Cato Corp Financials
This page shows Cato Corp (CATO) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Cato’s recent improvement comes from leaner inventory and lower overhead, not from a meaningful top-line rebound.
Between FY2025 and FY2026, sales were essentially flat, but inventory fell by$25.7M and gross margin improved to34.0% , suggesting the recovery came from merchandise discipline rather than stronger revenue. That same shift pulled operating cash burn from-$19.7M to-$1.5M , so the smaller loss reflects better cash conversion as well as better margin.
The balance sheet looks more leveraged than it is interest-burdened: debt-to-equity was 1.7x in FY2026, yet interest expense was only
The company is still using up its historical cushion: retained earnings fell from
Financial Health Signals
Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Cato Corp's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Cato Corp has an operating margin of -1.9%, meaning the company retains $-2 of operating profit per $100 of revenue. This below-average margin results in a low score of 16/100, suggesting thin profitability after operating expenses. This is up from -4.1% the prior year.
Cato Corp's revenue grew a modest 0.6% year-over-year to $653.8M. This slow but positive growth earns a score of 27/100.
Cato Corp carries a low D/E ratio of 1.68, meaning only $1.68 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 68/100, indicating a strong balance sheet with room for future borrowing.
Cato Corp's current ratio of 1.24 is below the typical benchmark, resulting in a score of 20/100. This tight liquidity could limit financial flexibility if cash inflows slow.
While Cato Corp generated -$1.5M in operating cash flow, capex of $3.8M consumed most of it, leaving -$5.2M in free cash flow. This results in a low score of 20/100, reflecting heavy capital investment rather than weak cash generation.
Cato Corp generates a -3.8% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is up from -10.9% the prior year.
Cato Corp passes 4 of 9 financial strength tests. 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.
For every $1 of reported earnings, Cato Corp generates $0.25 in operating cash flow (-$1.5M OCF vs -$5.9M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Cato Corp earns $-110.1 in operating income for every $1 of interest expense (-$12.7M vs $115K). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Cato Corp generated $653.8M in revenue in fiscal year 2026. This represents an increase of 0.6% from the prior year.
Cato Corp's EBITDA was -$2.7M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 83.8% from the prior year.
Cato Corp reported -$5.9M in net income in fiscal year 2026. This represents an increase of 67.3% from the prior year.
Cato Corp earned $-0.31 per diluted share (EPS) in fiscal year 2026. This represents an increase of 68.0% from the prior year.
Cash & Balance Sheet
Cato Corp generated -$5.2M in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 81.1% from the prior year.
Cato Corp held $16.8M in cash against $0 in long-term debt as of fiscal year 2026.
Cato Corp paid $0.00 per share in dividends in fiscal year 2026. This represents a decrease of 100.0% from the prior year.
Margins & Returns
Cato Corp's gross margin was 34.0% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is up 1.1 percentage points from the prior year.
Cato Corp's operating margin was -1.9% in fiscal year 2026, reflecting core business profitability. This is up 2.1 percentage points from the prior year.
Cato Corp's net profit margin was -0.9% in fiscal year 2026, showing the share of revenue converted to profit. This is up 1.9 percentage points from the prior year.
Cato Corp's ROE was -3.8% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is up 7.2 percentage points from the prior year.
Capital Allocation
Cato Corp spent $995K on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 74.3% from the prior year.
Cato Corp invested $3.8M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 52.2% from the prior year.
