Free cash flow margins have deteriorated from 15.2% in 2024Q4 to 6.0% in 2026Q1, indicating a weakening ability to convert core revenue into discretionary cash.
| 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 |
|---|
| Cash from Operations | 1.09B | 1.15B | 1.64B | 2.28B | 1.23B | 1.56B | 3.08B | 5.45B | 3.33B | 2.79B | 1.52B | 371.67M | -36.8M | -31.12M | -25.62M |
| Operating CF Margin % | - | 11.1% | 15.53% | 18.97% | 9.66% | 10.7% | 20.51% | 32.02% | 24.82% | 31.42% | 40.89% | 42.73% | -13.26% | -164.11% | - |
| Operating CF Growth % | -112.51% | -29.82% | -27.98% | 85.6% | -21.31% | -49.39% | -43.46% | 63.74% | 19.2% | 84.16% | 307.86% | 1109.89% | -18.26% | -21.48% | - |
| Net Income | 737.07M | 786.99M | 1.04B | 1.95B | 1.48B | -2.93B | 2.1B | 2.96B | 2.79B | 2.08B | 1.01B | 88.92M | -157.65M | -56.52M | -23.96M |
| Depreciation & Amortization | 87.98M | 79.59M | 58.73M | 79.61M | 112.13M | 264.6M | 366.25M | 356.19M | 241.27M | 81.19M | 58.36M | 43.14M | 17.4M | 5.1M | 917.55K |
| Stock-Based Compensation | 50.65M | 0 | 192.57M | 267.1M | 401.48M | 475.77M | 678.69M | 1.41B | 580.81M | 324.2M | 220.16M | 112.84M | 41.18M | 5.84M | 3.7M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 507K | -2.35M | 4.57M | 20.72M | -10.96M | -6.79M | -73K | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 262.48M | 169.9M | 274.4M | 110.5M | -129.5M | 4.41B | 76.72M | 30.15M | 3.63M | -1.11M | 16.11M | -2.37M | 397K | 0 | 0 |
| Working Capital Changes | -45.76M | 114.4M | 74.71M | -131.74M | -637.74M | -662.01M | -145.73M | 672.82M | -275.58M | 317.95M | 212.77M | 129.14M | 61.88M | 14.46M | -6.27M |
| Change in Receivables | -176M | -23.38M | 7.61M | -21.31M | 20.34M | -10.37M | 52.25M | 442.18M | -440.64M | -8M | -159.55M | -55.43M | -32.29M | -11.55M | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -895.04M | -160.42M | 141.42M | -20.52M | 69.64M | 44.02M | 65.96M | -13.27M | 1.8M | 0 |
| Change in Payables | 17.48M | -36.76M | -3.26M | 13.71M | -115.38M | 30.48M | -11.72M | 52.25M | 233.71M | 168.3M | 222.33M | 34.24M | 27.88M | 2.05M | 0 |
| Cash from Investing | -725.24M | 159.99M | -558.89M | 2.41B | 1.72B | 2.55B | -748.47M | -4.03B | -10.03B | -178.3M | -821.78M | -2.16B | -59.23M | -19.28M | -12.43M |
| Capital Expenditures | -470.89M | -479.1M | -285.54M | -576.31M | -80.44M | -95.32M | -124.14M | -186.52M | -242.84M | -230.51M | -48.79M | -87.78M | -54.22M | -19.28M | -6.5M |
| CapEx % of Revenue | 4.6% | 4.62% | 2.7% | 4.8% | 0.63% | 0.65% | 0.83% | 1.1% | 1.81% | 2.59% | 1.32% | 10.09% | 19.53% | 101.66% | - |
| Acquisitions | -440.02M | -616.61M | -136.64M | 0 | -21.42M | -8.75M | -1.03M | 300.81M | -3.32B | 0 | 0 | -134.76M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 1.27B | 1.84B | -136.7M | 3.34M | 28.05M | 8.59M | 709K | -300M | 2.21M | 52.23K | 437.46K | 134.76M | 0 | 0 | -5.93M |
| Cash from Financing | -3.76B | -5.29B | 236.2M | -1.7B | -3.43B | -1.79B | -1.5B | -1.27B | 4.69B | 2.74M | 97.21K | -14.5M | 2.56B | 272.71M | 147M |
| Debt Issued (Net) | -1.95B | -4.19B | 2.15B | -525.94M | -2.14B | 0 | 0 | 0 | 4.69B | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -726.72M | -749.22M | -1.2B | -212.19M | -392.37M | -862.87M | -330.21M | 0 | 0 | 0 | 0 | 0 | 2.57B | 272.71M | 147M |
| Dividends Paid | -347.23M | -336.75M | -716.3M | -958.05M | -841M | -852.74M | -1.12B | -877.35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -726.72M | -749.22M | -1.2B | -212.19M | -392.37M | -862.87M | -330.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -732.88M | -16.67M | 18K | -3.72M | -62.2M | -71.3M | -43.96M | -396.43M | -3.24M | 2.83M | 124K | -14.5M | -11.07M | 0 | 0 |
| Net Change in Cash | -3.32B | -2.88B | 1.36B | 3.08B | -448.43M | 2.28B | 753.33M | 144.71M | -1.99B | 2.8B | 611.71M | -1.83B | 2.45B | 223.23M | 108.74M |
