Cash flow generation remains highly unstable, with free cash flow margins dropping to -8.8% in 2025Q4 as capital expenditures spiked to 23.7% of total revenue.
| Cash from Operations | 274.11M | 373.38M | 455.05M | 281.71M | 360.98M | 297.3M | 513.94M | 554.95M | 476.67M | 443.56M | 357.3M |
| Operating CF Margin % | 24.98% | 27.79% | 27.96% | 29.81% | 18.34% | 31.97% | 47.07% | 58.72% | 61.26% | 68.47% | 56.29% |
| Operating CF Growth % | -26.59% | -17.95% | 61.53% | -21.96% | 21.42% | -42.15% | -7.39% | 16.42% | 7.46% | 24.14% | - |
| Net Income | 162.25M | 107.31M | 260.53M | -409.24M | 207.84M | 244.7M | 437.77M | 393.61M | 285.05M | 265.8M | 235.67M |
| Depreciation & Amortization | 86.51M | 115.75M | 116.87M | 109.87M | 98.11M | 65.87M | 40.37M | 25.55M | 24.96M | 35.35M | 41.68M |
| Stock-Based Compensation | 0 | 0 | 62.65K | -62.36K | 2.46M | 232.56K | 26.49M | 16.11M | 38.05M | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 31.9M | 76.5M | 19.85M | 23.35M | 67.68M | 0 | 0 |
| Other Non-Cash Items | 267.76M | 417.11M | 343.81M | 866.99M | -3.67M | -9.5M | -54.28M | 14.71M | -66M | -64.97M | -23.66M |
| Working Capital Changes | -242.4M | -266.79M | -266.22M | -285.85M | 24.33M | -80.5M | 43.74M | 81.62M | 126.94M | 207.37M | 103.61M |
| Change in Receivables | 4.38M | -5.43M | 3.01M | -59.47M | -22.33M | -28.79M | -52.26M | -12.37M | -17.93M | -1.44M | -2.69M |
| Change in Inventory | 1.91M | 14.62M | 4.76M | -793.08K | 1.5M | -1.28M | 351.52K | 621.29K | -511K | 53.48K | -794.27K |
| Change in Payables | -18.45M | -3.02M | -50.45M | 574.26K | 4.52M | 4.55M | 4.81M | 1.18M | -407.95K | 134.1K | -298.93K |
| Cash from Investing | -61.07M | 345.39M | -93.71M | 438.96M | -928.39M | -115.6M | -1.22B | -181.76M | -744.86M | 74M | -186.43M |
| Capital Expenditures | -254.04M | -79.58M | -87.76M | -69.12M | -561.26M | -112.82M | -100.21M | -141.96M | -16.57M | -6.09M | -13.98M |
| CapEx % of Revenue | 23.15% | 5.92% | 5.39% | 7.31% | 28.52% | 12.13% | 9.18% | 15.02% | 2.13% | 0.94% | 2.2% |
| Acquisitions | 417.44K | 2.81M | 37.8M | 79.67M | -186.42M | -13.9M | -362.21M | -13.3M | 2.66M | -255.79K | 445.88K |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -12.95M | 215.28M | 115.27M | -73.91M | -533.97M | -140.09M | -435.21M | -114.74M | 126.7M | -133.94M | -32.88M |
| Cash from Financing | -42.24M | 10.53M | -303.73M | -341.9M | 240.33M | 117.53M | -212.23M | 662.85M | -465.16M | -132.96M | -51.33M |
| Debt Issued (Net) | -389.1K | 82.8M | -284.3M | -299.9M | 542.7M | 90M | 0 | 60M | -1.44M | 0 | 0 |
| Equity Issued (Net) | 0 | -365.28K | -19.71M | 0 | 0 | 0 | 0 | 837.51M | 0 | 0 | 0 |
| Dividends Paid | -41.86M | -70.94M | 0 | -41M | -320.25M | 0 | -226.95M | -200.53M | -579.04M | -17.96M | -52.06M |
| Share Repurchases | 0 | -365.28K | -19.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | -966K | 272.5K | -996.7K | 17.88M | 27.53M | 14.72M | -33.83M | 115.32M | -115M | 721.13K |
| Net Change in Cash | 217.58M | 733.6M | 57.64M | 379.85M | -313.13M | 291.57M | -925.17M | 1.1B | -734.82M | 390.93M | 124.96M |
| Free Cash Flow | 20.07M | 293.76M | 366.55M | 212.59M | -200.29M | 184.49M | 413.73M | 412.99M | 460.1M | 437.46M | 343.32M |
| FCF Margin % | 1.83% | 21.87% | 22.53% | 22.49% | -10.18% | 19.84% | 37.89% | 43.7% | 59.13% | 67.53% | 54.09% |
| FCF Growth % | -93.17% | -19.86% | 72.42% | 206.14% | -208.57% | -55.41% | 0.18% | -10.24% | 5.17% | 27.42% | - |
