Operating cash flow turned deeply negative at -$101.5M in Q2 2026 against $27.7M net income, reflecting a cash conversion ratio of -3.66 and cumulative earnings outpacing cash generation by $461.2M over ten quarters.
Dream Finders Homes, Inc. (DFH) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Cash from Operations | -138.45M | -100.57M | -256.65M | 374.23M | -27.62M | 64.97M | 95.34M | 23.84M | -2.51M |
| Operating CF Margin % | - | -2.33% | -5.77% | 9.98% | -0.83% | 3.38% | 8.41% | 2.44% | -0.48% |
| Operating CF Growth % | -76.09% | 60.81% | -168.58% | 1454.79% | -142.52% | -31.85% | 299.94% | 1049.73% | - |
| Net Income | 146.69M | 58.8M | 340.58M | 307.94M | 274.3M | 134.59M | 79.09M | 44.9M | 23.26M |
| Depreciation & Amortization | 31.55M | 29.16M | 17.21M | 17.9M | 17.09M | 9.85M | 12.76M | 6.02M | 3.95M |
| Stock-Based Compensation | 20.97M | 24.92M | 18.79M | 14.1M | 6.8M | 5.23M | 0 | 895K | 895.61K |
| Deferred Taxes | 36.09M | 35.49M | -14.12M | -22.34M | -294K | -946K | 0 | -114.89K | -3.65M |
| Other Non-Cash Items | 4.76M | 27.33M | -23.69M | 32.92M | 12.44M | 11.26M | 2.13M | -1.63M | 3.08M |
| Working Capital Changes | -379.07M | -276.28M | -595.42M | 23.73M | -337.95M | -95.02M | 1.35M | -26.24M | -30.05M |
| Change in Receivables | -69.51M | -924K | -2.63M | 12.62M | -11.85M | -16.72M | 0 | 0 | 0 |
| Change in Inventory | -340.23M | -210.2M | -148.02M | -61.62M | -311.52M | -80.2M | 23.51M | -30.9M | -66.49M |
| Change in Payables | 0 | -115.15M | 41.63M | 0 | 65.75M | 0 | 6.2M | 0 | 48.26M |
| Cash from Investing | -45.13M | -225.84M | -221.67M | -4.48M | -5.52M | -523.04M | -16.98M | -17.82M | 2.63M |
| Capital Expenditures | -23.3M | -25.79M | -25.34M | -4.78M | -5.54M | -2.77M | -2.92M | -2.89M | -10.16M |
| CapEx % of Revenue | 0.56% | 0.6% | 0.57% | 0.13% | 0.17% | 0.14% | 0.26% | 0.3% | 1.95% |
| Acquisitions | -11.93M | -184.46M | -178.12M | -70K | -131K | -520.78M | -20.54M | -15.02M | -1.75M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -72K | -16.17M | -18.2M | 367K | 3K | 508K | 0 | 91.4K | 14.55M |
| Cash from Financing | 178.94M | 270.98M | 269.69M | -216.42M | 146.96M | 646.02M | -61.88M | 26.08M | -2.42M |
| Debt Issued (Net) | 275.4M | 386.79M | 351.48M | -135.86M | 197.42M | 439.12M | -31.62M | 28.81M | 5.25M |
| Equity Issued (Net) | -57.18M | -49.58M | -20.29M | -11.4M | 0 | 252.59M | 0 | 12M | 2.55M |
| Dividends Paid | -13.5M | -13.5M | -13.5M | -13.24M | -13.69M | -23.29M | 0 | -8.3M | -11.71M |
| Share Repurchases | -57.18M | -49.58M | -20.29M | -322K | 0 | -25.53M | 0 | 0 | 0 |
| Other Financing | -25.79M | -52.72M | -47.99M | -55.92M | -36.77M | -20.87M | -30.26M | -6.43M | 1.49M |
| Net Change in Cash | -4.64M | -55.44M | -208.63M | 153.33M | 113.81M | 187.95M | 85.21M | 32.1M | -2.3M |
| Free Cash Flow | -161.75M | -126.37M | -281.99M | 369.45M | -33.17M | 62.2M | 92.42M | 20.95M | -12.67M |
| FCF Margin % | -3.91% | -2.92% | -6.33% | 9.86% | -0.99% | 3.23% | 8.15% | 2.14% | -2.43% |
| FCF Growth % | -246.79% | 55.19% | -176.33% | 1213.88% | -153.33% | -32.7% | 341.2% | 265.3% | - |
| FCF per Share | -1.76 | -1.25 | -2.81 | 3.48 | -0.31 | 0.67 | 1.00 | 0.23 | -0.14 |
| FCF Conversion (FCF/Net Income) | -1.10x | -0.46x | -0.77x | 1.26x | -0.11x | 0.53x | 1.21x | 0.77x | -0.14x |
| Interest Paid | 300.53M | 0 | 199.18M | 80.11M | 105.22M | 33.95M | 900.23K | 0 | 0 |
| Taxes Paid | 41.76M | 0 | 127.55M | 81.32M | 47.94M | 27.82M | 0 | 0 | 0 |
Quick answers to the most common questions about buying DFH stock.
Dream Finders Homes, Inc. (DFH) generated $-100.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Dream Finders Homes, Inc. (DFH) reported negative free cash flow of $126.4M in 2025, indicating capital requirements exceeded cash from operations.
