Cato Corp Financials
Cato Corp (CATO) reported $653.8M in revenue for fiscal year 2025, up 0.6% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 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 shrinking retail base is being managed through cost reduction and inventory control, narrowing but not eliminating losses.
The FY2025 gap between operating cash flow of-$1.5M and free cash flow of-$5.2M is much narrower than the prior year’s gap, indicating that cash pressure eased as reinvestment needs fell. That improvement matters because accounting losses remained, so cash generation is recovering faster than reported earnings.
In FY2025, gross margin was
Liabilities fell to
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. 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 loses $2 on every $100 of revenue. This results in a profitability score of 25/100. 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 20/100.
Cato Corp has a moderate D/E ratio of 1.68. This balance of debt and equity financing earns a leverage score of 34/100.
Cato Corp's current ratio of 1.24 indicates adequate short-term liquidity, earning a score of 30/100. The company can meet its near-term obligations, though with limited headroom.
Cato Corp's operations used $1.5M of cash, and capex of $3.8M added to the outflow, for a free cash flow shortfall of $5.2M. This results in a cash flow score of 25/100.
Cato Corp posts a -3.8% return on equity (ROE), meaning it loses $4 for every $100 of shareholders' equity. This results in a returns score of 21/100. This is up from -11.1% the prior year.
Cato Corp scores 1.76, below the 1.81 distress threshold. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Cato Corp passes 5 of 7 computable financial strength tests (2 of the nine could not be computed from available data). 2 of 4 profitability signals pass, all 1 leverage/liquidity signals pass, both operating efficiency signals pass.
Cato Corp reported a net loss of $5.9M while operations used $1.5M of cash. With neither figure positive, the ratio between the two carries no quality signal.
Cato Corp reported an operating loss of $12.7M against $115K in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
Cato Corp generated $653.8M in revenue in fiscal year 2025. This represents an increase of 0.6% from the prior year.
Cato Corp's EBITDA was -$2.7M in fiscal year 2025, 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 2025. This represents an increase of 67.3% from the prior year.
Cato Corp earned -$0.31 per diluted share (EPS) in fiscal year 2025. This represents an increase of 68.0% from the prior year.
Cash & Balance Sheet
Cato Corp recorded an outflow of $5.2M in free cash flow in fiscal year 2025, representing a cash shortfall after capex. This represents an increase of 81.1% from the prior year.
Cato Corp held $16.8M in cash as of fiscal year 2025; long-term debt is not reported for that period.
Cato Corp paid $0.00 per share in dividends in fiscal year 2025. This represents a decrease of 100.0% from the prior year.
Margins & Returns
Cato Corp's gross margin was 34.0% in fiscal year 2025, 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 2025, 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 2025, 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 2025, measuring profit generated per dollar of shareholder equity. This is up 7.4 percentage points from the prior year.
Capital Allocation
Cato Corp spent $995K on share buybacks in fiscal year 2025, 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 2025, funding long-term assets and infrastructure. This represents a decrease of 52.2% from the prior year.
Not reported for fiscal year 2025.
