Cash generation is highly unpredictable, as evidenced by OCF/NI ratios that swung from -10.27 in 2025Q1 to 75.21 in 2024Q3, driven largely by erratic working capital fluctuations.
| 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 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Cash from Operations | 20.3M | 17.97M | 21.12M | -1.19M | 51.87M | 19.39M | -9.77M | 32.17M | 31.48M | 48.01M | 47.39M | 55.21M | 26.52M | 21.71M | 13.78M | 18.55M | 18.98M | 10.61M | -6.31M | 11.69M | 7.22M | 6.28M | 2.43M | 3.86M | 4.84M | 6.67M |
| Operating CF Margin % | - | 18.38% | 22.3% | -1.32% | 75.52% | 26.54% | -15.01% | 38.26% | 25.74% | 35.89% | 38.52% | 42.16% | 23.42% | 23.64% | 17.78% | 26.92% | 34.32% | - | - | 32.2% | 26.4% | 28.64% | 12.15% | 19.23% | 22.41% | 34.05% |
| Operating CF Growth % | 103.5% | -14.93% | 1882.45% | -102.28% | 167.58% | 298.41% | -130.37% | 2.19% | -34.42% | 1.3% | -14.16% | 108.15% | 22.19% | 57.53% | -25.71% | -2.28% | 78.96% | 268.08% | -154% | 61.77% | 14.96% | 158.92% | -37.14% | -20.31% | -27.36% | - |
| Net Income | 7.36M | 7.08M | 2.21M | 10.57M | -4.63M | 9.76M | -8.95M | 5.91M | 26.75M | 19.99M | 22.65M | 27.11M | 27.25M | 17.89M | 12.09M | 14.69M | 11.28M | 7.89M | 10.54M | 7.94M | 4.51M | 3.64M | 3.69M | 4.88M | 5.21M | 1.26M |
| Depreciation & Amortization | 4.15M | 4.45M | 4.75M | 4.82M | 2.58M | 2.37M | 2.64M | 2.62M | 2.54M | 2.92M | 2.93M | 2.6M | 938K | 769K | 821K | 762K | 429K | 254K | 232K | 228K | 266K | 272K | 191K | 108K | 88K | 157K |
| Stock-Based Compensation | 5.08M | 5.15M | 5.54M | 6.52M | 6M | 5.83M | 6.7M | 10.3M | 15.28M | 16.43M | 15.95M | 17.57M | 13.69M | 11.6M | 10.52M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -126K | -208K | -1.52M | 1.04M | -931K | 620K | 754K | 2.91M | -1.75M | 7.54M | 149K | -3.29M | -2.13M | -907K | -1.82M | -93K | -350K | -73K | -978K | -256K | -685K | -300K | -153K | 0 | 0 | 0 |
| Other Non-Cash Items | 4.62M | 8.37M | 11.25M | -24.16M | 52.22M | -926K | -9.39M | 13.31M | -14.98M | 5.16M | 15.94M | 5.78M | -16.92M | -5.36M | -10.61M | 14.65M | -870K | -1.5M | -14.82M | 2.79M | 3.52M | 2.01M | -770K | -871K | 1.88M | 3.38M |
| Working Capital Changes | -826K | -6.86M | -1.11M | 34K | -3.37M | 1.72M | -1.53M | -2.89M | 3.64M | -4.03M | -10.23M | 5.43M | 3.7M | -2.28M | 2.78M | 4.03M | 631K | 6.67M | -1.29M | 977K | -390K | 664K | -531K | -260K | -2.33M | 1.87M |
| Change in Receivables | -311K | -2.3M | -59K | 135K | 72K | -1.7M | 3.68M | 5.4M | 2.68M | 2.16M | -3.49M | -5.19M | -369K | -5.7M | -1.21M | -359K | -942K | 6.23M | -6.04M | -3.67M | -1.61M | -926K | -2.16M | -673K | 1.58M | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -2.42M | -2.89M | 5.4M | -9.05M | -3.09M | 6.51M | 70K | -887K | 61K | 0 | 0 | 0 | 0 | -3.24M | -596K | -257K | -208K | 489K | 559K | 0 |
| Change in Payables | -2.48M | 0 | 283K | -447K | 1.25M | 1.01M | -526K | -382K | -644K | 763K | -926K | 1.17M | 353K | 450K | -39K | 0 | 0 | 0 | 0 | 2.28M | -108K | 472K | -285K | -540K | -185K | 0 |
| Cash from Investing | 396K | -3.67M | -4.61M | 4.11M | -34.12M | 9.57M | -4K | -4.85M | 3.6M | -1.17M | -1.81M | -25.08M | -478K | -1.2M | 1.64M | -2.24M | -6.37M | -1.72M | 13.12M | -3.09M | 907K | 1.03M | -112K | -2.27M | -521K | -6.71M |
