Free cash flow remains consistently negative, recording a $1.9 million outflow in 2025Q4, while the operating cash flow to net income ratio of 0.23 highlights a disconnect between accounting losses and actual liquidity.
| Cash from Operations | 4.63M | -3.33M | -17.77M | 33.13M | 632.49K | 1.1M |
| Operating CF Margin % | 2.16% | -3.08% | -18.66% | 17.88% | 0.52% | 1.41% |
| Operating CF Growth % | 239.18% | 81.28% | -153.65% | 5138.41% | -42.73% | - |
| Net Income | -21.46M | -21.21M | -15.78M | 23.6M | 10.26M | -5.76M |
| Depreciation & Amortization | 72.96K | 106.43K | 85.75K | 42.04K | 40.09K | 39.59K |
| Stock-Based Compensation | 0 | 1.2M | 0 | 0 | 0 | 0 |
| Deferred Taxes | -107 | -110 | -1.08K | -341 | 208 | 789 |
| Other Non-Cash Items | 23.27M | 23.48M | 0 | 0 | 0 | 0 |
| Working Capital Changes | 2.75M | -6.9M | -2.08M | 9.49M | -9.66M | 6.83M |
| Change in Receivables | -1.07M | -6.59M | 4.11M | 2.94M | -5.31M | 425.86K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 375.64K | 308.04K | -489.33K | 262.03K | 183.37K | 283.8K |
| Cash from Investing | -5.07K | 0 | 0 | 7.42K | 300K | -301.56K |
| Capital Expenditures | -5.07K | 0 | 0 | 0 | 0 | -1.56K |
| CapEx % of Revenue | 0% | 0% | - | - | - | 0% |
| Acquisitions | 0 | 0 | 0 | 7.42K | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 58.38M | -300K |
| Cash from Financing | -1.35M | 7.97M | -1.58M | -21.91M | 1.31M | 4.89M |
| Debt Issued (Net) | -1.73M | 13.63M | 12.55M | 1.5M | 1.26M | 4.95M |
| Equity Issued (Net) | 380.13K | 2.85M | 0 | 0 | 60.07M | 0 |
| Dividends Paid | 0 | 0 | -902K | -16.95M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | -8.51M | -13.22M | -6.46M | -60.02M | -61.34K |
| Net Change in Cash | 3.28M | 4.64M | -19.35M | 11.22M | 2.24M | 5.69M |
| Free Cash Flow | 4.63M | -3.33M | -17.77M | 33.13M | 632.49K | 1.1M |
| FCF Margin % | 2.16% | -3.08% | -18.66% | 17.88% | 0.52% | 1.41% |
| FCF Growth % | 239.03% | 81.28% | -153.65% | 5138.41% | -42.65% | - |
| FCF per Share | 0.85 | -0.71 | -4.24 | 8.28 | 1.05 | 1.84 |
| FCF Conversion (FCF/Net Income) | -0.22x | 0.14x | 1.90x | 2.71x | 0.12x | -0.35x |
| Interest Paid | 0 | 90.19K | 60.79K | 81.41K | 122.3K | 60.06K |
| Taxes Paid | 0 | 52.65K | 10.87K | 2.5K | 1.55K | 77 |
Persistent negative operating cash
According to recent financial disclosures, HTCO's operating cash flow to net income ratio has fluctuated wildly, reaching 0.23 in 2025Q4, which suggests that the company's reported net losses are not being consistently offset by cash-generative operations, highlighting a significant disconnect between accounting results and actual liquidity.
The extreme volatility in the OCF/NI ratio indicates that accruals and working capital swings are driving cash flow rather than core operational profitability. Investors should monitor this divergence, as it implies that the company's reported earnings are not currently reflective of its underlying ability to generate cash from its shipping activities.
As reported in quarterly filings, HTCO's free cash flow trajectory remains deeply inconsistent, with the company recording a negative $1.9 million in 2025Q4, a trend that underscores the difficulty of achieving self-sustaining operations within its current high-variable-cost maritime business model.
The inability to maintain positive free cash flow suggests that the company's rapid revenue growth is not translating into operational efficiency. This pattern warrants further investigation into whether the business model can ever reach a break-even point without significant structural changes to its cost base.
Based on the company's reported figures, working capital changes have been a primary driver of cash flow variability, including a $1.9 million outflow in 2025Q4, which suggests that the timing of voyage-related collections and payments is creating significant, unpredictable pressure on the firm's available cash reserves.
The reliance on working capital shifts to manage liquidity appears to be a symptom of the company's role as a middleman in the shipping industry. This dynamic makes the company's cash position highly sensitive to the payment cycles of its counterparties, increasing the risk of liquidity crunches during periods of market stress.
As indicated by the latest financial statements, HTCO's capital expenditure remains negligible at nearly zero, which suggests that the company is not investing in its own fleet or infrastructure, potentially limiting its ability to capture higher margins or establish a long-term competitive advantage.
The lack of meaningful capital investment appears to confirm the company's reliance on third-party vessel chartering rather than asset ownership. While this preserves cash in the short term, it may also prevent the company from achieving the operational control necessary to improve its razor-thin gross margins.
Quick answers to the most common questions about buying HTCO stock.
High-Trend International Group (HTCO) generated $4.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
High-Trend International Group (HTCO) generated $4.6M 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.
High-Trend International Group (HTCO) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.