Free cash flow remains erratic, swinging from a $9.8 million inflow in 2025Q1 to a $3.4 million outflow in 2024Q1, indicating that liquidity is heavily dependent on working capital shifts rather than core operational earnings.
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 |
|---|
| Cash from Operations | 7.75M | 17.56M | -2.52M | -12.82M | -3.97M | 32.17M | 10.93M | -6.41M | 21.01M | 30.37M | -6.86M | 28.54M | 16.34M | 14.38M | -6.99M | -1.2M | 21.75M | -1.48M | 161K | 14.19M | 14.05M | 11.98M | 6.81M | 2.28M | 6.2M | -3.48M | 12.85M | -800K | 5.9M | 16M | 8.5M |
| Operating CF Margin % | - | 9.84% | -1.35% | -5.63% | -1.58% | 13.68% | 6.41% | -2.43% | 6.99% | 12.46% | -3.02% | 13.01% | 7.35% | 7.46% | -3.44% | -0.66% | 20.54% | -1.63% | 0.07% | 7.55% | 9.46% | 9.54% | 6.84% | 3.01% | 8.8% | -3.77% | 13.36% | -0.91% | 6.32% | 16.72% | 8.55% |
| Operating CF Growth % | 922.16% | 797.14% | 80.35% | -223.27% | -112.33% | 194.32% | 270.47% | -130.52% | -30.82% | 542.55% | -124.04% | 74.74% | 13.56% | 305.88% | -484.69% | -105.49% | 1566.76% | -1021.12% | -98.87% | 1.05% | 17.27% | 75.98% | 199.03% | -63.3% | 278.09% | -127.1% | 1706.25% | -113.56% | -63.13% | 88.24% | 129.73% |
| Net Income | -12.57M | -15.12M | -16.61M | 4.33M | 8.23M | 6.76M | -6.25M | 17.5M | 21.49M | 15.12M | 13.29M | 16.21M | 15.14M | 8.19M | 15.64M | 11.12M | -5.74M | -2.32M | 22.52M | 20.89M | 15.48M | 16.44M | 6.27M | 462K | -8.26M | -1.6M | 5.04M | 1.8M | 9.3M | 13.8M | 4.3M |
| Depreciation & Amortization | 2.42M | 2.69M | 3.53M | 4.09M | 3.92M | 4.19M | 4.55M | 3.75M | 3.71M | 3.62M | 3.87M | 3.22M | 3.31M | 3.39M | 4.13M | 4.3M | 3.8M | 3.29M | 3.02M | 2.11M | 1.5M | 1.33M | 1.22M | 1.43M | 1.93M | 2.2M | 2.52M | 2.4M | 2.1M | 2.1M | 2.7M |
| Stock-Based Compensation | 1.71M | 1.7M | 1.65M | 2.7M | 2.69M | 2.78M | 2.06M | 2.67M | 2.5M | 1.7M | 1.61M | 1.19M | 921K | 979K | 870K | 470K | 141K | 246K | 535K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -2.69M | 773K | 4.31M | 21K | -631K | -112K | -547K | 260K | -530K | 1.4M | -225K | -1.01M | 874K | -909K | 1.85M | 1.37M | -216K | -2.82M | 1.05M | 1.22M | 491K | -4.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 2.91M | 2.31M | -850K | -4.22M | 990K | -244K | 6.54M | -377K | 960K | -1.79M | 1.7M | 2.76M | -1.38M | -2.48M | 3.02M | -351K | 1.14M | -1.91M | -85K | 116K | -207K | 549K | 364K | 19K | 2.11M | -31K | 300K | 500K | 900K | 300K | 100K |
| Working Capital Changes | 15.97M | 25.2M | 5.45M | -19.74M | -19.16M | 18.8M | 4.58M | -30.21M | -7.13M | 10.33M | -27.11M | 6.17M | -2.53M | 5.22M | -32.49M | -18.11M | 22.63M | 2.03M | -26.88M | -9.09M | -2.36M | -2.8M | -1.05M | 366K | 10.42M | -4.05M | 5M | -5.5M | -6.4M | -200K | 1.4M |
| Change in Receivables | -1.98M | 9.74M | 4M | -84K | 280K | -15.19M | 15.91M | 11.24M | -5.15M | 563K | -8.14M | 3.67M | -11.65M | 4.66M | -8.66M | -3.4M | -4.05M | 14.26M | -6.26M | -1.74M | -1.31M | -3.61M | -3.99M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 12.93M | 16.37M | 8.38M | -648K | -24.44M | 2.17M | 3.46M | -10.5M | -20.39M | 1.64M | -13.88M | 2.85M | -4.97M | -1.02M | -10.15M | -25.7M | 4.15M | 11.41M | -11.83M | -14.12M | -12.73M | -660K | -4.95M | 1.47M | 7.72M | -4.02M | 2.72M | -800K | -8.8M | 2.1M | 1M |
| Change in Payables | 2.63M | 313K | -5.27M | -11.77M | -2.28M | 20.62M | -2.56M | -23.78M | 10.79M | 8.53M | -6M | -1.03M | 8.64M | 1.77M | -9.59M | 8.09M | 21.11M | -20.52M | -7.65M | 7.82M | 9.32M | -1.19M | 8.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -88K | -1.25M | -2.74M | -1.9M | -2.09M | -3.35M | -1.18M | -8.9M | -6.61M | -4.03M | -3.91M | -21.81M | -2.59M | -3.01M | -3.77M | -2.88M | -1.76M | 2.33M | -2.58M | -2.61M | -3.62M | -2.54M | -1.73M | -1.85M | -1.03M | -2.71M | -2M | -2.4M | -2.6M | -2.5M | -2M |
