Free cash flow generation remains highly volatile, swinging from a $2.4 billion surplus in 2025Q4 to a $449.7 million deficit in 2026Q2, largely driven by significant working capital outflows.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Cash from Operations | 3.65B | 3.42B | 2.19B | 4.3B | 561.8M | 534.4M | 1.42B | 892.1M | 545.2M | 435.1M | 618M | 700.4M | -661.4M | -1.23B | -288.7M | 14.9M | 709.4M | 1.14B | 1.88B | 1.36B | -1.19B | -620.7M | -422.5M | 423.32M | -90.6M | -55.28M | -107.55M | -170.9M | -125.3M | -83.1M | -23.9M |
| Operating CF Margin % | - | 9.99% | 5.95% | 12.14% | 1.68% | 1.92% | 7% | 5.07% | 3.39% | 3.09% | 5.08% | 6.47% | -8.24% | -19.67% | -6.63% | 0.41% | 16.12% | 31.2% | 28.29% | 12% | -7.91% | -4.48% | -3.9% | 4.85% | -1.34% | -1.24% | -2.94% | -5.41% | -5.76% | -9.92% | -4.37% |
| Operating CF Growth % | 69.27% | 56.22% | -49.12% | 666.13% | 5.13% | -62.41% | 59.35% | 63.63% | 25.3% | -29.6% | -11.76% | 205.9% | 46.28% | -326.43% | -2037.58% | -97.9% | -37.84% | -39.29% | 38.69% | 213.83% | -91.85% | -46.91% | -199.81% | 567.25% | -63.88% | 48.6% | 37.07% | -36.39% | -50.78% | -247.7% | 26.01% |
| Net Income | 3.17B | 3.59B | 4.76B | 4.8B | 5.9B | 4.19B | 2.38B | 1.62B | 1.46B | 1.04B | 886.3M | 750.7M | 533.5M | 462.7M | 956.3M | 71.8M | 245.1M | -545.3M | -2.63B | -712.5M | 1.23B | 1.47B | 975.1M | 625.96M | 404.69M | 257.01M | 191.72M | 159.8M | 93.4M | 36.2M | 27.4M |
| Depreciation & Amortization | 108.4M | 101.3M | 87.1M | 91.6M | 81.4M | 73.9M | 80.4M | 72M | 62.4M | 54.7M | 61M | 54.1M | 38.4M | 22.7M | 18.8M | 19.9M | 17.2M | 25.7M | 60.4M | 71M | 61.7M | 57.1M | 55.5M | 45.86M | 40.65M | 36.06M | 24.49M | 20.8M | 9.8M | 4.4M | 2.6M |
| Stock-Based Compensation | 76M | 131M | 118.1M | 111.2M | 105.1M | 91.4M | 77.8M | 73.2M | 55.8M | 59.2M | 49M | 42.2M | 26.2M | 19M | 18.1M | 14.2M | 13.3M | 13.7M | 12.4M | 12.4M | 11.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 83.2M | 123.2M | 19M | -45.9M | 29.1M | -10M | 14.1M | 20.1M | 170.9M | 110.8M | 75.3M | 3.1M | 17.4M | 130.9M | -709.5M | 21.5M | -2.8M | 213.5M | 650.3M | -489M | -9.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 230.7M | 193.8M | 128.4M | 80.3M | 70.4M | 39.9M | -26.2M | 11M | 40.7M | 30.9M | 29.5M | 63.4M | 112M | 63.9M | 46.3M | 71.8M | 100.4M | 410.2M | 2.57B | 1.81B | 284.3M | 0 | 0 | 0 | 0 | 0 | 0 | 200K | 1M | 300K | 200K |
| Working Capital Changes | -35.7M | -713.6M | -2.92B | -728.3M | -5.62B | -3.85B | -1.1B | -902.8M | -1.25B | -858.9M | -483.1M | -213.1M | -1.39B | -1.93B | -618.7M | -184.3M | 336.2M | 1.02B | 1.22B | 667.8M | -2.77B | -2.15B | -1.45B | -248.5M | -535.93M | -348.36M | -323.76M | -351.7M | -229.5M | -124M | -54.1M |
