Free cash flow margin volatility is pronounced, swinging from a low of 3.5% in 2025Q1 to a peak of 27.3% in 2023Q4, reflecting heavy reliance on seasonal working capital cycles.
| 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 | 1.35B | 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 % | 65.79% | -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 | 1.09B | 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 | 41.47M | 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 | 50.73M | 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 | -274.71M | -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 | -16.38M | -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 | -116.59M | -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 | -18.19M | -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 | -260.02M | -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 | -350.43M | -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 | 4.45% | 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 | 90.41M | -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 | -1.49B | -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) | -1.15B | -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 | -327.4M | -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 | -1.15B | -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 | -18.95M | -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 | -395.58M | -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 | 1.1B | 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 % | 13.9% | 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 % | 8.27% | -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 | 9.14 | 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) | 1.01x | 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 |
Housing market cyclicality
According to quarterly financial data, WSM's operating cash flow to net income ratio has fluctuated significantly, ranging from 0.51 to 1.90, which suggests that while the company is generally profitable, the timing of cash inflows is heavily influenced by seasonal working capital swings rather than pure earnings.
The wide variance in the OCF/NI ratio indicates that net income is not always a reliable proxy for immediate cash generation. Investors should monitor whether the lower conversion ratios in Q1 periods represent a structural shift in inventory management or merely the expected seasonality of the home furnishings business.
As reported in recent filings, WSM's free cash flow margins have demonstrated extreme sensitivity to seasonal cycles, swinging from a low of 3.5% in 2025Q1 to a peak of 27.3% in 2023Q4, highlighting the company's reliance on year-end holiday performance to drive annual cash accumulation.
The sharp contraction in FCF margins during the first quarters of the fiscal year suggests that the company consumes significant cash to prepare for peak demand periods. This pattern implies that the company's ability to fund dividends and buybacks is highly dependent on maintaining strong sell-through during the fourth quarter.
Based on the provided cash flow statements, working capital changes frequently act as a material drag on operating cash flow, with outflows reaching as high as $258.8 million in 2025Q1, indicating that inventory build-up remains a primary consumer of the company's liquid resources.
The consistent negative working capital impact in non-holiday quarters suggests that WSM is aggressively managing its supply chain to ensure product availability. This strategy appears to prioritize market share and customer service, but it necessitates a robust balance sheet to bridge the gap between inventory investment and final delivery.
Data from recent financial statements reveals that WSM consistently prioritizes shareholder returns, with share repurchases totaling $381.4 million in 2026Q1 alone, a figure that often exceeds the quarterly free cash flow generated during the same period, suggesting a reliance on existing cash reserves for capital allocation.
The company's commitment to returning capital appears to be a core pillar of its financial policy, even during periods of lower cash generation. Investors should monitor whether this pace of buybacks is sustainable if the housing market remains sluggish and free cash flow does not see a meaningful, sustained expansion.
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.