Earnings quality remains erratic, evidenced by an OCF/NI ratio that swung from 2.85 in 2024Q1 to -9.16 in 2024Q3, indicating that accounting profits frequently fail to materialize as cash.
| Cash from Operations | -412.69K | 2.58M | 313.14K | -2.06M | -11.6M | 7.76M | 3.82M | -517.93K |
| Operating CF Margin % | - | 1.81% | 0.23% | -1.56% | -12.1% | 12.36% | 9.89% | -1.95% |
| Operating CF Growth % | -4625.41% | 724.31% | 115.18% | 82.22% | -249.45% | 103% | 838.46% | - |
| Net Income | 1.87M | 1.7M | 657.45K | -2.43M | -1.48M | 4.78M | 3.83M | -424.58K |
| Depreciation & Amortization | 5.16K | 41.39K | 119.06K | 138K | 79.08K | 448 | 0 | 0 |
| Stock-Based Compensation | 45K | 60K | 75.04K | 52.33K | 91.01K | 0 | 0 | 0 |
| Deferred Taxes | 440.92K | 468.28K | 244.11K | -754.89K | -503.83K | 0 | 0 | 0 |
| Other Non-Cash Items | 603.25K | 686.88K | 684.12K | 1.06M | 967.7K | 6.09M | 76.43K | 91.76K |
| Working Capital Changes | -3.38M | -380.14K | -1.47M | -132.45K | -10.76M | -3.11M | -77.09K | -185.11K |
| Change in Receivables | -470.89K | 1.41M | -902.9K | -395.27K | -226.39K | 90.72K | -89.49K | -123.9K |
| Change in Inventory | -5.56M | -4.11M | -924.37K | 3.85M | -12.42M | -2.43M | -739.44K | -535.53K |
| Change in Payables | 2.92M | 2.02M | 363.35K | -2.84M | 1.45M | 0 | 428.21K | 166.11K |
| Cash from Investing | -80.04K | -75.1K | -36K | -14.82K | -339.52K | -16.11K | 0 | 0 |
| Capital Expenditures | -83.06K | -78.11K | -36K | -14.82K | -339.52K | -16.11K | 0 | 0 |
| CapEx % of Revenue | 0.06% | 0.05% | 0.03% | 0.01% | 0.35% | 0.03% | - | 0% |
| Acquisitions | 3.02K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 3.02K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 216.44K | -839K | -671K | 0 | 5.92M | -2.13M | 299.26K | 509.01K |
| Debt Issued (Net) | 216.44K | 0 | 0 | 0 | 652.32K | 3.02K | -691.35K | 505.19K |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 6.16M | 0 | 0 | 3.82K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -2.13M | -898 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | -839K | -671K | 0 | -885.33K | 2.8K | 991.51K | 0 |
| Net Change in Cash | -267.24K | 1.67M | -364.57K | -2.08M | -6.03M | 5.62M | 4.13M | 838.96K |
| Free Cash Flow | -495.75K | 2.5M | 277.14K | -2.08M | -11.94M | 7.75M | 3.82M | -517.93K |
| FCF Margin % | -0.34% | 1.76% | 0.2% | -1.57% | -12.45% | 12.34% | 9.89% | -1.95% |
| FCF Growth % | 45.24% | 803.19% | 113.34% | 82.6% | -254.14% | 102.57% | 838.46% | - |
| FCF per Share | -0.01 | 0.07 | 0.01 | -0.06 | -0.34 | 0.23 | 0.11 | -0.01 |
| FCF Conversion (FCF/Net Income) | -0.26x | 1.51x | 0.48x | 0.85x | 7.85x | 1.62x | 1.00x | 1.22x |
| Interest Paid | 0 | 184.1K | 249.3K | 406.1K | 4.3K | 0 | 15.27K | 0 |
| Taxes Paid | 75.96K | 238.98K | 211.91K | 1.7K | 470.6K | 0 | 0 | 0 |
Amazon platform dependency risk
As reported in quarterly financial statements, Hour Loop exhibits a highly erratic relationship between net income and operating cash flow, with OCF/NI ratios swinging from 2.85 in 2024Q1 to -9.16 in 2024Q3, indicating that accounting profits frequently fail to materialize as actual cash inflows.
The persistent divergence between reported net income and operating cash flow suggests that earnings are heavily influenced by non-cash accruals and timing differences in inventory management. Investors should monitor this volatility closely, as it implies that the company's reported profitability may not be a reliable indicator of its underlying cash-generating capacity.
Based on the provided cash flow data, working capital changes are the primary driver of cash flow fluctuations, with a massive $4.4M inflow in 2024Q4 followed by a $3.3M outflow in 2025Q2, highlighting the company's extreme sensitivity to inventory procurement and seasonal sales cycles.
The reliance on large working capital swings to fund operations suggests that Hour Loop is perpetually trapped in a cycle of aggressive inventory accumulation followed by rapid liquidation. This pattern appears to leave the company with minimal cash buffers, making it highly susceptible to any disruption in the Amazon marketplace sales velocity.
According to recent SEC filings, Hour Loop's free cash flow trajectory is characterized by frequent negative prints, including a $1.6M outflow in 2026Q1, which underscores the difficulty of maintaining positive cash generation while scaling a low-margin, high-volume third-party retail business model.
The inability to consistently generate positive free cash flow suggests that the company's current operational scale is not yet self-sustaining. This trend warrants further investigation into whether the business model can ever achieve the necessary efficiency to decouple cash generation from the high costs of marketplace fulfillment.
Analysis of the cash flow statement reveals that the company's thin operating margins are further pressured by recurring inventory-related cash outflows, as evidenced by the $3.0M cash burn in 2026Q1, which is often obscured by headline net income figures in standard financial reporting.
The data suggests that the company's reliance on third-party platforms forces it to prioritize inventory turnover over cash preservation. This operational reality appears to create a structural risk where any slowdown in sales velocity could lead to a rapid depletion of the company's limited cash reserves.
Quick answers to the most common questions about buying HOUR stock.
Hour Loop, Inc. (HOUR) generated $2.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hour Loop, Inc. (HOUR) generated $2.5M 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.
Hour Loop, Inc. (HOUR) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.