Free cash flow has deteriorated from a 55.2% margin in 2025Q4 to a negative 30.5% in 2026Q1, largely driven by $665.2M in net acquisition spending.
| Cash from Operations | 60.92M | 196.09M | 152.1M | 117.02M | 95.61M |
| Operating CF Margin % | - | 42.44% | 36.17% | 29.96% | 25.26% |
| Operating CF Growth % | -587.69% | 28.92% | 29.98% | 22.39% | - |
| Net Income | -121.44M | 135.79M | 110.26M | 101.2M | 102.69M |
| Depreciation & Amortization | 66.4M | 9.38M | 9.17M | 8.39M | 8.57M |
| Stock-Based Compensation | 23.05M | 26.8M | 19.89M | 16.65M | 10.51M |
| Deferred Taxes | -60.6M | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -25.43M | 258K | 584K | 503K | 3.75M |
| Working Capital Changes | 38.69M | 23.86M | 12.19M | -9.72M | -29.92M |
| Change in Receivables | 18.07M | 3.23M | -6.96M | -3.22M | -9.35M |
| Change in Inventory | -21.61M | 619K | 8M | -8.98M | -18.24M |
| Change in Payables | -9.99M | 6.23M | 521K | -1.96M | 66K |
| Cash from Investing | -682.83M | -51.38M | -9.95M | -10.94M | -9.05M |
| Capital Expenditures | -13.68M | -6.86M | -7.41M | -10.94M | -9.05M |
| CapEx % of Revenue | 1.79% | 1.48% | 1.76% | 2.8% | 2.39% |
| Acquisitions | -665.2M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -5.03M | -1.51M | -1.03M | 0 | 0 |
| Cash from Financing | 673.86M | -54.92M | -108.76M | -76.15M | -100.14M |
| Debt Issued (Net) | -2.5M | -11.25M | -12.81M | -22.81M | -31.88M |
| Equity Issued (Net) | 0 | -4.1M | 0 | 0 | 0 |
| Dividends Paid | -31.87M | 0 | -15.57M | 0 | 0 |
| Share Repurchases | 0 | -4.1M | 0 | 0 | 0 |
| Other Financing | 708.23M | -39.57M | -80.37M | -53.34M | -68.27M |
| Net Change in Cash | 49.05M | 89.78M | 33.4M | 29.93M | -13.59M |
| Free Cash Flow | 47.55M | 189.23M | 143.66M | 106.07M | 86.56M |
| FCF Margin % | 6.21% | 40.95% | 34.16% | 27.15% | 22.87% |
| FCF Growth % | -64.14% | 31.72% | 35.43% | 22.54% | - |
| FCF per Share | 5.56 | 22.20 | 16.93 | 12.50 | 10.20 |
| FCF Conversion (FCF/Net Income) | -0.39x | 1.44x | 1.38x | -36.76x | 0.93x |
| Interest Paid | 3.29M | 0 | 20.61M | 27.25M | 21.38M |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Earnings and cash divergence
As reported in recent financial filings, RHLD's operating cash flow to net income ratio has exhibited extreme volatility, including a negative 80.07x reading in 2025Q2, which highlights a significant disconnect between accounting profitability and the actual cash-generating capacity of the firm's underlying platform business model.
The wide variance between net income and operating cash flow suggests that GAAP earnings are heavily influenced by non-cash items or mark-to-market adjustments that do not reflect the firm's liquidity reality. Investors should monitor whether this divergence persists, as it complicates the assessment of the firm's core fee-related earnings quality.
Based on the provided quarterly data, RHLD's free cash flow margin has deteriorated sharply, swinging from a peak of 55.2% in 2025Q4 to a negative 30.5% in 2026Q1, signaling a rapid erosion of the firm's ability to convert revenue into sustainable cash flow for shareholders.
This trajectory suggests that the platform's recent expansion efforts are consuming capital at a rate that outpaces current cash inflows. The shift into negative territory warrants further investigation into whether this is a temporary investment phase or a structural change in the firm's operating leverage.
According to historical cash flow statements, RHLD's capital expenditure as a percentage of revenue reached a high of 4.3% in 2023Q4, though it has since fluctuated, with the most recent 2026Q1 data showing a 1.8% intensity level that reflects ongoing investment in platform infrastructure.
While capital intensity remains relatively low, the absolute level of spending appears to be rising alongside the firm's recent revenue growth. This suggests that maintaining the platform's competitive architecture requires consistent reinvestment, which may limit the amount of free cash flow available for distribution or debt reduction.
As indicated by recent financial disclosures, RHLD utilized $665.2M for net acquisitions in 2026Q1, a substantial deployment of capital that significantly impacted the firm's liquidity position and contributed to the negative free cash flow observed during the same period.
The aggressive use of cash for acquisitions suggests a strategy focused on rapid inorganic growth, which may be intended to bolster the platform's AUM base. However, the lack of immediate cash flow contribution from these acquisitions warrants caution regarding the long-term return on invested capital.
Quick answers to the most common questions about buying RHLD stock.
Resolute Holdings Management, Inc. (RHLD) generated $196.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Resolute Holdings Management, Inc. (RHLD) generated $189.2M 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.
Resolute Holdings Management, Inc. (RHLD) spent $6.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Resolute Holdings Management, Inc. (RHLD) spent $4.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.