📊 CROX Key Takeaways
Is Crocs, Inc. (CROX) a Good Investment?
Crocs faces significant operational deterioration with net income collapsing 108.5% YoY despite stable revenue, indicating margin compression from operating expenses. Most alarming is deeply negative operating cash flow of -$80.9M and free cash flow of -$98.9M, suggesting the company is consuming cash to maintain operations rather than generating sustainable returns. Combined with revenue contraction, modest cash reserves relative to debt, and worsening cash conversion, the company appears to be in a concerning trajectory that threatens financial stability.
Crocs shows a fundamentally mixed profile: the business still generates strong gross margins and robust free cash flow, but recent profitability has deteriorated sharply into a net loss despite only a modest revenue decline. The combination of healthy cash generation and moderate liquidity supports financial stability, yet weak operating margins and negative returns on equity/assets suggest earnings quality and margin recovery need to improve before the fundamentals look clearly stronger.
Why Buy Crocs, Inc. Stock? CROX Key Strengths
- Exceptional gross margin of 56.8% demonstrates strong pricing power and production efficiency
- Solid operating margin of 21.8% shows underlying business can be profitable at the operational level
- Adequate liquidity with current ratio of 1.67x and manageable debt-to-equity ratio of 0.93x
- High gross margin of 58.3% indicates strong product-level profitability and brand pricing power
- Free cash flow of $659.20M and 16.3% FCF margin show the business remains highly cash generative
- Current ratio of 1.27x and interest coverage of 4.9x suggest the company can still service obligations without immediate balance-sheet stress
CROX Stock Risks: Crocs, Inc. Investment Risks
- Operating cash flow is deeply negative at -$80.9M while generating positive net income, indicating severe working capital stress or asset quality issues
- Net income collapsed 108.5% YoY with revenue only declining 1.5%, pointing to significant operating expense pressures or one-time charges
- Free cash flow of -$98.9M with low cash position of $130.9M relative to $1.3B debt creates refinancing risk if negative cash generation persists
- Revenue decline of 1.5% YoY indicates loss of market momentum in core business
- Revenue declined 1.5% YoY while operating margin fell to 3.7%, pointing to meaningful earnings pressure
- Net income turned negative and ROE/ROA are negative, indicating weak bottom-line performance and poor capital efficiency
- Long-term debt of $1.23B and quick ratio of 0.74x reduce flexibility if profitability remains compressed
Key Metrics to Watch
- Operating cash flow recovery - must return to positive to validate business model sustainability
- Gross margin stability - ensure pricing power is maintained amid potential cost pressures
- Revenue growth trend - must stabilize and return to growth to justify debt load
- Cash conversion cycle - understand working capital dynamics driving negative operating cash flow
- Operating margin recovery
- Revenue growth and brand-level sales trends
Crocs, Inc. (CROX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Crocs, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CROX Profit Margin, ROE & Profitability Analysis
CROX vs Materials Sector: How Crocs, Inc. Compares
How Crocs, Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Crocs, Inc. Stock Overvalued? CROX Valuation Analysis 2026
Based on fundamental analysis, Crocs, Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Crocs, Inc. Balance Sheet: CROX Debt, Cash & Liquidity
CROX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Crocs, Inc.'s revenue has grown significantly by 77% over the 5-year period, indicating strong business expansion. The most recent EPS of $12.79 reflects profitable operations.
CROX Revenue Growth, EPS Growth & YoY Performance
CROX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $921.5M | $137.6M | $2.71 |
| Q3 2025 | $996.3M | $145.8M | $2.70 |
| Q2 2025 | $1.1B | $228.9M | $3.77 |
| Q1 2025 | $937.3M | $152.5M | $2.50 |
| Q3 2024 | $1.0B | $177.0M | $2.87 |
| Q2 2024 | $1.1B | $212.4M | $3.39 |
| Q1 2024 | $884.2M | $149.5M | $2.39 |
| Q3 2023 | $985.1M | $169.3M | $2.72 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Crocs, Inc. Dividends, Buybacks & Capital Allocation
CROX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Crocs, Inc. (CIK: 0001334036)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CROX
What is the AI rating for CROX?
Crocs, Inc. (CROX) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CROX's key strengths?
Claude: Exceptional gross margin of 56.8% demonstrates strong pricing power and production efficiency. Solid operating margin of 21.8% shows underlying business can be profitable at the operational level. ChatGPT: High gross margin of 58.3% indicates strong product-level profitability and brand pricing power. Free cash flow of $659.20M and 16.3% FCF margin show the business remains highly cash generative.
What are the risks of investing in CROX?
Claude: Operating cash flow is deeply negative at -$80.9M while generating positive net income, indicating severe working capital stress or asset quality issues. Net income collapsed 108.5% YoY with revenue only declining 1.5%, pointing to significant operating expense pressures or one-time charges. ChatGPT: Revenue declined 1.5% YoY while operating margin fell to 3.7%, pointing to meaningful earnings pressure. Net income turned negative and ROE/ROA are negative, indicating weak bottom-line performance and poor capital efficiency.
What is CROX's revenue and growth?
Crocs, Inc. reported revenue of $921.5M.
Does CROX pay dividends?
Crocs, Inc. does not currently pay dividends.
Where can I find CROX SEC filings?
Official SEC filings for Crocs, Inc. (CIK: 0001334036) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CROX's EPS?
Crocs, Inc. has a diluted EPS of $2.71.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CROX a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Crocs, Inc. has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CROX stock overvalued or undervalued?
Valuation metrics for CROX: ROE of 9.6% (sector avg: 14%), net margin of 14.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy CROX stock in 2026?
Our dual AI analysis gives Crocs, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CROX's free cash flow?
Crocs, Inc.'s operating cash flow is $-80.9M, with capital expenditures of $18.0M. FCF margin is -10.7%.
How does CROX compare to other Materials stocks?
Vs Materials sector averages: Net margin 14.9% (avg: 10%), ROE 9.6% (avg: 14%), current ratio 1.67 (avg: 1.6).