Operational cash generation remains structurally broken, with the company burning cash in nine of the last ten quarters and failing to achieve a positive free cash flow margin.
| Cash from Operations | -12.71M | -39.67M | -196.13M | -286.93M | -244.97M | -145.77M | -77.12M |
| Operating CF Margin % | -0.99% | -2.85% | -12.57% | -28.38% | -38.08% | -68.73% | -134.69% |
| Operating CF Growth % | 67.97% | 79.78% | 31.64% | -17.13% | -68.05% | -89.02% | - |
| Net Income | -435.81M | -460.43M | -872.93M | -742.65M | -381.72M | -142M | -87.65M |
| Depreciation & Amortization | 146.8M | 169.68M | 165.9M | 133.4M | 74.28M | 27.84M | 8.7M |
| Stock-Based Compensation | 2.87M | 1.04M | 64.48M | 74.69M | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | -47.15M | 0 | 0 | 0 |
| Other Non-Cash Items | 191.24M | 180.66M | 296.34M | 322.31M | 95.49M | -21.24M | 10.74M |
| Working Capital Changes | 82.19M | 69.38M | 150.08M | -27.53M | -33.01M | -10.38M | -8.91M |
| Change in Receivables | 10M | -12.72M | -24.55M | 1.84M | -1.84M | -4.8M | -3.17M |
| Change in Inventory | -2M | 8.88M | 9.16M | -29.38M | -31.17M | -5.57M | -5.73M |
| Change in Payables | -24.69M | 4.06M | 114.21M | 44.72M | 45.56M | 7.71M | 7.69M |
| Cash from Investing | -62.83M | -8.04M | 60M | -705.17M | -335.28M | -144.75M | -56.09M |
| Capital Expenditures | -65.62M | -102.84M | -292.4M | -334.93M | -335.32M | -144.75M | -56.09M |
| CapEx % of Revenue | 5.13% | 7.39% | 18.74% | 33.13% | 52.12% | 68.25% | 97.97% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 2.79M | 77.64M | 271.44K | 0 | 41K | 0 | 0 |
| Cash from Financing | 21.7M | 26M | 80.83M | 827.16M | 798M | 221.12M | 212.8M |
| Debt Issued (Net) | 33.05M | 21.41M | 126.89M | 212.65M | 516.05M | 0 | 0 |
| Equity Issued (Net) | 16.6K | 713 | 0 | 24.24M | 291.26M | 221.12M | 206.8M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -136K | -1.72M | 0 |
| Other Financing | -11.36M | 4.6M | -46.06M | 590.27M | -9.31M | 0 | 6M |
| Net Change in Cash | -54.53M | -19.35M | -35.49M | -151.76M | 215.96M | -85.57M | 84.32M |
| Free Cash Flow | -78.33M | -142.51M | -488.53M | -621.86M | -580.28M | -290.52M | -133.22M |
| FCF Margin % | -6.12% | -10.24% | -31.32% | -61.51% | -90.19% | -136.98% | -232.66% |
| FCF Growth % | 45.04% | 70.83% | 21.44% | -7.16% | -99.74% | -118.08% | - |
| FCF per Share | -2.41 | -4.39 | -15.84 | -24.27 | -21.55 | -13.68 | -4.95 |
| FCF Conversion (FCF/Net Income) | 0.03x | 0.10x | 0.22x | 0.39x | 0.64x | 1.03x | 0.88x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent negative unit economics
As reported in recent financial statements, THCH's operating cash flow consistently fails to track with net losses, with the OCF/NI ratio hovering near zero, suggesting that the company's reported net income is heavily burdened by non-cash charges rather than reflecting a path toward sustainable cash generation.
The persistent gap between net income and operating cash flow indicates that the business is not yet generating the internal liquidity required to fund its operations. Investors should monitor whether the reliance on non-cash adjustments, such as depreciation, masks a deeper inability to convert revenue into actual cash inflows.
Based on the provided cash flow data, THCH's free cash flow trajectory remains firmly in negative territory, with the company burning cash in nine of the last ten quarters, highlighting the structural difficulty of achieving self-sustaining operations within the current competitive landscape of the Chinese restaurant sector.
The inability to reach positive free cash flow suggests that the company's current store-level economics are insufficient to cover both operating expenses and necessary capital investments. This trend warrants further investigation into whether the business model can ever achieve the scale required to offset its high fixed-cost structure.
According to historical filings, THCH's capital expenditure peaked at $292.4 million in 2023Q4, representing a 74.7% CapEx-to-revenue ratio, which underscores the heavy capital burden required to maintain its store footprint and suggests that growth is being fueled by aggressive, debt-dependent investment rather than organic cash flow.
The high capital intensity relative to revenue appears to be a primary driver of the company's cash burn, as the firm continues to prioritize expansion over immediate profitability. Analysts should evaluate whether these capital outlays are effectively driving long-term unit economics or merely delaying the inevitable need for operational consolidation.
As evidenced by the persistent divergence between cumulative net losses and operating cash flow, THCH's financial performance suggests a structural inability to generate cash, with the company's cash position remaining under pressure despite the significant scale of its reported operations over the last ten quarters.
The widening gap between accounting losses and cash reality implies that the company's business model may be fundamentally misaligned with its cost structure. This divergence suggests that the firm's reliance on external financing is not a temporary bridge but a permanent requirement for its current operational configuration.
Quick answers to the most common questions about buying THCH stock.
TH International Limited (THCH) generated $-12.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
TH International Limited (THCH) reported negative free cash flow of $78.3M in 2025, indicating capital requirements exceeded cash from operations.
TH International Limited (THCH) spent $65.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.