Operating cash flow exhibits extreme volatility, evidenced by a swing from a $127.9 million inflow in 2025Q2 to a $47.8 million deficit in 2025Q4, highlighting a disconnect between accounting net income and actual cash generation.
| 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 |
|---|
| Cash from Operations | 38.85M | 71.03M | 243.51M | -136M | -173.11M | -295.39M | -10.47M | 149.01M | 10.12M | 14.31M | 65.75M | 98.32M | 68.92M | 107.77M | 34.31M | 38.65M | -7.94M | 6.45M | 38.87M | 170.52K | 14.47M |
| Operating CF Growth % | -3497.89% | -70.83% | 279.05% | 21.44% | 41.4% | -2721.04% | -107.03% | 1372.77% | -29.29% | -78.24% | -33.13% | 42.66% | -36.05% | 214.08% | -11.22% | 586.58% | -223.2% | -83.41% | 22693.17% | -98.82% | - |
| Operating CF / Revenue % | 11.62% | 21.17% | 82.08% | -51.58% | -78.41% | -129.17% | -1.24% | 18.06% | 1.4% | 2.19% | 13.5% | 27.5% | 24.59% | 51.79% | 26.15% | 40.08% | -9.93% | 7.29% | 38.46% | 0.15% | 17.55% |
| Net Income | 104.74M | 106.84M | 75.72M | 309.91M | -469.97M | -59.87M | -95.5M | -29.48M | 394K | 10.14M | 5.7M | 27.36M | 41.01M | 20.34M | 9.71M | 8.09M | -925K | 4.06M | 33.42M | 82.46K | 17.21M |
| Depreciation & Amortization | 5.71M | 6.57M | 8.87M | 10.63M | 23.31M | 11.77M | 11.05M | 12M | 18.48M | 37.53M | 11.71M | 3.33M | 801K | 697K | 1.26M | 1.22M | 1.11M | 1.19M | 781K | 0 | 66K |
| Stock-Based Compensation | 4.7M | 4.3M | 2.54M | 1.32M | 1.39M | 1.19M | 1.38M | 3.01M | 2.41M | 2.61M | 1.95M | 1.97M | 649K | 133K | 55K | 0 | 0 | 75K | 0 | 0 | 0 |
| Deferred Taxes | 4.67M | 10.28M | -2.36M | 14.44M | 24.14M | -22.82M | -9.89M | -4.28M | -2.47M | -8.58M | 2.21M | 2.31M | -1.18M | 1.15M | -661K | -600K | 352K | 1.25M | 3.34M | -32.21K | 0 |
| Other Non-Cash Items | 4.27M | -2.11M | -1.88M | -234.08M | 38.01M | -6.83M | -30.3M | -20.11M | 13.01M | 5.5M | 3.19M | 1.44M | 1.61M | 1.51M | -2.12M | 23K | 927K | 543K | -2.02M | 0 | -2.8M |
| Working Capital Changes | -77.7M | -54.85M | 160.62M | -238.22M | 210M | -218.84M | 112.8M | 187.89M | -21.71M | -32.9M | 40.98M | 61.91M | 26.02M | 83.93M | 26.08M | 30.05M | -5.15M | -671K | 4.47M | 120.27K | 0 |
| Cash from Investing | -11.18M | 620K | -179.21M | -2.54M | 236.84M | 251.38M | 36.57M | -33.98M | -125.64M | -7.34M | -49.76M | -67.02M | -91.47M | -144.15M | -25.89M | -68.16M | 79.92M | -3.51M | -17.77M | -37.72M | -55.59M |
| Capital Expenditures | -195K | -155K | -22K | -196K | -3.05M | -5.27M | -10.85M | -21.9M | -4.07M | -5.24M | -3.15M | -10.92M | -6.35M | -1.85M | -452K | -35K | -384K | -314K | -256K | 0 | -43K |
| Acquisitions | 4.5M | 4.5M | 0 | -231.95M | 21.24M | -256.65M | 500M | 12.08M | 0 | 95.28M | -32.9M | 14.47M | 0 | 0 | 0 | -15K | 311K | 206K | 0 | 0 | 0 |
| Purchase of Investments | -162.55M | -167.54M | -214.94M | -53.24M | -35.47M | -270.91M | -797.45M | -276.58M | -372.17M | -205.72M | -201.23M | -270.14M | -305.01M | -244.51M | -78.53M | -102.46M | -80.34M | -85.12M | -72.39M | 0 | -135.79M |
| Sale/Maturity of Investments | 147.07M | 163.82M | 35.75M | 282.85M | 254.11M | 527.56M | 844.86M | 264.5M | 250.6M | 128.33M | 187.52M | 199.57M | 219.89M | 102.21M | 52.64M | 36.59M | 160.65M | 81.93M | 56.16M | 0 | 79.99M |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 256.65M | -500M | -12.08M | -121.57M | -20M | -13.71M | -70.57M | -85.12M | -144.29M | -26.64M | -2.23M | -311K | -206K | -1.28M | 0 | 255K |
| Cash from Financing | -42.96M | -1.08M | -13.84M | 26.77M | -25.39M | -12.21M | -11.65M | -12.1M | 23.37M | 118.62M | 49.91M | -7.91M | 49.05M | 71K | 21.15M | -499K | -27.42M | -5.35M | -46.26M | 37.62M | 39.37M |
| Dividends Paid | -36.57M | 0 | -24.1M | 0 | -2.59M | -10.35M | -10.31M | -10.28M | -10.27M | -8.99M | -4.97M | -4.3M | -3.34M | -1.94M | -982K | -518K | -529K | -1.59M | -18.23M | 0 | 0 |
| Share Repurchases | -5M | 0 | 0 | -24K | -25K | -39K | -25K | -296K | -418K | -287K | -270K | -185K | 0 | 0 | 0 | -431K | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 465K | 774K | 11.62M | 26.79M | 25K | 39K | 25K | 296K | 0 | 0 | 0 | 0 | 54.04M | 3.59M | 23.95M | 0 | 0 | 0 | 0 | 39.14M | 597K |
| Debt Issuance (Net) | 0 | 0 | 0 | 0 | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | 450K | -1000K | -1000K | -1000K | -1000K | 1000K |
| Other Financing | -1.85M | -1.85M | -1.36M | -24K | -18.34M | 0 | 0 | -296K | 19.52M | 17.69M | 21.07M | -185K | -110K | -400K | 0 | 0 | 0 | 0 | -8.53M | -56.92M | -2.17M |
| Net Change in Cash | 5.91M | 70.56M | 50.46M | -111.78M | 38.33M | -56.22M | 14.44M | 102.94M | -92.16M | 125.59M | 65.9M | 23.39M | 26.5M | -36.32M | 29.57M | -30M | 44.56M | -2.41M | -25.16M | 71.27K | 0 |