Dream Finders Homes, Inc. (DFH) spent $25.8M 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, Dream Finders Homes, Inc. (DFH) returned $13.5M to shareholders via cash dividends and spent $49.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Working capital swings and margin compression
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Working Capital
DFH's operating cash flow turned deeply negative in Q2 2026 at -$101.5M against $27.7M net income, per recent SEC filings, implying a cash conversion ratio of -3.66 and heavy accrual-based earnings.
The persistent gap between net income and operating cash flow, with OCF/NI ranging from -4.54 to 2.45 over the past ten quarters, suggests that reported profitability is not translating into cash generation. The negative working capital changes, particularly -$145.1M in Q2 2026, indicate that cash is being absorbed by inventory and receivables, likely reflecting land option deposits and construction in progress. This pattern implies that earnings quality is strained, as net income is supported by non-cash items and timing differences rather than operational cash generation.
Free Cash Flow Volatility Persists
DFH's free cash flow swung from +$302.6M in Q4 2024 to -$107.2M in Q2 2026, as reported in financial statements, with FCF margins ranging from -30.2% to +19.4%, indicating a highly cyclical and unpredictable cash generation profile.
The extreme quarterly swings in FCF, driven by working capital volatility rather than capex, suggest that DFH's cash flow is heavily dependent on the timing of home closings and land option payments. The negative FCF in most recent quarters, despite positive net income, indicates that the company is consuming cash to fund growth or maintain its land pipeline. This trajectory appears to be deteriorating, as the last two quarters show FCF margins of -6.2% and -10.1%, compared to positive margins in Q4 2024 and Q4 2025, implying that the company may be facing a cash crunch if the trend continues.
Minimal Capex Reflects Land-Light Model
Capital expenditures averaged just 0.5% of revenue over the last ten quarters, per the cash flow data, underscoring DFH's asset-light strategy that relies on lot options rather than heavy land investment, but this may understate total capital commitments.
The consistently low capex-to-revenue ratio, ranging from 0.2% to 1.7%, confirms that DFH does not require significant fixed asset investment, consistent with its land-light model. However, the company's cash flow statement may not capture the full extent of land option deposits and pre-acquisition costs, which are often classified as working capital changes. This suggests that the true capital intensity is higher than reported capex implies, and investors should monitor the working capital line for hidden land-related cash outflows.
Working Capital Swings Dominate Cash Flow
Working capital changes were the primary driver of DFH's cash flow volatility, with swings from +$195.3M in Q4 2024 to -$307.0M in Q1 2024, as per the cash flow statement, indicating significant cash absorption in inventory and land options.
The massive negative working capital changes in most quarters, particularly -$145.1M in Q2 2026 and -$201.4M in Q3 2025, suggest that DFH is investing heavily in land option contracts and construction in progress, which may not convert to cash until homes are sold. This pattern is typical for homebuilders but appears more pronounced for DFH, possibly due to its rapid expansion and reliance on third-party land developers. The positive working capital changes in Q4 quarters (Q4 2024 and Q4 2025) indicate a seasonal pattern where cash is released at year-end, but the overall trend suggests that working capital is a persistent drag on cash flow.
Capital Deployment Focused on Buybacks and Acquisitions
DFH allocated $14.9M to buybacks and $1.5M to acquisitions in Q2 2026, while paying $3.4M in dividends, based on reported figures, indicating a balanced but modest return of capital relative to its cash flow.
The company has consistently repurchased shares each quarter, with buybacks ranging from $1.2M to $23.6M, and paid a steady dividend of $3.4M per quarter, suggesting a commitment to returning capital to shareholders. However, the acquisition activity has been lumpy, with significant outflows in Q1 2025 (-$112.4M) and Q2 2025 (-$71.5M), likely related to the MHI acquisition, which may have strained cash reserves. Given the negative free cash flow in recent quarters, these capital returns appear to be funded by existing cash balances or debt, which warrants monitoring for sustainability.
Cumulative Earnings Outpace Cash Generation
Over the last ten quarters, DFH reported cumulative net income of approximately $593.6M but generated only $132.4M in operating cash flow, per the cash flow data, revealing a significant divergence between earnings and cash reality.
The cumulative gap of over $460M between net income and operating cash flow indicates that a substantial portion of reported earnings has not been converted into cash, likely due to aggressive working capital investment and possibly aggressive revenue recognition. This divergence suggests that the quality of earnings may be lower than it appears, as the company is not generating sufficient cash to support its reported profitability. Investors should monitor whether this gap narrows as the company matures or if it indicates a structural issue in the business model.
Cash Flow Statement Obscures Land Commitments
DFH's cash flow statement may understate true capital intensity, as land option deposits and pre-acquisition costs are likely embedded in working capital changes, per the data, obscuring the full cash outflows related to its land-light strategy.
The low reported capex and the large negative working capital changes suggest that DFH's investments in land options are not fully transparent in the cash flow statement, potentially masking the true cash requirements of its growth strategy. Additionally, the use of mortgage rate buydowns as sales incentives may be netted against revenue rather than shown as operating expenses, which could overstate operating cash flow. These factors imply that the reported cash flow figures may not fully reflect the company's cash commitments, and investors should scrutinize the notes to the financial statements for off-balance-sheet obligations.