| Change in Receivables | -114.3M | 0 | 0 | -131.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14.4M | 7.4M | 3.6M | 244.1M | -4.14B | 284.8M | 0 | 0 | -8.48B | 0 | 0 | -3.93B | -2.65B | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 128.1M | 158.1M | 78.8M | -516.4M | -5.18B | -3.76B | -1.06B | -591.8M | -1.06B | -946.7M | -506.5M | -89.5M | -1.43B | -2.05B | -646.4M | -74.5M | 156M | 577M | 2.14B | 737.6M | -3.11B | -1.86B | -1.41B | -486.01M | -244.22M | -333.14M | -299.93M | -385.6M | -261.2M | -145.1M | -62.4M |
| Change in Payables | 213.5M | 83.7M | 19.6M | -101.8M | 1.04B | 845.1M | 566.2M | 126.2M | 129.1M | 83.9M | 52.1M | 60.3M | 115.9M | 139.5M | 113.6M | -101.8M | -56.4M | -166.7M | -692.5M | -692.5M | 37.8M | 589.2M | 191.1M | 0 | 41.85M | 102.64M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -234.6M | -168.7M | -190.6M | -310.2M | -414.9M | -252.2M | -166.1M | -394M | 2.6M | -171M | -112.6M | -95.4M | -282.1M | 180.9M | -147.7M | -19.3M | -318M | -59.4M | -6.6M | -39.8M | -83.3M | -68.2M | -55.2M | -48.67M | -193.09M | -97.25M | -56.38M | -22.8M | -45.6M | -61M | -4M |
| Capital Expenditures | -154.4M | 0 | -165.3M | -148.6M | -148.2M | -267.4M | -286.8M | -224.1M | -68.1M | -157.3M | -86.1M | -56.1M | -100.2M | -58M | -33.6M | -16.3M | -19.2M | -6.2M | -6.6M | -39.8M | -83.3M | -68.2M | -55.2M | -48.67M | -39.82M | -33.37M | -15.79M | -17.3M | -11.6M | -5.3M | -2.7M |
| CapEx % of Revenue | 0.46% | 0.4% | 0.45% | 0.42% | 0.44% | 0.96% | 1.41% | 1.27% | 0.42% | 1.12% | 0.71% | 0.52% | 1.25% | 0.93% | 0.77% | 0.45% | 0.44% | 0.17% | 0.1% | 0.35% | 0.55% | 0.49% | 0.51% | 0.56% | 0.59% | 0.75% | 0.43% | 0.55% | 0.53% | 0.63% | 0.49% |
| Acquisitions | -65M | -53.1M | -40.4M | -212.9M | -271.5M | -24.5M | -5.4M | -311.4M | -141.7M | -4.1M | -82.2M | -70.9M | -244.1M | -9.4M | -105.9M | 0 | -27.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -153.76M | -61.9M | -11.56M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -15.2M | -115.6M | 15.1M | 51.3M | 4.8M | 39.7M | 126.1M | 141.5M | 495.9M | -7M | -15.9M | -9.6M | 62.2M | -31M | -200K | 4.6M | 29.2M | -53.2M | 0 | 0 | 0 | 0 | 0 | 0 | 486K | -1.99M | -29.03M | -5.5M | -34M | -55.7M | -1.3M |
| Cash from Financing | -3.96B | -4.76B | -1.36B | -2.67B | -811.2M | -85.1M | 270.6M | -490.1M | -82.5M | -559.5M | -586M | 117M | 627.9M | 939M | 751.5M | -572.3M | -1.04B | -511.8M | -755.6M | -1.63B | 711.9M | 1.32B | 412.8M | 103.91M | 148.75M | 319.29M | 107.89M | 245.6M | 169.4M | 155.6M | 43.7M |
| Debt Issued (Net) | 7.3M | 750.6M | 894.7M | -1.06B | 572.5M | 1.08B | 906.9M | 93.3M | 199.5M | -410.3M | -549.7M | 134.5M | 630.7M | 962.8M | 748.4M | -489.3M | -1B | -468.7M | -623.1M | -1.72B | 1.11B | 1.39B | 464.3M | 191.31M | 162.49M | 320.62M | 127.65M | 271.5M | 169.2M | 147.2M | 3.9M |
| Equity Issued (Net) | -3.46B | -4.28B | -1.85B | -1.23B | -1.19B | -926.9M | -398.6M | -499.5M | -137.8M | -65.7M | -5.9M | 61.8M | 45.2M | 29.7M | 50.9M | -38.6M | 7.6M | 4.4M | 9.5M | 12.7M | -24.4M | 24.8M | 15.4M | -47.3M | 12.37M | 12.4M | -10.48M | -18.9M | 4.9M | 39.5M | 44.9M |