| Capital Expenditures | -363K | -86K | -109K | -147K | -320K | -178K | -93K | -1.18M | -991K | -1.17M | -1.82M | -951K | -478K | -1.2M | -264K | -1.43M | -137K | -86K | -153K | -114K | -70K | -75K | -1.19M | -118K | -88K | -52K |
| CapEx % of Revenue | 0.36% | 0.09% | 0.12% | 0.16% | 0.47% | 0.24% | 0.14% | 1.4% | 0.81% | 0.87% | 1.48% | 0.73% | 0.42% | 1.31% | 0.34% | 2.08% | 0.25% | - | - | 0.31% | 0.26% | 0.34% | 5.95% | 0.59% | 0.41% | 0.27% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 0 | 41.43M | 42.69M | 44.45M | 29.4M | 73.99M | 81.22M | 62.72M | 71.21M | 51.32M | 56.48M | 61.28M | 79.62M | 64.55M | 59.91M | 54.87M | 43.3M | 42.25M | 28.15M | 22.14M | 17.93M | 17.88M | 18.63M | 17.41M | 14.23M | 0 |
| Other Investing | 7.13M | -449K | -1M | 5M | -97.95M | 501K | 19.65M | -15.81M | 4.59M | 0 | 9K | 0 | 14.99M | 0 | 9.59M | 3K | -4.99M | 0 | 0 | 0 | 0 | 0 | 27K | 0 | 0 | 0 |
| Cash from Financing | -6.7M | -6.9M | -18.08M | -6.36M | -9.1M | -26.81M | -25.81M | -31.87M | -34.12M | -28.58M | -34.94M | -22.14M | -17.97M | -13.3M | -16.89M | -12.78M | -13.75M | -9.5M | -7.87M | -6.21M | -7.85M | -6.14M | -5.24M | -2.31M | -114K | -4.09M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -1.29M | -1.33M | -1.35M | 0 | -2.85M | -2.99M | -13.65M | -4.8M | -8.77M | -5.33M | -9.49M | -5.65M | -5.19M | -4.67M | -3.59M | -5.96M | -2.72M | -2.53M | -2.43M | -461K | 402K | 271K | 150K | 57K | -6K | 0 |
| Dividends Paid | -5.42M | -5.37M | -5.44M | -5.5M | -5.63M | -22.93M | -11.04M | -26.09M | -24.62M | -21.92M | -19.44M | -16.62M | -13.96M | -9.33M | -13.98M | -7.92M | -12.27M | -8.53M | -7.97M | -7.04M | -8.28M | -6.41M | -5.39M | -6.46M | -108K | 0 |
| Share Repurchases | -1.29M | -1.33M | -1.35M | 0 | -3.48M | -2.99M | -14.07M | -4.8M | -8.77M | -5.33M | -9.49M | -5.65M | -5.19M | -4.67M | -3.8M | -5.96M | -2.72M | -2.53M | -2.43M | -1.07M | 0 | 0 | 0 | 0 | -6K | 0 |
| Other Financing | 0 | -201K | -11.3M | -862K | -627K | -884K | -1.12M | -980K | -726K | -1.33M | -6.01M | 128K | 1.18M | 694K | 676K | 1.09M | 1.24M | 1.55M | 2.53M | 1.29M | 30K | 0 | 0 | 4.09M | 0 | -4.09M |
| Net Change in Cash | 13.99M | 7.4M | -1.57M | -3.44M | 8.65M | 2.19M | -36.75M | -2.68M | -1.8M | 20.57M | 10.94M | 4.61M | 7.27M | 7.05M | -1.45M | 3.52M | -1.14M | -619K | -1.06M | 2.38M | 280K | 1.18M | -2.92M | -716K | 4.21M | -4.13M |
| Free Cash Flow | 19.94M | 17.88M | 21.01M | -1.33M | 51.55M | 19.21M | -9.86M | 31M | 30.49M | 46.84M | 45.57M | 54.26M | 26.05M | 20.51M | 13.52M | 17.12M | 18.84M | 10.52M | -6.46M | 11.57M | 7.15M | 6.21M | 1.24M | 3.74M | 4.76M | 6.62M |
| FCF Margin % | 20.04% | 18.29% | 22.18% | -1.48% | 75.06% | 26.29% | -15.15% | 36.86% | 24.93% | 35.01% | 37.04% | 41.44% | 23% | 22.33% | 17.44% | 24.84% | 34.07% | - | - | 31.89% | 26.14% | 28.3% | 6.2% | 18.64% | 22% | 33.79% |
| FCF Growth % | 0.18% | -14.9% | 1677.55% | -102.58% | 168.39% | 294.74% | -131.82% | 1.65% | -34.9% | 2.78% | -16.01% | 108.32% | 27.01% | 51.72% | -21.04% | -9.16% | 79.13% | 262.77% | -155.85% | 61.76% | 15.22% | 401.53% | -66.92% | -21.32% | -28.12% | - |
| FCF per Share | 2.21 | 2.01 | 2.47 | -0.16 | 6.57 | 2.42 | -1.23 | 3.66 | 3.57 | 5.58 | 5.58 | 6.66 | 3.29 | 2.68 | 1.85 | 2.37 | 2.71 | 1.58 | -1.00 | 1.87 | 1.25 | 1.13 | 0.23 | 0.69 | 0.89 | 1.21 |
