Liquidity buffers are under mounting pressure, as cash reserves declined from $930.4 million in 2025Q4 to $773.1 million in 2026Q1 amidst negative FFO performance.
| 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 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 184.31M | 120.82M | 14.39M | 62.2M | 126.35M | 146.97M | 173.95M | 175.35M | 180.56M | 204.45M | 210.51M | 216.99M | 214.55M | 208.76M | 149.39M | 70.64M | 30.07M | 19.63M | 6.79M | 8.03M | 7.42M | 12.34M | 23.03M | 29.82M | 37.25M | 72.37M | 20.47M | 54.03M | 83.4M | 105.7M | 58.5M |
| Operating CF Growth % | 4191.23% | 739.5% | -76.86% | -50.77% | -14.03% | -15.51% | -0.8% | -2.89% | -11.68% | -2.88% | -2.98% | 1.14% | 2.77% | 39.74% | 111.47% | 134.91% | 53.18% | 189.07% | -15.38% | 8.08% | -39.82% | -46.44% | -22.75% | -19.97% | -48.52% | 253.58% | -62.12% | -35.21% | -21.1% | 80.68% | -82.55% |
| Operating CF / Revenue % | 26.49% | 22.65% | 4.53% | 46.91% | -5326.81% | 220.16% | 74.89% | 106.65% | 216.97% | 237.69% | 256.56% | 386.53% | 176.05% | 174.1% | 122.44% | 95.73% | 58.2% | 49.82% | 21.24% | 26.07% | 14.72% | 16.58% | 18.85% | 72.79% | 162.6% | 181.01% | 65% | 73.5% | 106.38% | 101.15% | 62.37% |
| Net Income | 241.78M | 319.07M | 113.9M | -6.13M | 143.16M | 102.26M | 177.53M | -152.67M | 7.02M | 33.89M | 43.1M | 16.54M | 27.81M | 68.07M | 74.04M | 39.81M | 29.47M | 17.58M | 15.12M | 8.9M | 4.91M | 9.59M | -3.38M | -21.11M | -14.84M | -3.08M | -91.86M | -73.62M | 20.1M | 74M | 73M |
| Depreciation & Amortization | 8.1M | 2.1M | 1.87M | 2.31M | 2.35M | 2.31M | 1.99M | 1.68M | 1.23M | 1.29M | 1.5M | 5.34M | 8.9M | 7.74M | -1.09M | 32.51M | 6.18M | 2.47M | -1.58M | -583K | -538K | 2.61M | 3.73M | 3.07M | 6.45M | 12.28M | 16.12M | 28.13M | 43.9M | 26.7M | 23M |
| Stock-Based Compensation | 18.2M | 12.56M | 7.24M | 4.83M | 4.42M | 2.52M | 1.82M | 1.21M | 1.23M | 1.95M | 2.71M | 2.96M | 2.72M | 2.31M | 1.71M | 917K | 626K | 527K | -271K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -109.48M | -231.79M | -96.85M | 40.02M | -35.85M | 44.86M | -9.42M | 326.45M | 169.82M | 166.12M | 160.47M | 196.18M | 175.18M | 129.61M | 85.19M | 2.83M | -294K | 2.29M | -2.6M | -291K | 3.05M | 145K | 22.68M | 47.85M | 41.91M | 41.4M | 85.29M | 99.52M | 19.4M | 5M | -37.5M |
| Working Capital Changes | 25.71M | 18.88M | -11.76M | 21.17M | 12.27M | -4.98M | 2.03M | -1.32M | 1.26M | 1.2M | 2.73M | -4.04M | -54K | 1.02M | -10.46M | -5.42M | -3.42M | -1.44M | -3.87M | 0 | 0 | 0 | 0 | 0 | 3.75M | 21.77M | 10.93M | 0 | 0 | 0 | 0 |
| Cash from Investing | -14.35B | -8.07B | -1.03B | -2.96B | -65.44M | -555.38M | 2.35B | -1.6B | -869.34M | 87.43M | 67.97M | -209.37M | 424.2M | -165.14M | -1.69B | -915.75M | -685.66M | -345.23M | -250.47M | 72.67M | 108.51M | 221.04M | 268.59M | 283.55M | 285.02M | 625.69M | 746.3M | 862.91M | -1.7M | -1.39B | -464.1M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -7.25M | 0 | 0 | 0 | 0 | 0 | 0 | 175K | 109K | 92K | 281K | 400K | 2.9M | 3.2M |
| Purchase of Investments | -16.3B | -9.04B | -1.87B | -3.58B | -1.55B | -1.54B | -2.62B | -3.18B | -1.79B | -1.32B | -495.63M | -1.17B | -614.8M | -1.42B | -2.64B | -1.61B | -1.11B | -510.71M | -375.43M | -27.88M | -17.22M | -56.25M | -71.47M | -32.2M | -150.93M | -7.87M | -30.28M | -57.09M | -638M | -848.7M | -106.5M |
