Hurco Companies Inc (HURC) Q4 2024 Earnings Report

Hurco’s QQ4 2024 results present a mixed but defensible liquidity position against a backdrop of cyclicality in the industrial machinery space. The quarter delivered revenue of $53.70 million, a YoY decline of 18.8% but a QoQ rise of 25.9%. Gross profit was $12.19 million with a 22.69% gross margin, yet the company posted an operating loss of $0.49 million and a net loss of $1.44 million (EPS -0.23). Operating cash flow was negative at $1.21 million and free cash flow stood at -$2.04 million, with working capital dynamics dominated by a very long inventory cycle (DIO ~332 days) and moderate receivables collection (DSO ~61 days). Balance sheet strength is evident in liquidity metrics: cash of $33.33 million, current ratio 4.78, and net debt of roughly -$21.65 million (cash exceeds debt). The near-term concern is profitability and cash conversion, not solvency, given modest leverage (total debt $11.68 million; debt-to-capitalization ~5.3%). The quarterly improvement from Q3 to Q4 in revenue and net income signals some stabilization, but the year-over-year backdrop remains challenging. Management commentary is not embedded in the provided dataset; investors should monitor topline momentum, backlog, and working capital efficiency to gauge trajectory into 2025.