Levi Strauss & Co. (LEVI) Financials

Levi Strauss & Co. (NYSE: LEVI) has been showing a meaningful improvement in profitability and operating cash flow over the last year, even though the company still carries a fairly leveraged balance sheet and works through quarterly swings in working capital.

For the latest reported quarter, Q1 2026, Levi produced solid top-line growth and continued to generate strong cash from operations. Revenue came in at $1.74 billion, up from $1.58 billion in the prior-year quarter and slightly above the most recent Q4 2025 level. Net income attributable to common shareholders was $175.8 million, compared with $135.0 million in Q1 2025, while operating income reached $198.7 million. Earnings per share held at $0.45.

Cash generation remains a key strength. Levi reported $211.5 million in operating cash flow in Q1 2026, versus $52.5 million in Q1 2025 and $286.0 million in Q1 2024. That said, the quarter also included $284.1 million in financing outflows, driven by dividends and a large preferred equity repurchase, which caused cash and equivalents to decline by $41.3 million during the quarter.

The balance sheet shows a company that is healthy enough to fund operations and shareholder returns, but still has debt and liability obligations that investors should watch. As of Q1 2026, Levi held $716.6 million in cash and equivalents, $95.4 million in short-term investments, and $2.91 billion in current assets. Total liabilities were $4.37 billion versus $2.21 billion in equity, and long-term debt stood at $1.05 billion.

Over the last several quarters, Levi’s operating performance has improved materially from the weak point seen in early 2024. In Q1 2024, the company posted a loss of $10.6 million attributable to common shareholders and just $0.6 million of operating income. By Q1 2026, that had shifted to $175.8 million in net income and nearly $199 million in operating income. Gross margin also appears to have improved, with gross profit rising faster than cost of revenue across the most recent quarters.

• Revenue momentum is improving. Q1 2026 revenue rose to $1.74 billion, up from $1.53 billion in Q1 2025 and $1.48 billion in Q1 2024.
• Operating profitability has strengthened sharply. Operating income improved from near-breakeven in Q1 2024 to $198.7 million in Q1 2026.
• Net income growth supports the recovery story. Common-share net income increased to $175.8 million in Q1 2026 from $135.0 million a year earlier.
• Operating cash flow remains strong. Levi generated $211.5 million of operating cash flow in Q1 2026.
• Cash and investments remain meaningful. The company ended Q1 2026 with $716.6 million in cash and $95.4 million in short-term investments.
• Retained earnings continue to build. Retained earnings increased to $1.86 billion in Q1 2026 from $1.74 billion in Q2 2025.
• Gross profit improved, but SG&A is still large. Q1 2026 gross profit was $1.08 billion, while SG&A was $871.7 million, leaving room for more margin expansion.
• Share count remains elevated. Weighted average diluted shares were about 394.2 million in Q1 2026, limiting per-share leverage from earnings growth.
• Dividend policy continues. Levi paid $0.14 per share in dividends in Q1 2026, signaling ongoing shareholder returns.
• Balance sheet leverage is still meaningful. Long-term debt was $1.05 billion, and total liabilities were nearly double common equity.
• Financing outflows were heavy in Q1 2026. The company repurchased preferred equity and paid dividends, resulting in a $284.1 million financing cash outflow.
• Working-capital swings can be volatile. Levi’s quarterly cash flow has repeatedly been affected by large changes in operating assets and liabilities.
• Discontinued operations create noise. Several periods show non-trivial discontinued-operations impacts on reported net income, which can make trend analysis less clean.

Bottom line: Levi Strauss appears to be in a much better operating position than it was two years ago. Revenue is growing, operating income is back on solid footing, and cash from operations is healthy. The main watch items for investors are leverage, sizable shareholder returns that consume cash, and the possibility that margin gains may need to continue in order to support the current earnings trend.