Free cash flow remains erratic, highlighted by a significant $7.7 million working capital outflow in 2024Q4 and a negative $2.7 million FCF result in 2026Q1.
| 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 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 1.34M | 6.14M | 7.75M | 13.02M | 6.48M | -2.63M | 9.15M | 794K | 7.47M | 1.18M | 3.91M | -836K | 621K | 2.26M | -4.8M | 4.05M | 4.55M | -7.84M | 5.68M | -1.28M | -2.47M | -14.84M | -10.25M | -8.31M | -4.87M | -29.28M | 1.87M | -10.38M | -16.8M | -12M | -4.8M |
| Operating CF Margin % | - | 12.04% | 17.07% | 21.51% | 13.82% | -10.2% | 34.94% | 3.03% | 31.57% | 5.87% | 16.42% | -4.8% | 3.11% | 25.43% | -33.99% | 23.5% | 139.47% | -130.9% | 32.23% | - | - | - | -9.06% | -6.12% | -5.53% | -52.3% | 6.15% | -31.83% | -65.63% | -85.11% | -2400% |
| Operating CF Growth % | -221.4% | -20.76% | -40.52% | 100.85% | 346.41% | -128.76% | 1052.14% | -89.37% | 531.98% | -69.8% | 568.18% | -234.62% | -72.53% | 147.08% | -218.54% | -11.06% | 158.08% | -238.06% | 543.4% | 48.05% | 83.38% | -44.75% | -23.3% | -70.69% | 83.36% | -1666.47% | 118.01% | 38.2% | -40% | -150% | -1700% |
| Net Income | 3.24M | 3.59M | 5.18M | 12.47M | 15.49M | 3.05M | 9.66M | 3.9M | 3.75M | -249K | 14K | -10.42M | -26.51M | -6.4M | -1.81M | 30.71M | 6.21M | -1.2M | 5.84M | -639K | -7.68M | -18.49M | -22.78M | -26.32M | -24.03M | -44.5M | -25.75M | -24.66M | -28M | -29.9M | -23.1M |
| Depreciation & Amortization | 1.4M | 682K | 1.25M | 514K | 536K | 460K | 362K | 305K | 319K | 313K | 316K | 575K | 566K | 472K | 407K | 2K | 0 | 0 | 20K | 20K | 3.17M | 6.22M | 10.58M | 8.07M | 9.6M | 11.69M | 6.94M | 9.86M | 12.8M | 7.4M | 1.1M |
| Stock-Based Compensation | 620K | 900K | 1.25M | 776K | 540K | 408K | 353K | 283K | 289K | 246K | 99K | 358K | 484K | 532K | 1.65M | 296K | 46K | 71K | 85K | 166K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 1.24M | 1.61M | 3.11M | 418K | -4.96M | -86K | -4.03M | -800K | 0 | 0 | 44K | 8.57M | 0 | 0 | 0 | -26.36M | 0 | 0 | -484K | -1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -72K | 329K | -3.04M | -160K | -6.15M | 752K | -3.23M | -262K | -157K | 2.11M | 157K | 152K | 968K | -571K | 735K | 73K | 195K | 333K | 85K | 1.33M | 3.09M | -2.97M | 7.55M | 8.83M | 13.97M | 10.42M | 853.76K | 5.56M | 3.2M | 8.3M | 17.9M |
| Working Capital Changes | -5.08M | -967K | 0 | -1M | 1.03M | -7.22M | 6.03M | -2.63M | 3.27M | -1.24M | 3.28M | -74K | 25.12M | 8.22M | -5.78M | -669K | -1.9M | -7.05M | 135K | -1.16M | -1.05M | 401K | -5.6M | 1.11M | -4.41M | -6.9M | 19.83M | -1.14M | -4.8M | 2.2M | -700K |
| Change in Receivables | -87K | -322K | 351K | -931K | 1.74M | -826K | 363K | -1.46M | -16K | 863K | -601K | 216K | 619K | -602K | 728K | -362K | 854K | -1.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -267K | -583K | -274K | -455K | -1.4M | -2.49M | -131K | 2.3M | -2.23M | 93K | 3.85M | -211K | 9K | 242K | -4.33M | 1.02M | -2.45M | -1.95M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -1.85M | 476K | 1.19M | -1.44M | 866K | -3.1M | 5.5M | 144K | 0 | 0 | 75K | -378K | -26K | 2.06M | 817K | -1.08M | -272K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -5.82M | -9.39M | 10.87M | -15.87M | -7.52M | -10.2M | 4.51M | -1.16M | -2.85M | -44K | -79K | 2.69M | -1.48M | 773K | -2.14M | -213K | 444K | -2.27M | 664K | 662K | 0 | -127K | 2.85M | -1.83M | -9.23M | -15.41M | -6.88M | -1.59M | -1.6M | -1.4M | -2.6M |