| FCF Conversion (FCF/Net Income) | 2.71x | 2.54x | 9.55x | -0.11x | -11.21x | 1.99x | 1.09x | 5.44x | 1.18x | 2.40x | 2.09x | 2.04x | 0.97x | 1.21x | 1.14x | 1.26x | 1.68x | 1.34x | -0.60x | 1.47x | 1.60x | 1.73x | 0.66x | 0.79x | 0.93x | 5.29x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 377K | 0 | 3.43M | 1.59M | 1.86M | 1.86M | 1.27M | 1.43M | 9.77M | 10.77M | 14.86M | 11.64M | 14.42M | 11.03M | 7.6M | 7.5M | 5.94M | 3.2M | 4.42M | 2.14M | 0 | 0 | 0 | 0 | 0 | 0 |
Operating cash flow volatility
According to quarterly financial data, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -10.27 in 2025Q1 to 75.21 in 2024Q3, suggesting that reported net income is a poor proxy for the firm's actual cash-generating capacity.
The extreme variance in the conversion ratio indicates that non-cash items and working capital swings are dominating the cash flow statement. Investors should interpret this as a signal that the firm's accounting earnings are subject to significant timing differences that may not reflect underlying business health.
As reported in recent financial statements, Westwood's free cash flow margins have demonstrated extreme inconsistency, ranging from a negative 21.1% in 2025Q1 to a peak of 56.7% in 2024Q3, highlighting a lack of predictable cash generation relative to the firm's revenue base.
This trajectory suggests that the firm's cash flow is highly sensitive to operational fluctuations rather than steady-state performance. The inability to maintain positive FCF margins consistently warrants further investigation into whether the firm's cost structure is too rigid to handle cyclical revenue downturns.
Based on reported figures, working capital changes have been a primary source of cash flow instability, with quarterly fluctuations reaching as high as negative $16.0M in 2025Q1, which directly impacts the firm's ability to maintain a consistent liquidity profile for its ongoing operations.
These large swings suggest that the firm's cash conversion cycle is susceptible to lumpy timing in client fee collections or other operational accruals. Such volatility may indicate that the firm lacks the necessary administrative controls to smooth out cash inflows, potentially complicating short-term capital allocation decisions.
Analysis of the cash flow statement reveals that stock-based compensation consistently consumes a significant portion of cash flow, with quarterly expenses averaging approximately $1.3M, which effectively masks the true economic cost of talent retention in this boutique asset management model.
By consistently adding back these non-cash expenses, the firm presents a more favorable cash flow picture than what is actually available to shareholders. This practice warrants caution, as it suggests that the firm's reported cash flow may be structurally inflated by accounting adjustments that do not reflect real cash outflows.
Quick answers to the most common questions about buying WHG stock.
Westwood Holdings Group, Inc. (WHG) generated $18.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Westwood Holdings Group, Inc. (WHG) generated $17.9M 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.
Westwood Holdings Group, Inc. (WHG) spent $0.1M 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, Westwood Holdings Group, Inc. (WHG) returned $5.4M to shareholders via cash dividends and spent $1.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.