Operating cash flow of $28.1M in Q2 2027 covered only 36% of net income, while dividends of $24.7M and rising investment purchases of $235.6M highlight that cash conversion and capital deployment remain uneven.
Hamilton Lane Incorporated (HLNE) cash flow statement — 12-year operating, investing & financing cash flows
| Metric | TTM | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 |
|---|
| Cash from Operations | 305.9M | 460.38M | 300.82M | 120.85M | 226.59M | 169.52M | 188.16M | 116.37M | 111.62M | 96.69M | 81.68M | 109.17M | 76.9M |
| Operating CF Growth % | 78.54% | 53.04% | 148.92% | -46.66% | 33.66% | -9.9% | 61.69% | 4.26% | 15.44% | 18.38% | -25.19% | 41.96% | - |
| Net Income | 282.49M | 387.72M | 313.77M | 227.21M | 187.19M | 247.25M | 168.78M | 126.78M | 99M | 106.3M | 74.44M | 55.85M | 71.5M |
| Depreciation & Amortization | 9.78M | 9.88M | 9.29M | 8.19M | 7.44M | 5.5M | 4.13M | 3.29M | 2.98M | 1.89M | 1.92M | 2.03M | 1.87M |
| Deferred Taxes | 42.09M | 28.42M | 12.08M | 16.7M | 20.43M | 23.94M | 7.03M | 7.93M | 21.66M | 22.98M | 26K | 730K | 274K |
| Other Non-Cash Items | -281.14M | -58.83M | -4.86M | -101.01M | 25.39M | -87.68M | -27.99M | -13.9M | -13.85M | -4.72M | 2.32M | 561K | -377K |
| Working Capital Changes | -43.38M | 42.31M | -60.86M | -42.36M | -23.81M | -26.9M | 29.12M | -14.91M | -4.55M | -35.3M | -1.7M | 46.27M | 247K |
| Cash from Investing | -520.63M | -530.28M | -117.58M | -122.18M | 177.91M | -70.49M | -421.78M | -49.9M | -19.21M | -21.77M | -16.71M | 2.5M | -10.06M |
| Purchase of Investments | -635.69M | -449.83M | -89.83M | -64.18M | -121.58M | -92.24M | -436.41M | -57.7M | -46.05M | -30.35M | -24.22M | -18.16M | -19.65M |
| Sale/Maturity of Investments | -31.73M | 0 | 6.95M | 2.11M | 292.43M | 12.62M | 252K | 6.42M | 22.53M | 0 | 0 | 0 | 0 |
| Net Investment Activity | -667.42M | -449.83M | -82.89M | -62.07M | 170.85M | -79.61M | -436.16M | -51.28M | -23.52M | -30.35M | -24.22M | -18.16M | -19.65M |
| Acquisitions | -15.32M | 0 | -46.31M | 0 | -1.5M | -10.1M | -252K | 3.52M | 10.61M | -5.23M | 0 | 0 | 0 |
| Other Investing | 168.51M | -80.45M | 23.77M | -49.04M | 13.31M | 27.75M | 34.27M | 4.01M | -944K | 16.05M | 8.78M | 21.59M | 13.47M |
| Cash from Financing | 227.49M | 155.78M | -19.62M | 4.4M | -364.15M | -113.22M | 270.66M | -64.71M | -90.21M | -59.67M | -101.21M | -110.1M | -74.9M |
| Dividends Paid | -128.77M | -141.84M | -119.8M | -109.28M | -135.85M | -97.34M | -74.04M | -76.44M | -69.33M | -46.45M | -80.46M | -67.81M | -47.09M |
| Share Repurchases | -74.92M | -80.08M | -253.87M | -3.51M | -280.53M | -3.49M | -6.02M | -5.88M | -5.39M | -6.47M | 0 | 0 | 0 |
| Stock Issued | 3.13M | 58.61M | 251.2M | 201.67M | 43.69M | 73.83M | 749.34M | 147.12M | 193.5M | 125.2M | 203.23M | 0 | 0 |
| Net Stock Activity | -71.79M | -21.48M | -2.67M | 198.16M | -236.84M | 70.35M | 743.32M | 141.24M | 188.12M | 118.72M | 203.23M | 0 | 0 |
| Debt Issuance (Net) | -2M | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | 1000K | -1000K |
| Other Financing | 300.55M | 331.59M | 8.94M | -66.98M | 8.11M | -94.31M | -487.2M | 12.85M | -2.5M | -129.97M | -61.39M | -174.6M | -12.19M |
| Net Change in Cash | 13.61M | 88.3M | 163.99M | 3.07M | 40.35M | -14.18M | 37.17M | 1.62M | 2.21M | 15.25M | -36.25M | 1.57M | -8.06M |
| Exchange Rate Effect | 840K | 2.43M | -102K | 0 | 0 | 0 | 130K | -144K | 8K | 0 | 0 | 0 | 0 |
| Cash at Beginning | 349.73M | 283.6M | 119.62M | 116.55M | 76.2M | 90.38M | 53.21M | 51.59M | 49.38M | 34.13M | 70.38M | 68.81M | 76.87M |
| Cash at End | 347.96M | 371.9M | 283.6M | 119.62M | 116.55M | 76.2M | 90.38M | 53.21M | 51.59M | 49.38M | 34.13M | 70.38M | 68.81M |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10.23M | 9.24M | 4.8M |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 280K | 175K | 72K |
| Free Cash Flow | 295.41M | 454.53M | 288.66M | 109.78M | 221.84M | 161M | 168.52M | 110.22M | 106.26M | 94.44M | 80.4M | 108.25M | 73.03M |
| FCF Growth % | -13.69% | 57.46% | 162.95% | -50.51% | 37.79% | -4.46% | 52.89% | 3.73% | 12.51% | 17.45% | -25.73% | 48.23% | - |
Quick answers to the most common questions about buying HLNE stock.
