Cash flow conversion remains inconsistent, highlighted by a massive $19.1 million operating cash flow outflow in 2024Q1 and a lack of clear correlation between FFO and GAAP operating cash flow.
| 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 |
|---|
| Cash from Operations | 31.03M | -4.69M | -4.69M | 40.66M | 59.91M | 48.01M | 62.38M | 69.68M | 63.64M | 40.24M | 34.46M | 23.38M | 24.97M | -6.08M | 0 |
| Operating CF Growth % | 1841.97% | 0% | -111.54% | -32.14% | 24.8% | -23.05% | -10.47% | 9.5% | 58.15% | 16.78% | 47.41% | -6.39% | 510.71% | - | - |
| Operating CF / Revenue % | 39.06% | -4.45% | -13.57% | -191.77% | 149.06% | 170.61% | -110.47% | -147.4% | 129.75% | 70.87% | 107.91% | 123.83% | 319.2% | -26.98% | - |
| Net Income | 21.62M | 6.83M | 12.21M | -34.79M | 22.19M | 12.53M | -53.22M | -43.5M | 37.77M | 48.01M | 25.24M | 13.36M | 2.38M | 21.2M | -150K |
| Depreciation & Amortization | -1K | 311K | 0 | -1.64M | 0 | 16.24M | 16.24M | 15.14M | 12.24M | 8.68M | 4.12M | 3.81M | 2.06M | 217K | 0 |
| Stock-Based Compensation | 190K | 0 | 0 | 0 | 0 | 900K | 1.01M | 1.02M | 662K | 607K | 618K | 463K | 320K | 200K | 0 |
| Other Non-Cash Items | 13.91M | -4.72M | -660K | 61.53M | 14.71M | 19.94M | 129.37M | 128.43M | 13.89M | -15.75M | -3.38M | 4.27M | 13.15M | -17.73M | 150K |
| Working Capital Changes | -2.83M | -7.11M | -16.24M | 15.56M | 23.02M | -708K | -30.01M | -30.39M | -268K | -697K | 8.48M | 1.94M | 7.39M | -9.77M | 0 |
| Cash from Investing | -57.58M | -141.33M | -141.33M | -104.05M | -128.2M | 166.52M | 1.26B | -757.12M | -165.88M | -1.22B | -146.09M | -113.15M | -105.81M | -387.41M | 0 |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 55.38M | 52.96M | 102.98M | 175.67M | 81.61M | 15.39M | -3.84M | -2.18M | -98.97M | 0 |
| Purchase of Investments | -364.32M | 0 | -431.02M | -761.95M | -1.11B | -595.44M | -984.44M | -1.09B | -416.11M | -1.35B | -320.71M | -307.32M | -206.44M | -515.66M | 0 |
| Sale of Investments | 368.9M | 0 | 276.38M | 654.16M | 1.02B | 817.34M | 2.28B | 435.53M | 425.89M | 173.56M | 147.52M | 215.14M | 100.64M | 128.25M | 0 |
| Other Investing | -62.16M | -141.33M | 13.31M | 3.73M | 0 | -55.38M | -37.13M | -102.98M | -175.67M | -45.71M | 27.1M | -3.26M | -1.43M | 98.97M | 0 |
| Cash from Financing | 57.35M | 147.46M | 147.46M | 67.17M | 57.07M | -267.97M | -1.28B | 739.12M | 85.77M | 1.2B | 116.86M | 87.93M | 82.91M | 405.71M | 0 |
| Dividends Paid | -27.51M | -28.66M | -28.17M | -31.21M | -30.82M | -28.45M | -32.33M | -39.23M | -37.87M | -24.21M | -15.87M | -15.03M | -14.79M | -3.38M | 0 |
| Common Dividends | -21.41M | -28.66M | -28.17M | -31.21M | -30.82M | -28.45M | -32.33M | -513K | -367K | -326K | -246K | -155K | -104K | -3.38M | 0 |
| Debt Issuance (Net) | -1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -236K | -1.75M | -3.54M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 65.39M | 107.78M | 197.88M | 82.08M | 16.08M | -283.49M | -1.2B | 719.34M | -3.46M | 1.06B | -12.77M | -3.15M | 97.52M | 257.56M | 0 |
| Net Change in Cash | 30.8M | 1.43M | 1.43M | 3.77M | -11.22M | -53.44M | 38.51M | 51.69M | -16.48M | 11.5M | 5.22M | -1.84M | 2.07M | 10.37M | 0 |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 62.47M | 69.33M | 69.33M | 65.55M | 76.78M | 130.22M | 91.71M | 40.02M | 56.49M | 15.82M | 10.6M | 12.45M | 10.38M | 1K | 0 |
| Cash at End | 80.09M | 70.76M | 70.76M | 69.33M | 65.55M | 76.78M | 130.22M | 91.71M | 40.02M | 27.33M | 15.82M | 10.6M | 12.45M | 10.38M | 0 |
| Free Cash Flow | 31.03M | -4.69M | -4.69M | 40.66M | 21.88M | -7.37M | 8.24M | -33.29M | -112.04M | -41.37M | 19.06M | 9.51M | 28.58M | -6.08M | 0 |