| Capital Expenditures | -758K | -910K | -1.24M | -1.29M | -1.11M | -2.37M | -1.66M | -4.87M | -5.86M | -4.45M | -4.18M | -4.53M | -2.63M | -2.38M | -3.73M | -2.84M | -1.85M | -3.7M | -5.51M | -4.51M | -3.3M | -1.88M | -762K | -536K | -1.18M | -1.25M | -1.19M | -1.2M | -1M | -600K | -600K |
| CapEx % of Revenue | 0.42% | 0.51% | 0.67% | 0.56% | 0.44% | 1.01% | 0.97% | 1.85% | 1.95% | 1.82% | 1.84% | 2.07% | 1.19% | 1.23% | 1.84% | 1.58% | 1.75% | 4.06% | 2.46% | 2.4% | 2.22% | 1.5% | 0.77% | 0.71% | 1.68% | 1.36% | 1.24% | 1.36% | 1.07% | 0.63% | 0.6% |
| Acquisitions | 0 | 0 | 18K | 0 | 0 | 3K | 106K | -4.35M | -1.16M | 0 | 264K | -17.65M | 0 | -380K | 0 | 0 | 0 | 0 | 17K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 670K | -336K | -1.64M | -611K | -985K | -976K | 477K | -1.62M | 2.51M | -1.85M | 264K | 1.47M | 125K | 958K | -41K | -34K | 90K | -650K | -80K | 713K | -319K | -660K | -972K | -1.31M | 157K | -1.46M | -808K | -1.2M | -1.6M | -1.9M | -1.4M |
| Cash from Financing | -2.27M | -2.35M | -3.91M | -8.82M | -6.9M | -3.52M | -10.85M | -5.15M | -2.55M | -2.35M | -2.31M | -3.26M | -1.71M | -4.61M | 2.29M | 844K | 0 | 69K | 187K | -3.53M | 1.18M | 333K | -2.57M | -29K | -4.62M | 6.59M | -10.43M | 3.5M | -3.4M | -12M | -6.5M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.45M | 0 | 0 | 0 | -1.6M | -379K | -4.27M | 2.29M | 844K | 0 | 0 | 0 | -4.01M | -126K | -464K | -4.7M | -6K | -9.12M | 8.26M | -10.44M | 5.8M | -1.7M | -12M | -11.3M |
| Equity Issued (Net) | 0 | 0 | -1.5M | -4.61M | -2.77M | 0 | -6.93M | 0 | 0 | 0 | 0 | 0 | 2K | 303K | 0 | 0 | 0 | 0 | 151K | 186K | 562K | 797K | 2.13M | -23K | 4K | -1.67M | 8K | -2.4M | -1.7M | 0 | 4.8M |
| Dividends Paid | 0 | 0 | -2.09M | -4.14M | -3.92M | -3.67M | -3.42M | -3.2M | -2.9M | -2.59M | -2.31M | -2.03M | -1.69M | -646K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -1.5M | -4.61M | -2.89M | 0 | -7M | 0 | -502K | -295K | -146K | -239K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -23K | 0 | -1.71M | 0 | -2.4M | -1.8M | 0 | 0 |
| Other Financing | -2.27M | -2.35M | -315K | -71K | -207K | 153K | -498K | -499K | 345K | 239K | -953K | 376K | 357K | 2K | 1K | 0 | 0 | 69K | 36K | 298K | 744K | 0 | 0 | 0 | 4.5M | 0 | 0 | 100K | 0 | 0 | 0 |
| Net Change in Cash | 6.25M | 15.38M | -8.45M | -22.14M | -20.14M | 26.2M | 916K | -20.23M | 10.86M | 25.09M | -14.02M | 1.39M | 11.04M | 7.03M | -9.19M | -3.29M | 19.47M | 2.39M | -3.37M | 9.91M | 12.29M | 9.31M | 2.96M | 931K | 835K | 139K | -111K | 200K | -100K | 1.5M | -200K |
| Free Cash Flow | 7.95M | 16.65M | -3.76M | -15.4M | -6.16M | 29.81M | 9.28M | -11.28M | 15.15M | 25.93M | -11.04M | 24.01M | 13.7M | 12.01M | -10.72M | -4.04M | 19.9M | -5.18M | -5.35M | 9.68M | 10.74M | 10.1M | 6.04M | 1.74M | 5.02M | -4.74M | 11.66M | -2M | 4.9M | 15.4M | 7.9M |
| FCF Margin % | 4.37% | 9.33% | -2.02% | -6.76% | -2.46% | 12.67% | 5.44% | -4.28% | 5.04% | 10.64% | -4.86% | 10.94% | 6.16% | 6.23% | -5.28% | -2.24% | 18.8% | -5.69% | -2.39% | 5.15% | 7.23% | 8.05% | 6.07% | 2.3% | 7.12% | -5.13% | 12.12% | -2.27% | 5.25% | 16.09% | 7.95% |
| FCF Growth % | 20.69% | 542.85% | 75.58% | -150.01% | -120.66% | 221.32% | 182.21% | -174.48% | -41.57% | 334.85% | -145.98% | 75.26% | 14.12% | 212% | -165.52% | -120.28% | 484.1% | 3.19% | -155.28% | -9.88% | 6.41% | 67.07% | 247.36% | -65.32% | 205.96% | -140.62% | 682.85% | -140.82% | -68.18% | 94.94% | 154.84% |
| FCF per Share | 1.23 | 2.58 | -0.58 | -2.36 | -0.93 | 4.51 | 1.39 | -1.66 | 2.24 | 3.88 | -1.66 | 3.64 | 2.10 | 1.85 | -1.66 | -0.62 | 3.09 | -0.81 | -0.83 | 1.50 | 1.68 | 1.59 | 1.00 | 0.31 | 0.90 | -0.84 | 1.94 | -0.33 | 0.73 | 2.30 | 1.32 |
