Despite a disconnect between FFO of $58.6M and negative $16.7M in GAAP operating cash flow, the $57.6M in AFFO provides a 0.57 coverage ratio for the $33.3M dividend payout.
| Cash from Operations | 91.51M | 134.04M | 14.07M | 29.95M | 91.78M | 138.91M | 111.08M |
| Operating CF Growth % | 4848.68% | 852.6% | -53.02% | -67.37% | -33.93% | 25.05% | - |
| Operating CF / Revenue % | 10.33% | 16.64% | 2.52% | 5.98% | 66.46% | 36.54% | 75.07% |
| Net Income | 155.49M | 149.05M | -93.95M | -77.8M | -340.65M | 188.48M | -288.51M |
| Depreciation & Amortization | 34.08M | 23.13M | 60.04M | 52.12M | 152.96M | 51.39M | 0 |
| Stock-Based Compensation | 7.34M | 0 | 6.07M | 8.82M | 11.89M | 10.24M | 0 |
| Other Non-Cash Items | -96.25M | -50.37M | 56.95M | 63.55M | 282.36M | -107.49M | 390.34M |
| Working Capital Changes | -2.85M | 12.24M | -15.04M | -16.75M | -14.79M | -3.7M | 9.26M |
| Cash from Investing | -2.19B | -2.9B | -2.24B | -1.22B | -508.77M | -132.95M | 2.12B |
| Acquisitions (Net) | -16.73M | -16.73M | 0 | 102K | 6.9M | 27.91M | 0 |
| Purchase of Investments | -3.34B | -4.36B | -2.22B | -2.09B | -230.53M | -460.02M | -667.14M |
| Sale of Investments | 1.17B | 1.69B | 434.45M | 228.1M | 201.1M | 777.91M | 2.86B |
| Other Investing | -3.85M | -192.17M | -453.03M | 646.1M | -486.24M | -478.75M | -70.92M |
| Cash from Financing | 2.19B | 2.78B | 2.23B | 1.14B | 460.07M | 27.41M | -2.05B |
| Dividends Paid | -126.4M | -121.97M | -116.7M | -170.69M | -193.16M | -194.85M | -146.56M |
| Common Dividends | -57.05M | 0 | -74.94M | -128.8M | -151.75M | -151.62M | -146.56M |
| Debt Issuance (Net) | 0 | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K |
| Share Repurchases | -6.51M | -1.5M | -3.49M | -8.62M | -44.4M | 0 | 0 |
| Other Financing | 2.13B | -775.98M | 1.52B | 1.72B | 166.2M | 146.77M | 0 |
| Net Change in Cash | 90.99M | 13.35M | -1.62M | -50.3M | 43.08M | 33.37M | 182.88M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 342.38M | 329.02M | 330.64M | 380.94M | 337.86M | 304.49M | 121.61M |
| Cash at End | 365.39M | 342.38M | 329.02M | 330.64M | 380.94M | 337.86M | 304.49M |
| Free Cash Flow | 90.54M | 125.89M | 4.6M | 29.95M | 91.78M | 138.91M | 110.88M |
| FCF Growth % | 82.66% | 2636.06% | -84.64% | -67.37% | -33.93% | 25.29% | - |
| FCF / Revenue % | 10.22% | 15.63% | 0.82% | 5.98% | 66.46% | 36.54% | 74.93% |
Interest rate volatility exposure
As reported in financial statements, ADAM's FFO of $58.6M in 2026Q1 significantly outpaced its negative $16.7M in GAAP operating cash flow, highlighting the persistent disconnect between accrual-based earnings and actual cash generation inherent in the firm's complex mortgage-focused business model and fair value accounting practices.
The wide variance between FFO and GAAP operating cash flow suggests that traditional cash flow metrics are heavily distorted by non-cash valuation adjustments and the timing of securitization activities. Investors should monitor this gap closely, as it indicates that the company's reported earnings power may not be immediately available for liquidity needs without further capital market access.
Based on the 2026Q1 figures, ADAM's AFFO of $57.6M provides a comfortable coverage ratio of 0.57 relative to the $33.3M dividend payout, suggesting that the current distribution is well-supported by recurring cash flows despite the inherent volatility of the underlying mortgage and credit asset portfolio.
The ability to maintain a consistent AFFO buffer above dividend requirements implies that management is prioritizing sustainable payouts over aggressive capital retention. This coverage ratio appears to be a stabilizing factor for shareholders, provided that the firm continues to successfully navigate the interest rate environment without significant credit impairment.
According to historical data, ADAM's reliance on the Fair Value Option for financial assets creates substantial noise in GAAP Net Income, with FFO/NI ratios fluctuating wildly from -0.34 to 4.59, which complicates the assessment of core operational performance for institutional investors evaluating the firm's true earnings quality.
The extreme volatility in the FFO/NI relationship underscores the necessity of focusing on AFFO as the primary metric for evaluating economic performance. The distortion caused by unrealized gains and losses suggests that GAAP-based profitability metrics are insufficient for gauging the long-term viability of the company's hybrid investment strategy.
As indicated by recent quarterly filings, ADAM incurred $1.0M in recurring capital expenditures during 2026Q1, which, while modest relative to total assets, represents a necessary drag on distributable cash flow as the firm manages its growing portfolio of direct-owned single-family rental properties and multi-family assets.
The presence of recurring maintenance capex suggests that the firm is transitioning toward a more capital-intensive operating model compared to its legacy mortgage-only structure. Analysts should monitor whether these expenditures scale proportionally with the SFR portfolio, as rising maintenance costs could eventually pressure the current AFFO margin.
Quick answers to the most common questions about buying ADAM stock.
Adamas Trust, Inc. (ADAM) generated $134.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Adamas Trust, Inc. (ADAM) generated $125.9M 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.
Adamas Trust, Inc. (ADAM) spent $9.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Adamas Trust, Inc. (ADAM) returned $122.0M to shareholders via cash dividends and spent $1.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.