Dividend sustainability remains uncertain as evidenced by the 2023Q4 period where the firm reported an AFFO of -$72.6 million against $42.0 million in dividend payments.
| 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 |
|---|
| Cash from Operations | -651.98M | 509.04M | -430.53M | -241.86M | 42.69M | 51.29M | 119.51M | 79.25M | -494.18M | -462.7M | 69.69M | 654.25M | -604.16M | -244.38M | -51.4M | -47.45M | -347.55M | -215.45M | -259.75M |
| Operating CF Growth % | -137.98% | 218.24% | -78.01% | -666.6% | -16.78% | -57.08% | 50.8% | 116.04% | -6.8% | -763.92% | -89.35% | 208.29% | -147.22% | -375.49% | -8.31% | 86.35% | -61.31% | 17.06% | - |
| Operating CF / Revenue % | -111.36% | 75.46% | -152.57% | -94.29% | 98.93% | 23.66% | 339.98% | 93.06% | -643.2% | -4307.03% | 2969.45% | 1228.77% | -827.94% | -281.09% | -49.88% | -210.67% | -603.55% | -173.35% | -3064.17% |
| Net Income | 213.5M | 0 | 148.1M | 84.08M | 36.14M | 140.56M | 28.38M | 63.18M | 49.91M | 35.96M | -15.7M | 38.43M | 59.95M | 79.36M | 97.15M | 10.33M | 40.57M | 93.38M | -2.42M |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 5.67M | 0 | 0 | 0 | 46.16M | 32.86M | 24.57M | 21.82M | -9.13M | -18.62M | -13.01M | -9.01M | -6.64M | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 1.82M | 2.21M | 734K | 475K | 415K | 385K | 400K | 393K | 267K | 179K | 135K | 147K | 1.99M | 0 | 0 |
| Other Non-Cash Items | -753.33M | 500.9M | -140.6M | -126.48M | 66M | -36.1M | 75.9M | 31.91M | 142.58M | 63.41M | -54.15M | 88.51M | -152.45M | -17.18M | -448K | 350K | 2.51M | 158.64M | -332.93M |
| Working Capital Changes | 0 | 8.15M | -438.03M | -199.46M | -66.95M | -55.38M | 14.49M | -16.31M | 76.28M | -16.21M | 131.41M | 689.31M | -525.59M | -211.92M | -189.75M | 116.56M | -101.9M | -467.47M | 75.6M |
| Cash from Investing | -5.48B | -5.47B | -728.26M | 174.91M | -1.75B | -2.03B | 507.27M | -1.66B | -1.2B | -768.78M | -294.53M | 255.22M | -636.88M | -375.12M | -249.83M | -110.32M | -402.22M | 0 | 0 |
| Acquisitions (Net) | -195.12M | -232.7M | -119.99M | 34.22M | -49.1M | -24.07M | -34.62M | -42.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -10.85B | -9.58B | -6.77B | -6.2B | -5.91B | -5.1B | -2.62B | -4.84B | -3.06B | -2.73B | -2.33B | -3.32B | -5.39B | -2.09B | -2.42B | -3.57B | -2.6B | 0 | 0 |
| Sale of Investments | 5B | 5.17B | 5.81B | 6.06B | 4.02B | 2.99B | 3.07B | 3.15B | 1.87B | 1.96B | 2.03B | 3.57B | 4.76B | 1.71B | 2.17B | 3.46B | 2.19B | 0 | 0 |
| Other Investing | 562.05M | -826.86M | 353.94M | 290.07M | 218.1M | -62.38M | 62.7M | 14.48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 6.11B | 5.09B | 1.14B | 75.63M | 1.84B | 1.95B | -587.43M | 1.61B | 491.6M | 386.66M | -130.33M | -584.48M | 534.81M | 368.79M | 47.74M | 74.4M | 280.48M | 256.91M | 259.45M |
| Dividends Paid | -196.1M | -183.63M | -163.54M | -149.27M | -123.06M | -85.7M | -65.03M | -54.31M | -50.74M | -57.64M | -65.15M | -83.46M | -86.45M | -92.07M | -47.41M | -42.38M | -33.91M | -30.83M | 0 |
| Common Dividends | -196.1M | -183.63M | -163.54M | -149.27M | -123.06M | -85.7M | -65.03M | -54.31M | -50.74M | -57.64M | -65.15M | -83.46M | -86.45M | -92.07M | -47.41M | -42.38M | -33.91M | -30.83M | 0 |
| Debt Issuance (Net) | 4M | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 0 | 0 | 0 | 0 |
| Share Repurchases | -115M | 0 | -24.61M | -12.35M | -1.66M | 0 | -3.06M | -782K | -23.13M | -14.64M | -14.03M | -5.64M | 0 | 0 | -3.43M | -1.05M | 0 | -7.33M | 0 |
| Other Financing | -18.05M | -63.48M | -23.59M | 24.84M | 137.37M | -54.03M | -622K | 257.96M | -3.1M | 9.84M | -110K | 629K | 188.24M | 5.18M | 9.19M | 117.83M | 216.07M | 296.91M | 259.4M |
