NYSE:FND
Floor & Decor Holdings, Inc.
A dominant player in the U.S. home improvement sector offering flooring, decor, and furniture through an extensive network of retail stores and digital channels.
Key Metrics
Investment Thesis
Bull Case
FND benefits from a structural tailwind as homeowners continue to prioritize home renovation over renting, supported by the company's expanding footprint and loyal customer base. The retailer maintains healthy liquidity with $249.3M in ending cash and a robust operating margin profile that allows for reinvestment in growth initiatives. Its niche focus on design-centric products creates a defensible market position that generalist competitors struggle to replicate effectively.
Bear Case
Recent earnings pressure, with net income dropping from $298.2M in 2022 to $208.6M in 2025, highlights sensitivity to macroeconomic conditions and consumer sentiment shifts. High levels of long-term liabilities ($1.91B) and operating lease obligations ($1.64B) could weigh on the balance sheet if sales growth slows or financing costs rise. The company's heavy reliance on specific flooring categories makes it vulnerable to cyclicality in housing starts and renovation demand.
About Floor & Decor Holdings, Inc.
Floor & Decor Holdings (FND) is a leading home improvement retailer specializing in flooring, decor, and furniture across the United States. The company operates over 150 physical locations and a robust e-commerce platform, serving DIY homeowners, professional contractors, and interior designers with a curated selection of products from top brands and private labels.
Analysis
Management Discussion
In 2025, revenue grew to $4.68B from $4.46B in 2024, driven by successful store expansion and digital sales growth, while net income stabilized at $208.6M after a decline from the prior year's peak of $298.2M in 2022. The company generated strong operating cash flow of $381.8M, though significant investing cash outflows of $317.8M suggest continued capital allocation toward store openings and inventory buildup.
Industry Overview
The U.S. home improvement industry is currently experiencing a bifurcated landscape where generalist retailers struggle with low-margin commodity goods while specialized design-focused retailers capture higher value through service and curation. This sector is highly sensitive to interest rate cycles and housing affordability, which directly influence the volume of discretionary renovation spending. Consolidation trends favor larger players who can invest in technology and supply chain efficiency to withstand margin compression.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $4.26B | $4.41B | $4.46B | $4.68B |
| Cost of Revenue | $2.54B | $2.56B | $2.53B | $2.64B |
| Gross Profit | $1.73B | $1.86B | $1.93B | $2.04B |
| Operating Expenses | $1.33B | $1.54B | $1.67B | $1.77B |
| Operating Income | $396.8M | $321.4M | $256.2M | $270.1M |
| G&A | $213.8M | $252.7M | $266.2M | $1.77B |
| Stock-Based Comp | $22.2M | $27.2M | $33.7M | $29.5M |
| D&A | $155.0M | $201.9M | $232.5M | $241.2M |
| Amortization | $3.1M | $3.5M | $3.7M | $3.7M |
| Other OpEx | $1.12B | $1.28B | $1.41B | $0 |
| Non-Operating Income | $-11.1M | $-9.9M | $-2.8M | $-3.4M |
| Interest Expense | $11.1M | $9.9M | — | — |
| Pre-Tax Income | $385.6M | $311.5M | $253.4M | $266.7M |
| Income Tax | $87.4M | $65.6M | $47.5M | $58.0M |
| Continuing Ops | $298.2M | $246.0M | $205.9M | $208.6M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $298.2M | $246.0M | $205.9M | $208.6M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $298.2M | $246.0M | $205.9M | $208.6M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.46B | $1.32B | $1.49B | $1.53B |
| Inventory | $1.29B | $1.11B | $1.13B | $1.13B |
| Prepaid Expenses | $53.3M | $48.7M | $48.9M | $44.2M |
| Other Current Assets | $111.9M | $161.8M | $310.9M | $350.6M |
| Long-Term Assets | $2.89B | $3.35B | $3.56B | $3.94B |
| PP&E (Net) | $1.26B | $1.63B | $1.79B | $1.86B |
| Intangibles | $152.4M | $153.9M | $150.2M | $146.5M |
| Goodwill | $255.5M | $257.9M | $257.9M | $257.9M |
| Operating Leases | $1.21B | $1.28B | $1.33B | $1.62B |
| Other LT Assets | $22.2M | $21.6M | $32.1M | $63.1M |
| Total Assets | $4.35B | $4.66B | $5.05B | $5.47B |
| Current Liabilities | $1.01B | $1.15B | $1.24B | $1.15B |
| Accounts Payable | $590.9M | $679.3M | $794.9M | $683.7M |
| Current Debt | $2.1M | $2.1M | $2.1M | $2.6M |
| Current Leases | $105.7M | $126.4M | $138.6M | $155.7M |
| Deferred Revenue | $10.1M | $11.3M | $13.2M | $10.7M |
| Other Current Liab | $0 | $0 | $0 | $0 |
| Long-Term Liabilities | $1.69B | $1.58B | $1.64B | $1.91B |
| Long-Term Debt | $405.6M | $194.9M | $194.5M | $193.6M |
| LT Operating Leases | $1.23B | $1.30B | $1.35B | $1.64B |
| Other LT Liab | $54.2M | $82.9M | $90.3M | $75.9M |
| Total Liabilities | $2.69B | $2.73B | $2.88B | $3.06B |
| Shareholders' Equity | $1.66B | $1.93B | $2.17B | $2.41B |
| Retained Earnings | $1.17B | $1.42B | $1.62B | $1.83B |
| AOCI | $4.3M | $1.4M | $-40.0K | $22.0K |
| Total L&E | $4.35B | $4.66B | $5.05B | $5.47B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $298.2M | $246.0M | $205.9M | $208.6M |
| Non-Cash Adjustments | $-408.7M | $648.6M | $208.9M | $264.1M |
| Working Capital Changes | $223.0M | $-91.0M | $188.4M | $-90.9M |
| Cash from Operations | $112.5M | $803.6M | $603.2M | $381.8M |
| Cash from Investing | $-455.6M | $-565.0M | $-446.8M | $-317.8M |
| Cash from Financing | $213.5M | $-214.0M | $-3.0M | $-2.4M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-129.7M | $24.6M | $153.3M | $61.6M |
| Beginning Cash | $139.4M | $9.8M | $34.4M | $187.7M |
| Ending Cash | $9.8M | $34.4M | $187.7M | $249.3M |
Frequently Asked Questions
How does Floor & Decor Holdings, Inc. make money?
Primary revenue streams include Flooring (the largest category covering tiles, hardwood, laminate, and vinyl), Decor (wall coverings, lighting, mirrors, and accessories), Furniture (sofas, dining sets, and storage), and Lumber/Building Materials (plumbing, electrical, and exterior goods sold to professionals and DIYers).
What are the main risks for FND?
Elevated interest rates increase financing costs for consumers, potentially dampening discretionary spending on home improvement projects. Intense competition from Amazon and other big-box retailers could pressure margins if the company cannot maintain its unique assortment or service model. Supply chain disruptions or raw material cost inflation could impact gross margins given the commodity-heavy nature of flooring and lumber products.
What is FND's competitive advantage?
The company leverages its massive inventory scale and specialized supply chain to offer a unique 'design-to-delivery' experience that combines showroom inspiration with competitive pricing. Its direct relationships with manufacturers allow for exclusive private-label products and faster turnaround times compared to generalist big-box retailers. A highly optimized omnichannel infrastructure seamlessly integrates brick-and-mortar showrooms with high-traffic e-commerce operations.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.