CATO Income Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $155.4M-12.0% | $176.5M+3.7% | $170.2M+3.3% | $164.8M+12.7% | $146.2M-13.3% | $168.6M-4.8% | $177.1M-6.7% | $189.8M |
| Cost of Revenue | $104.5M-6.2% | $111.5M+2.0% | $109.3M-5.0% | $115.0M+11.7% | $103.0M-5.7% | $109.1M-3.0% | $112.5M-12.4% | $128.4M |
| Gross Profit | $50.9M-21.8% | $65.0M+6.8% | $60.9M+22.5% | $49.7M+15.1% | $43.2M-27.4% | $59.5M-7.9% | $64.6M+5.1% | $61.5M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $57.0M-0.7% | $57.4M+3.7% | $55.3M-7.9% | $60.0M+3.8% | $57.9M-0.5% | $58.2M+2.5% | $56.8M-21.8% | $72.6M |
| Operating Income | -$8.2M-247.7% | $5.5M+60.4% | $3.4M+128.2% | -$12.2M+28.0% | -$17.0M-2624.6% | -$623K-110.2% | $6.1M+138.0% | -$16.1M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | -$1.2M-296.9% | -$293K-131.6% | $928K+1719.6% | $51K-84.2% | $322K-49.9% | $643K-0.9% | $649K-94.8% | $12.4M |
| Net Income | -$5.2M-176.0% | $6.8M+106.5% | $3.3M+151.8% | -$6.4M+57.6% | -$15.1M-15967.4% | $95K-99.1% | $11.0M+136.6% | -$30.0M |
| EPS (Diluted) | $-0.28-180.0% | $0.35+105.9% | $0.17 | N/A | $-0.79-8000.0% | $0.01-98.1% | $0.54 | N/A |
CATO Balance Sheet
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $450.2M+3.1% | $436.9M-0.9% | $440.8M-2.6% | $452.4M+6.6% | $424.4M-6.8% | $455.6M-4.5% | $477.1M-2.0% | $486.8M |
| Current Assets | $210.4M-6.8% | $225.8M-0.3% | $226.4M+1.5% | $223.2M-3.0% | $230.2M-5.5% | $243.5M-2.5% | $249.6M+2.7% | $243.1M |
| Cash & Equivalents | $22.8M-33.5% | $34.2M+9.2% | $31.3M+54.6% | $20.3M+0.3% | $20.2M-34.3% | $30.8M-21.3% | $39.1M+63.3% | $23.9M |
| Inventory | $94.1M-3.3% | $97.3M-11.1% | $109.4M-1.2% | $110.7M+3.3% | $107.2M+11.7% | $96.0M-5.3% | $101.3M+2.8% | $98.6M |
| Accounts Receivable | N/A | N/A | N/A | $24.5M | N/A | N/A | N/A | $29.8M |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $282.6M+6.8% | $264.7M-4.1% | $275.9M-4.9% | $290.1M+17.3% | $247.3M-5.1% | $260.5M-7.0% | $280.2M-4.8% | $294.5M |
| Current Liabilities | $152.1M-13.3% | $175.3M-3.9% | $182.5M-3.0% | $188.2M+11.0% | $169.5M-2.3% | $173.6M-5.6% | $183.8M-2.2% | $188.0M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $167.6M-2.6% | $172.2M+4.4% | $164.9M+1.6% | $162.3M-8.4% | $177.1M-9.2% | $195.1M-0.9% | $196.9M+2.4% | $192.3M |
| Retained Earnings | $35.9M-12.6% | $41.1M+19.8% | $34.3M+7.3% | $31.9M-32.6% | $47.4M-28.3% | $66.1M-4.9% | $69.5M+8.1% | $64.3M |
CATO Cash Flow Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$12.4M-205.3% | $11.8M+204.3% | $3.9M+159.7% | -$6.5M+70.7% | -$22.1M-806.1% | $3.1M-45.1% | $5.7M+151.0% | -$11.2M |
| Capital Expenditures | $530K-60.5% | $1.3M+31.8% | $1.0M-25.2% | $1.4M-20.3% | $1.7M+11.2% | $1.5M-52.8% | $3.3M+44.2% | $2.3M |
| Free Cash Flow | -$12.9M-223.9% | $10.4M+266.1% | $2.8M+136.3% | -$7.8M+67.1% | -$23.8M-1595.7% | $1.6M-34.9% | $2.4M+118.2% | -$13.5M |
| Investing Cash Flow | $857K+109.7% | -$8.8M-211.1% | $7.9M+6.5% | $7.5M-49.7% | $14.8M+286.7% | -$7.9M-154.3% | $14.6M+7.1% | $13.6M |
| Financing Cash Flow | $82K+236.7% | -$60K+93.1% | -$873K+41.0% | -$1.5M+57.5% | -$3.5M+0.5% | -$3.5M+37.5% | -$5.6M-61.4% | -$3.5M |
| Dividends Paid | $0 | $0 | $0 | $0-100.0% | $3.5M-1.7% | $3.5M+0.1% | $3.5M+0.7% | $3.5M |
| Share Buybacks | $0-100.0% | $60K-93.6% | $935K-36.8% | $1.5M+818.6% | $161K | $0-100.0% | $2.2M+223800.0% | -$1K |
CATO Financial Ratios
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 32.7%-4.1pp | 36.9%+1.1pp | 35.8%+5.6pp | 30.2%+0.6pp | 29.6%-5.7pp | 35.3%-1.2pp | 36.5%+4.1pp | 32.4% |
| Operating Margin | -5.3%-8.4pp | 3.1%+1.1pp | 2.0%+9.4pp | -7.4%+4.2pp | -11.6%-11.2pp | -0.4%-3.8pp | 3.5%+12.0pp | -8.5% |
