Free cash flow turned sharply negative to a $205.7 million outflow in 2026Q1, driven largely by a $276.7 million working capital depletion.
| Metric | TTM | Jan'26 | 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 | 91.9M | 276.2M | 226.7M | 267.5M | 81.2M | 131.63M | 214.47M | 219.38M | 186.43M | 133.15M | 223.36M | 173.35M | 167.8M | 165M | 144.78M | 134.28M | 94.38M | 193.21M | 174.37M | 291.19M | 159.6M | 201.01M | 194.26M | 141.27M | 202.39M | 227.8M | 204.92M | 156.2M | 146.8M | 141.4M | 93.3M |
| Operating CF Margin % | - | 9.73% | 8.97% | 10.99% | 3.44% | 6.03% | 10.97% | 9.76% | 8.26% | 6.12% | 10.14% | 7.52% | 7.55% | 8.01% | 7.22% | 7.32% | 5.6% | 11.66% | 7.04% | 11.33% | 5.96% | 8.26% | 9.28% | 8.05% | 11.96% | 12.71% | 10.01% | 8.73% | 8.65% | 10.38% | 9.35% |
| Operating CF Growth % | -1430.43% | 21.83% | -15.25% | 229.43% | -38.31% | -38.62% | -2.24% | 17.67% | 40.02% | -40.39% | 28.85% | 3.31% | 1.69% | 13.97% | 7.82% | 42.27% | -51.15% | 10.8% | -40.12% | 82.45% | -20.6% | 3.48% | 37.5% | -30.2% | -11.15% | 11.17% | 31.19% | 6.4% | 3.82% | 51.55% | 0.32% |
| Net Income | -15.4M | 54.2M | 139.5M | 49.2M | 123.9M | 59.81M | 41.92M | 110.5M | 93.33M | 89.9M | 85.64M | 105.41M | 61.16M | 63.37M | 48.33M | 45.75M | 27.12M | -6.26M | 45.45M | 120.38M | 123.38M | 137.42M | 113.58M | 98.11M | 91.36M | 74.41M | 106.22M | 87.4M | 106.3M | 87M | 68.1M |
| Depreciation & Amortization | 196.4M | 107.1M | 107.8M | 94.9M | 84.2M | 83.15M | 77.68M | 77.43M | 74.79M | 72.87M | 68.95M | 57.56M | 56.72M | 46.62M | 43.36M | 46.29M | 58.63M | 74.87M | 70.16M | 68.17M | 69.5M | 65.51M | 66.7M | 72.77M | 68.75M | 81.39M | 79.05M | 65.5M | 53M | 35.6M | 25.3M |
| Stock-Based Compensation | 0 | 0 | 17.4M | 0 | 9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 45.1M | 33.7M | -14.1M | -600K | -15.3M | -372K | -12.01M | 6.75M | 3.2M | -33.61M | 20.5M | 15.26M | 14.65M | 18.45M | 7.06M | 12.4M | 7.2M | -5.84M | 2.6M | -4.93M | -3.71M | -8.93M | 708K | -3.31M | 2.32M | 6.96M | -7.21M | 6M | 13.8M | 7.1M | 5.1M |
| Other Non-Cash Items | 61.6M | 55.2M | 6.6M | 54.2M | -40.2M | 49.21M | 74.94M | 36.85M | 23.56M | 38.39M | 40.52M | 20.59M | 37.11M | 18.53M | 11.77M | 14.52M | 22.27M | 40.78M | 25.85M | 12.55M | 12.49M | 10.15M | 11.21M | 12.65M | 19.59M | 18.07M | 1.66M | 2.2M | 1.5M | 100K | -100K |
| Working Capital Changes | -212.6M | 26M | -30.5M | 69.8M | -80.4M | -60.16M | 31.93M | -12.15M | -8.49M | -34.3M | 7.82M | -25.49M | -2.16M | 17.72M | 33.62M | 15.08M | -23.21M | 89.84M | 30.32M | 95.53M | -48.35M | -3.89M | 2.06M | -38.94M | 20.37M | 46.98M | 25.21M | -4.9M | -27.8M | 10.3M | -4.7M |
| Change in Receivables | 19.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.59M | 8.63M | -21.03M | -6.99M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -15.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.22M | -23.44M | 1.61M | 9.55M | -11.28M | -4.39M | 19.15M | 31.84M | 20.38M | -7.12M | -10.49M | -9.41M | -3M | 2.35M | 35.05M | 6.41M | -7.7M | -4.3M | 3.1M | 200K |
| Change in Payables | -184.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -21.12M | 26.91M | 25.86M | 27.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -504.8M | -443.9M | -51M | -444.8M | -10.7M | -111.01M | -100.37M | -62.9M | -41.22M | -118.02M | -153.03M | -112.88M | -154.21M | -75.42M | -85.81M | -91.54M | -25.05M | 13.28M | -131.53M | -92.02M | -136.97M | -74.95M | -114.72M | -81.48M | -63.9M | -47.01M | -196.73M | -84.1M | -159.9M | -200.7M | -101.9M |
| Capital Expenditures | -87.1M | -65.8M | -52.9M | -79.1M | -68.4M | -66.55M | -41.8M | -66.89M | -63.7M | -127.39M | -119.58M | -114.97M | -112.71M | -78.89M | -60.27M | -31.14M | -26.72M | -17.55M | -71.5M | -58.91M | -59.92M | -38.91M | -32.42M | -34.84M | -25.89M | -36.85M | -59.84M | -80.4M | -161.2M | -85.5M | -123.8M |