CATO Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q3'27 | Q2'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $165.5M-3.3% | $171.1M+10.1% | $155.4M-12.0% | $176.5M+3.7% | $170.2M+3.3% | $164.8M+12.7% | $146.2M-13.3% | $168.6M |
| Cost of Revenue | $110.2M+3.6% | $106.3M+1.7% | $104.5M-6.2% | $111.5M+2.0% | $109.3M-5.0% | $115.0M+11.7% | $103.0M-5.7% | $109.1M |
| Gross Profit | $55.3M-14.6% | $64.8M+27.3% | $50.9M-21.8% | $65.0M+6.8% | $60.9M+22.5% | $49.7M+15.1% | $43.2M-27.4% | $59.5M |
| SG&A Expenses | $54.0M+0.2% | $53.9M-5.3% | $57.0M-0.7% | $57.4M+3.7% | $55.3M-7.9% | $60.0M+3.8% | $57.9M-0.5% | $58.2M |
| Operating Income | -$618K-106.9% | $9.0M+209.8% | -$8.2M-247.7% | $5.5M+60.4% | $3.4M+128.2% | -$12.2M+28.0% | -$17.0M-2624.6% | -$623K |
| Income Tax | $147K-71.8% | $522K+144.9% | -$1.2M-296.9% | -$293K-131.6% | $928K+1719.6% | $51K-84.2% | $322K-49.9% | $643K |
| Net Income | $1.1M-87.7% | $9.3M+279.4% | -$5.2M-176.0% | $6.8M+106.5% | $3.3M+151.8% | -$6.4M+57.6% | -$15.1M-15967.4% | $95K |
| EPS (Diluted) | $0.06-87.2% | $0.47+267.9% | -$0.28-180.0% | $0.35+105.9% | $0.17 | -$0.73 | -$0.79 | $0.01 |
Not reported in any period shown, so not listed: R&D Expenses, Interest Expense.
CATO Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q3'27 | Q2'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $423.4M-3.6% | $439.2M-2.5% | $450.2M+3.1% | $436.9M-0.9% | $440.8M-2.6% | $452.4M+6.6% | $424.4M-6.8% | $455.6M |
| Current Assets | $208.5M-4.0% | $217.2M+3.2% | $210.4M-6.8% | $225.8M-0.3% | $226.4M+1.5% | $223.2M-3.0% | $230.2M-5.5% | $243.5M |
| Cash & Equivalents | $35.1M+38.2% | $25.4M+11.6% | $22.8M-33.5% | $34.2M+9.2% | $31.3M+54.6% | $20.3M+0.3% | $20.2M-34.3% | $30.8M |
| Inventory | $82.5M-10.8% | $92.5M-1.7% | $94.1M-3.3% | $97.3M-11.1% | $109.4M-1.2% | $110.7M+3.3% | $107.2M+11.7% | $96.0M |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | $24.5M | N/A | N/A |
| Total Liabilities | $255.5M-6.2% | $272.5M-3.6% | $282.6M+6.8% | $264.7M-4.1% | $275.9M-4.9% | $290.1M+17.3% | $247.3M-5.1% | $260.5M |
| Current Liabilities | $153.5M-8.8% | $168.2M+10.6% | $152.1M-13.3% | $175.3M-3.9% | $182.5M-3.0% | $188.2M+11.0% | $169.5M-2.3% | $173.6M |
| Total Equity | $167.9M+0.7% | $166.7M-0.6% | $167.6M-2.6% | $172.2M+4.4% | $164.9M+1.6% | $162.3M-8.4% | $177.1M-9.2% | $195.1M |
| Retained Earnings | $35.1M+3.1% | $34.0M-5.2% | $35.9M-12.6% | $41.1M+19.8% | $34.3M+7.3% | $31.9M-32.6% | $47.4M-28.3% | $66.1M |
Not reported in any period shown, so not listed: Goodwill, Long-Term Debt.
