Cash generation remains highly volatile, with FCF margins contracting to 0.9% in 2026Q1 from a peak of 49.0% in 2025Q4 due to significant working capital outflows.
| Metric | TTM | Dec'25 | 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 |
|---|
| Cash from Operations | 7.94B | 8.15B | 7.62B | 7.67B | 1.56B | 1.34B | 609M | 3.29B | 3.05B | 2.45B | 2.05B | 1.75B | 1.45B | 1.07B | 715.72M | 467.06M | 469.13M | 296.34M | -13.74M | -68.25M |
| Operating CF Margin % | - | 33.11% | 31.91% | 35.07% | 11.28% | 10.5% | 5.97% | 29.37% | 30.3% | 29.8% | 31.15% | 30.3% | 29.29% | 25.67% | 22.2% | 20.76% | 26.98% | 23.52% | -1.8% | -29.01% |
| Operating CF Growth % | -17.47% | 6.9% | -0.63% | 390.6% | 16.54% | 120.36% | -81.51% | 8% | 24.32% | 19.78% | 17.03% | 20.33% | 35.87% | 49.52% | 53.24% | -0.44% | 58.31% | 2257.16% | 79.87% | - |
| Net Income | 4.98B | 4.94B | 3.1B | 4.13B | -1.85B | -480M | -2.2B | 1.76B | 727M | 1.24B | 796.48M | 439.38M | 302.39M | 283.69M | 179.5M | 118.14M | 221.79M | 51.45M | -132.58M | -113.74M |
| Depreciation & Amortization | 1.21B | 1.16B | 1.33B | 1.41B | 1.51B | 1.56B | 1.45B | 1.02B | 891M | 789.25M | 694.89M | 661.4M | 570.72M | 463.15M | 347.57M | 236.86M | 171.54M | 145.57M | 90.84M | 32.9M |
| Stock-Based Compensation | 262M | 0 | 0 | 143M | 87M | 109M | 122M | 110M | 83M | 66.37M | 55.44M | 52.53M | 31.94M | 30.47M | 20.84M | 15.48M | 13.11M | 7.96M | 4.82M | 14.79M |
| Deferred Taxes | 0 | 0 | 113M | 29M | -268M | -543M | -553M | -38M | -91M | -76.24M | 33.45M | -50.15M | -42.39M | -22.62M | -18.23M | -35.71M | 9.23M | 7.96M | -34.13M | -19.75M |
| Other Non-Cash Items | -959.08M | 28.21M | 3.64B | 2.63B | 1.92B | 785M | 1.46B | -41M | 1.38B | 248.02M | 125.91M | 209.68M | 198.94M | 174.87M | 146.14M | 94.3M | 70.86M | 39.77M | 84.01M | 26.24M |
| Working Capital Changes | 2.43B | 2.02B | -574.02M | -678M | 166M | -92M | 339M | 482M | 60M | 188.54M | 341.49M | 436.82M | 392.41M | 140.61M | 39.89M | 38M | -17.41M | 43.64M | -26.69M | -8.7M |
| Change in Receivables | 0 | 0 | -96.35M | 296M | -621M | -113M | 35M | -34M | -36M | 4.21M | -46.21M | -5.75M | -18.77M | -28.27M | -12.34M | -13.13M | -6.48M | -2.85M | -8.89M | 1.19M |
| Change in Inventory | 0 | 0 | 0 | 0 | 20M | 2M | 325M | -17M | -14M | 2.77M | 3.92M | 5.95M | 4.13M | 4.04M | -6.71M | -12.79M | -9.41M | 13.77M | -12.82M | -7.61M |
| Change in Payables | 0 | 0 | 0 | 0 | 9M | 7M | 31M | -1M | 11M | 8.14M | 59.13M | 14.19M | 18.02M | 3.6M | 3.39M | 3.44M | 3.48M | 4.25M | -8.94M | -5.3M |
| Cash from Investing | -417.19M | -1.01B | -2.27B | -1.48B | -522M | -1.4B | -8.1B | -285M | -6.34B | -6.72B | 183.76M | -1.55B | -1.06B | -1.15B | -1.07B | -734.58M | -515.31M | -256.03M | -451.59M | -284.01M |
| Capital Expenditures | -774.34M | -815.17M | -910.73M | -901M | -1.05B | -1.68B | -1.78B | -1.53B | -1.2B | -827.38M | -516.69M | -649.04M | -941.35M | -1.08B | -1B | -783.43M | -404.88M | -264.78M | -470.35M | -259.83M |