Hamilton Lane Incorporated (HLNE) generated $460.4M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Hamilton Lane Incorporated (HLNE) generated $454.5M 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.
Hamilton Lane Incorporated (HLNE) spent $0.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Hamilton Lane Incorporated (HLNE) returned $141.8M to shareholders via cash dividends and spent $80.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Lumpy operating cash conversion
Metrics are mathematically derived from official filings.
Cash Conversion Swings Obscure Earnings Quality
Based on HLNE's reported figures, operating cash flow ranged from 0.36x to 2.40x net income across ten quarters, with Q2 FY2027 converting only 36% of its $77.5M net income into operating cash.
The wide dispersion in OCF-to-net-income ratios suggests that reported earnings are heavily influenced by timing of carried interest and fee recognition rather than steady cash generation. The Q1 FY2027 ratio of 1.25x combined with a 2026 cluster above 1.2x indicates that cash realization has been strong in recent periods, but the Q2 FY2027 reversal warrants monitoring to determine whether it reflects timing or a softening in realized proceeds. Investors should treat single-quarter cash conversion with caution and focus on multi-quarter trends.
Dividend Coverage Remains Comfortably Covered
As reported in the cash flow statements, dividends paid have run between $24.7M and $39.5M per quarter, which in most periods sits well below operating cash flow, suggesting the payout is currently supported by internally generated cash.
Coverage is strongest in periods such as Q1 2026 and Q2 2026, where operating cash flow exceeded dividends by roughly three to four times. The Q2 FY2027 quarter, with OCF of $28.1M against $24.7M in dividends, shows a much thinner cushion and suggests that dividend coverage is sensitive to quarterly cash swings. Repurchase activity has been irregular, including a $252.9M outflow in Q4 2025, which appears to be a discrete capital decision rather than a recurring pattern and warrants further investigation as to its funding source.
Net Investment Activity Turns Negative Recently
Based on HLNE's reported figures, purchases of investments outpaced sales in most quarters, with Q2 FY2027 showing $235.6M in purchases against only $17.2M in sale proceeds, a sharp step-up from the modest deployment seen in 2025.
The shift from near-neutral investment flows in 2025 to heavy net purchases in fiscal 2026 and 2027 may indicate growing commitments to balance-sheet co-investments or fund seeding, though the filings alone do not confirm the underlying purpose. Sales proceeds have been episodic, with several quarters showing none, which suggests limited monetization of the existing portfolio. The pace of this deployment appears to outstrip realization, and investors should monitor whether future liquidity events are sufficient to offset it.
Credit Loss Line Shows Elevated Volatility
As reported in the financial statements, loan loss provisions ranged from $4.0M in Q2 FY2027 to $79.8M in Q1 FY2027, a swing large enough to materially affect quarterly earnings comparability.
For an asset manager with limited lending exposure, provisions of this magnitude are unusual and may reflect reserves tied to fund-level receivables or credit-linked exposures rather than a traditional loan book. The sharp Q1 FY2027 provision relative to a much lower Q2 figure suggests management is recognizing and releasing reserves in a lumpy manner. This pattern warrants further investigation, as the underlying drivers are not disclosed in the supplied cash flow data.
Strong Earnings Beat May Not Sustain Cash
Based on reported figures, the Q1 FY2027 earnings beat of roughly 35% over consensus was not matched by a proportionate cash outcome in the following quarter, raising questions about whether reported profitability will convert consistently.
The Q2 FY2027 operating cash flow fell to $28.1M against net income of $77.5M, indicating that a large share of reported profit did not translate to cash in the period. This divergence suggests the strong headline results may depend on accrual-based items such as unrealized carry, which could reverse or remain unrealized for extended periods. Without forward guidance, investors cannot readily assess whether the recent cash shortfall is transitory, and the thesis that the beat reflects a durable run-rate should be tested against several more quarters of cash data.