| FCF Growth % | 106.15% | 0% | -111.54% | 85.85% | 396.92% | -189.44% | 124.74% | 70.28% | -170.81% | -317.03% | 100.36% | -66.71% | 570.07% | - | - |
| FCF / Revenue % | 39.06% | -4.45% | -13.57% | -191.77% | 54.43% | -26.19% | -14.59% | 70.42% | -228.42% | -72.86% | 59.7% | 50.4% | 365.33% | -26.98% | - |
Fair value accounting volatility
As reported in financial statements, the relationship between FFO and GAAP operating cash flow remains highly inconsistent, with the 2025Q4 FFO of $7.7M nearly matching the $8.4M in OCF, while other periods show extreme volatility that complicates the assessment of core cash generation.
The wide variance in the FFO-to-Net Income ratio, which reached as high as 8.15 in 2025Q2, suggests that GAAP metrics are poor proxies for the company's actual operational performance. Investors should monitor this disconnect, as it implies that non-cash fair value adjustments on MSRs and derivatives frequently obscure the underlying cash-generating capacity of the portfolio.
Based on the limited data available in recent filings, the dividend payout of $6.2M in 2025Q4 against an AFFO-equivalent figure suggests a payout ratio of approximately 80%, though the lack of consistent longitudinal AFFO reporting makes it difficult to confirm the long-term sustainability of these distributions.
The reliance on dividend payments that frequently exceed reported net income in several quarters warrants further investigation into whether the company is funding distributions through capital recycling or asset liquidation. Without a clear, multi-period trend of AFFO coverage, the dividend appears vulnerable to shifts in interest rate volatility and MSR valuation cycles.
According to historical data, the massive swings between net income and operating cash flow, such as the $19.1M OCF outflow in 2024Q1, indicate that GAAP net income is heavily distorted by non-cash mark-to-market adjustments on the company's complex mortgage servicing rights and hedging instruments.
The decoupling of net income from cash flow suggests that the bottom line is more reflective of interest rate environment changes than actual operational success. Analysts should prioritize EAD or adjusted cash metrics over GAAP figures to avoid being misled by the significant volatility inherent in fair value accounting for mREITs.
As indicated by the provided financial data, the company's cash flow statement frequently masks the impact of capitalized maintenance costs and off-balance-sheet obligations, with OCF showing extreme swings from -$19.1M to $18.6M over the observed period, suggesting significant underlying volatility in working capital management.
The erratic nature of OCF suggests that the company may be experiencing lumpy cash inflows from MSR settlements or hedging terminations that do not align with recurring earnings. This volatility may indicate that the company's liquidity position is more sensitive to market-driven cash calls than the headline figures would otherwise suggest.
Quick answers to the most common questions about buying CHMI stock.
Cherry Hill Mortgage Investment Corporation (CHMI) generated $-4.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Cherry Hill Mortgage Investment Corporation (CHMI) reported negative free cash flow of $4.7M in 2025, indicating capital requirements exceeded cash from operations.
Cherry Hill Mortgage Investment Corporation (CHMI) 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, Cherry Hill Mortgage Investment Corporation (CHMI) returned $28.7M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.