Cash flow generation remains inconsistent, evidenced by a negative OCF/NI ratio of -0.16 and a free cash flow margin that plummeted to -29.6% in 2025Q2.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Cash from Operations | -32.56M | -64.83M | 497K | 219.26M | -268.6M | -204.22M | -62.07M | -80.91M | -32.85M | -8.94M | -9.57M | -9.38M | 13.36M | 5.03M | 15.66M | 5.2M | -19.82M | 11.63M | -14.27M | -8.6M | -3.64M | -13.6M |
| Operating CF Margin % | - | -11.79% | 0.08% | 26.16% | -62.99% | -57.35% | -27.22% | -39.49% | -15.34% | -3.71% | -4.43% | -5.27% | 15.3% | 10.94% | 70.02% | 3.15% | -14.73% | 10.48% | -16.4% | -13.2% | -7.21% | -35.91% |
| Operating CF Growth % | 1162.87% | -13143.86% | -99.77% | 181.63% | -31.52% | -229.04% | 23.29% | -146.33% | -267.29% | 6.54% | -1.96% | -170.25% | 165.71% | -67.89% | 201.08% | 126.25% | -270.44% | 181.5% | -65.95% | -136.31% | 73.24% | - |
| Net Income | 466.88M | 458.12M | 37.73M | 100.78M | -360.39M | -167.04M | -115.52M | -103.68M | -71.29M | -22.96M | 14.56M | 10.43M | 7.28M | 7.04M | 3.54M | 5.39M | -2.21M | -4.61M | -14.23M | -9.72M | -5.38M | -5.73M |
| Depreciation & Amortization | 12.21M | 13.34M | 12.34M | 8.21M | 8.66M | 7.19M | 6.06M | 4.94M | 3.59M | 2.58M | 2.34M | 2.02M | 1.26M | 963K | 4.05M | 4.56M | 4.58M | 4.57M | 4.65M | 3.8M | 2.87M | 2.32M |
| Stock-Based Compensation | 17.99M | 15.29M | 21.61M | 36.6M | 30.59M | 41.99M | 19.64M | 11.59M | 10.13M | 4.74M | 3.44M | 1.46M | 868K | 357K | 752K | 943.34K | 278.69K | 150.37K | 955.12K | 2.46M | 2.37M | 0 |
| Deferred Taxes | 0 | 0 | 0 | -102.76M | 0 | -115.14M | 552K | -10.27M | 17.68M | 20.82M | -33.22M | -15.56M | 1.41M | 1.05M | -8.83M | 0 | -1.9M | -1.09M | -4M | -12.1M | -5.81M | 0 |
| Other Non-Cash Items | -497.11M | -490.56M | -9.01M | 105.28M | -6.17M | -3.68M | -2.08M | 394K | 895K | -11.68M | 92K | 2.5M | -5.75M | -32K | 630K | -3.21M | 416.48K | 242.53K | 1.2M | 5.48M | 2.37M | -875.63K |
| Working Capital Changes | -32.53M | -61.02M | -62.17M | 71.15M | 58.7M | 32.46M | 29.27M | 16.11M | 6.14M | -2.44M | 3.22M | -10.23M | 8.29M | -4.35M | 15.52M | -2.49M | -20.98M | 12.37M | -2.84M | 1.48M | -51.05K | -9.31M |
| Change in Receivables | 9.93M | 28.94M | -41.57M | -21.34M | -14.45M | -35.63M | -4.69M | -553K | -486K | 2.52M | -7.26M | -12.03M | 5.46M | -3.94M | 7.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -2.31M | 9.57M | -772K | 4.13M | -21.21M | -16M | -3.62M | -4.21M | -557K | 1.05M | -3.43M | -5.15M | 167K | -55K | -72K | -2.24M | -9.33M | -2.83M | -3.22M | -2.42M | -184.55K | -2.38M |
| Change in Payables | 0 | 3.02M | 0 | -32.54M | 29.94M | 9.56M | 7.65M | -1.66M | 0 | 0 | 9.82M | 3.66M | 2.17M | 980K | 2.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -73.03M | -29.49M | -96.06M | -291.14M | 296.59M | -306.32M | -125.44M | 119.03M | 43.75M | -260.78M | -33.6M | 8.86M | -20.22M | -2.5M | -11.98M | -5.78M | -10.98M | -7.62M | -2.16M | -6.3M | -2.18M | -27.87M |
| Capital Expenditures | -17.09M | -24.21M | -17.93M | -32.61M | -36.66M | -16.76M | -19.58M | -8.56M | -6.36M | -5.02M | -4.33M | -3.32M | -3.73M | -2.5M | -12.08M | -6.3M | -8.71M | -7.5M | -3.4M | -7.24M | -2.63M | -1.78M |
