Cash generation remains inconsistent, highlighted by 2025Q2 dividend payments of $11.6 million that significantly exceeded the $2.6 million in operating cash flow generated during the same period.
ArrowMark Financial Corp. (BANX) cash flow statement — 12-year operating, investing & financing cash flows
| 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 |
|---|
| Cash from Operations | 32.42M | 10.87M | 24.16M | 15.1M | 15.84M | -19.85M | -13.2M | 41.2M | 10.11M | 9.24M | -27.65M | 1.42M | -125.56M |
| Operating CF Growth % | 136.05% | -55.01% | 60.02% | -4.66% | 179.79% | -50.4% | -132.03% | 307.64% | 9.42% | 133.41% | -2053.76% | 101.13% | - |
| Net Income | 32.11M | 17.89M | 16.74M | 20.25M | 5.37M | 12.63M | 7.78M | 12.61M | 10.03M | 12.03M | 7.01M | 8.29M | 4.53M |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 564.39K | -5.81M | 5.6M | -4.25M | 11.62M | -36.41M | -16.16M | 26.81M | 614.53K | -1.67M | -12.73M | -14.51M | -143.66M |
| Working Capital Changes | -250.67K | -1.21M | 1.82M | -895.37K | -1.15M | 3.92M | -4.81M | 1.79M | -539.97K | -1.12M | -21.94M | 7.63M | 13.56M |
| Cash from Investing | -42.69M | 7.63M | -3.3M | 7.51M | -2.8M | -41.04M | -10.37M | 31.69M | -24.99M | 32.81M | 0 | 0 | 0 |
| Purchase of Investments | -132.56M | -47.74M | -36.11M | -31.57M | -59.49M | -78.4M | -99.29M | -21.59M | -79.77M | -29.52M | 0 | 0 | 0 |
| Sale/Maturity of Investments | 89.87M | 55.38M | 32.81M | 39.08M | 56.69M | 37.36M | 88.92M | 53.28M | 54.78M | 62.33M | 0 | 0 | 0 |
| Net Investment Activity | -42.69M | 7.63M | -3.3M | 7.51M | -2.8M | -41.04M | -10.37M | 31.69M | -24.99M | 32.81M | 0 | 0 | 0 |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 8.25M | -24.16M | -11.56M | -25.64M | -15.53M | 17.65M | 15.44M | -44M | 15.47M | -45.21M | 27.41M | -8.12M | 53.7M |
| Dividends Paid | -36.54M | -17.57M | -13.36M | -15.04M | -11.58M | -10.26M | -9.86M | -10.7M | -9.78M | -9.46M | -9.09M | -10.62M | -8.29M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -17 |
| Stock Issued | 49.89M | 15.01M | 0 | 0 | 458.26K | 10.91M | 0 | 0 | 0 | 0 | 0 | 0 | 41.45M |
| Net Stock Activity | 49.89M | 15.01M | 0 | 0 | 458.26K | 10.91M | 0 | 0 | 0 | 0 | 0 | 0 | 41.45M |
| Debt Issuance (Net) | 2.9M | -1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K |
| Other Financing | -39.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.96M |
| Net Change in Cash | -240.17K | -5.66M | 8.07M | -3.03M | 311.64K | -2.2M | 2.24M | -2.8M | 580.48K | -3.74M | -243.67K | -6.7M | -71.86M |
| Exchange Rate Effect | -550.33K | 0 | -1.23M | 0 | 2.8M | 41.04M | 10.37M | -31.69M | 0 | 6.42M | 0 | 0 | 0 |
| Cash at Beginning | 3.22M | 8.88M | 807.31K | 3.84M | 83.78K | 2.28M | 35.33K | 2.83M | 30.14K | 3.77M | 4.01M | 10.71M | 82.58M |
| Cash at End | 2.28M | 3.22M | 8.88M | 807.31K | 395.42K | 83.78K | 2.28M | 35.33K | 2.83M | 30.14K | 3.77M | 4.01M | 10.71M |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 27.23M | 10.87M | 13.78M | 15.1M | 15.84M | -19.85M | -13.2M | 41.2M | -12.67M | 41.48M | -27.65M | 1.42M | -125.56M |
| FCF Growth % | - | -21.12% | -8.73% | -4.66% | 179.79% | -50.4% | -132.03% | 425.31% | -130.53% | 250.01% | -2053.76% | 101.13% | - |
Quick answers to the most common questions about buying BANX stock.
ArrowMark Financial Corp. (BANX) generated $10.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ArrowMark Financial Corp. (BANX) generated $10.9M 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.
ArrowMark Financial Corp. (BANX) 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, ArrowMark Financial Corp. (BANX) returned $17.6M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Portfolio Valuation Sensitivity
Metrics are mathematically derived from official filings.
Earnings Quality Lacks Cash Support
According to recent financial filings, the relationship between net income and operating cash flow has been highly inconsistent, with the OCF/NI ratio fluctuating from a high of 54.27 in 2022Q2 to a low of 0.25 in 2025Q2, indicating significant volatility in cash realization.
The wide variance between reported net income and cash generated from operations suggests that accounting adjustments, likely related to unrealized valuation changes in the subordinated debt portfolio, are heavily influencing the bottom line. Investors should monitor this disconnect, as it implies that reported earnings may not be a reliable proxy for the actual cash available to fund distributions.
FCF Volatility Threatens Distribution Sustainability
As reported in financial statements, free cash flow margins have shown extreme instability, ranging from a negative 118.4% in 2021Q2 to a peak of 99.7% in 2023Q4, highlighting the difficulty in maintaining consistent cash generation within the current investment structure.
The erratic trajectory of free cash flow suggests that the fund's ability to cover its dividend obligations is highly sensitive to the timing of interest receipts and portfolio revaluations. This inconsistency warrants further investigation into whether the fund is relying on non-recurring cash inflows to sustain its payout levels.
Working Capital Swings Impact Liquidity
Based on the provided data, working capital changes have frequently acted as a drag on cash flow, with a notable $902.4K outflow in 2025Q2, suggesting that the timing of interest accruals and collections is creating periodic liquidity friction for the fund.
The recurring negative impact of working capital changes on operating cash flow may indicate delays in the collection of interest or dividend payments from underlying community bank holdings. Such fluctuations suggest that the fund's cash position is susceptible to the operational cycles of its portfolio companies rather than just its own investment performance.
Distribution Outflows Exceed Cash Generation
Data from recent quarterly reports indicates that dividend payments have frequently exceeded operating cash flow, such as in 2025Q2 where $11.6M was paid out against only $2.6M in operating cash, raising questions about the long-term sustainability of the current capital allocation strategy.
The consistent pattern of dividend payments outpacing operating cash flow suggests that the fund may be utilizing cash reserves or capital recycling to maintain its distribution yield. This approach appears to be a potential risk factor, as it may erode the net asset value over time if the underlying portfolio fails to generate sufficient organic cash.