CATO Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q3'27 | Q2'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $14.5M+80.0% | $8.0M+164.9% | -$12.4M-205.3% | $11.8M+204.3% | $3.9M+159.7% | -$6.5M+70.7% | -$22.1M-806.1% | $3.1M |
| Capital Expenditures | $1.3M+25.9% | $1.1M+101.3% | $530K-60.5% | $1.3M+31.8% | $1.0M-25.2% | $1.4M-20.3% | $1.7M+11.2% | $1.5M |
| Free Cash Flow | $13.1M+88.3% | $7.0M+154.0% | -$12.9M-223.9% | $10.4M+266.1% | $2.8M+136.3% | -$7.8M+67.1% | -$23.8M-1595.7% | $1.6M |
| Investing Cash Flow | -$4.7M-677.3% | $809K-5.6% | $857K+109.7% | -$8.8M-211.1% | $7.9M+6.5% | $7.5M-49.7% | $14.8M+286.7% | -$7.9M |
| Financing Cash Flow | -$115K+50.9% | -$234K-385.4% | $82K+236.7% | -$60K+93.1% | -$873K+41.0% | -$1.5M+57.5% | -$3.5M+0.5% | -$3.5M |
| Dividends Paid | N/A | N/A | $0 | $0 | $0 | $0-100.0% | $3.5M-1.7% | $3.5M |
| Share Buybacks | $111K-64.3% | $311K | $0-100.0% | $60K-93.6% | $935K-36.8% | $1.5M+818.6% | $161K | $0 |
CATO Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | Q3'27 | Q2'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.4%-4.4pp | 37.9%+5.1pp | 32.7%-4.1pp | 36.9%+1.1pp | 35.8%+5.6pp | 30.2%+0.6pp | 29.6%-5.7pp | 35.3% |
| Operating Margin | -0.4%-5.6pp | 5.2%+10.5pp | -5.3%-8.4pp | 3.1%+1.1pp | 2.0%+9.4pp | -7.4%+4.2pp | -11.6%-11.2pp | -0.4% |
| Net Margin | 0.7%-4.8pp | 5.4%+8.8pp | -3.3%-7.2pp | 3.9%+1.9pp | 1.9%+5.8pp | -3.9%+6.4pp | -10.3%-10.4pp | 0.1% |
| Return on Equity | 0.7%-4.9pp | 5.6%+8.7pp | -3.1%-7.1pp | 4.0%+2.0pp | 2.0%+5.9pp | -3.9%+4.6pp | -8.5%-8.6pp | 0.1% |
| Return on Assets | 0.3%-1.8pp | 2.1%+3.3pp | -1.1%-2.7pp | 1.6%+0.8pp | 0.8%+2.2pp | -1.4%+2.1pp | -3.5%-3.6pp | 0.0% |
| Current Ratio | 1.36+0.1x | 1.29-0.1x | 1.38+0.1x | 1.290.0x | 1.24+0.1x | 1.19-0.2x | 1.360.0x | 1.40 |
| Debt-to-Equity | 1.52-0.1x | 1.63-0.1x | 1.69+0.1x | 1.54-0.1x | 1.67-0.1x | 1.79+0.4x | 1.40+0.1x | 1.34 |
| FCF Margin | 7.9%+3.9pp | 4.1%+12.4pp | -8.3%-14.2pp | 5.9%+4.2pp | 1.7%+6.4pp | -4.8%+11.5pp | -16.3%-17.2pp | 0.9% |
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Where Cato Corp Ranks
Frequently Asked Questions
What is Cato Corp's annual revenue?
Cato Corp (CATO) reported $653.8M in total revenue for fiscal year 2025. 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 2025.
Is Cato Corp profitable?
No, Cato Corp (CATO) reported a net income of -$5.9M in fiscal year 2025, 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 2025, 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 2025, 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 2025, 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 2025, 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 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Cato Corp's free cash flow?
Cato Corp (CATO) recorded an outflow of $5.2M in free cash flow during fiscal year 2025. 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) recorded an outflow of $1.5M in operating cash flow during fiscal year 2025, representing cash used by core business activities.
What are Cato Corp's total assets?
Cato Corp (CATO) had $421.4M in total assets as of fiscal year 2025, 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 2025, 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 2025, 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 2025, 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 2025, measuring how efficiently the company uses its assets to generate profit.
What is Cato Corp's Altman Z-Score?
Cato Corp (CATO) has an Altman Z-Score of 1.76, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Cato Corp's Piotroski F-Score?
Cato Corp (CATO) has a Piotroski F-Score of 5 out of 7 computable signals; 2 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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) reported a net loss of $5.9M while operations used $1.5M of cash. With neither figure positive, the ratio between the two carries no quality signal. 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) reported an operating loss of $12.7M against $115K in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. 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 26 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.