Operational liquidity is under pressure as evidenced by a persistent disconnect between net income and cash flow, resulting in a negative free cash flow margin of -6.7% in 2026Q2.
| Cash from Operations | -6.67M | -3.36M | -747.58K | -872.13K | -675.36K | 2.65M |
| Operating CF Margin % | - | -10.24% | -1.54% | -3.09% | -4.18% | 20.62% |
| Operating CF Growth % | -851.33% | -349.2% | 14.28% | -29.14% | -125.5% | - |
| Net Income | -2.47M | 3.88M | 1.29M | 969.75K | 244.59K | 304.06K |
| Depreciation & Amortization | 271.8K | 371.75K | 10.57K | 8.39K | 2.21K | 411 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.51M | -5.76M | 1.33M | -1.85M | -1.63M | 3.36M |
| Working Capital Changes | -5.98M | -1.84M | -2.05M | -1.85M | 710.99K | -1.02M |
| Change in Receivables | -767.4K | -253.99K | -217.9K | -4.28K | 665.62K | -295.26K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -837.91K | -496.83K | 623.17K | -1.2M | -1.6M | 2.71M |
| Cash from Investing | -11.19M | -3.58M | -3.13M | -45.5K | -8.7K | -3.26K |
| Capital Expenditures | -2.12M | -2.08M | -55.37K | -45.5K | -8.7K | -3.26K |
| CapEx % of Revenue | 2.31% | 6.34% | 0.11% | 0.16% | 0.05% | 0.03% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -1.5M | -1.5M | -3.07M | 0 | 0 | 0 |
| Cash from Financing | 22.91M | 8.9M | 9.32M | 1.8M | 933.22K | -2.61M |
| Debt Issued (Net) | 505.6K | 785.3K | 362.47K | 366.83K | 769.3K | -1.34M |
| Equity Issued (Net) | 22.41M | 8.12M | 8.98M | 1.99M | 163.92K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1 | 0 | -14.33K | -558.52K | 0 | -1.27M |
| Net Change in Cash | 5.69M | 1.96M | 5.45M | 909.69K | 237.63K | 35.56K |
| Free Cash Flow | -6.71M | -3.36M | -802.94K | -917.63K | -684.06K | 2.65M |
| FCF Margin % | -7.32% | -10.24% | -1.65% | -3.25% | -4.23% | 20.59% |
| FCF Growth % | -588.59% | -318.22% | 12.5% | -34.15% | -125.86% | - |
| FCF per Share | -1.50 | -1.40 | -0.07 | -0.08 | -0.07 | 0.26 |
| FCF Conversion (FCF/Net Income) | 2.71x | -0.87x | -0.58x | -0.90x | -2.76x | 8.71x |
| Interest Paid | 0 | 0 | 37.27K | 0 | 206 | 8.18K |
| Taxes Paid | 0 | 0 | 27.57K | 0 | 7.39K | 1.78K |
Persistent operating cash burn
As reported in recent financial filings, HAO exhibits a persistent disconnect between net income and operating cash flow, with the OCF/NI ratio frequently swinging into negative territory, suggesting that reported earnings are not translating into actual liquidity for the business operations.
The frequent divergence between accounting profits and cash generation indicates that the company's earnings quality is low, likely driven by non-cash items or timing differences in revenue recognition. Investors should monitor this gap, as it suggests that the reported net income may not be a reliable indicator of the company's ability to fund its own operations.
Based on the company's reported figures, HAO has struggled to maintain positive free cash flow, with FCF margins consistently in negative territory over the last several quarters, reflecting a business model that is currently consuming rather than generating cash.
The inability to generate positive free cash flow suggests that the company's core advertising services are not yet self-sustaining. This trajectory warrants further investigation into whether the current cash burn is a temporary result of strategic investment or a structural failure of the underlying business model.
According to the provided cash flow statements, HAO's working capital changes have been highly volatile, with significant outflows in multiple periods, indicating that the company is struggling to manage its cash conversion cycle effectively in a competitive advertising environment.
The erratic nature of working capital changes suggests that the company may be facing challenges in collecting receivables or managing its payables to media platforms. This volatility appears to be a primary driver of the company's inconsistent operating cash flow performance.
As indicated by the financial data, the cash flow statement reveals that HAO's reliance on non-operating income to bolster net income masks a deeper operational struggle, as the core business continues to burn cash despite reported accounting profits in certain periods.
The cash flow statement serves as a critical reality check against the income statement, highlighting that the company's profitability is not supported by its core advertising activities. This discrepancy suggests that the business may be more fragile than the headline net income figures imply.
Quick answers to the most common questions about buying HAO stock.
Haoxi Health Technology Limited (HAO) generated $-3.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Haoxi Health Technology Limited (HAO) reported negative free cash flow of $3.4M in 2025, indicating capital requirements exceeded cash from operations.
Haoxi Health Technology Limited (HAO) spent $2.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.