| FCF Conversion (FCF/Net Income) | -0.63x | -1.16x | 0.15x | -2.92x | -0.48x | 4.76x | -1.75x | -0.37x | 0.98x | 2.01x | -0.52x | 1.76x | 1.08x | 1.76x | -0.45x | -0.11x | -3.79x | 0.64x | 0.01x | 0.68x | 0.91x | 0.73x | 1.09x | 4.93x | -0.75x | 2.18x | 2.55x | -0.44x | 0.63x | 1.16x | 1.98x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11K | 64K | 66K | 56K | 156K | 167K | 176K | -127K | 23K | 18K | 4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 3.02M | 4.34M | 0 | 1.57M | 487K | 11.03M | 6.17M | 4.87M | 4.33M | 9.89M | -5.78M | 2.54M | -10.68M | 1.38M | 6.21M | 3.84M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical demand and margin compression
As reported in recent financial filings, Hurco's operating cash flow frequently diverges from net losses, with the OCF/NI ratio reaching -2.39 in 2025Q1, suggesting that non-cash charges and working capital shifts are currently the primary drivers of the company's reported cash position rather than core operational profitability.
The consistent gap between net income and operating cash flow indicates that the company's accounting earnings are heavily influenced by non-cash items like depreciation and amortization. Investors should monitor whether this reliance on working capital adjustments to generate positive cash flow is sustainable, as it may mask underlying operational weakness.
Based on the provided quarterly data, Hurco's free cash flow trajectory remains highly erratic, swinging from a peak of $9.8 million in 2025Q1 to a low of -$3.4 million in 2024Q1, which underscores the company's extreme sensitivity to the volatile capital expenditure cycles of its industrial customer base.
The lack of a stable free cash flow trend suggests that the business model is currently unable to generate consistent internal funding for operations. This volatility appears to be a direct consequence of the company's reliance on large, lumpy machine tool sales that are highly susceptible to global economic downturns.
According to the cash flow statements, working capital changes have been the most significant contributor to cash flow, with a notable $11.3 million inflow in 2025Q1, indicating that the company's cash position is currently more dependent on inventory and receivable management than on actual sales growth.
The frequent, large-scale fluctuations in working capital suggest that Hurco is actively managing its inventory levels to preserve cash during periods of low demand. This strategy appears to be a defensive measure, but it may also indicate potential risks regarding the obsolescence of finished goods if demand does not recover.
As indicated by the historical cash flow data, Hurco has maintained a conservative capital deployment strategy, with minimal dividend payments and sporadic share repurchases, even as the company has struggled to maintain positive net income over the last ten quarters of reported financial performance.
The decision to continue share repurchases during periods of negative earnings warrants further investigation, as it may suggest a management preference for supporting the stock price over reinvesting in R&D or operational efficiency. This approach appears to be depleting cash reserves that might otherwise be needed to navigate a prolonged industrial downturn.
Quick answers to the most common questions about buying HURC stock.
Hurco Companies, Inc. (HURC) generated $17.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hurco Companies, Inc. (HURC) generated $16.7M 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.
Hurco Companies, Inc. (HURC) 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.