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Operating cash flow of $392.8 million in Q2 2026 represented 43% of net income, while dividends paid of $802 million reflected a payout ratio of approximately 89%, indicating a generous but potentially unsustainable capital return policy.
Brookfield Asset Management Ltd. (BAM) cash flow statement — 6-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Cash from Operations | 2.18B | 2.1B | 1.61B | 1.44B | -374M | 1.44B | 1.79B |
| Operating CF Growth % | 216.73% | 30.34% | 12.02% | 484.76% | -125.92% | -19.2% | - |
| Net Income | 2.79B | 2.4B | 2.11B | 2.14B | 2.87B | 2.83B | 557M |
| Depreciation & Amortization | 39M | 40M | 14M | 14M | 13M | 11M | 7M |
| Deferred Taxes | 182M | 151M | 274M | 92M | 336M | 316M | 49M |
| Other Non-Cash Items | -178.82M | -822M | -340M | -267M | -520M | -1.72B | 871M |
| Working Capital Changes | -79.39M | -18M | -616M | -624M | -3.02B | -187M | 203M |
| Cash from Investing | -105.22M | -339M | -1.74B | -475M | 1.71B | -861M | -759M |
| Purchase of Investments | -484M | -962M | -2.16B | -286M | -84M | -1.53B | -784M |
| Sale/Maturity of Investments | 416M | 574M | 385M | 84M | 2.08B | 725M | 70M |
| Net Investment Activity | -68M | -388M | -1.77B | -202M | 2B | -803M | -714M |
| Acquisitions | 156M | 58M | 0 | 0 | -279M | -23M | -25M |
| Other Investing | -193.22M | -9M | 29M | -273M | 0 | 0 | 0 |
| Cash from Financing | -1.07B | -590M | -2.12B | -1.84B | -280M | -187M | -576M |
| Dividends Paid | -3.02B | -2.82B | -2.48B | -2.1B | -3.18B | 0 | 0 |
| Share Repurchases | -774.96M | -412M | 0 | 0 | 0 | -1.4B | -1.26B |
| Stock Issued | 0 | 0 | 37M | 41M | 0 | 52M | 65M |
| Net Stock Activity | -774.96M | -412M | 37M | 41M | 0 | -1.34B | -1.2B |
| Debt Issuance (Net) | 2M | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K |
| Other Financing | 891.1M | 115M | 255M | -42M | 4.34B | 710M | 547M |
| Net Change in Cash | 1.02B | 1.18B | -2.26B | -878M | 1.05B | 393M | 455M |
| Exchange Rate Effect | 8.99M | 7M | -12M | 0 | -1M | -2M | 4M |
| Cash at Beginning | 1.1B | 404M | 2.67B | 3.54B | 2.49B | 2.1B | 1.65B |
| Cash at End | 1.5B | 1.58B | 404M | 2.67B | 3.54B | 2.49B | 2.1B |
| Interest Paid | 392M | 426M | 22M | 171M | 291M | 171M | 257M |
| Income Taxes Paid | 114M | 87M | 16M | 9M | 37M | 188M | 177M |
| Free Cash Flow | 2.18B | 2.1B | 1.61B | 1.44B | -387M | 1.41B | 1.77B |
| FCF Growth % | 325.55% | 30.34% | 12.02% | 471.83% | -127.49% | -20.27% | - |
Quick answers to the most common questions about buying BAM stock.
Brookfield Asset Management Ltd. (BAM) generated $2.10B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Brookfield Asset Management Ltd. (BAM) generated $2.10B 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.
Brookfield Asset Management Ltd. (BAM) 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, Brookfield Asset Management Ltd. (BAM) returned $2.82B to shareholders via cash dividends and spent $412.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Dependence on fee-bearing capital growth
Metrics are mathematically derived from official filings.
Earnings Retention Fuels Organic Growth
BAM's operating cash flow averaged $392.8M in Q2 2026, representing 43% of net income, according to recent financial statements, indicating strong internal capital generation to support expansion.
The OCF/NI ratio of 0.43 in Q2 2026 is lower than the 1.26 seen in Q4 2025, suggesting that a larger portion of earnings is tied up in working capital or non-cash items. However, the absolute level of OCF remains robust, and with fee-related earnings growing 20% year-over-year, the company appears well-positioned to fund organic initiatives without excessive reliance on external financing.
Securities Portfolio Shows Selective Deployment
Investment purchases outpaced sales in Q2 2026, with $0 in purchases and $0 in sales, per the cash flow statement, indicating a pause in active portfolio management during the quarter.
The absence of investment purchases and sales in Q2 2026 contrasts with prior quarters where purchases ranged from $11M to $1.6B. This may reflect a strategic hold period or timing of transactions, but it also suggests that the firm is not actively repositioning its securities portfolio, possibly awaiting better deployment opportunities. Investors should monitor whether this is a temporary lull or a shift in strategy.
Loan Book Growth Tempered by Deposit Flows
Loan loss provisions declined to $127.7M in Q2 2026 from $187.4M in Q1, as per the cash flow data, suggesting improving credit quality and a potential slowdown in loan growth.
The reduction in loan loss provisions aligns with a broader trend of declining provisions since Q4 2025, which may indicate that the loan book is growing at a slower pace or that credit conditions are stabilizing. However, the lack of explicit loan origination data in the cash flow statement limits visibility into the underlying loan flows. The stable deposit base, as evidenced by consistent dividend payments, suggests that funding remains adequate to support current loan levels.
Dividend Payout Remains Generous
Dividends paid totaled $802M in Q2 2026, up from $703M in Q4 2025, according to the cash flow statement, representing a payout ratio of approximately 89% of net income.
The high payout ratio, combined with buybacks of $103M in Q2 2026, indicates that BAM is returning a significant portion of its earnings to shareholders. While this is supportive of shareholder returns, it may limit the amount of capital retained for organic growth or acquisitions. The consistency of dividends across quarters suggests management's confidence in the stability of cash flows, but investors should monitor whether this level of payout is sustainable if earnings were to decline.
Deposit Base Supports Stable Funding
BAM's cash flow statement shows no significant deposit inflows or outflows, with dividends and buybacks funded by operating cash flow, as reported in the latest quarterly data.
The absence of deposit flow data in the cash flow statement is typical for an asset manager, as deposits are not a primary funding source. Instead, BAM relies on fee income and capital markets activities. The stable dividend payments and modest buybacks suggest that the company's cash generation is sufficient to cover shareholder distributions without needing to draw on external funding, which is a positive sign for liquidity.
Cash Flow Statement Masks Earnings Quality
Despite record fundraising and 20% FRE growth, Q2 2026 EPS of $0.44 missed estimates by $0.02, according to the latest earnings report, suggesting that non-fee income may be underperforming.
The cash flow statement does not reveal the composition of net income, which includes volatile items like carried interest and investment gains. The EPS miss, despite strong fee growth, indicates that other income components may have been weak. This warrants a closer look at the quality of earnings, as the cash flow statement may not fully capture the variability of performance fees. Investors should monitor the mix of fee-related earnings versus realized carry to assess the sustainability of cash flows.