| FCF per Share | 0.20 | 2.89 | 3.59 | 2.06 | -1.94 | 1.79 | 4.05 | 4.17 | 2.27 | 2.15 | 1.69 |
| FCF Conversion (FCF/Net Income) | 1.64x | 3.39x | 1.69x | -0.66x | 4.07x | 1.14x | 1.16x | 1.41x | 1.67x | 1.67x | 1.52x |
| Interest Paid | 0 | 7.88M | 14.05M | 27.99M | 15.3M | 4.47M | 2.13M | 0 | 1.44M | 0 | 0 |
| Taxes Paid | 0 | 82.58M | 61.74M | 59.44M | 50.6M | 105.59M | 120.34M | 93.3M | 160.06M | 64.94M | 31.61M |
Sustained Revenue Contraction
According to recent financial disclosures, GHG's operating cash flow to net income ratio has exhibited extreme volatility, reaching -0.36 in 2025Q4, which suggests that reported earnings are currently failing to translate into meaningful cash generation for the firm's core hospitality operations.
The significant disconnect between net income and operating cash flow indicates that non-cash items or accounting accruals are heavily influencing the bottom line. Investors should monitor whether this divergence stems from aggressive revenue recognition or structural inefficiencies in the leased-and-operated segment that are not captured by standard accounting metrics.
As reported in quarterly filings, GHG's free cash flow margin has fluctuated wildly, dropping to -8.8% in 2025Q4 from a high of 36.5% in 2024Q3, highlighting a precarious trajectory that remains highly sensitive to the company's ongoing capital expenditure requirements.
The inability to maintain positive free cash flow during periods of revenue contraction suggests that the company's cost structure is not sufficiently flexible. This volatility warrants further investigation into whether the current capital allocation strategy is sustainable if the top-line decline persists.
Based on the provided data, GHG's capital expenditure as a percentage of revenue spiked to 23.7% in 2025Q4, which indicates a significant increase in capital intensity that appears disconnected from the company's recent negative revenue growth trends.
This elevated level of spending suggests that the firm may be aggressively reinvesting in its property portfolio despite weakening demand. Analysts should consider whether this capital intensity is intended for necessary maintenance or if it represents speculative growth investments that may fail to yield adequate returns.
As indicated by historical cash flow statements, GHG has consistently faced negative working capital changes, including an $81.0M outflow in 2025Q4, which suggests that the company is struggling to manage its cash conversion cycle effectively amidst a cooling Chinese travel market.
Persistent outflows in working capital often point to difficulties in collecting receivables or an inefficient buildup of inventory within the catering and hotel segments. This trend appears to be a primary driver of the company's inconsistent operating cash flow performance.
Quick answers to the most common questions about buying GHG stock.
GreenTree Hospitality Group Ltd. (GHG) generated $274.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
GreenTree Hospitality Group Ltd. (GHG) generated $20.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
GreenTree Hospitality Group Ltd. (GHG) spent $254.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, GreenTree Hospitality Group Ltd. (GHG) returned $41.9M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.