| Capital Expenditures | -1.62M | -8.47M | -137K | -257K | -215K | -1.43M | -7K | -116K | -99K | -44K | -99K | -9K | -127K | -10K | -28K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -731K | -2.14M | -1.65M | -1.96M | -6.91M | -2.05M | -3.3M | -1.9M | -700K |
| CapEx % of Revenue | 3.23% | 16.61% | 0.3% | 0.42% | 0.46% | 5.53% | 0.03% | 0.44% | 0.42% | 0.22% | 0.42% | 0.05% | 0.64% | 0.11% | 0.2% | - | - | - | - | - | - | - | 0.65% | 1.57% | 1.87% | 3.51% | 22.73% | 6.28% | 12.89% | 13.48% | 350% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 19.44M | 21.06M | 20.89M | 21.36M | 13.97M | 4.68M | 2.4M | 2.52M | 2.77M | 14K | 0 | 17K | 1.13M | 3.15M | 6.04M | 6.23M | 6.25M | 6.73M | 242K | 519K | 0 | 0 | 1.1B | 1.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 1.31M | -921K | 8.05M | -8.04M | 11.3M | -1.85M | 2.03M | -2.06M | 2.75M | 0 | 20K | -999K | 729K | 56K | 61K | -175K | 0 | 0 | 0 | 0 | 0 | -127K | 0 | 160K | 691.51K | 233.79K | 29.54K | 462.65K | 400K | 400K | 0 |
| Cash from Financing | -2.75M | 2.03M | -9.15M | 2.46M | 78K | 3.06M | 7M | -1.18M | -2.46M | -1.56M | -4.09M | -2.68M | 1.28M | -4.13M | 4.58M | 226K | -2.48M | 6.13M | -2.33M | 683K | 2.14M | 15.25M | 5.83M | 8.55M | 13.06M | 47.2M | 4.17M | 13.59M | 18.1M | 10.6M | 11.8M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -1.73M | -2.63M | -2.2M | -364K | -329K | 221K | 7.54M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.82M | 0 | -126K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15.58K | 4.34M | 7.12M | 10.1M | 6.7M | 12.3M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -766K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.73M | -2.63M | -2.2M | -400K | -395K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -126K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1K | -80K | -117K | -122K | -44K | -987K | -102K | 0 | -2.54M | -896K | -812K | -513K | 0 | 5.32M | -3.17M | 16K | 0 | 237K | 0 | 0 | 0 | 3.16M | -11.32M | 659K | 498K | 0 | -24.2K | 0 | -100K | 0 | 0 |
| Net Change in Cash | -7.22M | -1.23M | 9.47M | -388K | -955K | -9.76M | 20.66M | -1.54M | 2.16M | -421K | -247K | -856K | 420K | -1.1M | -2.36M | 4.06M | 2.52M | -3.98M | 4.01M | 64K | -324K | 283K | -1.57M | -1.59M | -1.04M | 2.51M | -840.38K | 1.63M | 18.1M | 10.6M | 11.8M |
| Free Cash Flow | -280K | -2.33M | 7.61M | 12.76M | 6.27M | -4.06M | 9.14M | 678K | 7.37M | 1.14M | 3.81M | -845K | 494K | 2.25M | -4.83M | 4.05M | 4.55M | -7.84M | 5.68M | -1.28M | -2.47M | -14.84M | -10.98M | -10.45M | -6.52M | -31.25M | -5.04M | -12.43M | -20.1M | -13.9M | -5.5M |
| FCF Margin % | -0.56% | -4.58% | 16.77% | 21.08% | 13.36% | -15.73% | 34.91% | 2.59% | 31.15% | 5.65% | 16.01% | -4.85% | 2.47% | 25.31% | -34.19% | 23.5% | 139.47% | -130.9% | 32.23% | - | - | - | -9.71% | -7.69% | -7.4% | -55.81% | -16.58% | -38.11% | -78.52% | -98.58% | -2750% |
| FCF Growth % | 79.4% | -130.67% | -40.39% | 103.64% | 254.54% | -144.37% | 1248.23% | -90.8% | 547.72% | -70.17% | 551.48% | -271.05% | -78.05% | 146.6% | -219.23% | -11.06% | 158.08% | -238.06% | 543.4% | 48.05% | 83.38% | -35.12% | -5.09% | -60.28% | 79.13% | -519.76% | 59.44% | 38.16% | -44.6% | -152.73% | -1933.33% |
| FCF per Share | -0.01 | -0.07 | 0.20 | 0.34 | 0.17 | -0.11 | 0.28 | 0.02 | 0.26 | 0.04 | 0.13 | -0.03 | 0.02 | 0.08 | -0.17 | 0.15 | 0.20 | -0.35 | 0.25 | -0.06 | -0.13 | -0.77 | -0.57 | -1.79 | -1.12 | -6.30 | -3.78 | -10.29 | -22.73 | -26.47 | -12.81 |
| FCF Conversion (FCF/Net Income) | -0.09x | 1.71x | 1.49x | 1.04x | 0.42x | -0.86x | 0.95x | 0.20x | 1.99x | -4.75x | 279.57x | 0.08x | -0.02x | -0.35x | 2.65x | 0.13x | 0.94x | 6.20x | 0.97x | 1.99x | 0.32x | 0.80x | 0.45x | 0.26x | 0.17x | 0.66x | -0.07x | 0.42x | 0.60x | 0.40x | 0.21x |