| Dividends Paid | -502M | -494.8M | -395.2M | -341.2M | -316.5M | -289.3M | -256M | -223.4M | -188.4M | -149.6M | -118.7M | -91.6M | -48.6M | -60.2M | -47.8M | -47.8M | -47.7M | -47.5M | -142M | -188.4M | -137.6M | -96.5M | -66.9M | -40.1M | -26.11M | -13.73M | -9.29M | -7.1M | -4.7M | -2.1M | -1.4M |
| Share Repurchases | -3.47B | -4.28B | -1.79B | -1.23B | -1.19B | -926.9M | -398.6M | -499.5M | -137.8M | -65.7M | -5.9M | 0 | 0 | 0 | 0 | -38.6M | 0 | 0 | 0 | 0 | -36.8M | 0 | 0 | -58.86M | 0 | 0 | -14.54M | -22.4M | 0 | -2.6M | 0 |
| Other Financing | -3M | -737.1M | -3.1M | -29.3M | 126.3M | 53.8M | 18.3M | 139.5M | 44.2M | 66.1M | 88.3M | 12.3M | 600K | 6.7M | 0 | 3.4M | 2.8M | 0 | 0 | 258.2M | -238.9M | 0 | 0 | 0 | 0 | 0 | 0 | 100K | 0 | -29M | -3.7M |
| Net Change in Cash | -543.9M | -1.51B | 643.9M | 1.33B | -664.3M | 197.1M | 1.53B | 8M | 465.3M | -295.4M | -80.6M | 722M | -315.6M | -111.2M | 315.1M | -576.7M | -648M | 570M | 1.12B | -318M | -562.2M | 631.8M | -64.9M | 478.56M | -134.94M | 166.75M | -56.04M | 51.8M | -1.5M | 11.5M | 15.8M |
| Free Cash Flow | 3.5B | 3.28B | 2.02B | 4.16B | 413.6M | 267M | 1.13B | 668M | 477.1M | 277.8M | 531.9M | 644.3M | -761.6M | -1.29B | -322.3M | -1.4M | 690.2M | 1.14B | 1.87B | 1.32B | -1.27B | -688.9M | -477.7M | 374.65M | -130.41M | -88.65M | -123.34M | -188.2M | -136.9M | -88.4M | -26.6M |
| FCF Margin % | 10.49% | 9.59% | 5.5% | 11.72% | 1.24% | 0.96% | 5.59% | 3.8% | 2.97% | 1.97% | 4.38% | 5.95% | -9.49% | -20.59% | -7.4% | -0.04% | 15.69% | 31.03% | 28.19% | 11.65% | -8.46% | -4.97% | -4.41% | 4.29% | -1.94% | -1.99% | -3.38% | -5.96% | -6.29% | -10.56% | -4.86% |
| FCF Growth % | 28.17% | 62.19% | -51.28% | 904.71% | 54.91% | -76.47% | 69.88% | 40.01% | 71.74% | -47.77% | -17.45% | 184.6% | 40.92% | -299.97% | -22921.43% | -100.2% | -39.19% | -39.41% | 42.38% | 203.26% | -84.95% | -44.21% | -227.51% | 387.28% | -47.11% | 28.12% | 34.46% | -37.47% | -54.86% | -232.33% | 23.34% |
| FCF per Share | 12.10 | 10.60 | 6.11 | 12.10 | 1.17 | 0.73 | 3.07 | 1.77 | 1.24 | 0.73 | 1.42 | 1.74 | -2.08 | -3.53 | -0.90 | -0.00 | 2.17 | 3.58 | 5.93 | 4.19 | -4.03 | -2.16 | -1.51 | 0.80 | -0.46 | -0.38 | -0.54 | -0.74 | -0.68 | -0.65 | -0.23 |
| FCF Conversion (FCF/Net Income) | 1.10x | 0.95x | 0.46x | 0.91x | 0.10x | 0.13x | 0.60x | 0.55x | 0.37x | 0.42x | 0.70x | 0.93x | -1.24x | -2.66x | -0.30x | 0.21x | 2.89x | -2.09x | -0.71x | -1.90x | -0.97x | -0.42x | -0.43x | 0.68x | -0.22x | -0.22x | -0.56x | -1.07x | -1.34x | -1.28x | -0.52x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.6M | 19.5M | 66.3M | 101.8M | 103.3M | 49.8M | 37.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 1.02B | 1.67B | 1.44B | 1.7B | 1.14B | 581.3M | 488M | -387.2M | 446.4M | 389.9M | 334M | 279.8M | 34.8M | 6.1M | -1.9M | 485.4M | 603.9M | 23M | 325.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical working capital volatility
As reported in recent financial filings, DHI's operating cash flow to net income ratio has frequently dipped into negative territory, most recently reaching -0.64 in 2026Q2, highlighting a significant disconnect between accounting profits and the actual cash generated from the company's core homebuilding operations.