| Sale of Investments | 995.13M | 952.72M | 90.31M | 667.75M | 1.49B | 990.05M | 4.97B | 1.57B | 921.96M | 1.38B | 547.85M | 944.2M | 1.02B | 1.27B | 910.78M | 653.09M | 372.46M | 136.38M | 121.58M | 82.42M | 126.11M | 132.59M | 53.67M | 17.74M | 21.51M | 28.09M | 49.47M | 151.68M | 564M | 909.5M | 810.8M |
| Other Investing | 949.43M | 8.92M | 756.08M | -49.51M | 247K | -3.75M | 3.48M | 1.98M | -2.03M | 25.16M | 15.75M | 15.33M | 16.78M | -17.38M | 37.94M | 37.98M | 54.68M | 36.35M | 3.37M | 18.13M | -385K | 144.7M | 286.39M | 298.01M | 414.43M | 605.46M | 727.11M | 768.32M | 72.3M | -1.45B | -1.17B |
| Cash from Financing | 14.87B | 8.26B | 1.4B | 2.69B | -32.34M | 519.98M | -2.35B | 1.47B | 690.28M | -303.57M | -264.72M | -8.66M | -664.14M | -30.1M | 1.55B | 875.05M | 644.25M | 331.44M | 232.66M | -102.22M | -104.29M | -240.66M | -246.49M | -321.06M | -314.32M | -694.41M | -786.41M | -898.45M | -70M | 1.29B | 394.7M |
| Dividends Paid | -307.53M | -246.6M | -117.84M | -93.04M | -72.37M | -58.9M | -52.44M | -68.04M | -52.79M | -47.53M | -51.9M | -61.02M | -64.88M | -69.33M | -59.06M | -40.87M | -18.89M | -15.76M | -9.85M | -4.01M | -4.38M | -5.35M | -2.6M | -1.79M | -1.2M | -1.62M | 0 | -9.68M | -68.2M | -70.5M | -51.7M |
| Common Dividends | -307.53M | -246.6M | -117.84M | -93.04M | -72.37M | -58.9M | -52.44M | -68.04M | -52.79M | -47.53M | -51.9M | -61.02M | -64.88M | -69.33M | -59.06M | -40.87M | -18.89M | -15.76M | -9.85M | -4.01M | -4.38M | -5.35M | -2.6M | -1.79M | -1.2M | -1.62M | 0 | -9.68M | -68.2M | -70.5M | -51.7M |
| Debt Issuance (Net) | 3M | 1000K | 1000K | 0 | 0 | 1000K | -1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | -1000K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -617K | -25.03M | 0 | 0 | -310K | -41.17M | 0 | -6.93M | -921K | 0 | 0 | 0 | 0 | 0 | -14.29M | 0 | -648K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 7.14B | -1.63M | -1.18M | 2.74B | -206.86M | -1.18M | -2.32B | -481K | -374K | -582K | -211.15M | 95.79M | -29.46M | 2.32M | -825K | -23.67M | 595.85M | 2.97M | 266.63M | 0 | 0 | 0 | 0 | 0 | 0 | 20.08M | 780K | 3.68M | -300K | 3M | 1.61B |
| Net Change in Cash | 701.63M | 308.85M | 383.68M | -212.01M | 28.57M | 111.57M | 168.45M | 45.53M | 1.5M | -11.69M | 13.76M | 41.18M | -25.39M | 13.52M | 7.03M | 29.94M | -11.34M | 5.84M | -11.02M | -21.53M | 11.64M | -7.29M | 45.14M | -7.69M | 7.95M | 3.64M | -19.65M | 18.5M | 11.6M | 11M | -22.2M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 930.39M | 621.54M | 237.86M | 449.88M | 421.31M | 309.74M | 134.23M | 88.7M | 87.2M | 98.89M | 85.13M | 43.94M | 69.33M | 55.81M | 48.78M | 18.84M | 30.17M | 24.34M | 35.35M | 56.88M | 45.23M | 52.52M | 7.39M | 15.08M | 7.13M | 3.48M | 23.13M | 30.1M | 18.5M | 7.5M | 22.2M |
| Cash at End | 1.29B | 930.39M | 621.54M | 237.86M | 449.88M | 421.31M | 302.68M | 134.23M | 88.7M | 87.2M | 98.89M | 85.13M | 43.94M | 69.33M | 55.81M | 48.78M | 18.84M | 30.17M | 24.34M | 35.35M | 56.88M | 45.23M | 52.52M | 7.39M | 15.08M | 7.13M | 3.48M | 48.6M | -51.5M | 1.31B | 416.9M |
| Free Cash Flow | 184.31M | 120.82M | 14.39M | 62.2M | 126.35M | 146.97M | 173.95M | 175.35M | 180.56M | 204.45M | 210.51M | 216.99M | 214.55M | 208.76M | 149.39M | 70.64M | 30.07M | 19.63M | 6.79M | 8.03M | 7.42M | 12.34M | 23.03M | 29.82M | 37.08M | 69.44M | 20.38M | 53.75M | 83M | 107.7M | 55.3M |