| Interest Paid | -8K | 0 | 91K | 411K | 103K | 22K | 43K | 74K | 249K | 3K | 187K | 178K | 168K | 490K | 256K | 198K | 0 | 42K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 691K | 0 | 640K | 848K | 297K | 116K | 143K | 290K | 56K | 23K | 30K | 75K | 55K | 41K | 364K | 204K | 0 | 96K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Principal inventory acquisition volatility
According to recent financial disclosures, HGBL's operating cash flow frequently diverges from net income, with the OCF/NI ratio hitting a volatile -3.03 in 2026Q1, suggesting that reported profits are often not supported by actual cash generation due to significant shifts in working capital and accrual-based accounting.
The wide variance between net income and operating cash flow indicates that earnings are heavily influenced by non-cash items and timing differences in asset liquidations. Investors should monitor whether this disconnect reflects genuine operational efficiency or merely the lumpy nature of principal-based revenue recognition.
As reported in quarterly filings, HGBL's free cash flow trajectory is highly inconsistent, swinging from a peak of $6.0 million in 2024Q2 to a deficit of $5.5 million in 2024Q4, which highlights the company's struggle to maintain stable cash generation amidst its project-based business model.
The lack of a predictable FCF trend suggests that the company's cash flow is highly sensitive to the timing of large-scale industrial auctions. This volatility makes it difficult to rely on FCF as a consistent indicator of long-term value creation without adjusting for the cyclical nature of asset sales.
Based on the provided cash flow statements, working capital changes are a primary driver of cash flow instability, with a significant $7.7 million outflow in 2024Q4, indicating that the company's cash position is heavily dependent on the timing of inventory procurement and the subsequent collection of auction proceeds.
These large swings in working capital suggest that HGBL's cash cycle is susceptible to the timing of major facility liquidations. The reliance on principal-heavy transactions means that inventory build-up can rapidly consume cash, necessitating careful monitoring of the company's ability to convert these assets into liquidity.
As evidenced by recent financial statements, HGBL has directed significant capital toward acquisitions and share repurchases, including a $8.5 million net acquisition outflow in 2026Q1, signaling that management is actively deploying cash to expand its footprint rather than returning capital to shareholders through dividends.
The aggressive use of cash for acquisitions suggests a strategy focused on scaling the platform's reach in specialized industrial and financial asset markets. While this may drive future growth, it also increases the company's exposure to integration risks and the potential for capital misallocation if recovery values on acquired assets underperform.
Quick answers to the most common questions about buying HGBL stock.
Heritage Global Inc. (HGBL) generated $6.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Heritage Global Inc. (HGBL) reported negative free cash flow of $2.3M in 2025, indicating capital requirements exceeded cash from operations.
Heritage Global Inc. (HGBL) spent $8.5M 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, Heritage Global Inc. (HGBL) spent $2.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.