Cash conversion is inconsistent, with OCF/NI swinging from 3.40 in 2026Q1 to 0.86 in 2026Q2, and dividends exceeded net income at a 149% payout ratio in 2026Q2.
Barings BDC, Inc. (BBDC) cash flow statement — 22-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 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Cash from Operations | 304.74M | 160.54M | 117.85M | 76.94M | 86.27M | -396.55M | -218.13M | -31.5M | -198.29M | 7.97M | -23.14M | -31.23M | -188.25M | 127.36M | -130.56M | -118.21M | -97.45M | -13.37M | -60.63M | -47.84M | -103 | -13.72M | -20.3M |
| Operating CF Growth % | 1643.72% | 36.23% | 53.16% | -10.81% | 121.75% | -81.8% | -592.38% | 84.11% | -2588.84% | 134.44% | 25.93% | 83.41% | -247.81% | 197.55% | -10.45% | -21.3% | -628.66% | 77.94% | -26.72% | -46449524.27% | 100% | 32.43% | - |
| Net Income | 87.11M | 101.92M | 110.29M | 128M | 4.68M | 77.69M | 8.18M | 58.19M | -114.28M | -28.65M | 34.26M | 47.86M | 28.36M | 81.21M | 60.06M | 56.77M | 25.39M | 4.04M | 7.64M | 8.81M | -103 | 3.17M | -1.26M |
| Depreciation & Amortization | 3.19M | 5.28M | 0 | 0 | 121.87M | -21.92B | 8.36B | -33.37B | 27.41K | 65.86K | 70.11K | 60.24K | 48.36K | 40.15K | 33.04K | 27.3K | 19.55K | 22.55K | 16.68K | 7.81K | 414.92M | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -103.22M | -722.17K | -2.93M | 1.62M | -150.71K | 2.17M | 713.71K | 420.15K | -368.68K | -266.68K | 769.52K | 1.76M | 0 | 0 | 0 |
| Other Non-Cash Items | 214.98M | 50.06M | -10.51M | -53.68M | -16.65M | 21.46B | -8.58B | 33.28B | 23.13M | 25.69M | -58.22M | -88.67M | -222.08M | 44.17M | -197.57M | -179.97M | -123.8M | -18.85M | -70.53M | -209.29K | -493.84M | -17.24M | -19.16M |
| Working Capital Changes | -546K | 3.28M | 18.07M | 2.63M | -23.63M | -11.12M | -1.59M | 5.4M | -18.17M | 5.56M | -6.64M | 906.29K | -271.08K | -4.21M | 3.16M | 2.63M | 155K | 980.6K | 1.2M | 446.8K | 78.92M | 348.92K | 121.93K |
| Cash from Investing | 0 | 0 | 4.31M | 0 | -120.88M | -451.63B | -262.35B | -75.16B | 31.5K | -40.51K | -70.9K | -57.19K | -96.59K | -45.14K | -30.27K | -37.95K | -38.53K | -3.19K | -30.54K | -41.98K | -11.49B | 0 | 0 |
| Purchase of Investments | 0 | 0 | -637.44M | 0 | -1.16B | -1.76T | -2.06T | -1.39T | -2.92T | -483.74B | -319.47B | -453.93B | -474.58B | -174.32B | -348.94B | -225B | -173.58B | -48.48B | -93.05B | -64.16B | -21.46B | 0 | 0 |
| Sale/Maturity of Investments | 0 | 0 | 641.75M | 0 | 1.04B | 1.31T | 1.9T | 1.31T | 1.92T | 403.68B | 236.69B | 343.27B | 222.03B | 247.35B | 159.28B | 66.35B | 54.91B | 21.43B | 20.97B | 10.47B | 9.97B | 0 | 0 |
| Net Investment Activity | 0 | 0 | 4.31M | 0 | -120.88M | -451.63B | -165.63B | -75.16B | -992.36B | -80.06B | -82.77B | -110.66B | -252.54B | 73.03B | -189.66B | -158.65B | -118.67B | -27.04B | -72.09B | -53.69B | -11.49B | 0 | 0 |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | -96.72B | 0 | 31.5K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 992.36B | 80.06B | 82.77B | 110.66B | 252.54B | -73.03B | 189.66B | 158.65B | 118.67B | 27.04B | 72.09B | 53.69B | 0 | 0 | 0 |
