Five Below — Income Statement, Cash Flows & Balance Sheet
Is Five Below profitable?
Five Below had a strong earnings rebound in fiscal 2025 after a difficult prior year.
| Metric | Fiscal 2024 | Fiscal 2025 | Change |
|---|---|---|---|
| Net sales | $3,876.5M | $4,764.1M | +22.9% |
| Gross profit* | $1,352.7M | $1,714.7M | +26.8% |
| Gross margin* | 34.9% | 36.0% | +1.1 pts |
| Operating income | $323.8M | $457.4M | +41.2% |
| Net income | $253.6M | $358.6M | +41.4% |
| Diluted EPS | $4.60 | $6.47 | +40.7% |
*Gross profit calculated as net sales minus cost of goods sold; not a separately stated line item.
Revenue jumped by nearly a quarter, driven by 150 new store openings (from 1,771 to 1,921 stores), and margins expanded alongside it. After a weak fiscal 2024 — where net income fell well below the fiscal 2023 level — Five Below returned to and exceeded prior peak profitability, with diluted earnings per share recovering meaningfully.
Where does Five Below's revenue come from?
Five Below's three product categories all grew at a similar pace, with Leisure remaining the dominant earner.
| Category | Fiscal 2024 | Fiscal 2025 | Change |
|---|---|---|---|
| Leisure | $1,715.8M (44.3%) | $2,118.1M (44.5%) | +23.5% |
| Fashion & Home | $1,171.5M (30.2%) | $1,472.9M (30.9%) | +25.7% |
| Snack & Seasonal | $989.1M (25.5%) | $1,173.1M (24.6%) | +18.6% |
Growth was broad-based across all three categories, with no single segment pulling ahead dramatically or dragging results. Leisure — think toys, tech accessories, and entertainment — remains the largest slice of revenue, while Fashion & Home grew the fastest. The mix was largely stable year over year, suggesting Five Below's value-priced assortment is resonating consistently across product types.
Does Five Below generate cash?
Five Below generated substantially more operating cash in fiscal 2025, while sharply reducing capital spending.
| Metric | Fiscal 2024 | Fiscal 2025 | Change |
|---|---|---|---|
| Operating cash flow | $430.6M | $586.4M | +36.2% |
| Capital expenditures | $(324.0M) | $(174.7M) | -46.1% |
| Free cash flow (GAAP) | $106.6M | $411.7M | +286% |
After two years of heavy investment in new stores and infrastructure, Five Below pulled back capital spending significantly, which — combined with higher profits — caused free cash flow (operating cash minus capex) to surge. The company ended the year with cash and short-term investments of approximately $932 million, up from around $529 million a year prior, and carried no borrowings on its revolving credit line.
How strong is Five Below's balance sheet?
Five Below carries no traditional debt and holds a substantial cash cushion — but lease obligations are sizable.
| Metric | Feb 1, 2025 | Jan 31, 2026 | Change |
|---|---|---|---|
| Cash & equivalents | $331.7M | $723.7M | +$392.0M |
| Short-term investments | $197.1M | $208.5M | +$11.4M |
| Total debt (line of credit) | $0 | $0 | — |
| Operating lease liabilities (total) | $1,981.6M | $2,032.2M | +$50.6M |
| Shareholders' equity | $1,808.3M | $2,193.3M | +$21.2% |
Five Below has zero drawn on its $225 million revolving credit facility and a growing cash pile. The main financial obligation is operating leases — a natural feature of a brick-and-mortar retailer — totalling just over $2 billion, with future minimum payments spread out through 2030 and beyond. Shareholders' equity grew by over $380 million, entirely funded by retained earnings rather than new share issuance. One item to be aware of: an ongoing securities class action lawsuit (filed in 2024) remains unresolved, with potential financial impact currently uncertain.