| FCF Growth % | 386.82% | 739.5% | -76.86% | -50.77% | -14.03% | -15.51% | -0.8% | -2.89% | -11.68% | -2.88% | -2.98% | 1.14% | 2.77% | 39.74% | 111.47% | 134.91% | 53.18% | 189.07% | -15.38% | 8.08% | -39.82% | -46.44% | -22.75% | -19.59% | -46.6% | 240.8% | -62.09% | -35.24% | -22.93% | 94.76% | -83.46% |
| FCF / Revenue % | 26.49% | 22.65% | 4.53% | 46.91% | -5326.81% | 220.16% | 74.89% | 106.65% | 216.97% | 237.69% | 256.56% | 386.53% | 176.05% | 174.1% | 122.44% | 95.73% | 58.2% | 49.82% | 21.24% | 26.07% | 14.72% | 16.58% | 18.85% | 72.79% | 161.84% | 173.69% | 64.71% | 73.12% | 105.87% | 103.06% | 58.96% |
Interest rate volatility exposure
As reported in financial statements, the disconnect between GAAP operating cash flow and FFO is stark, with 2026Q1 showing $69.8 million in operating cash flow against a negative $73.9 million FFO, highlighting the extreme volatility inherent in the company's mark-to-market accounting practices.
The wide variance between operating cash flow and FFO suggests that GAAP metrics are heavily influenced by non-cash derivative adjustments and premium amortization. Investors should monitor this divergence, as it indicates that reported cash flow may not accurately reflect the underlying economic health of the mortgage portfolio.
Based on Dynex Capital's reported figures, the erratic swing from $185.4 million in 2025Q4 net income to a $80.4 million loss in 2026Q1 demonstrates that GAAP net income is an unreliable proxy for the company's actual ability to generate recurring interest-based earnings.
The reliance on unrealized gains and losses within the income statement creates a distorted view of profitability that fails to account for the cost of leverage. This volatility warrants further investigation into the sustainability of the company's hedging strategy during periods of rapid interest rate shifts.
According to recent SEC filings, the dividend payout ratio reached 99% in 2024Q3, suggesting that the company's ability to sustain distributions is increasingly reliant on volatile portfolio gains rather than consistent, core earnings generated from the underlying mortgage-backed securities.
The lack of a consistent AFFO buffer implies that any sustained compression in net interest spreads could force management to choose between dividend cuts or dilutive equity issuance. Investors should remain cautious, as the current payout trajectory appears unsustainable without a significant improvement in core interest income.
As indicated by the provided data, the absence of recurring capex reporting masks the true cash obligations of the REIT, while the reported 5.65% leverage ratio appears to exclude critical repo financing liabilities that define the company's actual risk profile.
The omission of repo-related debt from standard leverage metrics may lead to an underestimation of the company's sensitivity to short-term funding market dislocations. This structural opacity suggests that the true cash flow risk is significantly higher than what is captured in standard GAAP reporting.
Quick answers to the most common questions about buying DX stock.
Dynex Capital, Inc. (DX) generated $120.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Dynex Capital, Inc. (DX) generated $120.8M 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.
Dynex Capital, Inc. (DX) 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, Dynex Capital, Inc. (DX) returned $246.6M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.