Cash flow remains highly erratic, highlighted by a $10.0 million working capital inflow in 2025Q3 followed by an $8.0 million outflow in 2025Q4.
| Cash from Operations | 10.32M | -1.02M | 894.78K | 1.73M | 1.95M |
| Operating CF Margin % | 2.73% | -0.3% | 0.27% | 39.08% | 48.23% |
| Operating CF Growth % | 1109.77% | -214.18% | -48.4% | -10.97% | - |
| Net Income | 12.67M | -1.67M | 237.5K | 814.73K | 966.38K |
| Depreciation & Amortization | 1.89M | 1.51M | 1.17M | 927.74K | 960.63K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -28.28K | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 3.76M | 45.98K | 43.28K | 37.24K | 41.77K |
| Working Capital Changes | -7.98M | -908.83K | -560.6K | -45.58K | -20.92K |
| Change in Receivables | -7.64M | -103K | 39.38K | -91.05K | -61.71K |
| Change in Inventory | -1.23M | 39.97K | -111.16K | 27.14K | -275.08K |
| Change in Payables | 3.02M | -725.75K | 412.23K | -25.76K | 510.68K |
| Cash from Investing | -1.64M | -124K | -247.51K | -14.56K | -563.28K |
| Capital Expenditures | -869.78K | -124K | -247.51K | -14.56K | -23.23K |
| CapEx % of Revenue | 0.23% | 0.04% | 0.08% | 0.33% | 0.58% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -540.05K |
| Cash from Financing | -7.18M | 3.19M | -1.43M | -921.53K | -926.12K |
| Debt Issued (Net) | -3.72M | -1.3M | -1.05M | -921.53K | -926.63K |
| Equity Issued (Net) | 0 | 5.75M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -3.45M | -1.26M | -383.32K | 0 | 509 |
| Net Change in Cash | 2.99M | 2.08M | -785.21K | 809.49K | 458.47K |
| Free Cash Flow | 9.45M | -1.15M | 647.27K | 1.72M | 1.92M |
| FCF Margin % | 2.5% | -0.34% | 0.2% | 38.75% | 47.65% |
| FCF Growth % | 924.33% | -277.05% | -62.36% | -10.66% | - |
| FCF per Share | 0.11 | -0.08 | 0.04 | 0.12 | 0.13 |
| FCF Conversion (FCF/Net Income) | 0.62x | -0.12x | 0.09x | 2.87x | 2.73x |
| Interest Paid | 0 | 201.33K | 145.22K | 68.05K | 53.09K |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
According to recent quarterly filings, HTLM's operating cash flow to net income ratio has fluctuated wildly, reaching an extreme negative of -44.90 in 2025Q1, which suggests that reported accounting profits are frequently decoupled from the actual cash generation capabilities of the underlying furniture distribution business model.
The significant divergence between net income and operating cash flow indicates that accrual-based accounting may be masking underlying operational volatility. Investors should monitor whether this disconnect stems from aggressive revenue recognition or timing mismatches in the company's bespoke upholstery project cycles.
As reported in financial statements, HTLM's free cash flow trajectory remains highly erratic, swinging from a negative $5.9 million in 2025Q1 to a positive $15.9 million in 2025Q3, illustrating a lack of consistent cash generation that complicates long-term capital planning and shareholder return prospects.
This extreme variance in free cash flow margins suggests that the company's cash generation is highly sensitive to episodic project completions rather than steady-state retail operations. The inability to maintain positive free cash flow across consecutive quarters warrants further investigation into the firm's cost management and inventory turnover efficiency.
Based on HTLM's reported figures, working capital changes have been the primary driver of cash flow volatility, with a notable $10.0 million inflow in 2025Q3 followed by an $8.0 million outflow in 2025Q4, highlighting the company's vulnerability to fluctuations in inventory and customer advance payments.
The reliance on working capital shifts to fund operations suggests that HTLM's cash position is heavily dependent on the timing of large-scale project deliveries and supplier payment terms. This dynamic creates a precarious cash flow profile where liquidity is frequently tied up in inventory or receivables, limiting the company's operational flexibility.
As evidenced by the company's financial data, HTLM maintains a modest capital expenditure profile, with CapEx to revenue ratios generally remaining below 1% in recent periods, suggesting that the business model is not overly burdened by heavy investment requirements for its core distribution and retail operations.
While the low capital intensity is a positive for cash preservation, it may also indicate a lack of investment in technological or supply chain upgrades necessary to improve long-term margins. Analysts should monitor whether this lean spending approach is sustainable or if it reflects a deferred maintenance cycle that could impact future operational efficiency.
Quick answers to the most common questions about buying HTLM stock.
HomesToLife Ltd (HTLM) generated $10.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
HomesToLife Ltd (HTLM) generated $9.4M 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.
HomesToLife Ltd (HTLM) spent $0.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.