Filing Flows › Cato (CATO) › Q2 FY26
Cato (CATO) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Aug 28, 2025
Cato (CATO) reported revenue of $177M for the second quarter fiscal 2026 (Q2 FY26), +5% from a year earlier and +4% from the quarter before. Operating margin was 3.1%, net earnings $6.8M (3.9% of revenue).
Cato, Q2 FY26: revenue $177M (+5% year over year), operating margin 3.1%, net earnings $6.8M, operating cash flow $11.8M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $177M | +4% | +5% |
| Operating profit | $5.5M | +60% | — |
| Net earnings | $6.8M | +106% | 72× |
| Operating cash flow | $11.8M | +204% | +276% |
| Free cash flow | $10.4M | +266% | +555% |
What changed
Revenue was $176.5M in Q2 FY26, up 5% year over year and up 4% from the previous quarter. Retail Segment was the largest line at 100% of revenue. Retail Segment added $7.9M year over year (up 5%), 100% of the total change. Credit Segment declined 3%.
Operating profit was $5.5M, a 3.1% margin (up 3.5 points year over year). Total costs grew 1% against revenue growth of 5%. The fastest-growing cost line was Other operating costs (+10%). Net earnings were $6.8M, up 7092% year over year. The effective tax rate was -4.5%.
Operating cash flow was $11.8M (up 276% year over year), 172% of net earnings. Non-cash charges added back $2.5M of depreciation and $394K of share-based compensation. Working capital and other items added $2.0M. Capital expenditures of $1.3M left free cash flow of $10.4M.
Questions
What was Cato's revenue in the second quarter fiscal 2026?
Cato (CATO) reported revenue of $177M for the second quarter fiscal 2026 (Q2 FY26), +5% from a year earlier and +4% from the quarter before.
Was Cato profitable in the second quarter fiscal 2026?
Operating profit was $5.5M (3.1% of revenue) and net earnings $6.8M.
Source: Cato 10-Q on SEC EDGAR.