Operational sustainability remains elusive, evidenced by a $193.3K free cash flow outflow in 2026Q1 and a history of erratic capital allocation, including a $21.1M share repurchase in 2024Q2.
| Cash from Operations | -1.61M | -1.75M | -1.66M | -1.29M | -1.21M | 660.01K | 1.25M |
| Operating CF Margin % | - | -201.9% | -132.42% | -154.84% | -100.47% | 13.44% | 39.57% |
| Operating CF Growth % | -145.18% | -5.44% | -29.09% | -6.41% | -283.11% | -47% | - |
| Net Income | -2.78M | -2.63M | -2.61M | -1.08M | 113.54K | 1.33M | 632.11K |
| Depreciation & Amortization | 18.45K | 19.65K | 48.17K | 58.01K | 375.63K | 269.12K | 90.46K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 325.19K | 0 |
| Other Non-Cash Items | 2.02M | 1.81M | 1.34M | 475.06K | -2.06M | -82.48K | 2.49M |
| Working Capital Changes | -931.66K | -947.78K | -442.64K | -742.36K | 357.5K | -1.18M | -1.97M |
| Change in Receivables | -747.69K | -561.25K | -294.14K | -13.97K | -58.79K | 73.97K | -1.28M |
| Change in Inventory | 1.39K | 412 | 336 | 184 | 10.57K | 62.3K | 757 |
| Change in Payables | -197.39K | -141.81K | 228.64K | 0 | 48.22K | 6.42K | 0 |
| Cash from Investing | -1.19M | -1.19M | 20.45M | -14.57K | -423.17K | 599.16K | -2.38K |
| Capital Expenditures | -20.23K | -19.46K | -30.39K | -14.57K | -166.85K | -39.09K | -9.21K |
| CapEx % of Revenue | 3.18% | 2.25% | 2.42% | 1.75% | 13.87% | 0.8% | 0.29% |
| Acquisitions | 0 | 0 | 0 | 0 | -256.32K | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -1.08M | -1.08M | 20.48M | 0 | 86.69M | 638.25K | 6.83K |
| Cash from Financing | 130.05K | 934.71K | -15.76M | 526.32K | 718.67K | 0 | 0 |
| Debt Issued (Net) | -235.71K | -475.27K | -85.06K | 205.31K | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 1.41M | -17.52M | -68.35M | 88.97M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -21.1M | -68.35M | 0 | 0 | 0 |
| Other Financing | 365.77K | 0 | 1.85M | 68.67M | -88.25M | 0 | 0 |
| Net Change in Cash | -2.72M | -2.26M | 3.18M | -772.28K | -999.73K | 1.05M | 1.34M |
| Free Cash Flow | -1.63M | -1.77M | -1.69M | -1.3M | -680.92K | 620.93K | 1.24M |
| FCF Margin % | -255.74% | -204.14% | -134.85% | -156.59% | -56.61% | 12.64% | 39.28% |
| FCF Growth % | -1.3% | -4.69% | -29.98% | -91% | -209.66% | -49.77% | - |
| FCF per Share | -0.22 | -0.27 | -0.10 | -0.11 | -0.07 | 0.06 | 0.13 |
| FCF Conversion (FCF/Net Income) | 0.59x | 0.67x | 0.64x | -2.34x | -10.64x | 0.50x | 1.97x |
| Interest Paid | 2.26K | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 4.52K | 0 | 0 | 0 | 0 | 576.33K | 0 |
Persistent Operating Cash Burn
According to the provided financial data, HWH consistently reports negative net income alongside operating cash outflows, with the OCF/NI ratio frequently fluctuating in ways that suggest the company's accrual-based accounting does not reflect the underlying reality of its cash-burning operational model and lack of sustainable revenue generation.
The persistent gap between net income and operating cash flow suggests that the company is struggling to convert its business model into tangible liquidity. Investors should monitor whether the volatility in these figures stems from non-cash adjustments or simply the erratic nature of the company's membership-based revenue streams.
As reported in recent quarterly filings, HWH's free cash flow has remained consistently negative, with the company recording a $193.3K outflow in 2026Q1, a trend that highlights the structural inability of the current platform to generate self-sustaining cash flow despite its diverse service-based revenue pillars.
The negative FCF trajectory appears to be a direct consequence of high operating overhead that dwarfs the company's gross profit. This pattern suggests that without a significant shift in scale or cost management, the company may continue to rely on external capital to fund its ongoing operations.
Based on the reported quarterly figures, HWH has experienced significant working capital swings, including a notable $881.4K outflow in 2025Q4, which suggests that the company's cash management is highly sensitive to timing differences in collections and payables within its Hapi ecosystem and related-party service agreements.
The erratic nature of these working capital changes may indicate difficulties in managing cash cycles across disparate business units like travel and wealth building. Such fluctuations warrant further investigation into whether these movements are driven by operational inefficiencies or the settlement of intercompany balances with the parent entity.
As indicated by historical financial statements, HWH's capital deployment has been characterized by sporadic share repurchases, such as the $21.1M outflow in 2024Q2, which appears disconnected from the company's underlying cash-burning reality and suggests a potential misallocation of resources during periods of significant operational distress.
The decision to engage in large-scale buybacks while simultaneously reporting deep operating losses raises questions regarding management's capital allocation priorities. Investors should be wary of how such actions impact the company's limited cash runway and its ability to fund future growth initiatives.
Quick answers to the most common questions about buying HWH stock.
HWH International Inc. (HWH) generated $-1.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
HWH International Inc. (HWH) reported negative free cash flow of $1.8M in 2025, indicating capital requirements exceeded cash from operations.
HWH International Inc. (HWH) 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.