Blackstone Inc. (BX) Cash Flow Statement

The OCF/NI ratio has remained above 1.0 in most quarters, with Q2 2026 at 1.58, suggesting that reported earnings are backed by actual cash inflows. This cash generation supports the firm's ability to fund new investments and maintain regulatory capital without relying heavily on external debt. The consistency of this trend, even in quarters with lower net income like Q1 2026, underscores the durability of the fee-based revenue model.

The firm has been a net seller of investment securities in several quarters, particularly in Q1 2025 and Q2 2026, which may reflect a strategic shift toward higher-yielding opportunities or a response to market conditions. The net cash inflow from these activities provides additional liquidity, but the volatility in these flows suggests that the portfolio is being actively repositioned. Investors should monitor whether this activity signals a change in duration or credit risk appetite.

The absence of significant loan loss provisions in most quarters indicates that the credit quality of the loan book remains solid, despite the broader real estate market concerns. The Q4 2025 provision spike appears to be an isolated event, possibly related to specific asset write-downs, but the subsequent quarters show no further deterioration. This suggests that the firm's underwriting standards are holding up, though the real estate exposure remains a key risk to monitor.

The firm has consistently paid out substantial dividends, which are likely supported by distributable earnings rather than GAAP net income. The relatively small buyback activity suggests that management views the stock as fairly valued or prefers to return capital through a more predictable mechanism. Given the strong cash generation, the dividend appears sustainable, but investors should watch for any changes in payout policy if earnings momentum slows.

Unlike traditional banks, Blackstone does not rely on customer deposits; instead, it manages third-party capital. The growth in AUM, particularly in perpetual capital vehicles like BREIT and BCRED, provides a stable fee base and reduces the need for external funding. The absence of deposit data is not a concern for this business model, but the stability of these capital sources is critical to the firm's liquidity and should be monitored.