Operating cash flow frequently fails to cover dividend obligations, as seen in 2025Q4 when $49.1M in distributions significantly exceeded the $30.3M in generated operating cash.
| Cash from Operations | 107.89M | 103.55M | 85.21M | -74.97M | 42.64M | 1.22M | 26.94M | -45.8M | -29.02M | 34.84M | -76.57M | -91.93M |
| Operating CF Growth % | 4.19% | 21.53% | 213.65% | -275.81% | 3391.98% | -95.47% | 158.83% | -57.81% | -183.32% | 145.5% | 16.71% | - |
| Net Income | -134.44M | 80.31M | 116.89M | -103.64M | 131.71M | 60.89M | -8.69M | -54.85M | 31.13M | 90.58M | -40.96M | 8.34M |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 247.39M | 25.16M | -31.16M | 38.49M | -87.09M | -56.57M | 30.7M | 24.59M | -68.39M | -60.58M | -44.57M | -94.41M |
| Working Capital Changes | -5.06M | -1.92M | -519.64K | -9.83M | -1.98M | -3.09M | 4.94M | -15.54M | 8.24M | 2.76M | 8.96M | -5.87M |
| Cash from Investing | -129.31M | -532.55M | -166.78M | 0 | -157.48M | 22.72K | 114.65K | 0 | -71.16M | -117.21M | 0 | 0 |
| Purchase of Investments | -705.8M | -929.29M | -315.75M | 0 | -485.03M | -225.13M | -173.67M | -332.38M | -257.85M | -281.65M | 0 | 0 |
| Sale/Maturity of Investments | 576.49M | 401.14M | 148.98M | 0 | 327.55M | 193.81M | 161.05M | 266.74M | 186.69M | 164.44M | 0 | 0 |
| Net Investment Activity | -129.31M | -528.15M | -166.78M | 0 | -157.48M | -31.33M | -12.63M | -65.64M | -71.16M | -117.21M | 0 | 0 |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 0 | -4.4M | 0 | 0 | 0 | 31.35M | 12.74M | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 26.6M | 424.38M | 71.33M | 117.87M | 124.06M | -29.46M | 4.29M | 33.27M | 16.82M | 86.69M | 34.78M | 201.19M |
| Dividends Paid | -185.45M | -163.85M | -148.12M | -103.43M | -39.21M | -40.28M | -61.51M | -52.35M | -57.29M | -34.86M | -32.46M | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -278.63K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 235.38M | 331.82M | 219.45M | 205.89M | 75.05M | 36.56M | 88.53M | 76.52M | 43.18M | 90.31M | 0 | 0 |
| Net Stock Activity | 235.38M | 331.82M | 219.45M | 205.89M | 74.77M | 36.56M | 88.53M | 76.52M | 43.18M | 90.31M | 0 | 0 |
| Debt Issuance (Net) | 0 | 1000K | 0 | 1000K | 1000K | -1000K | 0 | 1000K | 1000K | 1000K | 1000K | 0 |
| Other Financing | -23.33M | -4.57M | 0 | 0 | -26.4M | -13.14K | 65.81M | 78.34M | -1.38M | 86.55M | 42.24M | 201.19M |
| Net Change in Cash | 5.18M | -4.22M | -10.39M | 42.92M | 9.16M | -28.11M | 31.35M | -12.53M | -12.2M | 4.31M | -41.79M | 109.26M |
| Exchange Rate Effect | 0 | 404.59K | -150.28K | 16.8K | -72.62K | 111.57K | 178 | 639 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 42.22M | 46.45M | 56.83M | 13.92M | 4.76M | 32.87M | 1.52M | 14.05M | 26.25M | 21.94M | 63.73M | 0 |
| Cash at End | 47.41M | 42.22M | 46.45M | 56.83M | 13.92M | 4.76M | 32.87M | 1.52M | 14.05M | 26.25M | 21.94M | 109.26M |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 107.89M | 103.55M | 85.21M | -74.97M | 42.64M | 1.22M | 26.94M | -45.8M | -29.02M | 34.84M | -76.57M | -91.93M |
| FCF Growth % | 4.19% | 21.53% | 213.65% | -275.81% | 3391.98% | -95.47% | 158.83% | -57.81% | -183.32% | 145.5% | 16.71% | - |
Portfolio mark-to-market volatility
As reported in recent financial statements, the company exhibits a significant disconnect between net income and operating cash flow, highlighted by a 2025Q4 net loss of $109.9M contrasted against $30.3M in operating cash, suggesting that GAAP earnings are heavily distorted by non-cash mark-to-market portfolio adjustments.
The persistent divergence between net income and operating cash flow indicates that the company's reported profitability is largely a function of accounting valuations rather than realized cash generation. Investors should monitor this gap closely, as it implies that the cash available for distributions is not necessarily reflective of the underlying portfolio's accounting performance.
Based on historical cash flow data, free cash flow has remained erratic, swinging from a $16.3M outflow in 2025Q3 to a $30.3M inflow in 2025Q4, which complicates the assessment of whether the company can sustainably fund its ongoing dividend obligations through organic operations.
The volatility in free cash flow suggests that the company's ability to maintain its distribution yield is highly sensitive to the timing of cash distributions from its CLO equity holdings. This inconsistency warrants further investigation into whether the company is forced to rely on external financing or capital recycling to meet its payout targets.
According to quarterly cash flow filings, the company consistently paid out dividends exceeding its quarterly operating cash flow, such as the $49.1M distribution in 2025Q4 against $30.3M in operating cash, indicating a potential reliance on non-operating sources to maintain the current shareholder distribution level.
The consistent pattern of dividend payments exceeding operating cash flow suggests that the company may be distributing capital that is not strictly derived from current period earnings. This practice appears to create a structural dependency on continuous capital market access to bridge the gap between cash inflows and shareholder payouts.
Analysis of the multi-period data reveals a recurring trend where net income volatility frequently obscures the underlying cash reality, as evidenced by the sharp fluctuations in net income that do not correlate with the relatively more stable, albeit modest, operating cash flow figures reported over time.
The cumulative gap between net income and operating cash flow suggests that the company's accounting earnings are not a reliable proxy for its actual cash-generating capacity. This divergence implies that the company's valuation may be subject to significant revisions if market conditions force a realization of the paper losses currently embedded in the portfolio.
Quick answers to the most common questions about buying ECCX stock.
Eagle Point Credit Company Inc. 6.6875% NT 28 (ECCX) generated $107.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Eagle Point Credit Company Inc. 6.6875% NT 28 (ECCX) generated $107.9M 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.
Eagle Point Credit Company Inc. 6.6875% NT 28 (ECCX) 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, Eagle Point Credit Company Inc. 6.6875% NT 28 (ECCX) returned $185.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.