Operating Cash Flow

+54% improvement (from $56,130K in Q1 2025 to $86,641K in Q1 2026 " " )

The Q1 2026 increase is driven by more favorable working capital adjustments—such as a $54M increase in deferred revenue and customer deposits and an $18M decrease in merchandise inventory—contrasted with prior periods where a $268.6M increase in inventory negatively impacted cash flow. " " " Additionally, the boost is supported by strong non-cash adjustments (e.g., $81M from depreciation, amortization, and stock-based compensation) that helped reverse the negative trends seen in previous periods. " "

Capital Expenditures

-21% decrease (from ($66,261K) in Q1 2025 to ($52,565K) in Q1 2026 " " )

The decline reflects a strategic shift away from the aggressive capital investments observed in earlier periods—such as the high spending on new Design Galleries (with FY2025 capital expenditures at $230.788M compared to $269.356M in FY2024 " " " )—toward a more measured and cost-optimized approach. This pullback aligns with broader initiatives to reduce capital intensity while reallocating resources based on evolving real estate strategies and macroeconomic pressures. " "