While the company reported a 34.9% FCF margin in 2023Q1, this performance is heavily reliant on $583.4M in working capital inflows rather than core operational profitability.
| Cash from Operations | 541.56M | 28.25M | 282.72M | 235.62M | 272.64M | 79.42M | 79.42M |
| Operating CF Margin % | - | 1.04% | 7.45% | 7.65% | 9.51% | 4.51% | 4.51% |
| Operating CF Growth % | 188.79% | -90.01% | 19.99% | -13.58% | 243.26% | - | - |
| Net Income | -280.46M | 358.73M | 385.53M | -108.65M | -233.43M | -316.04M | -316.04M |
| Depreciation & Amortization | 5.02M | 8.55M | 5.01M | 3.71M | 10.6M | 7.42M | 7.42M |
| Stock-Based Compensation | 0 | 20.5M | 27.76M | 191.63M | 291.43M | 101.83M | 101.83M |
| Deferred Taxes | 0 | 0 | 12.86M | -2.08M | -1.45M | 0 | 0 |
| Other Non-Cash Items | -475.54M | -331.32M | -8.45M | -9.28M | -5.01M | -1.96M | -1.96M |
| Working Capital Changes | 1.29B | -28.22M | -139.99M | 160.29M | 210.49M | 288.17M | 288.17M |
| Change in Receivables | -30.19M | -420.46K | 20.25M | -16.38M | 32.15M | -98.89M | -98.89M |
| Change in Inventory | 0 | -1.64M | -6.34M | 0 | 0 | 0 | 0 |
| Change in Payables | 330.73M | -3.68M | -28K | 16.92M | 2.63M | 62.14M | 62.14M |
| Cash from Investing | 2.06B | -4.65M | -132.78M | 201K | -108.58M | -62.35M | -62.35M |
| Capital Expenditures | -2.25M | -3.1M | -3.64M | -5.76M | -4.56M | -5.82M | -5.82M |
| CapEx % of Revenue | 0.11% | 0.11% | 0.1% | 0.19% | 0.16% | 0.33% | 0.33% |
| Acquisitions | 28.57M | -141.82M | -2M | 2M | 14.13M | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 298.29M | 140.27M | 4K | 22.39M | -15.15M | -27.53M | -27.53M |
| Cash from Financing | 39.69M | -13.65M | -130.19M | 247.7M | 71.63M | -21.09M | -21.09M |
| Debt Issued (Net) | -3.22M | -471.18K | 0 | 0 | -23.35M | 15.95M | 15.95M |
| Equity Issued (Net) | 0 | -2.5M | -127.94M | 245.45M | 0 | 0 | 0 |
| Dividends Paid | 0 | -10.82M | 0 | 0 | 0 | -37.04M | -37.04M |
| Share Repurchases | 0 | -3.57M | -130.41M | 0 | 0 | 0 | 0 |
| Other Financing | 42.9M | 154.24K | -2.25M | 2.25M | 94.98M | 0 | 0 |
| Net Change in Cash | 338.59M | 11.43M | 15.81M | 497.85M | 241.33M | -4.02M | -4.02M |
| Free Cash Flow | 539.31M | 27.82M | 279.08M | 229.87M | 268.08M | 43.8M | 43.8M |
| FCF Margin % | 26.14% | 1.02% | 7.35% | 7.46% | 9.35% | 2.49% | 2.49% |
| FCF Growth % | - | -90.03% | 21.41% | -14.25% | 512.06% | - | - |
| FCF per Share | 9.79 | 0.51 | 4.92 | 4.16 | 4.87 | 0.80 | 0.80 |
| FCF Conversion (FCF/Net Income) | -4.37x | 0.08x | 0.73x | -2.17x | -1.17x | -0.25x | -0.25x |
| Interest Paid | 0 | 47K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 6.86M | 22.27M | 14.76M | 0 | 0 |
Persistent Operating Losses
As reported in financial statements, HERE exhibits a significant divergence between net income and operating cash flow, with the OCF/NI ratio reaching -2.37 in 2023Q1, suggesting that reported losses are being heavily offset by non-operational cash inflows rather than core business profitability.
The extreme variance between net losses and positive operating cash flow indicates that the company's cash generation is not derived from its primary leisure operations. Investors should monitor whether these inflows are sustainable or if they represent temporary accounting adjustments that mask underlying operational weakness.
Based on the provided cash flow data, working capital changes have been the primary driver of liquidity, with a $583.4M inflow recorded in 2023Q1, which appears to be the sole factor preventing a significant cash burn despite the company's persistent net losses.
The heavy reliance on working capital fluctuations to generate cash suggests that the company may be aggressively managing payables or accelerating collections to maintain liquidity. This strategy warrants further investigation, as it may not be a repeatable source of cash in future periods.
According to recent SEC filings, HERE maintains an exceptionally low capital intensity, with CapEx/Rev ratios consistently below 0.2%, indicating that the company is spending very little on maintaining or expanding its asset base relative to its revenue generation.
While low capital expenditure preserves cash in the short term, it may indicate a lack of investment in the business's long-term competitive positioning. This approach appears to prioritize immediate liquidity over the necessary upgrades required to sustain operations in a competitive leisure market.
As indicated by the financial data, HERE reported a free cash flow of $230.4M in 2023Q1, representing a 34.9% FCF margin, yet this figure is heavily decoupled from the company's inability to generate positive net income during the same period.
The stability of FCF margins appears to be a byproduct of accounting timing rather than operational success. Analysts should be cautious in interpreting these figures as a sign of health, as the underlying business continues to struggle with profitability.
Quick answers to the most common questions about buying HERE stock.
Here Group Limited (HERE) generated $28.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Here Group Limited (HERE) generated $27.8M 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.
Here Group Limited (HERE) spent $3.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Here Group Limited (HERE) returned $10.8M to shareholders via cash dividends and spent $3.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.