📊 CROX Key Takeaways
Is Crocs, Inc. (CROX) a Good Investment?
Crocs faces significant near-term headwinds with negative net income of -$81.2M and declining revenue (-1.5% YoY), despite maintaining a healthy gross margin of 58.3% and strong free cash flow generation of $659.2M. The deterioration in profitability (net margin of -2.0% and negative ROE/ROA) suggests operational challenges that outweigh the company's otherwise solid balance sheet and cash generation capabilities.
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
- Strong gross margin of 58.3% indicates pricing power and efficient manufacturing
- Robust free cash flow of $659.2M (16.3% FCF margin) demonstrates underlying business quality despite accounting losses
- Solid balance sheet with manageable debt-to-equity ratio of 0.95x and adequate interest coverage of 4.9x
- Reasonable liquidity position with $130.4M cash and current ratio of 1.27x
- 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
- Net loss of $81.2M in latest period with negative net margin of -2.0% indicates profitability deterioration
- Revenue declining year-over-year (-1.5%) suggesting demand weakness or market headwinds
- Operating margin compressed to 3.7% despite high gross margins, pointing to elevated operating expenses
- Negative returns on equity (-6.3%) and assets (-1.9%) eroding shareholder value
- Quick ratio of 0.74x below 1.0x indicates potential near-term liquidity stress beyond cash conversion
- 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
- Quarterly revenue trends and operating margin trajectory for profitability recovery
- Operating expense ratio and SG&A efficiency improvements
- Cash conversion quality and sustenance of free cash flow generation despite net losses
- Gross margin sustainability amid competitive and cost pressures
- 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. shows some fundamental concerns 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $964.6M | $160.3M | $2.58 |
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
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 24, 2026 | 4 | xslF345X06/wk-form4_1774383574.xml | View → |
| Mar 12, 2026 | 4 | xslF345X05/wk-form4_1773355852.xml | View → |
| Mar 12, 2026 | 4 | xslF345X05/wk-form4_1773355847.xml | View → |
| Mar 12, 2026 | 4 | xslF345X05/wk-form4_1773355841.xml | View → |
| Mar 12, 2026 | 4 | xslF345X05/wk-form4_1773355836.xml | View → |
❓ 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 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CROX's key strengths?
Claude: Strong gross margin of 58.3% indicates pricing power and efficient manufacturing. Robust free cash flow of $659.2M (16.3% FCF margin) demonstrates underlying business quality despite accounting losses. 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: Net loss of $81.2M in latest period with negative net margin of -2.0% indicates profitability deterioration. Revenue declining year-over-year (-1.5%) suggesting demand weakness or market headwinds. 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 $4.0B.
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 $-1.50.
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 April 2026, Crocs, Inc. has a SELL rating with 74% 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 -6.3% (sector avg: 14%), net margin of -2.0% (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 at or below sector average. Always conduct your own research.
What is CROX's free cash flow?
Crocs, Inc.'s operating cash flow is $710.4M, with capital expenditures of $51.2M. FCF margin is 16.3%.
How does CROX compare to other Materials stocks?
Vs Materials sector averages: Net margin -2.0% (avg: 10%), ROE -6.3% (avg: 14%), current ratio 1.27 (avg: 1.6).