| Net Margin | -3.3%-7.2pp | 3.9%+1.9pp | 1.9%+5.8pp | -3.9%+6.4pp | -10.3%-10.4pp | 0.1%-6.1pp | 6.2%+22.0pp | -15.8% |
| Return on Equity | -3.1%-7.1pp | 4.0%+2.0pp | 2.0%+5.9pp | -3.9%+4.6pp | -8.5%-8.6pp | 0.1%-5.5pp | 5.6%+21.2pp | -15.6% |
| Return on Assets | -1.1%-2.7pp | 1.6%+0.8pp | 0.8%+2.2pp | -1.4%+2.1pp | -3.5%-3.6pp | 0.0%-2.3pp | 2.3%+8.5pp | -6.2% |
| Current Ratio | 1.38+0.1 | 1.29+0.0 | 1.24+0.1 | 1.19-0.2 | 1.36-0.0 | 1.40+0.0 | 1.36+0.1 | 1.29 |
| Debt-to-Equity | 1.69+0.1 | 1.54-0.1 | 1.67-0.1 | 1.79+0.4 | 1.40+0.1 | 1.34-0.1 | 1.42-0.1 | 1.53 |
| FCF Margin | -8.3%-14.2pp | 5.9%+4.2pp | 1.7%+6.4pp | -4.8%+11.5pp | -16.3%-17.2pp | 0.9%-0.4pp | 1.4%+8.5pp | -7.1% |
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Frequently Asked Questions
What is Cato Corp's annual revenue?
Cato Corp (CATO) reported $653.8M in total revenue for fiscal year 2026. This represents a 0.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Cato Corp's revenue growing?
Cato Corp (CATO) revenue grew by 0.6% year-over-year, from $649.8M to $653.8M in fiscal year 2026.
Is Cato Corp profitable?
No, Cato Corp (CATO) reported a net income of -$5.9M in fiscal year 2026, with a net profit margin of -0.9%.
What is Cato Corp's EBITDA?
Cato Corp (CATO) had EBITDA of -$2.7M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
What is Cato Corp's gross margin?
Cato Corp (CATO) had a gross margin of 34.0% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Cato Corp's operating margin?
Cato Corp (CATO) had an operating margin of -1.9% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Cato Corp's net profit margin?
Cato Corp (CATO) had a net profit margin of -0.9% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
What is Cato Corp's return on equity (ROE)?
Cato Corp (CATO) has a return on equity of -3.8% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Cato Corp's free cash flow?
Cato Corp (CATO) generated -$5.2M in free cash flow during fiscal year 2026. This represents a 81.1% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Cato Corp's operating cash flow?
Cato Corp (CATO) generated -$1.5M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Cato Corp's total assets?
Cato Corp (CATO) had $421.4M in total assets as of fiscal year 2026, including both current and long-term assets.
What are Cato Corp's capital expenditures?
Cato Corp (CATO) invested $3.8M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
What is Cato Corp's current ratio?
Cato Corp (CATO) had a current ratio of 1.24 as of fiscal year 2026, which is considered adequate.
What is Cato Corp's debt-to-equity ratio?
Cato Corp (CATO) had a debt-to-equity ratio of 1.68 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Cato Corp's return on assets (ROA)?
Cato Corp (CATO) had a return on assets of -1.4% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Cato Corp's cash runway?
Based on fiscal year 2026 data, Cato Corp (CATO) had $16.8M in cash against an annual operating cash burn of $1.5M. This gives an estimated cash runway of approximately 138 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Cato Corp's Piotroski F-Score?
Cato Corp (CATO) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Cato Corp's earnings high quality?
Cato Corp (CATO) has an earnings quality ratio of 0.25x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Cato Corp cover its interest payments?
Cato Corp (CATO) has an interest coverage ratio of -110.1x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Cato Corp?
Cato Corp (CATO) scores 25 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.