| CapEx % of Revenue | 2.84% | 4.4% | 2.85% | 3.89% | 8.6% | 4.71% | 8.59% | 4.18% | 2.97% | 2.08% | 2% | 1.87% | 4.27% | 5.44% | 54.01% | 3.82% | 6.47% | 6.76% | 3.91% | 11.12% | 5.21% | 4.7% |
| Acquisitions | 0 | 28.07K | 0 | -2.99M | 324K | 159.12M | 0 | 8.69M | 0 | 0 | 0 | 0 | 689K | 0 | 0 | 385.42K | -2.66M | -405.84K | 0 | 0 | -19.63K | -14.52M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -55.94M | 0 | 1.28M | 29.5M | 16.49M | 930K | -2.33M | 0 | 0 | 0 | 0 | -12.18M | -5M | 0 | 103K | 136.76K | 225.46K | 291.04K | 1.24M | 937.6K | 29.45K | -11.57M |
| Cash from Financing | 11.22M | 7.86M | -30.67M | 48.66M | -82.76M | 650.03M | 296.43M | -1.49M | -8.23M | 273.2M | 92.44M | -5.47M | -641K | 13.12M | 4.17M | 7.88M | 33.96M | -672.63K | 1.07M | -2.66M | 70.66M | 30.34M |
| Debt Issued (Net) | 0 | 6.27M | 5.61M | 61.7M | -9.17M | -579.77K | 35.06K | -182K | -3.08M | -16.95M | -3.08M | -3.21M | -3.07M | 13.69M | 9.08M | 7.54M | 16.24M | 651.61K | 603.69K | -945.94K | -563.47K | 13.76K |
| Equity Issued (Net) | 0 | 1.58M | -35.27M | -3.98M | -47.91M | 690.01M | 306.03M | -346K | -1.58M | 291.74M | 96.88M | -1.79M | 2.8M | 7K | -5.89M | 0 | 779.72K | 90.55K | 0 | 38.15K | 68.62M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | -87.44M | -99.74M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -538K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -36.06M | -9.07M | -48.08M | -27.31M | -12.9M | -346K | -5.45M | -1.37M | -604K | -1.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 11.22M | 0 | -1M | -9.07M | 61.75M | 60.34M | -9.63M | -965K | -3.57M | -1.59M | -1.37M | -480K | -370K | -577K | 1.52M | 339.73K | 16.94M | -1.41M | 462.25K | -1.75M | 2.6M | 30.33M |
| Net Change in Cash | -203.95M | -82.63M | -129.63M | -29.69M | -64.26M | 141.91M | 114.47M | 35.12M | 771K | 5.83M | 47.49M | -7M | -7.92M | 16.1M | 8.25M | 8.45M | 3.56M | 3.55M | -15.14M | -17.27M | 65M | -10.66M |
| Free Cash Flow | -49.66M | -79.01M | -17.44M | 186.65M | -305.26M | -220.98M | -81.65M | -89.48M | -39.21M | -13.96M | -13.9M | -12.71M | 9.63M | 2.53M | 3.58M | -1.1M | -28.52M | 4.12M | -17.66M | -15.83M | -6.26M | -15.38M |
| FCF Margin % | -8.25% | -14.37% | -2.77% | 22.27% | -71.59% | -62.05% | -35.81% | -43.67% | -18.31% | -5.79% | -6.43% | -7.13% | 11.03% | 5.5% | 16.01% | -0.67% | -21.2% | 3.71% | -20.31% | -24.32% | -12.42% | -40.62% |
| FCF Growth % | 24% | -353.16% | -109.34% | 161.14% | -38.14% | -170.66% | 8.75% | -128.19% | -180.84% | -0.47% | -9.34% | -231.96% | 280.97% | -29.39% | 424.91% | 96.14% | -791.77% | 123.34% | -11.56% | -152.75% | 59.26% | - |
| FCF per Share | -0.28 | -0.45 | -0.10 | 1.07 | -1.80 | -1.39 | -0.58 | -0.67 | -0.30 | -0.11 | -0.12 | -0.12 | 0.09 | 0.02 | 0.03 | -0.01 | -0.28 | 0.04 | -0.17 | -0.15 | -0.07 | -0.21 |
| FCF Conversion (FCF/Net Income) | -0.11x | -0.14x | 0.01x | 2.18x | 0.74x | 1.05x | 0.49x | 0.76x | 0.44x | 0.33x | -0.82x | -1.17x | -0.41x | 0.85x | 4.30x | 7.32x | 2.89x | -1.33x | 0.80x | 0.50x | 0.38x | 2.01x |
| Interest Paid | 2.51M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Lumpy milestone revenue dependency
