Cash generation has deteriorated significantly, as evidenced by the shift from a 41.3% FCF margin in 2024Q4 to a negative 46.9% margin by 2025Q4.
| Cash from Operations | -204.56M | 75.93M | 76.23M | 71.47M | 69.37M | 237.19M | 83.4M | 93.89M | 81.9M | 57.45M | 35.2M |
| Operating CF Margin % | -80.04% | 39.09% | 34.59% | 34.32% | 36.46% | 191.83% | 45.59% | 45.54% | 53.42% | 56.7% | 50.04% |
| Operating CF Growth % | -369.4% | -0.39% | 6.66% | 3.02% | -70.75% | 184.41% | -11.17% | 14.64% | 42.55% | 63.19% | - |
| Net Income | 1.7M | 88.98M | 92.28M | 85.64M | 160.35M | 6.83M | 61.33M | 39.12M | 84.2M | 69.81M | 18.67M |
| Depreciation & Amortization | 5.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -211.56M | -21.87M | -9.37M | -16.23M | -90.72M | 238.68M | 27.29M | 55M | -3.38M | -14.79M | 14.52M |
| Working Capital Changes | 0 | 8.82M | -6.68M | 2.06M | -259K | -8.32M | -5.22M | 1.05M | 1.6M | 2.02M | 1.67M |
| Change in Receivables | 0 | 1.29M | -9.7M | -3.88M | -461K | -3.38M | -3.05M | -2.17M | -5.28M | -2.53M | 1.23M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | -3.27M | 1.67M | 2.09M | 667K | -1.68M | -851K | 902K | 4.75M | 2.95M | -888K |
| Cash from Investing | -334.56M | 28.33M | 154.38M | -56.96M | 6.06M | 67.97M | -175.29M | -65.09M | -467.55M | -372.06M | -425.15M |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Acquisitions | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 2.46B | 0 | 1.84B | 1.98B | 1.91B | 1.83B | 2.12B | 1.97B | 1.97B | 1.42B | 1.05B |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 224.48M | -108.14M | -200.67M | -77.08M | -50.78M | -273.49M | 41.46M | 26.35M | 379.2M | 311.26M | 423.03M |
| Debt Issued (Net) | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 0 | 0 | -3.99M | -28.46M | -28.44M | 22.75M | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -18.4M | -96M | -93.02M | -86.82M | -83.66M | -96.55M | -107.1M | -93.3M | -76.05M | -61.2M | -35.55M |
| Share Repurchases | -13.87M | 0 | -3.99M | -28.46M | -28.44M | -27.25M | -64.72M | -4.87M | 0 | 0 | 0 |
| Other Financing | 242.88M | 0 | 0 | 0 | 0 | 0 | 148.55M | 119.66M | 455.25M | 372.47M | 458.58M |
| Net Change in Cash | 0 | -3.87M | 29.94M | -62.57M | 24.66M | 31.67M | -50.44M | 55.15M | -6.45M | -3.35M | 33.08M |
| Free Cash Flow | -204.56M | 75.93M | 76.23M | 71.47M | 69.37M | 237.19M | 83.4M | 93.89M | 81.9M | 57.45M | 35.2M |
| FCF Margin % | -80.04% | 39.09% | 34.59% | 34.32% | 36.46% | 191.83% | 45.59% | 45.54% | 53.42% | 56.7% | 50.04% |
| FCF Growth % | -369.4% | -0.39% | 6.66% | 3.02% | -70.75% | 184.41% | -11.17% | 14.64% | 42.55% | 63.19% | - |
| FCF per Share | -2.85 | 1.34 | 1.35 | 1.24 | 1.28 | 4.20 | 1.39 | 15.01 | 5.15 | 9.18 | 5.63 |
| FCF Conversion (FCF/Net Income) | - | 0.85x | 0.83x | 0.83x | 0.43x | 34.73x | 1.36x | 2.39x | 0.97x | 0.82x | 1.89x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cash flow volatility
According to recent financial filings, CGBDL's operating cash flow has frequently diverged from net income, with the OCF/NI ratio reaching 4.76 in 2025Q1 before turning negative, suggesting that GAAP earnings provide a poor proxy for the actual cash generation capacity of the underlying loan portfolio.
The significant volatility in the conversion of net income to operating cash flow implies that non-cash accruals and valuation marks are heavily influencing reported results. Investors should monitor whether this disconnect reflects timing differences in interest recognition or more fundamental issues regarding the collectability of accrued income.
As reported in quarterly statements, CGBDL's free cash flow trajectory has shifted from positive margins of over 40% in 2024 to a negative 46.9% margin by 2025Q4, indicating a rapid deterioration in the firm's ability to fund dividend obligations through internal cash generation.
The sharp decline in free cash flow suggests that the company's reliance on external financing or capital recycling may be increasing. This trend warrants further investigation into whether the current dividend payout policy remains sustainable without further eroding the net asset value of the portfolio.
Based on the provided cash flow data, working capital changes have swung from a $48.2 million inflow in 2025Q1 to a $10.4 million outflow in 2025Q4, highlighting the unpredictable nature of cash movements within the firm's investment and settlement cycles.
These fluctuations suggest that the timing of loan originations and repayments is creating significant noise in the cash flow statement. Such variability complicates the assessment of core operational liquidity and may mask underlying trends in the portfolio's credit performance.
As indicated by recent financial disclosures, CGBDL continued to pay out $36.5 million in dividends during 2025Q4 despite generating negative free cash flow, a pattern that suggests a potential reliance on balance sheet liquidity to maintain distributions to shareholders.
The simultaneous use of cash for share repurchases and dividends during periods of negative operating cash flow may indicate a management preference for capital return over liquidity preservation. This strategy appears increasingly vulnerable if the current trend of cash burn persists in future quarters.
Quick answers to the most common questions about buying CGBDL stock.
Carlyle Secured Lending, Inc. 8.20% Notes due 2028 (CGBDL) 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. 8.20% Notes due 2028 (CGBDL) reported negative free cash flow of $204.6M in 2025, indicating capital requirements exceeded cash from operations.
Carlyle Secured Lending, Inc. 8.20% Notes due 2028 (CGBDL) 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. 8.20% Notes due 2028 (CGBDL) returned $18.4M 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.