Free cash flow generation is highly volatile, swinging from a 99.3% margin in 2024Q2 to a negative 61.8% margin in 2026Q1 due to working capital fluctuations.
| Cash from Operations | 109.67M | 254.46M | 212.07M | 184.54M | 115.94M | 189.39M | 213.8M | 93.96M |
| Operating CF Margin % | - | 22.68% | 20.17% | 18.59% | 8.82% | 13.51% | 24.42% | 12.81% |
| Operating CF Growth % | -2408.59% | 19.99% | 14.92% | 59.16% | -38.78% | -11.42% | 127.55% | - |
| Net Income | 160.6M | 151.57M | 118.66M | 80.69M | 179.35M | 203.72M | 43.3M | 8.52M |
| Depreciation & Amortization | 56.62M | 57.29M | 55.86M | 53.06M | 57.64M | 57.82M | 62.8M | 63.94M |
| Stock-Based Compensation | 14.08M | 13.39M | 10.6M | 9.16M | 7.95M | 15.01M | 1.95M | 1.56M |
| Deferred Taxes | -7.32M | -7.75M | -10.51M | -12.79M | -5.34M | -15.31M | -300K | -16.61M |
| Other Non-Cash Items | 2.29M | 1.9M | 8.53M | 11.35M | 11.33M | 24.61M | 7.4M | -10.76M |
| Working Capital Changes | -116.6M | 38.06M | 28.94M | 43.06M | -134.98M | -96.45M | 98.7M | 47.31M |
| Change in Receivables | -132.61M | 5.06M | -7.26M | 0 | -3.41M | -70.11M | 47.1M | 2.09M |
| Change in Inventory | 7.84M | 11.78M | 4.33M | 67.82M | -35.12M | -89.66M | -4.7M | 5.11M |
| Change in Payables | -10.24M | -5.94M | 11.79M | 14.55M | -36.77M | 18.36M | 69.3M | 16.15M |
| Cash from Investing | -129.83M | -103.78M | -54.13M | -55.38M | -92.57M | -48.78M | -13M | 4.04M |
| Capital Expenditures | -30.33M | -28.71M | -24.29M | -30.99M | -29.63M | -26.22M | -15.6M | -25.02M |
| CapEx % of Revenue | 2.64% | 2.56% | 2.31% | 3.12% | 2.25% | 1.87% | 1.78% | 3.41% |
| Acquisitions | -3.64M | 0 | -55.15M | 0 | -62.95M | -21.51M | 500K | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -21.16M | -5.6M | 25.31M | 613K | 4K | -889K | 500K | 26.86M |
| Cash from Financing | -26.5M | -19.27M | -136.79M | -7.61M | -229.24M | 10.96M | -135.1M | -65.07M |
| Debt Issued (Net) | -15.98M | -14.98M | -135.88M | -7.83M | 122.34M | -317.99M | 146.5M | -64.71M |
| Equity Issued (Net) | -9.91M | -5.05M | -378K | -340K | -343.35M | 367.88M | -2.5M | 269K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -41K | -275.2M | -416K |
| Share Repurchases | -9.91M | -5.05M | -378K | -340K | -343.35M | -9.52M | -2.5M | -1.01M |
| Other Financing | -605K | 761K | -537K | 562K | -8.23M | -38.89M | -3.89M | -205K |
| Net Change in Cash | -45.54M | 133.06M | 18.49M | 121.92M | -209.62M | 150.5M | 68.1M | 32.9M |
| Free Cash Flow | 80.5M | 225.74M | 187.78M | 153.55M | 86.32M | 162.25M | 198.2M | 67.28M |
| FCF Margin % | 7.01% | 20.12% | 17.86% | 15.47% | 6.57% | 11.57% | 22.64% | 9.17% |
| FCF Growth % | -68.91% | 20.22% | 22.29% | 77.88% | -46.8% | -18.14% | 194.59% | - |
| FCF per Share | 0.36 | 1.02 | 0.85 | 0.70 | 0.38 | 0.81 | 4.28 | 1.45 |
| FCF Conversion (FCF/Net Income) | 0.50x | 1.68x | 1.79x | 2.29x | 0.65x | 0.93x | 4.94x | 11.02x |
| Interest Paid | 30.07M | 0 | 68.48M | 75.66M | 51.5M | 46.76M | 68.46M | 79.19M |
| Taxes Paid | 20.44M | 0 | 35.94M | 16.42M | 99.39M | 62.47M | 12.04M | 13.03M |
Working capital volatility
As reported in quarterly financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from a negative 7.85 in 2024Q1 to a positive 7.64 in 2024Q2, highlighting significant disconnects between accounting profits and actual cash generation.
The extreme variance in the OCF/NI ratio suggests that net income is a poor proxy for immediate liquidity due to the heavy influence of seasonal working capital swings. Investors should monitor whether these fluctuations represent genuine operational timing differences or an underlying difficulty in converting reported earnings into realized cash flow.
Based on Hayward's reported figures, free cash flow margins exhibit extreme seasonality, oscillating between a negative 61.8% in 2026Q1 and a positive 99.3% in 2024Q2, which reflects the company's reliance on early-season distributor sell-in to drive cash inflows ahead of the peak pool usage period.
The inability to maintain positive FCF throughout the fiscal year suggests that the business model is structurally dependent on the timing of distributor inventory builds. This trajectory warrants further investigation into whether the company can sustain cash generation during periods of channel destocking or reduced distributor appetite.
According to recent SEC filings, Hayward's operating cash flow is heavily dictated by working capital movements, evidenced by a massive $233.6 million inflow in 2024Q2 followed by a $192.7 million outflow in 2026Q1, indicating that inventory and receivables management are the primary levers of cash volatility.
These dramatic shifts in working capital suggest that the company's cash position is highly sensitive to the inventory management practices of its distribution partners. The recurring nature of these outflows suggests that Hayward may be forced to carry significant inventory burdens to ensure product availability for the pro-channel.
As indicated by the provided data, Hayward maintains a disciplined capital expenditure profile, with CapEx/Revenue ratios consistently hovering between 1.5% and 3.0% over the last ten quarters, suggesting that the company's manufacturing footprint requires only modest ongoing investment to support its current operational scale.
The low capital intensity appears to support the company's ability to generate strong cash flow during peak seasons, provided that working capital is managed effectively. This suggests that the business is not overly burdened by heavy maintenance requirements, allowing for potential flexibility in capital allocation if cash flows stabilize.
Quick answers to the most common questions about buying HAYW stock.
Hayward Holdings, Inc. (HAYW) generated $254.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hayward Holdings, Inc. (HAYW) generated $225.7M 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.
Hayward Holdings, Inc. (HAYW) spent $28.7M 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, Hayward Holdings, Inc. (HAYW) spent $5.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.