Liquidity buffers have deteriorated significantly, with cash reserves falling to $66.5 million in 2026Q1 from $290.0 million in 2025Q4, complicating dividend coverage.
| 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 |
|---|
| Cash from Operations | 134.28M | 124.2M | 261.46M | 132.82M | 124.08M | 11.74M | -257.82M | -40.72M | 75.22M | 110.08M | -203.43M | 238.25M | 315.1M | 370.44M | 343.68M | 118.07M | 9.16M | -2.61M | 1.06M | 1.37M |
| Operating CF Growth % | -238.8% | -52.5% | 96.86% | 7.04% | 957.12% | 104.55% | -533.21% | -154.13% | -31.66% | 154.11% | -185.38% | -24.39% | -14.94% | 7.79% | 191.08% | 1188.34% | 451.56% | -345.04% | -22.54% | - |
| Operating CF / Revenue % | 13.52% | 9.52% | 108.99% | 29.54% | -14.13% | 239.84% | 120.92% | -19.12% | 209.11% | 40.43% | 144.15% | 96.58% | 81.57% | -60.6% | 93.49% | 108.06% | 76.57% | -524.03% | 19.61% | 83.12% |
| Net Income | 240.5M | 211.7M | -14.39M | -67.92M | -229.93M | 15.36M | -215.11M | -249.91M | -105.97M | 181.15M | -45.52M | -31.2M | -179.05M | -187.04M | 222.31M | -9.44M | 6.54M | -1.15M | 1.07M | 867.32K |
| Depreciation & Amortization | 5.37M | 2.03M | 0 | 0 | 16.51M | 48.11M | 53.41M | 0 | 37.11M | 49.75M | 85.6M | 109.59M | 82.97M | 157.65M | 123.9M | 34.81M | 3.62M | 15.06K | 0 | 0 |
| Stock-Based Compensation | 2.22M | 2.13M | 3.24M | 3.2M | 3.7M | 4.77M | 4.07M | 2.69M | 2.4M | 937K | 881K | 953K | 1.15M | 1.52M | 741K | 145.23K | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 110.97M | -370.49M | 310.7M | 106.75M | 1.11B | 123.69M | 56.33M | 65.15M | 232.78M | 5.37M | 36.19M | 121.14M | 28.88M | 1.14B | 83.27M | 137.32M | 2.37M | -50.36K | 0 | 0 |
| Working Capital Changes | -335.77M | 278.83M | -38.09M | 90.79M | -776.76M | -132.08M | -103.12M | 141.34M | -53.98M | -77.38M | -194.98M | 147.37M | 464.11M | -582.54M | 37.37M | -9.95M | -3.36M | -1.42M | -10.61K | 506K |
| Cash from Investing | -6.03B | -7.28B | -1.69B | -3.04B | -3.89B | 503.58M | 7.09B | -4.39B | 466.26M | -896.8M | 5.67B | 2.2B | -796.48M | 4.34B | -14.13B | -4.74B | -986.59M | -60.14M | -1.1M | -249.03M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -73.17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -7.29B | 0 | -7.34B | -1.47B | -4.82B | -987.89M | -4.62B | -1.69B | -765.83M | -5.81B | -2.2B | -5.15B | -12.51B | -15.03B | -20.49B | -6.68B | -1.16B | -60.32M | 0 | 0 |
| Sale of Investments | 2.45B | 0 | 5.64B | 1.27B | 5.37B | 779.68M | 4.69B | 1.84B | 695.72M | 145.73M | 53.03M | 5.61B | 12.34B | 18.4B | 3.85B | 2.08B | 109.68M | 178.29K | 0 | 0 |
| Other Investing | -1.2B | -7.28B | 13.78M | -2.84B | -4.45B | 711.78M | 7.02B | -4.54B | 536.37M | 4.77B | 212.7M | 1.73B | -631.47M | 963.42M | 2.51B | -142.52M | 67.7M | 58.74M | -1.1M | -249.03M |
| Cash from Financing | 5.85B | 7.3B | 1.31B | 3.05B | 3.53B | -330.77M | -6.93B | 4.47B | -591.68M | 780.18M | -5.48B | -2.64B | 479.46M | -4.98B | 14.3B | 4.84B | 1.01B | 69.4M | 0 | 247.69M |
| Dividends Paid | -293.71M | -283.46M | -162.93M | -228.18M | -154.41M | -108.1M | -85.27M | -140.11M | -114.06M | -105.29M | -126.63M | -182.76M | -230.78M | -306.81M | -271.47M | -87.3M | -8.91M | -23.37K | 0 | 0 |
| Common Dividends | -287.54M | -283.46M | -150.95M | -216.19M | -142.42M | -96.63M | -75.49M | -124.48M | -97.02M | -89.41M | -111.01M | -167.14M | -215.16M | -292.59M | -269.5M | -87.3M | -8.91M | -23.37K | 0 | 0 |
| Debt Issuance (Net) | 3M | 0 | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1000K | 1000K | 1000K | 0 | 0 |
| Share Repurchases | -22.04M | -19.95M | -1.34M | -9.94M | -7.66M | 0 | -777K | -71.48M | 0 | 0 | -14.66M | -144.94M | -5.75M | -53.01M | 0 | 0 | 0 | -226.48M | 0 | 0 |
| Other Financing | 1.37B | 7.61B | 0 | 2.83B | 3.22B | -588.03M | -6.82B | 4.32B | -518.27M | 737.46M | -5.34B | -2.31B | 715.73M | -5.2B | 13.03B | 0 | -4.38M | 249.51M | 0 | -9.84M |
| Net Change in Cash | -49.31M | 143.79M | -112.67M | 140.77M | -238.13M | 184.55M | -101.5M | 40.97M | -50.2M | -6.54M | -18.15M | -204.64M | -1.92M | -274.8M | 518.91M | 217.03M | 28.69M | 6.65M | -31.3K | 247.69M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 247.66M |
