Cash flow generation remains highly inconsistent, with free cash flow margins swinging from a positive 7.5% in 2024Q4 to a negative 4.3% in 2024Q2.
| Cash from Operations | 33.82M | 25.48M | 22.64M | -1.65M | 35.4M | 17.51M | 45.69M | 4.67M | 11.95M | 15.29M | 4.55M |
| Operating CF Margin % | - | 2.07% | 1.88% | -0.14% | 3.02% | 2.2% | 8.06% | 1.2% | 4.11% | 5.17% | 1.63% |
| Operating CF Growth % | 224.7% | 12.56% | 1473.54% | -104.66% | 102.16% | -61.68% | 879.16% | -60.96% | -21.81% | 235.66% | - |
| Net Income | -35.97M | -38.84M | -48.1M | -2.66M | 235K | 22.82M | -343.22M | 5.39M | 6.35M | 10.08M | 4.72M |
| Depreciation & Amortization | 29.14M | 28.38M | 26.68M | 25.92M | 24.94M | 19.13M | 18.92M | 5.07M | 2.13M | 2M | 1.89M |
| Stock-Based Compensation | 766K | 1.76M | 2.09M | 3.35M | 1.26M | 635K | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -4.63M | -5.58M | 364K | -5.42M | -5.01M | -6.87M | -5.92M | -250.71K | 641.92K | -125.85K | 0 |
| Other Non-Cash Items | 43.45M | 44.59M | 44.11M | -482K | 9.91M | -2.72M | 340.99M | 2.31M | 91K | 195.99K | -2.85M |
| Working Capital Changes | 1.89M | -4.82M | -2.5M | -22.36M | 4.07M | -15.48M | 34.92M | -7.85M | 2.73M | 3.13M | 802.35K |
| Change in Receivables | -8.53M | -11.53M | -6.41M | -4.13M | -8.54M | -9.98M | 26.48M | -3.27M | -502.35K | 462.88K | 3.66M |
| Change in Inventory | -1.14M | -8.85M | 7.83M | 14.67M | -3.75M | -19.43M | 19M | 1.11M | 493.46K | 850.37K | 408.47K |
| Change in Payables | 12.77M | 24.04M | -1.37M | -5.03M | 14.79M | 12.61M | -14.1M | -3.6M | 45.91K | 251.58K | 0 |
| Cash from Investing | -28.76M | -20.37M | -12.55M | -1.51M | -50.79M | -41.08M | -94.41M | 2.78M | -6.37M | -5.47M | -429.13K |
| Capital Expenditures | -30.68M | -18.92M | -12.55M | -3.51M | -6.29M | -2.21M | -664K | -4.84M | -3.08M | -2.26M | -2.78M |
| CapEx % of Revenue | 2.47% | 1.54% | 1.04% | 0.31% | 0.54% | 0.28% | 0.12% | 1.25% | 1.06% | 0.77% | 0.99% |
| Acquisitions | 3.39M | 0 | -49K | 0 | -52.29M | -42.84M | -94M | 7.3M | 1.43M | 31.07K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -1.48M | -1.46M | 48K | 2M | 7.79M | 3.25M | 257K | 306.75K | -4.72M | -3.23M | 2.35M |
| Cash from Financing | -10.1M | -10.93M | -10.85M | -5.89M | 24.89M | 28.78M | 43.76M | 1.61M | -6.18M | -9.69M | -2.46M |
| Debt Issued (Net) | -10.43M | -10.78M | -10.18M | -4.62M | 25.38M | 25.65M | 44.05M | 1.91M | -5.02M | 696.57K | 984.53K |
| Equity Issued (Net) | 275K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | -500K | -884K | -187K | -338K | -175K | -302.5K | -1.16M | -8.58M | -5.39M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 57K | -156K | -175K | -394K | -304K | 3.47M | -113K | 0 | 0 | -1.8M | 1.94M |
| Net Change in Cash | -5.04M | -5.83M | -765K | -9.06M | 9.5M | 5.21M | -4.96M | 9.05M | -596.64K | 129.9K | 1.67M |
| Free Cash Flow | 3.14M | 6.56M | 10.09M | -5.16M | 29.11M | 15.3M | 45.03M | -169.4K | 8.88M | 13.02M | 1.78M |
| FCF Margin % | 0.25% | 0.53% | 0.84% | -0.45% | 2.49% | 1.92% | 7.94% | -0.04% | 3.05% | 4.41% | 0.64% |
| FCF Growth % | -34.85% | -34.96% | 295.45% | -117.73% | 90.21% | -66.01% | 26681.46% | -101.91% | -31.82% | 632.33% | - |
| FCF per Share | 0.06 | 0.12 | 0.19 | -0.10 | 0.54 | 0.29 | 0.86 | -0.01 | 0.42 | 0.58 | 17.78 |
| FCF Conversion (FCF/Net Income) | -0.09x | -0.66x | -0.47x | 0.76x | 76.95x | 0.79x | -0.13x | 0.87x | 1.90x | 1.58x | 0.97x |
| Interest Paid | 0 | 0 | 11.62M | 10.41M | 6.23M | 3.18M | 4.12M | 0 | 1.34M | 1.27M | 0 |
| Taxes Paid | 0 | 0 | 2.51M | 4.04M | 8.65M | 9.53M | 804K | 0 | 2.06M | 288.91K | 0 |
Thin operating margin volatility
As reported in recent financial filings, HFFG exhibits a significant disconnect between net income and operating cash flow, with OCF/NI ratios frequently reaching extreme levels, such as the -546.06 observed in 2024Q2, suggesting that reported earnings are not a reliable proxy for actual cash generation.
The extreme volatility in the OCF/NI ratio indicates that non-cash charges and working capital swings are masking the underlying cash-generating capacity of the business. Investors should monitor this divergence closely, as it suggests that the company's accounting earnings are heavily influenced by items that do not translate into immediate liquidity.
Based on the provided cash flow data, HFFG's free cash flow trajectory remains highly erratic, with quarterly FCF margins swinging from a positive 7.5% in 2024Q4 to a negative 4.3% in 2024Q2, reflecting the inherent instability of the company's current high-volume, low-margin distribution model.
The inability to maintain consistent positive free cash flow suggests that the company's core operations are struggling to cover both maintenance capital requirements and corporate overhead. This inconsistency may indicate that the business is perpetually in a state of operational catch-up rather than sustainable value creation.
According to quarterly cash flow statements, HFFG's working capital changes are a primary driver of cash flow volatility, with swings ranging from a $16.2M inflow in 2024Q4 to a $12.8M outflow in 2024Q3, highlighting the difficulty in managing inventory and receivables in a fragmented market.
These large fluctuations in working capital suggest that the company's cash position is highly sensitive to the timing of inventory procurement and customer collections. Such volatility implies that management may be struggling to optimize its cash conversion cycle, which is critical for a business operating on razor-thin margins.
As indicated by the provided data, HFFG's capital expenditure as a percentage of revenue has fluctuated between 0.9% and 4.9%, suggesting that the company must periodically commit significant capital to maintain its distribution infrastructure, which further pressures the already limited free cash flow available to shareholders.
The periodic spikes in CapEx, such as the $15.3M outlay in 2026Q1, suggest that the company is forced to reinvest heavily to keep its logistics network functional. This capital intensity, combined with low operating margins, limits the company's ability to self-fund growth or return capital to investors.
Quick answers to the most common questions about buying HFFG stock.
HF Foods Group Inc. (HFFG) generated $25.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
HF Foods Group Inc. (HFFG) generated $6.6M 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.
HF Foods Group Inc. (HFFG) spent $18.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.