Despite a low capital intensity with CapEx to revenue consistently below 1.2%, the company's free cash flow margin remains volatile, fluctuating from 36.8% in 2023Q4 to 10.2% in 2026Q1.
| Cash from Operations | 2.27B | 1.94B | 1.73B | 1.99B | 283.68M | 417.88M | 118.67M | 224.11M |
| Operating CF Margin % | - | 19.8% | 23.81% | 42.62% | 12.54% | 19.46% | 7.58% | 14.3% |
| Operating CF Growth % | 14743.8% | 12.32% | -13.21% | 601.03% | -32.12% | 252.14% | -47.05% | - |
| Net Income | 1.84B | 1.58B | 1.28B | 739.06M | 96.08M | 139.67M | 37.82M | 60.83M |
| Depreciation & Amortization | 53.84M | 52.63M | 65.23M | 85.02M | 88.56M | 93.91M | 84.95M | 70.09M |
| Stock-Based Compensation | 15.31M | 0 | 0 | 163.98M | 163.19M | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | -32.07M | 10.17M | -9.4M | -34.33M | 1.66M |
| Other Non-Cash Items | 365.92M | 309.07M | 385.37M | 305.49M | -61.6M | -3.64M | -7.84M | -18.11M |
| Working Capital Changes | 0 | 0 | 0 | 727.2M | -12.74M | 197.34M | 38.06M | 109.64M |
| Change in Receivables | 0 | 0 | 0 | -42.71M | -37.48M | 40.42M | -63.09M | -38.82M |
| Change in Inventory | 0 | 0 | 0 | -85.47M | 1.11M | -28.23M | -15.73M | -4.96M |
| Change in Payables | 0 | 0 | 0 | 409.64M | 23.62M | 75.51M | 4.84M | 9.83M |
| Cash from Investing | -380.74M | -1.3B | -520.55M | -600.52M | -192.22M | -42.23M | -105.53M | 264.86M |
| Capital Expenditures | -71.82M | -83.69M | -56.24M | -41.72M | -39.23M | -65.97M | -113.97M | -137.89M |
| CapEx % of Revenue | 0.67% | 0.85% | 0.78% | 0.89% | 1.73% | 3.07% | 7.28% | 8.8% |
| Acquisitions | 768.25K | 5.62M | 0 | 0 | 155.8M | -2M | -1.22M | -23.01M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -1.31B | 0 | 1.01M | 670K | -155.8M | 17M | -13.78M | 0 |
| Cash from Financing | -1.32B | -899.69M | -426.6M | -146.92M | 456.31M | -161.08M | 48.01M | -10.08M |
| Debt Issued (Net) | 164.72M | 184.82M | -10M | -101.96M | 64.52M | -12M | 48.79M | -10.08M |
| Equity Issued (Net) | -709.82M | -302.55M | 0 | 0 | 400.07M | -111.26M | 0 | 0 |
| Dividends Paid | -762.68M | -750.97M | -436.05M | -150.58M | 0 | -20.64M | 0 | 0 |
| Share Repurchases | -713.46M | -320.91M | 0 | 0 | 0 | -111.26M | 0 | 0 |
| Other Financing | -13.65M | -31M | 19.45M | 105.62M | -8.28M | -17.18M | -780K | 0 |
| Net Change in Cash | 622.79M | -160.38M | 777.88M | 1.25B | 550.58M | 206.39M | 61.15M | 478.89M |
| Free Cash Flow | 2.2B | 1.86B | 1.67B | 1.95B | 244.45M | 351.91M | 4.7M | 86.22M |
| FCF Margin % | 20.54% | 18.95% | 23.04% | 41.73% | 10.8% | 16.39% | 0.3% | 5.5% |
| FCF Growth % | 44.38% | 11.1% | -14.24% | 696.47% | -30.54% | 7392.21% | -94.55% | - |
| FCF per Share | 15.85 | 13.27 | 12.01 | 14.08 | 1.89 | 2.70 | 0.04 | 0.66 |
| FCF Conversion (FCF/Net Income) | 1.19x | 1.20x | 1.35x | 2.70x | 2.89x | 2.88x | 2.82x | 3.45x |
| Interest Paid | 0 | 0 | 0 | 6.03M | 4.65M | 5.7M | 1.75M | 4.42M |
| Taxes Paid | 0 | 0 | 0 | 170.24M | 82.78M | 88.95M | 38.95M | 49.87M |
Volatile Cash Conversion Cycles
As reported in recent financial statements, Atour's operating cash flow to net income ratio has fluctuated significantly, dropping to 0.63 in 2026Q1 from a peak of 2.56 in 2023Q4, which suggests a potential disconnect between accounting profit recognition and actual cash generation capabilities.
The wide variance in the OCF/NI ratio indicates that reported earnings may be subject to non-cash adjustments or timing differences that obscure underlying cash performance. Investors should monitor whether this volatility stems from seasonal retail inventory cycles or shifts in the recognition of franchise management fees.
Based on the provided quarterly data, Atour's free cash flow margin has demonstrated extreme instability, ranging from a negative 0.9% in 2025Q1 to a robust 36.8% in 2023Q4, highlighting the sensitivity of the company's cash generation to operational and capital allocation decisions.
The sharp contraction in FCF during early 2025 suggests that periodic spikes in share repurchases or other capital outflows can rapidly deplete liquidity. This inconsistency warrants further investigation into whether the company's core lodging operations can sustain consistent cash flow independent of discretionary financial activities.
According to historical filings, Atour maintains a remarkably low capital intensity, with CapEx to revenue ratios consistently remaining near or below 1.2%, which confirms the effectiveness of the manachised model in offloading the primary burden of property development to third-party franchisees.
The minimal investment required to maintain the existing hotel footprint suggests that the company is well-positioned to generate high returns on invested capital. However, the low CapEx levels may also imply that the company is not aggressively reinvesting in its own infrastructure, potentially limiting long-term brand differentiation.
As evidenced by the financial data, Atour has prioritized significant capital returns to shareholders, including a $390.4 million share repurchase in 2026Q1 and substantial dividend payments, which appears to be a primary driver of the company's fluctuating cash position.
The decision to deploy large sums toward buybacks and dividends while maintaining a massive cash balance suggests management may lack immediate, high-return internal growth projects. Investors should consider whether this capital allocation strategy is sustainable if the pace of new hotel openings in the manachised pipeline begins to decelerate.
Quick answers to the most common questions about buying ATAT stock.
Atour Lifestyle Holdings Limited (ATAT) generated $1.94B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Atour Lifestyle Holdings Limited (ATAT) generated $1.86B 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.
Atour Lifestyle Holdings Limited (ATAT) spent $83.7M 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, Atour Lifestyle Holdings Limited (ATAT) returned $751.0M to shareholders via cash dividends and spent $320.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.