Cash conversion remains highly erratic, evidenced by an operating cash flow to net income ratio of negative 50.35 in 2026Q1, complicating the firm's ability to cover its $28.7 million quarterly dividend payout.
| 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 |
|---|
| Cash from Operations | 46.25M | -204.56M | 104.27M | 230.61M | 71.47M | 69.37M | 305.16M | -91.89M | 28.8M | -385.65M | -314.61M | -389.94M | -425.76M | -207.8M |
| Operating CF Margin % | - | -103.42% | 62.15% | 133.46% | 51.55% | 34.91% | 576.46% | -76.09% | 33.65% | -348.34% | -358.68% | -1295.63% | -2998.12% | -5506.15% |
| Operating CF Growth % | -247.35% | -296.19% | -54.79% | 222.67% | 3.02% | -77.27% | 432.08% | -419.12% | 107.47% | -22.58% | 19.32% | 8.41% | -104.89% | - |
| Net Income | 51.7M | 69.97M | 88.98M | 92.28M | 85.64M | 160.35M | 6.83M | 61.33M | 39.12M | 84.2M | 69.81M | 18.67M | 5.61M | -1.93M |
| Depreciation & Amortization | 3.79M | 0 | 3.49M | 0 | 0 | 0 | 2.13M | 1.86M | 1.9M | 949K | 1.42M | 1.05M | 1.82M | 513K |
| Stock-Based Compensation | 0 | 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 | 0 |
| Other Non-Cash Items | -11.06M | -291M | 2.98M | 145.01M | -16.23M | -90.72M | 304.51M | -149.87M | -13.26M | -472.4M | -387.86M | -411.33M | -436.67M | -206.65M |
| Working Capital Changes | 2.38M | 16.46M | 8.82M | -6.68M | 2.06M | -259K | -8.32M | -5.22M | 1.05M | 1.6M | 2.02M | 1.67M | 3.47M | 266K |
| Change in Receivables | 4.37M | 18.4M | 1.29M | -9.7M | -3.88M | -461K | -3.38M | -3.05M | -2.17M | -5.28M | -2.53M | 1.23M | -2.83M | -1.68M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 2.09M | 667K | -1.68M | -851K | 902K | 4.75M | 2.95M | -888K | 0 | 0 |
| Cash from Investing | -184.22M | 0 | 0 | 0 | -56.96M | 6.06M | 236.87M | -175.29M | -65.09M | -467.55M | -372.06M | -425.15M | -444.2M | -206.85M |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 0% | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 0 | 298K | 1.86M | 1.84B | 0 | 1.91B | 0 | 0 | 1.97B | 1.97B | 1.42B | 1.05B | 698.66M | 212.81M |
| Other Investing | 0 | 0 | -28.33M | -154.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -15.67M | 224.48M | -108.14M | -200.67M | -77.08M | -50.78M | -273.49M | 41.46M | 26.35M | 379.2M | 311.26M | 423.03M | 392.51M | 249.81M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -32.38M | -13.77M | 0 | -3.99M | -28.46M | -28.44M | 22.75M | -64.72M | -4.88M | 357.43M | 185.54M | 262.35M | 164.77M | 188M |
| Dividends Paid | -109.98M | -104.04M | -96M | -93.02M | -86.82M | -83.66M | -96.55M | -107.1M | -93.3M | -76.05M | -61.2M | -35.55M | -11.85M | 0 |
| Share Repurchases | -32.38M | -13.87M | 0 | -3.99M | -28.46M | -28.44M | -27.25M | -64.72M | -4.87M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.83M | -7.27M | -7.98M | -5.04M | 0 | 0 | 0 | -1.7M | -3.4M | -1.06M | -643K | -2.65M | -2.03M | -5.01M |
| Net Change in Cash | -153.64M | 19.92M | -3.87M | 29.94M | -62.57M | 24.66M | 31.67M | -50.44M | 55.15M | -6.45M | -3.35M | 33.08M | -33.26M | 42.01M |
| Free Cash Flow | 46.25M | -204.56M | 104.27M | 230.61M | 71.47M | 69.37M | 305.16M | -91.89M | 28.8M | -385.65M | -314.61M | -389.94M | -425.76M | -207.8M |
| FCF Margin % | 21.3% | -103.42% | 62.15% | 133.46% | 51.55% | 34.91% | 576.46% | -76.09% | 33.65% | -348.34% | -358.68% | -1295.63% | -2998.12% | -5506.15% |
| FCF Growth % | -81.98% | -296.19% | -54.79% | 222.67% | 3.02% | -77.27% | 432.08% | -419.12% | 107.47% | -22.58% | 19.32% | 8.41% | -104.89% | - |
| FCF per Share | 0.65 | -2.96 | 1.85 | 4.10 | 1.24 | 1.17 | 5.41 | -1.53 | 0.46 | -7.28 | -9.14 | -11.75 | -12.83 | -6.26 |
| FCF Conversion (FCF/Net Income) | 0.89x | -2.92x | 1.17x | 2.50x | 0.83x | 0.43x | 44.69x | -1.50x | 0.74x | -4.58x | -4.51x | -20.88x | -75.84x | 107.84x |
| Interest Paid | 16.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Portfolio Valuation Model Sensitivity
As reported in quarterly financial statements, CGBD's operating cash flow to net income ratio has exhibited extreme volatility, reaching a negative 50.35 in 2026Q1, which suggests that reported earnings are frequently decoupled from the actual cash generation capabilities of the underlying loan portfolio.
The wide variance between net income and operating cash flow indicates that non-cash valuation adjustments and accruals are heavily influencing the bottom line. Investors should monitor this divergence, as it implies that reported profitability may not be translating into the liquidity required to sustain dividend distributions.
Based on the provided cash flow data, CGBD's free cash flow trajectory has been highly erratic, swinging from a negative $230.9 million in 2025Q2 to a positive $212.4 million in 2026Q1, reflecting significant instability in the firm's ability to generate consistent surplus cash.
This erratic performance suggests that the company's cash flow is highly sensitive to portfolio turnover and credit events rather than steady interest income. The lack of a stable FCF trend warrants further investigation into whether the firm is relying on capital recycling to maintain its payout profile.
According to recent SEC filings, working capital changes have frequently swung between positive and negative values, such as the $13.7 million inflow in 2025Q4 followed by a $3.6 million outflow in 2026Q1, indicating inconsistent timing in the collection of interest and fee income.
These fluctuations in working capital suggest that the timing of cash receipts from middle-market borrowers is not perfectly aligned with the firm's operational needs. This inconsistency may force the company to rely on external financing facilities to bridge liquidity gaps during periods of delayed interest payments.
As indicated by the financial data, CGBD has continued to pay dividends despite periods of negative operating cash flow, such as the $28.7 million dividend payout in 2026Q1, which appears to be funded by capital sources rather than recurring operational cash generation.
The persistence of dividend payments during quarters of negative cash flow suggests a potential reliance on balance sheet liquidity or debt to satisfy shareholder expectations. This strategy appears unsustainable if the underlying portfolio continues to experience the valuation volatility observed in recent periods.
Quick answers to the most common questions about buying CGBD stock.
Carlyle Secured Lending, Inc. (CGBD) generated $-204.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Carlyle Secured Lending, Inc. (CGBD) reported negative free cash flow of $204.6M in 2025, indicating capital requirements exceeded cash from operations.
Carlyle Secured Lending, Inc. (CGBD) 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, Carlyle Secured Lending, Inc. (CGBD) returned $104.0M to shareholders via cash dividends and spent $13.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.