| Exchange Rate Effect | 21.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 292.85M | 222.29M | 171.83M | 283.61M | 245.28M | 301.5M | 287.06M | 184.12M | 276.27M | 150.69M | 84.79M | 61.39M | 34.89M | 71.2M | 41.64M | 71.64M | 27.09M | 29.49M | 56.85M | 0 | 0 |
| Cash at End | 238.95M | 292.85M | 222.29M | 171.83M | 283.61M | 245.28M | 301.5M | 287.06M | 184.12M | 276.27M | 150.69M | 84.79M | 61.39M | 34.89M | 71.2M | 41.64M | 71.64M | 27.09M | 31.69M | 71.27K | 46.25M |
| Free Cash Flow | 38.65M | 70.87M | 243.49M | -136.2M | -176.16M | -300.66M | -21.32M | 127.12M | 6.05M | 9.07M | 62.6M | 87.4M | 62.57M | 105.92M | 33.86M | 38.61M | -8.33M | 6.13M | 38.61M | 170.52K | 14.43M |
| FCF Growth % | -73.41% | -70.89% | 278.77% | 22.68% | 41.41% | -1310.3% | -116.77% | 2001.14% | -33.31% | -85.51% | -28.38% | 39.68% | -40.92% | 212.81% | -12.31% | 563.72% | -235.77% | -84.12% | 22543.04% | -98.82% | - |
| FCF Margin % | 11.56% | 21.13% | 82.08% | -51.65% | -79.79% | -131.47% | -2.52% | 15.41% | 0.84% | 1.39% | 12.85% | 24.44% | 22.33% | 50.9% | 25.8% | 40.05% | -10.41% | 6.93% | 38.2% | 0.15% | 17.5% |
| FCF per Share | 0.78 | 1.42 | 4.93 | -3.07 | -4.09 | -7 | -0.5 | 2.97 | 0.14 | 0.24 | 2.9 | 4.07 | 3.12 | 6.54 | 3.18 | 3.7 | -0.79 | 0.58 | 3.56 | 0.01 | 1.12 |
Florida catastrophe reinsurance volatility
According to quarterly financial data, ACIC's operating cash flow has demonstrated extreme volatility, swinging from a peak of $127.9 million in 2025Q2 to a deficit of $47.8 million in 2025Q4, which suggests that the timing of reinsurance premium payments significantly distorts underlying underwriting cash generation.
The erratic nature of operating cash flow appears to be a function of the company's heavy reliance on reinsurance cessions, which creates lumpy cash outflows that do not always align with premium collection cycles. Investors should monitor whether this volatility is a structural byproduct of the commercial residential niche or if it reflects lingering cash drag from the legacy personal lines runoff.
Based on reported investment activity, ACIC has frequently liquidated portfolio assets to manage liquidity, as evidenced by the $65.7 million in sales during 2025Q2, indicating that the company relies on its investment portfolio as a flexible buffer to offset underwriting cash flow fluctuations.
The frequent rotation between purchasing and selling fixed-income assets suggests a tactical approach to liquidity management rather than a static buy-and-hold strategy. This behavior may indicate that the company is prioritizing immediate cash availability to meet potential claims or reinsurance obligations over long-term yield optimization.
As reported in financial statements, the OCF/NI ratio has fluctuated wildly, reaching a high of 6.63 in 2024Q2 before turning negative in 2026Q1, which highlights a significant disconnect between accounting net income and the actual cash generated by the core insurance operations.
This divergence suggests that GAAP net income may be heavily influenced by non-cash accruals or reserve adjustments that do not reflect the immediate cash reality of the business. The negative OCF/NI ratio in recent periods warrants further investigation into whether reserve strengthening for legacy liabilities is consuming cash at a faster rate than the commercial book can replenish it.
According to recent filings, the company's decision to pay $36.6 million in dividends during 2026Q1 despite negative operating cash flow suggests a reliance on existing capital reserves rather than current underwriting profits to fund shareholder returns, which may not be sustainable in the long term.
The timing of these capital returns appears disconnected from the operational cash cycle, potentially signaling management's confidence in the balance sheet's strength. However, investors should remain cautious, as prioritizing dividends during periods of cash burn may limit the company's ability to absorb unexpected catastrophe losses without further capital dilution.
Quick answers to the most common questions about buying ACIC stock.
American Coastal Insurance Corporation (ACIC) generated $71.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
American Coastal Insurance Corporation (ACIC) generated $70.9M 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.
American Coastal Insurance Corporation (ACIC) spent $0.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.