| Free Cash Flow | 617.22M | 671.78M | 1.35B | 1.7B | 1.15B | 1.46B | 2.96B | 5.26B | 3.08B | 2.56B | 1.47B | 283.89M | -91.02M | -50.4M | -32.11M |
| FCF Margin % | 6.03% | 6.48% | 12.82% | 14.17% | 9.02% | 10.04% | 19.68% | 30.93% | 23.01% | 28.82% | 39.57% | 32.64% | -32.79% | -265.77% | - |
| FCF Growth % | -49.01% | -50.4% | -20.37% | 48.36% | -21.68% | -50.49% | -43.81% | 70.59% | 20.45% | 74.57% | 416.79% | 411.91% | -80.6% | -56.93% | - |
| FCF per Share | 3.84 | 3.97 | 7.25 | 8.47 | 5.67 | 7.23 | 13.08 | 23.33 | 14.25 | 12.34 | 7.21 | 1.41 | -0.47 | -0.27 | -1.11 |
| FCF Conversion (FCF/Net Income) | 0.84x | 1.43x | 1.58x | 1.16x | 0.83x | -0.54x | 1.46x | 1.83x | 1.18x | 1.30x | 1.55x | 4.18x | 0.23x | 0.55x | 1.45x |
| Interest Paid | 0 | 0 | 99.28M | 36.83M | 56.37M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 579.53M | 599.99M | 801.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Regulatory and competitive saturation
As reported in recent financial statements, Hello Group's OCF/NI ratio has exhibited extreme volatility, ranging from a low of -1.78 in 2025Q2 to a high of 77.19 in 2024Q1, suggesting that net income is a poor proxy for the company's actual cash-generating capacity.
The significant disconnect between net income and operating cash flow indicates that non-cash items and working capital swings are heavily distorting reported profitability. Investors should monitor whether this volatility reflects genuine operational shifts or merely accounting timing differences in virtual currency recognition.
Based on the provided cash flow data, Hello Group's FCF margins have trended downward from 15.2% in 2024Q4 to 6.0% in 2026Q1, reflecting a deteriorating ability to convert revenue into discretionary cash as the core business faces structural headwinds.
The decline in FCF margins appears to be driven by both top-line stagnation and the persistent need for capital expenditure to maintain platform relevance. This trend warrants further investigation into whether the company can sustain its current dividend and buyback programs without eroding its cash reserves.
According to quarterly filings, Hello Group's CapEx/Revenue ratio has spiked periodically, reaching as high as 12.1% in 2025Q4, which suggests that the company is forced to reinvest heavily to defend its market position against aggressive short-video competitors.
The lumpy nature of these capital expenditures may indicate that the company is struggling to balance maintenance requirements with necessary growth investments. Such capital intensity is concerning for a firm experiencing revenue contraction, as it limits the efficiency of capital deployment.
As evidenced by the company's financial disclosures, Hello Group has consistently prioritized share repurchases, with $186.1 million deployed in 2026Q1 alone, despite the underlying business showing clear signs of maturity and revenue decay.
This aggressive return of capital appears to be a strategy to support the share price in the absence of organic growth opportunities. Investors should consider whether these buybacks are creating long-term value or simply masking the lack of productive investment avenues for the company's cash.
Quick answers to the most common questions about buying MOMO stock.
Hello Group Inc. (MOMO) generated $1.15B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hello Group Inc. (MOMO) generated $671.8M 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.
Hello Group Inc. (MOMO) spent $479.1M 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, Hello Group Inc. (MOMO) returned $336.8M to shareholders via cash dividends and spent $749.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.