| Cash from Financing | -284.11M | -185.1M | -101.35M | -145.83M | -31.11M | 388.32M | 288.63M | 41.07M | 18.83M | 76.84M | 77.68M | 5.15M | 133.8M | -66.31M | 136.02M | 130.3M | 97.11M | 41.38M | 66.06M | 67.12M | 31.5K | 16.93M | 20.18M |
| Dividends Paid | -114.39M | -125.25M | -110.05M | -109M | -93.73M | -53.56M | -31.33M | -26.93M | -21.07M | -77.07M | -66.48M | -74.75M | -74.29M | -56.74M | -51.79M | -32.37M | -20.91M | -12.32M | -9.24M | -3.72M | 0 | 0 | 0 |
| Share Repurchases | -4.01M | -6.35M | -6.44M | -14.77M | -32.1M | 0 | -7.13M | -23.36M | -51M | -2.18M | -4.45M | -2.55M | -2.61M | 0 | -2.89M | -643.31K | -234.91K | -66.9K | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 0 | 0 | 0 | 0 | 0 | 0 | 160.35M | 0 | 99.84M | 132M | 129.13M | 0 | 127.73M | 0 | 77.12M | 128.64M | 41.21M | 47.33M | 0 | 64.73M | 1.5K | 0 | 0 |
| Net Stock Activity | -4.01M | -6.35M | -6.44M | -14.77M | -32.1M | 0 | 153.22M | -23.36M | 48.84M | 129.82M | 124.68M | -2.55M | 125.12M | 0 | 74.24M | 127.99M | 40.98M | 47.27M | 0 | 64.73M | 1.5K | 0 | 0 |
| Debt Issuance (Net) | -2M | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 0 | 1000K | 1000K |
| Other Financing | -6.93M | -6.93M | 0 | -2.4M | -1.87M | -7.27M | -773.39K | -8.29M | 99.53M | -5.6M | -5.57M | -2.97M | -3.42M | 0 | -13M | -2.57M | -3.69M | -358.9K | -2.8M | 894.3K | 5.31B | 2.83M | 2.48M |
| Net Change in Cash | 20.63M | -24.56M | 20.81M | -68.89M | 55.16M | -8.23M | 70.5M | 9.56M | -179.42M | 84.76M | 54.47M | -26.14M | -54.55M | 61M | 5.43M | 12.05M | -380.2K | 28.01M | 5.41M | 19.23M | -6.07B | 3.22M | 0 |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 120.88M | 451.63B | 262.35B | 75.16B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11.49B | 0 | 0 |
| Cash at Beginning | 95.68M | 91.34M | 70.53M | 139.41M | 84.25M | 92.49M | 21.99M | 12.43M | 191.85M | 107.09M | 52.62M | 78.76M | 133.3M | 72.3M | 66.87M | 54.82M | 55.2M | 27.19M | 21.79M | 2.56M | 6.07B | 2.85M | 0 |
| Cash at End | 69.89M | 66.78M | 91.34M | 70.53M | 139.41M | 84.25M | 92.49M | 21.99M | 12.43M | 191.85M | 107.09M | 52.62M | 78.76M | 133.3M | 72.3M | 66.87M | 54.82M | 55.2M | 27.19M | 21.79M | 31.4K | 6.07M | 2.85M |
| Interest Paid | 35.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 3.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 304.74M | 160.54M | 117.85M | 76.94M | 86.27M | -396.55M | -218.13M | -31.5M | -198.29M | 7.93M | -23.21M | -31.29M | -188.35M | 127.31M | -130.59M | -118.25M | -97.49M | -13.38M | -60.66M | -47.89M | -103 | -13.72M | -20.3M |
| FCF Growth % | 454.17% | 36.23% | 53.16% | -10.81% | 121.75% | -81.8% | -592.38% | 84.11% | -2601.56% | 134.16% | 25.84% | 83.39% | -247.94% | 197.49% | -10.44% | -21.29% | -628.78% | 77.95% | -26.67% | -46490281.55% | 100% | 32.43% | - |
Quick answers to the most common questions about buying BBDC stock.