| CapEx % of Revenue | 2.43% | 2.32% | 2.09% | 3.25% | 2.9% | 3.05% | 2.14% | 2.98% | 2.82% | 5.85% | 5.43% | 4.99% | 5.07% | 3.83% | 3.01% | 1.7% | 1.58% | 1.06% | 2.89% | 2.29% | 2.24% | 1.6% | 1.55% | 1.98% | 1.53% | 2.06% | 2.92% | 4.49% | 9.5% | 6.27% | 12.4% |
| Acquisitions | -380.6M | -390.3M | 0 | -367M | 58.1M | -44.55M | -58.26M | 66.89M | -2.85M | -898K | -34.3M | 110K | -61.82M | -3.95M | -26.89M | -54.99M | -149K | -500K | -75.48M | -41.7M | -78.57M | -33.8M | -134.85M | 1.81M | 0 | -8.75M | -134.7M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 500K | 10.2M | 400K | 1.6M | 100K | 210K | 299K | -61.04M | 24.9M | 10.52M | 965K | 2.09M | 16.36M | 3.48M | 2.14M | 3.67M | 6.23M | 7.17M | 6.19M | 12.44M | 5.95M | -2.64M | -765K | -8.38M | 859K | -1.41M | -2.19M | -3.9M | 1.2M | -115.6M | 9.5M |
| Cash from Financing | 471.5M | 363.1M | -182.2M | 188.8M | -105.4M | -84.48M | -50.05M | -181.23M | -91.74M | -28.09M | -62.57M | -66.07M | -44.47M | -66.33M | -89.99M | -69.02M | -57.61M | -158.65M | -37.19M | -193.36M | -70.27M | -80.03M | -188.84M | -59.98M | -78.17M | -105.13M | -27.18M | -67.5M | -15.5M | 74.2M | 7.6M |
| Debt Issued (Net) | 589.3M | 499.6M | -92.4M | 248M | 12.3M | 2.4M | 100K | -74.9M | -29.65M | 62.6M | 17.44M | -6.77M | 47.21M | -5.56M | -30.49M | -21.07M | -4.08M | -122.88M | 25.3M | -19.79M | 162.76M | 141.03M | -26.8M | -20.23M | -35.14M | -51.15M | 7.72M | -20M | 13.1M | 35.8M | 42.7M |
| Equity Issued (Net) | -39.5M | -79.8M | -14.6M | 2M | -60.5M | -28.1M | 1.3M | -53.41M | -10.85M | -43.28M | -34.23M | -14.38M | -49.44M | -17.9M | -14.63M | -6.8M | -14.81M | 2.89M | -24.4M | -137.97M | -197.86M | -187.22M | -130.03M | -9.45M | -13.64M | -25.61M | -8.44M | -24.4M | -8.9M | 55.1M | -20.1M |
| Dividends Paid | -73.5M | -63.1M | -63.6M | -58.5M | -53.2M | -53.75M | -52.1M | -52.23M | -51.09M | -49.56M | -48.49M | -46.33M | -44.33M | -43.49M | -43.04M | -41.25M | -38.74M | -38.67M | -38.09M | -36.41M | -36.03M | -33.84M | -32.02M | -30.3M | -29.39M | -28.37M | -26.45M | -23.1M | -19.7M | -16.7M | -15M |
| Share Repurchases | -43.2M | -83.6M | -65.8M | -300K | -65.2M | -59.2M | -6.76M | -83.89M | -30.45M | -57.51M | -55.83M | -26.66M | -67.91M | -27.49M | -21.02M | -10M | -17.82M | 0 | -28.55M | -147.68M | -203.65M | -202.22M | -145.6M | -21.51M | -15.74M | -35.06M | -17.97M | -30.9M | -12.2M | -4.1M | -21.9M |
| Other Financing | -4.8M | 6.4M | -11.6M | -2.7M | -4M | -5.05M | 646K | -686K | -156K | 2.15M | 2.71M | 1.41M | 2.08M | 613K | -1.84M | 99K | 25K | 8K | 11K | 808K | 865K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 50.3M | 186.7M | -6.4M | 11.5M | -34.9M | -63.85M | 64.05M | -24.75M | 53.47M | -12.96M | 7.76M | -5.6M | -30.89M | 23.25M | -31.03M | -26.28M | 11.72M | 47.84M | 5.66M | 5.8M | -47.63M | 46.03M | -109.31M | -183K | 60.33M | 75.66M | -18.99M | 4.7M | -28.6M | 14.9M | -1M |
| Free Cash Flow | 7.8M | 210.4M | 176.1M | 189.4M | 21.2M | 78.17M | 182.17M | 158.55M | 130.78M | 23.91M | 129.94M | 90.74M | 93.47M | 104.03M | 105.3M | 106.48M | 68.7M | 175.65M | 104.29M | 232.62M | 100.68M | 162.1M | 158.46M | 106.43M | 176.51M | 190.95M | 145.08M | 75.8M | -14.4M | 55.9M | -30.5M |
| FCF Margin % | 0.22% | 7.41% | 6.97% | 7.78% | 0.9% | 3.58% | 9.32% | 7.06% | 5.79% | 1.1% | 5.9% | 3.94% | 4.21% | 5.05% | 5.25% | 5.81% | 4.07% | 10.61% | 4.21% | 9.05% | 3.76% | 6.66% | 7.57% | 6.06% | 10.43% | 10.65% | 7.09% | 4.24% | -0.85% | 4.1% | -3.06% |
| FCF Growth % | -85.06% | 19.48% | -7.02% | 793.4% | -72.88% | -57.09% | 14.9% | 21.24% | 447.07% | -81.6% | 43.19% | -2.92% | -10.14% | -1.21% | -1.11% | 54.99% | -60.89% | 68.43% | -55.17% | 131.05% | -37.89% | 2.3% | 48.88% | -39.7% | -7.56% | 31.62% | 91.4% | 626.39% | -125.76% | 283.28% | -178.01% |
| FCF per Share | 0.17 | 4.30 | 3.63 | 4.17 | 0.50 | 1.78 | 4.24 | 3.65 | 2.95 | 0.53 | 2.86 | 2.00 | 2.05 | 2.26 | 2.30 | 2.33 | 1.50 | 3.91 | 2.35 | 4.96 | 2.00 | 2.95 | 2.75 | 1.82 | 2.98 | 3.23 | 2.41 | 1.25 | -0.23 | 0.94 | -0.51 |
