Cash generation remains inconsistent, evidenced by an operating cash flow to net income ratio of 0.67 in 2024Q4 and a free cash flow margin that has fluctuated from 168.1% in 2022Q4 to 6.5% in 2024Q4.
| Cash from Operations | 61.35M | 14.39M | 545.82K | 20.84M | 15.5M | 80.42M | 83M | 213.72M | 24.74M |
| Operating CF Margin % | - | 24.37% | 2.33% | 41.76% | 46.89% | 40.54% | 42.34% | 128.51% | 169.99% |
| Operating CF Growth % | -100% | 2536.02% | -97.38% | 34.44% | -80.73% | -3.1% | -61.17% | 763.94% | - |
| Net Income | 161.46M | 98.67M | 5.46M | 63.88M | 41.74M | 215.72M | 178.09M | 151.34M | 17.6M |
| Depreciation & Amortization | 6.25M | 9.49M | 725.45K | 2.88M | 1.99M | 6.64M | 4.9M | 0 | 0 |
| Stock-Based Compensation | 269.46K | 0 | 11.06K | 165.99K | 244K | 8.93M | 931.71K | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -115.17M | -90.9M | -5.61M | -91.63M | -26.24M | -196.6M | -42.75M | 52.7M | -13.59M |
| Working Capital Changes | 65.41M | -2.87M | -43.84K | 45.55M | -2.23M | 45.74M | -58.17M | 9.68M | 20.73M |
| Change in Receivables | -3.21M | -5.19M | -105.82K | -339.98K | -4.27M | 30.08M | -58.4M | 6.02M | -4.25M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 3.28M | 88.85K | 0 | 173K | 0 | 0 | 0 | 0 |
| Cash from Investing | -103.37M | -31.14M | -9.71M | -38.84M | -119.49M | -385.56M | 128.33M | -674.4M | -3.07B |
| Capital Expenditures | -48.83K | -60K | -20.44K | -34K | -2K | -47.08K | -170.81K | 0 | 0 |
| CapEx % of Revenue | 0.06% | 0.1% | 0.09% | 0.07% | 0.01% | 0.02% | 0.09% | - | - |
| Acquisitions | 3.87M | -928K | 1.1M | 3.87M | 3.86M | 0 | 20.75M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 19.31M | -30.16M | -10.74M | -42.68M | -175.98M | -385.51M | 107.74M | -674.4M | -3.07B |
| Cash from Financing | -11.4M | 2.27M | -4.6M | -593.9K | 243.46M | 0 | 7.9M | 651.1M | 2.68B |
| Debt Issued (Net) | 0 | 0 | 2.31M | 0 | 15.02M | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 13.22M | 0 | 0 | 229.19M | 0 | 3.5M | 115.88M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -11.4M | -10.94M | -6.92M | -593.9K | -742K | 0 | 4.41M | 535.22M | 2.68B |
| Net Change in Cash | 283.4M | -14.5M | -13.79M | 120.5M | 139.32M | -308.31M | 219.89M | 190.49M | 5.76M |
| Free Cash Flow | 120.33M | 14.33M | 525.38K | 42.68M | 15.5M | 80.38M | 82.83M | 213.72M | 24.55M |
| FCF Margin % | 138.25% | 24.27% | 2.24% | 85.54% | 46.89% | 40.52% | 42.25% | 128.51% | 168.72% |
| FCF Growth % | - | 2627.18% | -98.77% | 175.39% | -80.72% | -2.96% | -61.25% | 770.43% | - |
| FCF per Share | 0.63 | 0.05 | 0.00 | 0.22 | 0.08 | 0.48 | 0.63 | 1.21 | 0.13 |
| FCF Conversion (FCF/Net Income) | 0.75x | 0.26x | 0.01x | 0.33x | 0.37x | 0.37x | 0.47x | 1.42x | 1.41x |
| Interest Paid | 52.82M | 0 | 0 | 52.82M | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Non-operating income dependency
As reported in recent financial statements, AMTD Digital's operating cash flow to net income ratio of 0.67 in 2024Q4 highlights a persistent disconnect between accounting profits and actual cash generation, suggesting that a significant portion of reported earnings may not be realized in liquid form.
The consistent failure of operating cash flow to match net income levels indicates that the company's profitability is heavily influenced by non-cash accounting adjustments rather than core operational performance. Investors should monitor this divergence, as it implies that the company's reported earnings may overstate its true ability to generate cash from its ecosystem solutions.
Based on historical data, the company's free cash flow margin has fluctuated wildly, dropping from 168.1% in 2022Q4 to 6.5% in 2024Q4, which suggests that the business model lacks the predictable cash flow generation typically associated with stable software-as-a-service or platform-based technology providers.
The sharp decline in free cash flow margins appears to mirror the broader contraction in the company's core revenue segments. This volatility warrants further investigation into whether the company can sustain its current operational scale without relying on external capital or non-recurring investment gains.
According to recent SEC filings, the company recorded a $42.6 million positive working capital adjustment in 2024Q4, a figure that significantly bolstered operating cash flow and suggests that timing differences in collections or payables are playing a disproportionate role in the company's reported cash position.
Such large, periodic swings in working capital often mask the underlying cash-generating capacity of the business. Analysts should be cautious, as these fluctuations may be temporary and could reverse in future periods, potentially putting pressure on the company's liquidity.
Based on reported figures, the company's reliance on non-operating investment activities to drive net income creates a misleading picture of its cash flow health, as the cash flow statement reveals that core operational activities are not the primary source of the company's liquidity.
The cash flow statement obscures the fact that the company's financial health is tied more to the valuation of its investment portfolio than to the success of its digital ecosystem. This dependency suggests that the company's cash flow profile is highly sensitive to market volatility, which may not be apparent from the income statement alone.
Quick answers to the most common questions about buying HKD stock.
AMTD Digital Inc. (HKD) generated $14.4M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
AMTD Digital Inc. (HKD) generated $14.3M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
AMTD Digital Inc. (HKD) spent $0.1M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.