Barings BDC, Inc. (BBDC) generated $160.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Barings BDC, Inc. (BBDC) generated $160.5M 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.
Barings BDC, Inc. (BBDC) 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, Barings BDC, Inc. (BBDC) returned $125.2M to shareholders via cash dividends and spent $6.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Fee waiver expiration overhang
Metrics are mathematically derived from official filings.
Earnings Retention Supports Distributions
According to reported figures, BBDC's net income averaged $24.6M per quarter over the last year, while dividends consumed $27.5M, indicating a modest reliance on retained capital or external sources to fund distributions.
The OCF/NI ratio has been highly volatile, swinging from -2.56 in 2025Q2 to 8.10 in 2025Q4, reflecting the lumpy nature of cash flows from investment activities. Despite this, the company has maintained a stable dividend, suggesting that management is confident in the underlying earnings power. However, the negative OCF in several quarters implies that cash generation from operations is not always sufficient to cover dividends, potentially requiring portfolio sales or debt issuance.
Securities Portfolio Cash Flows Stabilize
Investment purchases and sales were zero in recent quarters, but in 2024Q3 and 2024Q2, BBDC reported $129.1M and $73.8M in purchases and $133.6M and $171.3M in sales, respectively, per financial statements.
The cessation of securities purchases and sales in 2025 and 2026 suggests a strategic shift towards holding the portfolio to maturity or a lack of attractive reinvestment opportunities. The earlier activity in 2024 indicates active portfolio management, possibly to rotate out of legacy assets. This trend may reflect a more defensive posture, focusing on maintaining yield rather than pursuing growth.
Loan Originations Drive Cash Flow Variability
Based on reported cash flow data, BBDC's operating cash flow swung from -$52.7M in 2025Q2 to $204.5M in 2025Q4, reflecting significant loan origination and repayment activity, as per quarterly filings.
The extreme volatility in OCF is typical for BDCs, where loan fundings and repayments dominate operating cash flows. The positive OCF in 2025Q4 and 2026Q1 suggests strong repayment activity or net portfolio reduction, while negative OCF in other quarters indicates net funding of new loans. This pattern aligns with the company's focus on deploying capital into senior secured loans, but it also highlights the lumpy nature of cash flows, which may complicate dividend sustainability.
Dividend Coverage Relies on Non-Cash Adjustments
BBDC paid $27.2M in dividends in 2026Q2, while net income was $18.3M, resulting in a payout ratio of 149%, according to recent financial statements, indicating that dividends exceeded earnings.
The dividend payout ratio has exceeded 100% in several quarters, including 2026Q2 and 2025Q3, suggesting that the company is returning more capital to shareholders than it generates in net income. This is possible due to the use of non-cash items like PIK income and purchase discount accretion, which inflate net income but do not generate cash. Investors should monitor the sustainability of this trend, as it may indicate that the dividend is not fully covered by cash earnings.
Credit Recoveries Boost Cash Flow
In 2026Q2, BBDC reported a $7.0M loan loss provision recovery, which contributed to positive cash flow, as per quarterly filings, offsetting weaker operating performance.
The negative provisions in 2026Q1 and 2026Q2 indicate that the company is releasing reserves, likely due to improved credit quality or recoveries on previously charged-off loans. This has a positive impact on net income and cash flow, but it may not be sustainable if credit conditions deteriorate. The absence of provisions in other quarters suggests that credit losses have been manageable, but the reliance on recoveries to boost earnings warrants caution.
Cash Flow Statement Masks Earnings Quality
The cash flow statement reveals that BBDC's operating cash flow is heavily influenced by loan portfolio activity, but it does not fully capture the impact of PIK income and fee waivers, which may overstate earnings quality.
While the cash flow statement shows significant swings in OCF, it does not break down the components of net income, such as PIK income or purchase discount accretion, which are non-cash and can inflate reported earnings. Additionally, the expiration of fee waivers could reduce future cash flows, as management fees would increase. Investors should adjust for these factors to assess the true cash-generating ability of the portfolio.