| Cash at Beginning | 289.97M | 146.18M | 258.86M | 118.09M | 356.22M | 171.67M | 273.17M | 232.2M | 282.39M | 271.77M | 289.93M | 494.56M | 496.48M | 771.28M | 252.37M | 35.34M | 6.65M | 2.09K | 33.38K | -247.66M |
| Cash at End | 214.18M | 289.97M | 146.18M | 258.86M | 118.09M | 356.22M | 171.67M | 273.17M | 232.2M | 265.23M | 271.77M | 289.93M | 494.56M | 496.48M | 771.28M | 252.37M | 35.34M | 6.65M | 2.09K | 33.38K |
| Free Cash Flow | 134.28M | 124.2M | 261.46M | 132.82M | 124.08M | 11.74M | -257.82M | -40.72M | 75.22M | 110.08M | 7.47B | 238.25M | 315.1M | 370.44M | 343.68M | 118.07M | 9.16M | -2.61M | 1.06M | 1.37M |
| FCF Growth % | -49.54% | -52.5% | 96.86% | 7.04% | 957.12% | 104.55% | -533.21% | -154.13% | -31.66% | -98.53% | 3036.85% | -24.39% | -14.94% | 7.79% | 191.08% | 1188.34% | 451.56% | -345.04% | -22.54% | - |
| FCF / Revenue % | 13.52% | 9.52% | 108.99% | 29.54% | -14.13% | 239.84% | 120.92% | -19.12% | 209.11% | 40.43% | -5296.02% | 96.58% | 81.57% | -60.6% | 93.49% | 108.06% | 76.57% | -524.03% | 19.61% | 83.12% |
High leverage margin calls
As reported in recent financial statements, ARR's FFO to net income ratio reached -2.03 in 2026Q1, highlighting a significant disconnect between GAAP operating cash flow and the economic reality of the company's interest-spread-based business model during periods of extreme portfolio volatility.
The wide variance between GAAP operating cash flow and FFO suggests that traditional cash flow metrics are insufficient for evaluating this REIT's performance. Investors should monitor this divergence as it indicates that non-cash adjustments and hedging outcomes are masking the underlying instability of the interest-earning asset base.
Based on the company's reported figures, the dividend payout ratio of 0.39 in 2025Q4 provides a misleading sense of security, as the subsequent shift to negative FFO in 2026Q1 suggests that the current distribution level may not be supported by recurring operational earnings.
The lack of consistent AFFO data makes it difficult to ascertain the true margin of safety for dividend payments. The reliance on capital raises to sustain distributions appears to be a structural risk that warrants further investigation by income-focused shareholders.
Financial data indicates that ARR's net income is frequently decoupled from operational reality, with quarterly swings from $211.7 million in 2025Q4 to a loss of $54.9 million in 2026Q1, illustrating the extreme sensitivity of the company's bottom line to unrealized mark-to-market adjustments.
Because the company's earnings are heavily influenced by the fair value fluctuations of its MBS portfolio and derivative hedges, GAAP net income serves as a poor proxy for cash-generating capacity. Analysts should prioritize comprehensive income and core earnings metrics to strip away the noise created by accounting volatility.
According to historical trends in SEC filings, ARR's frequent reliance on equity issuance to maintain portfolio size suggests that the company may be struggling to generate sufficient internal cash flow to cover both its dividend obligations and the costs of maintaining its 7.94x leverage ratio.
The recurring need for external funding may indicate that the company's internal reinvestment rate is insufficient to offset the erosion of book value. This dynamic creates a potential feedback loop where the company must issue shares at a discount to book value, further diluting existing shareholders.
Quick answers to the most common questions about buying ARR stock.
ARMOUR Residential REIT, Inc. (ARR) generated $124.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ARMOUR Residential REIT, Inc. (ARR) generated $124.2M 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.
ARMOUR Residential REIT, Inc. (ARR) 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.
In 2025, ARMOUR Residential REIT, Inc. (ARR) returned $283.5M to shareholders via cash dividends and spent $19.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.