.52M | 118.13M | 196.59M | 122.98M | -2.63M | 153.98M | 49.02M | -53.52M | -14.49M | 800K | 16.6M | 64.6M |
| FCF Margin % | 16.81% | 13.52% | 14.77% | 19.25% | 8.05% | 13.88% | 16.3% | 7.14% | 6.98% | 5.86% | 6.44% | 6.85% | 5.47% | 5.92% | 3.93% | 4.33% | 8.39% | 13.49% | 1.14% | 0.85% | 3.17% | 5.55% | 3.92% | -0.1% | 6.52% | 2.35% | -2.93% | -1.05% | 0.07% | 1.78% | 7.96% |
| FCF Growth % | 30.96% | -7.31% | -23.67% | 113.51% | -38.96% | 3.55% | 162.54% | 6.35% | 27.71% | -5.29% | -4.04% | 32.77% | -1.12% | 63.69% | -1.4% | -45.26% | -29.72% | 990.46% | 14.5% | -71.63% | -39.91% | 59.85% | 4779.76% | -101.71% | 214.12% | 191.59% | -269.41% | -1911% | -95.18% | -74.3% | 176.81% |
| FCF per Share | 11.32 | 8.57 | 8.89 | 11.43 | 5.06 | 7.50 | 6.99 | 2.66 | 2.40 | 1.85 | 1.83 | 1.85 | 1.35 | 1.32 | 0.79 | 0.76 | 1.34 | 1.95 | 0.18 | 0.15 | 0.51 | 0.83 | 0.52 | -0.01 | 0.64 | 0.21 | -0.23 | -0.06 | 0.00 | 0.08 | 0.31 |
| FCF Conversion (FCF/Net Income) | 1.14x | 1.21x | 1.21x | 1.77x | 0.93x | 1.22x | 1.87x | 1.71x | 1.76x | 1.93x | 1.72x | 1.75x | 1.49x | 1.63x | 1.42x | 1.23x | 1.78x | 6.34x | 7.67x | 1.25x | 1.48x | 1.62x | 1.59x | 1.33x | 2.49x | 2.73x | 3.19x | 1.55x | 1.45x | 1.84x | 4.94x |
| Interest Paid | 0 | 0 | 849K | 837K | 788K | 3.09M | 18.35M | 12.68M | 11.42M | 2.92M | 2.2M | 1.99M | 1.27M | 1.27M | 1.65M | 1.95M | 2.38M | 3.2M | 2.55M | 3.48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 398.69M | 315.85M | 400.78M | 306.16M | 162.84M | 113.34M | 107.95M | 99.06M | 203.43M | 134.48M | 172.31M | 186.97M | 131.44M | 150.66M | 98.62M | -8.59M | 118.36M | 154.95M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying WSM stock.
Williams-Sonoma, Inc. (WSM) generated $1.31B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Williams-Sonoma, Inc. (WSM) generated $1.06B 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.
Williams-Sonoma, Inc. (WSM) spent $259.4M 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, Williams-Sonoma, Inc. (WSM) returned $316.5M to shareholders via cash dividends and spent $854.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Housing cycle sensitivity
Metrics are mathematically derived from official filings.
Earnings Quality Driven by Cash Conversion
Williams-Sonoma's operating cash flow consistently exceeds net income, with a Q2 2026 OCF/NI ratio of 1.60, indicating high-quality earnings and efficient cash generation from its core operations.
The persistent OCF/NI ratio above 1.0 across most quarters suggests that reported net income is backed by strong cash generation, not just accrual accounting. This pattern implies effective working capital management and potentially conservative depreciation policies, reinforcing the quality of the company's profitability.
FCF Surge Reflects Cyclical Strength
Free cash flow margin expanded dramatically to 24.5% in Q2 2026, a significant jump from the 12.6% margin in Q2 2025, indicating a powerful cyclical upswing in cash generation.
The sharp FCF margin expansion is driven by both strong operating cash flow and relatively low capital expenditures in the quarter. This trajectory suggests the company is currently in a favorable part of its cycle, where strong demand and disciplined spending are converting directly into substantial free cash flow, providing ample resources for shareholder returns.
Working Capital Swings Amplify Cash Flow
Working capital changes have been a major driver of quarterly cash flow volatility, with a $38.8M positive contribution in Q2 2026 versus a $145.0M drag in Q1 2026.
The significant swings in working capital, particularly the large negative impacts in Q1 periods, suggest seasonal inventory builds and receivables patterns that temporarily consume cash. The positive swing in Q2 2026 indicates efficient collection and inventory management following the peak season, which is a critical component of the company's strong annual cash flow profile.
Disciplined Capital Returns to Shareholders
The company has consistently returned capital via dividends and buybacks, with Q2 2026 seeing $89.9M in dividends and $5.5M in repurchases, funded by robust free cash flow.
The commitment to returning capital, even during quarters with lower FCF like Q1 2026, signals management's confidence in the durability of cash generation. The scale of buybacks, particularly the $533.9M in Q3 2024, indicates a willingness to be opportunistic, which may enhance shareholder value if executed at attractive valuations.
Cash Flow Masked by Seasonal Volatility
The cash flow statement obscures the underlying business performance due to extreme quarterly seasonality, where Q1 operating cash flow is often less than half of Q4's, making trailing-twelve-month analysis essential.
Investors focusing on a single quarter's cash flow may misinterpret the business's health. For example, the Q1 2026 OCF of $156.3M appears weak in isolation but is a normal seasonal trough. The true cash-generating power is only visible when smoothing these swings, which the annual figures clearly demonstrate.