The persistent gap between net income and operating cash flow suggests that DHI's earnings are heavily reliant on non-cash accruals and inventory accounting rather than immediate liquidity. Investors should monitor whether this divergence reflects a structural shift in how the company recognizes revenue versus the timing of cash-intensive land development cycles.
Based on the provided cash flow statements, DHI's free cash flow trajectory remains highly erratic, swinging from a peak of $2.4 billion in 2025Q4 to a deficit of $449.7 million in 2026Q2, reflecting the company's sensitivity to seasonal inventory build-ups and shifting market demand.
The extreme volatility in free cash flow margins indicates that DHI's business model is inherently capital-intensive and prone to lumpy cash outflows. This inconsistency warrants caution, as the company's ability to self-fund operations appears contingent on the timing of home closings rather than a steady, predictable cash stream.
According to the company's cash flow data, working capital changes have acted as a primary drag on liquidity, with a massive $1.2 billion outflow recorded in 2026Q2, underscoring the intense cash requirements needed to maintain the company's high-volume production model in a cooling housing market.
The recurring negative working capital adjustments suggest that DHI is aggressively consuming cash to replenish land and work-in-progress inventory. This strategy appears to prioritize market share maintenance, but it leaves the company vulnerable to liquidity crunches if the absorption rate of these new units fails to meet expectations.
As detailed in recent financial statements, DHI has continued to prioritize shareholder returns, deploying over $1 billion in combined dividends and share repurchases during 2026Q2, even as operating cash flow turned negative, signaling a management preference for capital return over cash preservation during cyclical downturns.
The decision to maintain high levels of buybacks and dividends while operating cash flow is under pressure suggests a high degree of confidence in the balance sheet's resilience. However, this capital allocation policy may limit the company's flexibility to pivot if the current housing market contraction persists longer than anticipated.
Quick answers to the most common questions about buying DHI stock.
D.R. Horton, Inc. (DHI) generated $3.42B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
D.R. Horton, Inc. (DHI) generated $3.28B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
D.R. Horton, Inc. (DHI) 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, D.R. Horton, Inc. (DHI) returned $494.8M to shareholders via cash dividends and spent $4.28B on share repurchases. This shows the company's commitment to returning capital to its equity investors.