Persistent negative free cash flow, evidenced by a -3.7% FCF margin in 2025Q2, highlights a critical disconnect between operational activities and liquidity generation.
| Cash from Operations | -14.58M | -37.94M | -14.74M | -97.28M | 74.72M | -30.89M | 11.11M | 17.62M | 19.81M | -28.61M |
| Operating CF Margin % | - | -1.5% | -0.48% | -2.63% | 1.96% | -0.77% | 0.43% | 0.86% | 1.34% | -4.37% |
| Operating CF Growth % | 272.16% | -157.42% | 84.85% | -230.19% | 341.88% | -378.06% | -36.96% | -11.02% | 169.22% | - |
| Net Income | 2.14M | -150.51M | 1.61M | 3.33M | -16.41M | -191.23M | -5.6M | -13.45M | -44.3M | -13.97M |
| Depreciation & Amortization | 18.17M | 15.71M | 21.7M | 25.75M | 28.61M | 30.51M | 20.01M | 14.11M | 10.13M | 2.47M |
| Stock-Based Compensation | 0 | 3.01M | 0 | -495K | 19.76M | 68.93M | 82.67M | 64.8M | 89.62M | 3.3M |
| Deferred Taxes | 0 | -23.64M | -13.67M | -6.09M | -5.21M | -4.33M | -740K | -9.32M | -2.45M | -94K |
| Other Non-Cash Items | -146.52M | 21.6M | -61.81M | -24.67M | 34.97M | 117.06M | -31.14M | 5.25M | 2.41M | 11.79M |
| Working Capital Changes | 111.63M | 95.89M | 37.43M | -95.1M | 13M | -51.83M | -54.08M | -43.76M | -35.62M | -26.21M |
| Change in Receivables | 97.09M | 29.38M | 180.15M | 19.7M | 13.1M | -134.19M | -97.25M | -112.39M | -15.73M | -50.86M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 27.9M | -2.87M | -23.73M |
| Change in Payables | 0 | 15.86M | -108.32M | -39.18M | -40.8M | 65.14M | 31.85M | 78.8M | 4.54M | 64.34M |
| Cash from Investing | -3.31M | -19.68M | 934K | 18.38M | 77.21M | -110.41M | -187.08M | 12.48M | -94.28M | -65.1M |
| Capital Expenditures | -634K | -1.45M | -924K | -142K | -12.75M | -80.73M | -3.41M | -39.62M | -36.35M | -21.64M |
| CapEx % of Revenue | 0.02% | 0.06% | 0.03% | 0% | 0.33% | 2.01% | 0.13% | 1.93% | 2.47% | 3.31% |
| Acquisitions | 0 | -29.3M | 0 | 0 | -5.01M | -3.36M | -27.53M | -2.48M | -7.01M | -8.48M |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2.67M | 11.07M | 995K | 14.61M | 22.34M | 7.03M | -46.39M | 20.15M | -27.16M | -30.01M |
| Cash from Financing | 10.41M | 32.97M | 32.42M | 24.22M | -82.14M | 68.67M | 153.09M | 80.55M | 82.5M | 71.35M |
| Debt Issued (Net) | 0 | -4.11M | 18.18M | 24.22M | -82.14M | 68.67M | -80.09M | 11.41M | 48.9M | 0 |
| Equity Issued (Net) | -1K | 37.08M | 14.24M | 0 | 0 | 0 | 244.16M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 10.41M | 0 | 0 | 0 | 0 | 0 | -10.98M | 69.14M | 33.59M | 71.35M |
| Net Change in Cash | -40.84M | -25.11M | 18.66M | -54.57M | 70.11M | -72.85M | -23.02M | 109.44M | 8.2M | -22.45M |
| Free Cash Flow | -15.22M | -46.69M | -21.84M | -130.11M | 61.98M | -111.63M | -51.28M | -22M | -16.54M | -50.26M |
| FCF Margin % | -0.59% | -1.85% | -0.72% | -3.51% | 1.62% | -2.77% | -1.99% | -1.07% | -1.12% | -7.68% |
| FCF Growth % | 86.84% | -113.73% | 83.21% | -309.94% | 155.52% | -117.66% | -133.14% | -32.98% | 67.09% | - |
| FCF per Share | -15.27 | -30.13 | -26.25 | -130.16 | 61.47 | -141.22 | -58.72 | -81.62 | -61.37 | -69.91 |
| FCF Conversion (FCF/Net Income) | -7.11x | 0.25x | -5.45x | -29.18x | -5.69x | 0.20x | 3.24x | -1.31x | -0.46x | 2.05x |
| Interest Paid | 690K | 2.4M | 2.79M | 3.17M | 5.72M | 6.17M | 8.14M | 5.93M | 3.78M | 1.3M |
| Taxes Paid | 0 | 322K | 428K | 2.81M | 4.19M | 10.58M | 11.88M | 835K | 77K | 2K |
Regulatory labor classification risk
As reported in recent financial statements, Quhuo Limited exhibits a persistent disconnect between net income and operating cash flow, with an OCF/NI ratio of 0.78 in 2025Q2, suggesting that accounting profits are not being effectively converted into the liquid resources necessary to sustain operations.
The recurring gap between net losses and operating cash outflows indicates that the company's accrual-based accounting does not capture the full extent of the cash burn inherent in its labor-brokerage model. Investors should monitor this divergence, as it suggests that the firm's underlying operational efficiency is weaker than the headline income figures might imply.
Based on the provided quarterly data, Quhuo Limited's free cash flow remains consistently negative, with a -3.7% FCF margin recorded in 2025Q2, highlighting the company's ongoing struggle to generate self-sustaining cash flow amidst a broader trend of revenue contraction and operational inefficiency.
The inability to achieve positive free cash flow suggests that the business model is structurally dependent on external capital or liquidity buffers to cover its operating deficits. This trajectory warrants further investigation into whether the company can reach a break-even point before its current cash reserves are exhausted.
According to the latest cash flow data, Quhuo Limited experienced a significant working capital outflow of $13.1 million in 2025Q2, which underscores the intense pressure on liquidity as the company manages the timing differences between paying its massive transient workforce and collecting fees from platform clients.
The volatility in working capital changes suggests that the company lacks the bargaining power to optimize its payment cycles, effectively forcing it to finance its clients' operations. This reliance on working capital management to bridge cash gaps creates a high-risk environment where any delay in collections could lead to immediate liquidity constraints.
As indicated by the financial filings, Quhuo Limited maintains a negligible capital intensity, with CapEx/Revenue ratios consistently near 0.0% over the last ten quarters, reflecting a business model that relies almost exclusively on human capital rather than physical infrastructure or proprietary technology assets.
While the low capital intensity prevents the company from being burdened by heavy depreciation or maintenance costs, it also confirms the lack of a defensible technological moat. The absence of significant investment in assets suggests that the company is not building long-term value, but rather operating as a low-margin service intermediary.
Quick answers to the most common questions about buying QH stock.
Quhuo Limited (QH) generated $-37.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Quhuo Limited (QH) reported negative free cash flow of $46.7M in 2025, indicating capital requirements exceeded cash from operations.
Quhuo Limited (QH) spent $1.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.