Liquidity is under severe pressure as cash balances plummeted from $190.7 million in 2024Q4 to just $5.5 million in 2026Q1.
| Cash from Operations | 77.19M | 74.09M | 151.68M | 156.8M | 305.61M | 104.6M | 46.78M | 60.49M | 26.2M | 40.77M | 44.73M |
| Operating CF Margin % | - | 23.11% | 39.27% | 27.82% | 60.88% | 35.9% | 20.78% | 18.84% | 10.89% | 30.38% | 29.93% |
| Operating CF Growth % | -4.44% | -51.15% | -3.27% | -48.69% | 192.17% | 123.59% | -22.67% | 130.87% | -35.74% | -8.84% | - |
| Net Income | -43.58M | -37.08M | 71.41M | 173.7M | 73.94M | -4.58M | -27.48M | 6.24M | 4.96M | 981K | 26.91M |
| Depreciation & Amortization | 75.52M | 73.39M | 72.81M | 83.98M | 67.67M | 70.52M | 65.61M | 58.9M | 39.13M | 30.15M | 41.33M |
| Stock-Based Compensation | 9.54M | 0 | 7.31M | 11.17M | 19.24M | 5.08M | 3.61M | 1.75M | 11.38M | 0 | 0 |
| Deferred Taxes | -9.69M | 0 | -3.8M | 37.9M | 29.88M | 469K | -8.75M | 5.99M | 10.86M | 21.88M | 0 |
| Other Non-Cash Items | 29.96M | 14.06M | 13.08M | 15.5M | 48.39M | 7.85M | 7.29M | 14.51M | 3.77M | 765K | -20.66M |
| Working Capital Changes | 15.48M | 23.72M | -9.12M | -165.46M | 66.49M | 25.25M | 6.5M | -26.89M | -43.89M | -13.39M | -2.85M |
| Change in Receivables | 10.63M | -7.51M | 17.6M | -25.8M | -13.69M | -2.23M | 16.27M | 7.44M | -25.91M | -6.88M | -4.46M |
| Change in Inventory | 0 | 0 | 0 | 10.39M | 0 | -9.93M | -1.04M | 16.83M | 3.91M | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | -10.39M | 0 | 9.93M | 1.04M | -16.83M | 1.06M | 0 | 0 |
| Cash from Investing | -89.94M | -67.79M | -28.84M | -68.18M | -140.23M | -35.91M | -10.95M | -112.7M | -220.92M | -130.25M | -5.13M |
| Capital Expenditures | -17.74M | 0 | -30.24M | -63.87M | -140.84M | -35.49M | -12.18M | -84.73M | -79.68M | -16.21M | -5.13M |
| CapEx % of Revenue | 5.48% | 20.91% | 7.83% | 11.33% | 28.06% | 12.18% | 5.41% | 26.39% | 33.12% | 12.08% | 3.43% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 990K | -30M | -200.36M | -36.54M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -72.2M | -67.79M | 1.4M | -4.31M | 615K | -427K | 238K | 2.03M | 59.12M | -77.49M | 0 |
| Cash from Financing | -16.27M | -188.64M | -36.06M | -166.37M | -7.1M | -52.27M | -35.68M | 46.65M | 194.55M | 98.06M | -39.94M |
| Debt Issued (Net) | -13.25M | -185.6M | -1.7M | -154.46M | -6.51M | -52.17M | -30.14M | 390.06M | -121.95M | 1.67M | -50.62M |
| Equity Issued (Net) | -2.24M | 0 | -33.5M | -6.82M | 0 | -99K | -5.32M | -18.33M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -26.74M | -23.56M | 0 |
| Share Repurchases | -2.24M | 0 | -33.5M | -6.82M | 0 | -99K | -5.32M | -18.24M | 0 | 0 | 0 |
| Other Financing | -790K | -3.04M | -873K | -5.09M | -590K | 0 | -221K | -325.07M | 343.24M | 96.39M | 10.68M |
| Net Change in Cash | -29.01M | -182.32M | 86.74M | -77.74M | 158.27M | 16.43M | 140K | -5.61M | -339K | 8.72M | -351K |
| Free Cash Flow | 59.46M | 7.05M | 121.43M | 88.38M | 164.77M | 69.11M | 34.6M | -24.24M | -53.48M | 24.56M | 39.6M |
| FCF Margin % | 18.38% | 2.2% | 31.44% | 15.68% | 32.82% | 23.72% | 15.37% | -7.55% | -22.23% | 18.3% | 26.5% |
| FCF Growth % | -17.94% | -94.19% | 37.4% | -46.36% | 138.41% | 99.72% | 242.77% | 54.68% | -317.76% | -37.98% | - |
| FCF per Share | 0.59 | 0.07 | 1.20 | 0.84 | 1.65 | 0.72 | 0.36 | -0.26 | -1.32 | 0.60 | 0.97 |
| FCF Conversion (FCF/Net Income) | -1.36x | -2.00x | 2.13x | 0.90x | 4.13x | -22.86x | -1.86x | 5.05x | 5.29x | 41.56x | 1.66x |
| Interest Paid | 0 | 0 | 17.98M | 29.27M | 32.65M | 33.77M | 35.6M | 23.58M | 0 | 955K | 0 |
| Taxes Paid | 0 | 0 | 28.77M | 5.97M | 4.87M | 765K | 1.27M | 1.24M | 0 | 620K | 0 |
Government contract concentration risk
As reported in financial statements, Target Hospitality's operating cash flow has consistently decoupled from net income, with the OCF/NI ratio reaching a volatile -0.54 in 2026Q1, suggesting that accounting accruals and non-cash charges are masking the underlying cash-generative capacity of the core business operations.
The persistent gap between net income and operating cash flow indicates that reported earnings are heavily influenced by non-cash items, likely depreciation of the modular fleet. Investors should monitor whether this divergence reflects a structural inability to convert service revenue into actual liquidity as contract utilization rates decline.
Based on recent quarterly filings, the company's free cash flow margin has deteriorated significantly, swinging from a positive 24.6% in 2023Q4 to a negative 13.5% by 2025Q4, which highlights the increasing difficulty of maintaining positive cash generation amidst a shrinking revenue base.
The volatility in FCF margins suggests that the company's fixed-cost structure is becoming a liability as revenue contracts. This trend warrants further investigation into whether the current level of capital expenditure is sufficient to maintain the fleet or if the business is entering a period of sustained cash burn.
According to historical data, Target Hospitality's capital intensity has fluctuated wildly, with CapEx/Revenue ratios spiking to 26.9% in 2025Q2, indicating that the company is forced to reinvest heavily in its modular assets even as top-line performance continues to face significant downward pressure.
High capital intensity relative to declining revenue suggests that the company may be struggling to optimize its asset base, potentially leading to inefficient maintenance spending. This pattern may indicate that the modular units require constant capital infusion to remain compliant with government and energy sector standards.
As evidenced by the quarterly cash flow data, working capital changes have been highly erratic, swinging from a $10.9 million inflow in 2025Q3 to a $12.6 million outflow in 2025Q1, which suggests significant instability in the timing of collections and payables management.
The inconsistency in working capital movements may imply that the company is experiencing delays in receiving payments from key government or energy clients. Such fluctuations complicate cash flow forecasting and may indicate that the company lacks the leverage to enforce favorable payment terms with its counterparties.
Quick answers to the most common questions about buying TH stock.
Target Hospitality Corp. (TH) generated $74.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Target Hospitality Corp. (TH) generated $7.1M 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.
Target Hospitality Corp. (TH) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.