Cash generation remains erratic due to working capital swings, evidenced by a $36.6M outflow in 2025Q2 that highlights the company's vulnerability to retail inventory cycles.
| Cash from Operations | 10.5M | 13.81M | 65.42M | 88.64M | -3.42M | 17.86M | -34.13M | 4.17M | 11.82M | 33.44M | 62.56M | 26.49M |
| Operating CF Margin % | - | 2.28% | 9.99% | 14.17% | -0.53% | 2.71% | -5.65% | 0.68% | 1.59% | 4.51% | 8.39% | 3.45% |
| Operating CF Growth % | 251.19% | -78.88% | -26.2% | 2693.21% | -119.14% | 152.33% | -917.41% | -64.69% | -64.64% | -46.55% | 136.19% | - |
| Net Income | 28.19M | 26.45M | 30.76M | 25.24M | 25.27M | 21.31M | 24.07M | 15.09M | 21.78M | 17.91M | 26.18M | 19.71M |
| Depreciation & Amortization | 7.28M | 5.89M | 4.8M | 4.36M | 4.88M | 4.91M | 3.91M | 4M | 5.31M | 5.61M | 6.23M | 6.31M |
| Stock-Based Compensation | 2.98M | 4.13M | 6.27M | 5.39M | 3.42M | 3.24M | 3.98M | 2.8M | 3.62M | 323K | 0 | 0 |
| Deferred Taxes | 3.75M | 3.75M | -7.27M | -906K | 372K | 2.11M | -1.43M | 1.49M | 4.95M | 3.94M | 1.79M | -1.68M |
| Other Non-Cash Items | 2.44M | 99K | 13.96M | -358K | 1.96M | 1.02M | -4.14M | 4.57M | 1.49M | -618K | -727K | 89K |
| Working Capital Changes | -34.14M | -26.51M | 16.89M | 54.9M | -39.32M | -14.73M | -60.51M | -23.77M | -25.32M | 6.6M | 29.1M | 2.06M |
| Change in Receivables | -4.19M | 9.3M | 13.84M | -18.77M | 4.53M | 27.63M | -41.31M | -22.77M | 11.76M | -10.03M | -1.75M | 7.84M |
| Change in Inventory | 37.11M | -6.67M | -4.1M | 30.76M | 26.4M | -9.08M | -65.81M | 13.67M | -11.05M | -6.33M | -1.81M | 14.42M |
| Change in Payables | -58.23M | -18.11M | 4.75M | 37.49M | -69.91M | -20.04M | 40.22M | -7.04M | -10M | 21.76M | 26.89M | -23.86M |
| Cash from Investing | 2.13M | 1.93M | -13.88M | -5.17M | -2.28M | -11.84M | -3.81M | -3.54M | -8.06M | -7.35M | -5.92M | -6.54M |
| Capital Expenditures | -2.03M | 0 | 0 | -3.42M | -2.28M | -11.84M | -3.31M | -4.12M | -8.08M | -7.37M | -6M | -6.17M |
| CapEx % of Revenue | 0.34% | 0.46% | 0.49% | 0.55% | 0.36% | 1.8% | 0.55% | 0.67% | 1.09% | 1% | 0.81% | 0.8% |
| Acquisitions | 0 | 0 | -7.41M | 0 | 0 | 0 | 0 | 0 | 0 | 21K | 77K | -413K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 4.16M | 1.93M | -6.47M | -1.75M | 0 | 0 | -494K | 585K | 12K | 21K | 77K | 41K |
| Cash from Financing | -13.29M | -15.42M | -20.95M | -70.07M | 5.58M | -7.27M | 34.18M | 959K | -9.26M | -26.6M | -61.84M | -10.09M |
| Debt Issued (Net) | 0 | 0 | 0 | -60.92M | 14.38M | -1.55M | 39.76M | 11.87M | -4.6M | 12.63M | -19.65M | 4.91M |
| Equity Issued (Net) | -6.82M | -8.99M | -14.11M | -3.07M | -2.98M | 0 | 0 | -5.96M | 0 | 0 | 0 | 0 |
| Dividends Paid | -6.47M | -6.43M | -6.29M | -6.08M | -5.78M | -5.47M | -5.05M | -4.85M | -4.66M | -39.16M | -42M | -15M |
| Share Repurchases | -6.82M | -8.99M | -14.11M | -3.07M | -2.98M | 0 | 0 | -5.96M | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -548K | 0 | -47K | -248K | -528K | -103K | 0 | -70K | -186K | 0 |
| Net Change in Cash | -880K | 789K | 30.14M | 14.47M | -245K | -1.29M | -3.73M | 812K | -4.55M | -434K | -5.46M | 9.81M |
| Free Cash Flow | 7.95M | 11.04M | 62.22M | 85.22M | -5.7M | 6.01M | -37.44M | 53K | 3.75M | 26.07M | 56.56M | 20.32M |
| FCF Margin % | 1.33% | 1.82% | 9.5% | 13.62% | -0.89% | 0.91% | -6.2% | 0.01% | 0.5% | 3.52% | 7.59% | 2.65% |
