Free cash flow conversion is highly unstable, with margins swinging from a negative 5.9% in 2025Q1 to a peak of 15.2% in 2023Q4.
| Cash from Operations | 211.03M | 105.19M | 183.34M | 238.03M | 119.01M | -110.25M | 92.08M | 52.36M | 7.55M |
| Operating CF Margin % | - | 6.78% | 12.45% | 16.12% | 8.01% | -7.73% | 6.73% | 4.31% | 0.77% |
| Operating CF Growth % | 16046.73% | -42.63% | -22.98% | 100.01% | 207.94% | -219.74% | 75.86% | 593.77% | - |
| Net Income | 35.89M | 40.3M | 17.25M | -9.59M | -16.44M | -38.33M | -24.5M | -85.48M | -58.68M |
| Depreciation & Amortization | 109M | 141.1M | 130.04M | 121.64M | 120.01M | 120.73M | 126.92M | 124.57M | 90.63M |
| Stock-Based Compensation | 11.47M | 14.25M | 13.46M | 12M | 13.52M | 15.26M | 5.13M | 2.98M | 1.59M |
| Deferred Taxes | -1.91M | 4.72M | -5.04M | -8.69M | -873K | -21.85M | -9.46M | -23.59M | 0 |
| Other Non-Cash Items | 106.85M | 4.85M | 15.44M | 24.95M | 2.43M | -22.04M | 1.18M | 13.65M | 40.07M |
| Working Capital Changes | -48.68M | -100.04M | 12.17M | 97.72M | 358K | -164.02M | -7.18M | 20.23M | -66.06M |
| Change in Receivables | -34.23M | -4.12M | -4.54M | -15.9M | 19.89M | 15.15M | -32.42M | 22.86M | 7.93M |
| Change in Inventory | -58.34M | -79.43M | 8.71M | 103.66M | 38.81M | -137.85M | -67.15M | -3.21M | -68.98M |
| Change in Payables | 16.13M | 1.69M | -7.78M | 8.03M | -53.76M | -20.25M | 76.03M | -11.97M | 0 |
| Cash from Investing | -119.98M | -70.35M | -143.4M | -67.85M | -72.82M | -90.45M | -46.07M | -53.49M | -572.61M |
| Capital Expenditures | -119.54M | -70.1M | -85.22M | -65.77M | -69.59M | -51.55M | -45.27M | -57.75M | -71.62M |
| CapEx % of Revenue | 7.65% | 4.52% | 5.79% | 4.45% | 4.68% | 3.62% | 3.31% | 4.76% | 7.35% |
| Acquisitions | 0 | 0 | -57.9M | -1.7M | -2.5M | -38.9M | -800K | -6.13M | -500.99M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -435K | -251K | -278K | -383K | -733K | 0 | 0 | 10.4M | 0 |
| Cash from Financing | -118.83M | -52.22M | -39.27M | -161.98M | -28.72M | 193.33M | -45.1M | -7.05M | 581.93M |
| Debt Issued (Net) | -89.3M | -40.2M | -48.06M | -162.92M | -33.11M | -627.8M | -52.44M | -6.49M | 606.03M |
| Equity Issued (Net) | -19.56M | -11.22M | 9.66M | 2.17M | 4.39M | 363.3M | 7.34M | 0 | -3.78M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -21.66M | -12.42M | 0 | 0 | 0 | 0 | 0 | 0 | -3.78M |
| Other Financing | -9.98M | -809K | -860K | -1.22M | 0 | 457.83M | 0 | -562K | -20.32M |
| Net Change in Cash | -8.58M | -17.23M | 5.96M | 7.47M | 16.48M | -6.92M | 1.55M | -8.26M | 18.3M |
| Free Cash Flow | 91.48M | 35.09M | 98.12M | 172.27M | 49.42M | -161.81M | 46.81M | -5.39M | -64.07M |
| FCF Margin % | 5.85% | 2.26% | 6.66% | 11.67% | 3.33% | -11.35% | 3.42% | -0.44% | -6.58% |
| FCF Growth % | 10.37% | -64.24% | -43.04% | 248.56% | 130.54% | -445.69% | 967.74% | 91.58% | - |
| FCF per Share | 0.47 | 0.18 | 0.49 | 0.88 | 0.26 | -1.20 | 0.52 | -0.03 | -117.57 |
| FCF Conversion (FCF/Net Income) | 2.55x | 2.61x | 10.63x | -24.82x | -7.24x | 2.88x | -3.76x | -0.61x | -0.13x |
| Interest Paid | 26.04M | 0 | 42.44M | 55.87M | 55.83M | 72.06M | 0 | 0 | 0 |
| Taxes Paid | 7.84M | 0 | 9.62M | 5.36M | 2.99M | 2.5M | 0 | 0 | 0 |
Retailer concentration and seasonality
Based on the provided financial data, Hillman's operating cash flow frequently diverges from net income, as evidenced by the 2026Q1 period where the company reported a $4.7 million net loss while simultaneously generating $105.2 million in operating cash flow, suggesting significant non-cash adjustments are masking underlying performance.
The extreme volatility in the OCF/NI ratio, which swings from negative values to double-digit multiples, indicates that net income is a poor proxy for the company's actual cash-generating capability. Investors should monitor whether these large non-cash adjustments are sustainable or if they represent temporary accounting timing differences that will eventually reverse.
As reported in the quarterly cash flow statements, Hillman's free cash flow margins have fluctuated wildly, ranging from a negative 5.9% in 2025Q1 to a peak of 15.2% in 2023Q4, highlighting the inherent instability in the company's ability to convert operational success into discretionary cash.
This erratic trajectory suggests that the company's cash flow is highly sensitive to seasonal working capital swings and periodic capital expenditure spikes. The lack of a consistent FCF growth trend warrants further investigation into whether the business model can achieve stable, predictable cash generation as it scales its robotics segment.
According to the latest filings, Hillman's capital expenditure as a percentage of revenue reached 18.9% in 2026Q1, a significant increase from the 4.0% levels observed in late 2025, indicating a potential shift toward more aggressive investment in its robotics and digital infrastructure.
This surge in capital intensity suggests that the company is prioritizing the expansion of its kiosk footprint, which may be necessary for long-term growth but creates immediate pressure on free cash flow. Analysts should evaluate whether these investments are generating sufficient incremental returns to justify the high upfront cash outlay.
Based on the reported figures, Hillman's working capital changes have been highly inconsistent, oscillating between a $43.9 million cash outflow in 2025Q3 and a $35.9 million cash inflow in 2023Q4, reflecting the challenges of managing inventory across a massive, high-SKU retail distribution network.
These dramatic shifts in working capital appear to be a primary driver of the company's quarterly cash flow volatility. The reliance on large inventory movements suggests that the company's cash position is vulnerable to shifts in retail demand and the timing of replenishment cycles at major big-box partners.
Quick answers to the most common questions about buying HLMN stock.
Hillman Solutions Corp. (HLMN) generated $105.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hillman Solutions Corp. (HLMN) generated $35.1M 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.
Hillman Solutions Corp. (HLMN) spent $70.1M 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, Hillman Solutions Corp. (HLMN) spent $12.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.