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Cato (CATO) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed May 29, 2025
Cato (CATO) reported revenue of $170M for the first quarter fiscal 2026 (Q1 FY26), -4% from a year earlier and +8% from the quarter before. Operating margin was 2.0%, net earnings $3.3M (1.9% of revenue).
Cato, Q1 FY26: revenue $170M (-4% year over year), operating margin 2.0%, net earnings $3.3M, operating cash flow $3.9M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $170M | +8% | -4% |
| Operating profit | $3.4M | — | -44% |
| Net earnings | $3.3M | — | -70% |
| Operating cash flow | $3.9M | — | -32% |
| Free cash flow | $2.8M | — | +17% |
What changed
Revenue was $170.2M in Q1 FY26, down 4% year over year and up 8% from the previous quarter. Retail Segment was the largest line at 100% of revenue. Retail Segment lost $6.9M year over year (down 4%), 100% of the total change.
Operating profit was $3.4M, a 2.0% margin (down 1.4 points year over year). Total costs fell 2% while revenue fell 4%. The fastest-growing cost line was Other operating costs (+26%). Net earnings were $3.3M, down 70% year over year. The effective tax rate was 21.9%.
Operating cash flow was $3.9M (down 32% year over year), 117% of net earnings. Non-cash charges added back $2.6M of depreciation and $193K of share-based compensation. Working capital and other items used $2.2M. Capital expenditures of $1.0M left free cash flow of $2.8M.
Questions
What was Cato's revenue in the first quarter fiscal 2026?
Cato (CATO) reported revenue of $170M for the first quarter fiscal 2026 (Q1 FY26), -4% from a year earlier and +8% from the quarter before.
Was Cato profitable in the first quarter fiscal 2026?
Operating profit was $3.4M (2.0% of revenue) and net earnings $3.3M.
Source: Cato 10-Q on SEC EDGAR.