| FCF Growth % | -83.96% | -82.26% | -26.98% | 1595.82% | -194.74% | 116.06% | -70739.62% | -98.59% | -85.62% | -53.92% | 178.39% | - |
| FCF per Share | 0.58 | 0.82 | 4.46 | 6.06 | -0.41 | 0.43 | -2.73 | 0.00 | 0.27 | 1.90 | 4.14 | 1.49 |
| FCF Conversion (FCF/Net Income) | 0.28x | 0.52x | 2.13x | 3.51x | -0.14x | 0.84x | -0.74x | -0.31x | 0.54x | 1.87x | 2.39x | 1.34x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in recent financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -6.83 in 2025Q2 to 5.52 in 2025Q3, indicating that reported earnings are poor proxies for actual cash generation capabilities.
The extreme variance in the OCF/NI ratio suggests that accrual-based accounting significantly obscures the underlying cash reality of the business. Investors should interpret these fluctuations as evidence that working capital swings, rather than core operational profitability, dictate the company's short-term liquidity profile.
Based on HBB's reported figures, free cash flow margins have demonstrated significant volatility, ranging from a negative 24.5% in 2025Q2 to a positive 14.6% in 2024Q1, which underscores the difficulty in maintaining consistent cash conversion throughout the annual retail cycle.
The lack of a stable FCF trajectory suggests that the company's cash generation is highly sensitive to seasonal inventory builds and retail demand timing. This inconsistency warrants caution, as it implies that the business may struggle to fund internal growth initiatives without relying on external credit facilities.
According to quarterly cash flow data, working capital changes are the primary driver of liquidity swings, evidenced by a massive $36.6M outflow in 2025Q2 followed by a $5.9M inflow in 2025Q3, reflecting the company's vulnerability to retail inventory destocking and replenishment cycles.
The significant magnitude of these working capital shifts suggests that HBB's cash flow is essentially a function of retail channel inventory management. This dependency implies that any disruption in retailer purchasing patterns will have an immediate and disproportionate impact on the company's available cash reserves.
As indicated by recent SEC filings, HBB consistently allocates cash toward dividends and share repurchases despite volatile operating cash flows, with quarterly dividend payments remaining steady at $1.6M even during periods of negative cash generation, such as the $31.3M FCF deficit in 2025Q2.
This commitment to shareholder returns during periods of cash burn suggests a management team focused on maintaining investor confidence rather than preserving liquidity for growth. Investors should monitor whether this capital allocation strategy remains sustainable if the current revenue deceleration persists into future fiscal periods.
Quick answers to the most common questions about buying HBB stock.
Hamilton Beach Brands Holding Company (HBB) generated $13.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hamilton Beach Brands Holding Company (HBB) generated $11.0M 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.
Hamilton Beach Brands Holding Company (HBB) spent $0.0M 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, Hamilton Beach Brands Holding Company (HBB) returned $6.4M to shareholders via cash dividends and spent $9.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.