| CapEx % of Revenue | 3% | 3.31% | 3.81% | 4.12% | 7.6% | 13.1% | 17.42% | 13.69% | 11.88% | 10.05% | 7.86% | 11.24% | 18.96% | 25.83% | 31.06% | 34.83% | 23.29% | 21.01% | 61.54% | 110.42% |
| Acquisitions | 0 | 0 | 0 | 0 | -57M | -742M | -5.06B | -244M | -488M | -3.73B | 110.83M | -14.15M | 2.43M | -34.07M | -30.05M | -57.82M | -9.65M | 0 | -1.62M | -2.02M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -8.47M | 57.39M | 114.6M | -39M | 52M | 42M | 41M | -179M | 120M | -861.84M | 341.46M | -353.64M | -1.77M | 17.79M | -330.29M | 6.67M | -775K | 8.75M | 20.38M | -22.16M |
| Cash from Financing | -3.24B | -4.19B | -5.58B | -3.72B | -1.39B | -1.8B | 883M | 6.04B | 4.25B | 4.54B | -247.55M | 232.28M | 21.68M | 30.65M | 19.89M | 5.51M | 845.84M | 47.06M | 482.48M | 499.31M |
| Debt Issued (Net) | 1.05B | 413.42M | -6M | -4.75B | -693M | -1.82B | -3.99B | 6.73B | 3.48B | 4.75B | -51M | 305.86M | 0 | 0 | 0 | 0 | -137M | 27.5M | 71.7M | 30.77M |
| Equity Issued (Net) | -344.22M | -761.67M | -1.17B | -848M | -334M | 0 | 6.02B | 0 | 0 | 0 | 0 | -107.33M | 0 | 28.12M | 0 | 0 | 959.1M | 54.95M | 270.8M | 386.57M |
| Dividends Paid | -3.92B | -3.8B | -3.53B | 0 | -416M | 0 | -678M | -658M | -5M | -306.34M | -276.26M | -4.6M | -5.36M | 0 | 0 | -3.15M | -2.3M | -2.2M | -1.01M | 0 |
| Share Repurchases | -344.22M | -761.67M | -1.17B | -848M | -334M | 0 | 0 | 0 | 0 | 0 | 0 | -107.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -31.92M | -39.88M | -857.99M | 1.88B | 49M | 18M | -463M | -25M | 777M | 93.45M | 79.71M | 38.36M | 27.04M | 2.52M | 19.89M | 8.66M | 26.03M | -33.18M | 140.98M | 81.97M |
| Net Change in Cash | 4.44B | 3.33B | -411.06M | 2.52B | -55M | -1.95B | -6.91B | 9.12B | 928M | 239.71M | 2B | 428.97M | 411.43M | -52.41M | -331.76M | -278.47M | 789.48M | 87.34M | 9.61M | 140.36M |
| Free Cash Flow | 7.17B | 7.34B | 6.73B | 6.77B | 511M | -333M | -1.17B | 1.76B | 1.85B | 1.63B | 1.53B | 1.1B | 512.67M | -6.77M | -285.86M | -316.37M | 64.24M | 31.56M | -484.09M | -328.09M |
| FCF Margin % | 27.8% | 29.8% | 28.17% | 30.95% | 3.69% | -2.6% | -11.45% | 15.68% | 18.42% | 19.75% | 23.29% | 19.06% | 10.33% | -0.16% | -8.87% | -14.06% | 3.7% | 2.5% | -63.34% | -139.43% |
| FCF Growth % | 11.81% | 9.01% | -0.65% | 1225.44% | 253.45% | 71.47% | -166.38% | -5.18% | 14.08% | 6.16% | 39.1% | 114.69% | 7674.91% | 97.63% | 9.64% | -592.44% | 103.57% | 106.52% | -47.55% | - |
| FCF per Share | 21.91 | 22.59 | 20.53 | 20.21 | 1.64 | -1.07 | -3.99 | 5.78 | 6.11 | 5.55 | 5.41 | 4.30 | 2.03 | -0.03 | -1.16 | -1.29 | 0.27 | 0.17 | -8.95 | -7.25 |
| FCF Conversion (FCF/Net Income) | 1.44x | 1.65x | 2.50x | 1.88x | -0.86x | -2.89x | -0.29x | 1.86x | 4.26x | 2.00x | 2.62x | 4.01x | 4.73x | 3.82x | 4.09x | 4.07x | 2.17x | 6.97x | 0.10x | 0.61x |
| Interest Paid | 0 | 0 | 166M | 263M | 256M | 297M | 476M | 414M | 239M | 187M | 9M | 3.85M | 1.53M | 813K | 859K | 882K | 4.08M | 10.47M | 7.84M | 3.68M |
| Taxes Paid | 0 | 0 | 1.31B | 1.13B | 385M | 477M | 238M | 712M | 613M | 380M | 184M | 190.66M | 110.22M | 99.06M | 69.98M | 53.18M | 36.78M | 11.32M | 6.31M | 423.84K |
Working capital volatility