| FCF Conversion (FCF/Net Income) | -0.51x | 5.10x | 1.63x | 5.44x | 0.66x | 2.20x | 5.12x | 1.99x | 2.00x | 1.48x | 2.61x | 1.64x | 2.73x | 2.59x | 2.96x | 2.92x | 3.50x | -29.99x | 3.84x | 2.42x | 1.29x | 1.46x | 1.71x | 1.44x | 2.22x | 3.06x | 1.93x | 1.79x | 1.38x | 1.63x | 1.37x |
| Interest Paid | 0 | 0 | 28.7M | 26.5M | 9.2M | 7.6M | 7.5M | 0 | 9.88M | 6.24M | 6.64M | 0 | 0 | 0 | 10.87M | 11.97M | 12.06M | 12.32M | 17.16M | 18.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 46.5M | 25M | 31.1M | 26.4M | 31.4M | 0 | 11.46M | 13.73M | 23.12M | 0 | 0 | 0 | 13.4M | 14.1M | 7.08M | 4.53M | 22.85M | 57.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Integration and cyclical volatility
According to recent financial disclosures, HNI's operating cash flow to net income ratio reached a volatile 3.09 in 2026Q1, reflecting a disconnect between accounting profits and actual cash generation that warrants close scrutiny from investors evaluating the sustainability of the company's current earnings profile.
The extreme variance in the OCF/NI ratio suggests that non-cash charges and working capital swings are heavily distorting the reported bottom line. Investors should interpret this divergence as a signal that net income currently provides a poor proxy for the company's underlying cash-generating capacity.
As reported in quarterly filings, HNI's free cash flow trajectory has turned sharply negative, culminating in a $205.7 million outflow in 2026Q1, which contrasts heavily with the $135.9 million peak observed in 2025Q3 and highlights the company's current struggle to maintain positive cash margins.
The rapid shift from positive FCF to significant cash burn suggests that the company's operational model is currently unable to self-fund its requirements during periods of high volatility. This trend appears to be exacerbated by the recent integration of large-scale acquisitions, which may be consuming liquidity faster than anticipated.
Based on the provided cash flow statements, HNI experienced a substantial $276.7 million working capital outflow in 2026Q1, a development that appears to be the primary driver behind the quarter's significant cash depletion and suggests potential inefficiencies in inventory management or accounts receivable collection cycles.
The magnitude of this working capital usage indicates that the company's cash conversion cycle may be lengthening, potentially due to inventory build-ups or delayed payments from commercial clients. Such fluctuations suggest that the company's liquidity position is highly sensitive to the timing of operational cash inflows.
As indicated by recent financial statements, HNI continued to prioritize dividend payments of $26.6 million in 2026Q1 despite the significant cash burn, a decision that warrants further investigation given the company's current reliance on external liquidity to support its ongoing operational and integration requirements.
Maintaining dividend payouts while operating cash flow is negative suggests a management preference for shareholder returns that may conflict with the need to preserve cash during cyclical downturns. Investors should monitor whether this capital allocation strategy remains sustainable if the current cash burn persists into future quarters.
Quick answers to the most common questions about buying HNI stock.
HNI Corporation (HNI) generated $276.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
HNI Corporation (HNI) generated $210.4M 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.
HNI Corporation (HNI) spent $65.8M 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, HNI Corporation (HNI) returned $63.1M to shareholders via cash dividends and spent $83.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.