Cash flow generation remains highly volatile, with working capital swings as large as $2.2 million per quarter, indicating that liquidity is heavily dependent on the timing of property inventory turnover.
| Cash from Operations | -1.87M | 524.43K | -4.84K | 223.31K | 186.61K |
| Operating CF Margin % | - | 2.5% | -0.06% | 16.3% | 29.85% |
| Operating CF Growth % | 5617.02% | 10926.38% | -102.17% | 19.67% | - |
| Net Income | -140.43K | 74.87K | 778.24K | 151.19K | 256.65K |
| Depreciation & Amortization | 89.51K | 47K | 18.76K | 6.04K | 16 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -33.18K | -742 | 0 | 0 | 0 |
| Other Non-Cash Items | -845.13K | -887.17K | -8.81K | 285 | 9.09K |
| Working Capital Changes | -945.15K | 1.29M | -793.03K | 65.79K | -79.15K |
| Change in Receivables | 1.77M | -92.55K | -8.68K | 106.29K | -115.77K |
| Change in Inventory | -1.67M | 907.06K | -907.06K | 0 | 0 |
| Change in Payables | 4.3K | 72.44K | 4.6K | -25.8K | 32.8K |
| Cash from Investing | -1.04M | -927.73K | -3.51K | -40.52K | -226 |
| Capital Expenditures | -303.65K | -303.65K | 0 | -40.52K | -226 |
| CapEx % of Revenue | 1.5% | 1.45% | 0.05% | 2.96% | 0.04% |
| Acquisitions | 0 | - | - | - | - |
| Investments | - | - | - | - | - |
| Other Investing | -823.77K | -621.42K | -3.51K | 0 | 0 |
| Cash from Financing | 5.81M | 5.75M | 1.03M | 280.16K | -3.87K |
| Debt Issued (Net) | 0 | - | - | - | - |
| Equity Issued (Net) | 6.2M | 6.2M | 980K | 303K | 0 |
| Dividends Paid | 0 | 0 | 0 | -21.15K | -3.87K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -388.62K | -443.62K | 55K | 0 | 0 |
| Net Change in Cash | 2.89M | 5.35M | 1.02M | 462.95K | 182.52K |
| Free Cash Flow | -2.18M | 220.78K | -4.84K | 182.79K | 186.39K |
| FCF Margin % | -10.79% | 1.05% | -0.06% | 13.34% | 29.81% |
| FCF Growth % | -153.43% | 4657.8% | -102.65% | -1.93% | - |
| FCF per Share | -0.13 | 0.01 | -0.00 | 0.01 | 0.01 |
| FCF Conversion (FCF/Net Income) | 15.51x | 7.00x | -0.01x | 1.48x | 0.73x |
| Interest Paid | 3.59K | 4.89K | 3.12K | 5.84K | 0 |
| Taxes Paid | 62.67K | 62.67K | 4.12K | 800 | 819 |
Working capital volatility
As reported in recent financial filings, LHAI exhibits extreme volatility in the relationship between net income and operating cash flow, with OCF/NI ratios swinging from -142.11 to over 10,000, suggesting that reported earnings provide little insight into the company's actual cash-generating capacity during this growth phase.
The massive divergence between net income and operating cash flow indicates that accrual-based accounting significantly obscures the underlying cash reality of the business. Investors should monitor this disconnect, as it suggests that reported profitability is highly sensitive to non-cash adjustments and timing differences rather than sustainable operational cash flow.
Based on the company's reported figures, free cash flow margins have fluctuated wildly between -67.1% and 49.6% over the last ten quarters, highlighting a lack of consistent cash generation that appears tied to the cyclical nature of property inventory turnover and renovation project timing.
The erratic FCF trajectory suggests that the company's business model is not yet optimized for consistent cash conversion. This instability warrants further investigation into whether the firm can achieve positive, predictable free cash flow as it scales, or if it will remain perpetually dependent on external capital to fund operations.
According to quarterly data, working capital changes are the primary driver of cash flow variance, with swings as large as $2.2 million in a single quarter, indicating that the company's cash position is highly vulnerable to the timing of property acquisitions and subsequent renovation-related outflows.
The heavy reliance on working capital management suggests that LHAI's cash flow is essentially a function of its inventory velocity. When the company accelerates property acquisitions, cash is rapidly consumed, creating a recurring liquidity pressure that may limit the firm's ability to weather prolonged downturns in the housing market.
As indicated by recent financial statements, LHAI maintains a low capital intensity with CapEx/Revenue ratios often near 0%, suggesting that the company's primary cash outflows are directed toward inventory acquisition rather than long-term investment in physical infrastructure or heavy machinery.
The minimal investment in traditional capital assets implies that the company is prioritizing asset-light operations, yet this strategy shifts the burden of capital intensity entirely onto inventory financing. This approach may indicate that the firm is avoiding long-term asset commitments to maintain flexibility, though it leaves the balance sheet exposed to inventory valuation risks.
Quick answers to the most common questions about buying LHAI stock.
Linkhome Holdings Inc. (LHAI) generated $0.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Linkhome Holdings Inc. (LHAI) generated $0.2M 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.
Linkhome Holdings Inc. (LHAI) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.