As reported in recent financial statements, H World Group's OCF/NI ratio fluctuated significantly, reaching a low of 0.29 in 2026Q1 compared to a high of 57.30 in 2024Q4, suggesting that net income is an unreliable proxy for the company's immediate cash-generative capacity in any given quarter.
The wide variance between net income and operating cash flow appears driven by substantial swings in working capital rather than operational inefficiency. Investors should monitor whether these accrual-based distortions represent temporary timing differences or a structural disconnect between accounting profits and actual cash inflows.
Based on the provided cash flow data, H World Group's FCF margin contracted to 0.9% in 2026Q1 from a peak of 49.0% in 2025Q4, indicating that the company's ability to convert revenue into discretionary cash has become increasingly sensitive to seasonal and operational working capital shifts.
While the company has demonstrated the ability to generate significant FCF in high-performing quarters, the recent compression suggests that the underlying cash flow trajectory is highly volatile. This inconsistency warrants further investigation into whether the asset-light model is providing the expected stability in cash generation.
According to the company's quarterly filings, working capital changes have been extreme, ranging from a $1.2 billion outflow in 2026Q1 to a $2.9 billion inflow in 2025Q4, which suggests that the firm's cash position is heavily influenced by the timing of franchise-related settlements and operational payables.
These massive swings in working capital appear to be the primary driver of the company's erratic cash flow profile. Analysts should interpret these figures with caution, as they may mask the underlying health of the core manachised business model by creating artificial peaks and troughs in liquidity.
As indicated by historical cash flow statements, H World Group has prioritized significant capital returns, including a $2.1 billion dividend payment in 2024Q1 and consistent share repurchases, which suggests management's confidence in the firm's long-term liquidity despite the observed volatility in quarterly operating cash flows.
The scale of these capital returns relative to FCF suggests that the company is utilizing its balance sheet to support shareholder value. However, investors should monitor whether this pace of deployment remains sustainable if the current volatility in operating cash flow persists over the coming fiscal years.
Quick answers to the most common questions about buying HTHT stock.
H World Group Limited (HTHT) generated $8.15B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
H World Group Limited (HTHT) generated $7.34B 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.
H World Group Limited (HTHT) spent $815.2M 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, H World Group Limited (HTHT) returned $3.80B to shareholders via cash dividends and spent $761.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.