As reported in recent financial statements, the OCF/NI ratio of -0.16 in 2025Q2 highlights a significant disconnect between accounting net income and actual cash generation, suggesting that reported profits are heavily influenced by non-cash accounting entries rather than sustainable operational cash inflows from core drug sales.
The stark divergence between net income and operating cash flow indicates that the company's profitability is currently driven by non-recurring milestone recognition rather than recurring commercial activity. Investors should monitor this trend, as the inability to convert accounting gains into cash suggests that the underlying business remains reliant on external capital or one-time events to fund its R&D-heavy cost structure.
Based on the provided cash flow data, free cash flow margins have swung from 37.9% in 2023Q1 to -29.6% in 2025Q2, illustrating that the company's cash trajectory is highly sensitive to the irregular timing of licensing payments and the ongoing expansion of its clinical trial pipeline.
The erratic nature of free cash flow suggests that the company has not yet achieved a self-sustaining commercial model. The negative FCF margins observed in recent quarters imply that the firm is currently consuming cash to support its global R&D ambitions, which warrants further investigation into the sustainability of its current funding runway.
According to the latest quarterly filings, working capital changes have frequently acted as a drag on cash flow, with a notable $15.7M outflow in 2025Q2, indicating that the company's operational efficiency is periodically hampered by the timing of receivables and inventory management within its distribution segment.
The volatility in working capital suggests that the 'Other Ventures' segment introduces operational complexity that can temporarily strain liquidity. Analysts should interpret these fluctuations as a sign that the company's cash position is susceptible to the payment cycles of its distribution partners, which may not always align with the company's R&D funding requirements.
As indicated by the reported figures, capital expenditures have remained relatively stable at approximately 3.3% of revenue in 2025Q2, suggesting that the company's current business model is not overly capital-intensive regarding physical infrastructure or manufacturing capacity at this stage of its development.
The low capital intensity implies that the company is prioritizing R&D and partnership-led growth over heavy investment in proprietary manufacturing facilities. While this preserves cash, it also suggests that the company's future success is almost entirely dependent on the clinical outcomes of its pipeline rather than the scale of its physical assets.
Quick answers to the most common questions about buying HCM stock.
HUTCHMED (China) Limited (HCM) generated $-64.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
HUTCHMED (China) Limited (HCM) reported negative free cash flow of $79.0M in 2025, indicating capital requirements exceeded cash from operations.
HUTCHMED (China) Limited (HCM) spent $24.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.