FIVEMEDIUM SIGNALFINANCIAL10-K

Five Below delivered strong financial performance with meaningful growth across key metrics while substantially reducing capital expenditures.

The company demonstrated robust operational execution with revenue growth of 23% and operating income expanding 41%, suggesting effective margin management and scaling efficiency. The significant reduction in capital expenditures from $324M to $175M indicates a potential shift from aggressive expansion to optimizing existing operations, which should be monitored for implications on long-term growth trajectory.

Comparing 2026-03-19 vs 2025-03-20View on EDGAR →
FINANCIAL ANALYSIS

Five Below showed strong top-line growth with revenue increasing 23% to $4.8B, accompanied by even stronger profitability gains as operating income grew 41% and net income expanded 41%. The company generated robust operating cash flow of $586M while meaningfully reducing capital expenditures by 46%, suggesting improved cash conversion and potentially a more measured approach to store expansion. Balance sheet metrics reflect the business growth with current assets, inventory, and stockholders' equity all expanding at healthy rates consistent with the revenue trajectory.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
-46.1%
$324.0M→$174.7M

Capex reduced 46.1% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Current Assets
Balance Sheet
+41.8%
$1.4B→$1.9B

Current assets grew 41.8% — improving short-term liquidity or inventory/receivables build.

Net Income
P&L
+41.4%
$253.6M→$358.6M

Net income grew 41.4% — bottom-line growth signals improving overall business health.

Operating Income
P&L
+41.3%
$323.8M→$457.4M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Operating Cash Flow
Cash Flow
+36.2%
$430.6M→$586.4M

Operating cash flow surged 36.2% — exceptional cash generation, highest quality earnings signal.

Inventory
Balance Sheet
+28.4%
$659.5M→$846.6M

Inventory built 28.4% — monitor whether demand supports this build or if write-downs may follow.

Current Liabilities
Balance Sheet
+26.1%
$756.4M→$954.0M

Current liabilities rose 26.1% — increased short-term obligations, watch current ratio.

SG&A Expense
P&L
+23.7%
$861.4M→$1.1B

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Revenue
P&L
+22.9%
$3.9B→$4.8B

Revenue growing 22.9% — solid top-line momentum, watch margins for quality of growth.

Stockholders Equity
Balance Sheet
+21.3%
$1.8B→$2.2B

Equity base grew 21.3% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-03-19
PRIOR — 2025-03-20
ADDED
Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts or present facts or conditions, such as statements regarding our future financial condition or results of operations, our prospects and strategies for future growth, the introduction of new merchandise, and the implementation of our marketing and branding strategies.
Forward looking statements frequently are identified by terms such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or the negative of these terms or other comparable terminology.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 36 ITEM 7A.
References to "fiscal year 2026" or "fiscal 2026" refer to the period from February 1, 2026 to January 30, 2027, which consists of a 52-week fiscal year.
References to 2026, 2025, 2024, and 2023 are to our fiscal years unless otherwise specified.
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REMOVED
Investors can identify these statements by the fact that they use words such as "anticipate," "assume, "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future, "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," and similar terms and phrases, or the negative of these terms or other comparable terminology.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 38 ITEM 7A.
References to "fiscal year 2022" or "fiscal 2022" refer to the period from January 30, 2022 to January 28, 2023, which consists of a 52-week fiscal year.
References to "fiscal year 2021" or "fiscal 2021" refer to the period from January 31, 2021 to January 29, 2022, which consists of a 52-week fiscal year.
References to "fiscal year 2020" or "fiscal 2020" refer to the period from February 2, 2020 to January 30, 2021, which consists of a 52-week fiscal year.
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