| Net Change in Cash | -25.8M | 129.24M | -21.6M | 8.68M | 129.03M | -18.99M | 39.34M | 27.4M | -2.58M | -76.04M | -60.63M | 69.77M | -69.35M | 124.41M | -3.65M | 26.95M | -67.07M | 41.46M | -304.85K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.2B | 768.78M | 294.53M | -255.22M | 636.88M | 375.12M | 249.83M | 110.32M | 402.22M | 0 | 0 |
| Cash at Beginning | 338.19M | 208.95M | 230.54M | 221.87M | 92.84M | 111.82M | 72.48M | 45.08M | 47.66M | 123.27M | 183.91M | 114.14M | 183.49M | 59.08M | 62.74M | 35.79M | 102.86M | 61.4M | 61.71M |
| Cash at End | 191.52M | 338.19M | 208.95M | 230.54M | 221.87M | 92.84M | 111.82M | 72.48M | 45.08M | 47.23M | 123.27M | 183.91M | 114.14M | 183.49M | 59.08M | 62.74M | 35.79M | 102.86M | 61.4M |
| Free Cash Flow | -652.14M | 509.04M | -430.53M | -241.86M | 3.58M | 224.13M | 150.15M | 129.01M | -494.18M | -462.7M | 69.69M | 654.25M | -604.16M | -244.38M | -51.4M | -47.45M | -347.55M | -215.45M | -259.75M |
| FCF Growth % | -31.09% | 218.24% | -78.01% | -6859.59% | -98.4% | 49.27% | 16.39% | 126.11% | -6.8% | -763.92% | -89.35% | 208.29% | -147.22% | -375.49% | -8.31% | 86.35% | -61.31% | 17.06% | - |
| FCF / Revenue % | -111.39% | 75.46% | -152.57% | -94.29% | 8.29% | 103.38% | 427.16% | 151.49% | -643.2% | -4307.03% | 2969.45% | 1228.77% | -827.94% | -281.09% | -49.88% | -210.67% | -603.55% | -173.35% | -3064.17% |
High leverage and volatility
As reported in financial statements, the company's FFO to net income ratio of -4.24 in 2023Q4 highlights a significant disconnect between GAAP earnings and actual cash-based performance, suggesting that fair value adjustments and non-cash items frequently obscure the underlying economic reality of the investment portfolio's cash generation.
The extreme volatility in the FFO to net income ratio indicates that GAAP net income is a poor proxy for the company's true cash-generating capacity. Investors should monitor this divergence closely, as it suggests that reported earnings are heavily influenced by unrealized fair value fluctuations rather than recurring interest income.
Based on 2023Q4 figures, the company reported an AFFO of -$72.6 million against dividend payments of $42.0 million, resulting in a dividend-to-AFFO ratio of 2.22, which indicates that current distributions are not being supported by recurring cash flow after accounting for necessary maintenance and leasing costs.
The negative AFFO figure suggests that the company is currently relying on capital recycling or external financing to sustain its dividend policy. This structural shortfall warrants further investigation into whether the current payout level is sustainable without compromising the long-term integrity of the balance sheet.
According to recent SEC filings, the company's reliance on Fair Value Option accounting creates substantial earnings volatility, as evidenced by the erratic swings in operating cash flow that frequently deviate from net income, complicating the assessment of the firm's true core earnings power for institutional investors.
The use of fair value accounting means that reported net income is highly sensitive to market-driven price changes in the mortgage portfolio. This accounting treatment may mask the underlying stability of the interest-spread business, making it difficult to discern the true cash-generating efficiency of the firm.
As indicated by the historical data, the company's cash flow statement often hides the impact of capitalized maintenance costs and complex joint-venture obligations, which, when combined with the negative AFFO of -$72.6 million in 2023Q4, suggests that the firm's true cash obligations are significantly higher than headline figures.
The discrepancy between GAAP operating cash flow and AFFO suggests that the company faces recurring cash outflows that are not immediately apparent in standard income metrics. Analysts should be wary of these off-balance-sheet pressures, which may limit the firm's flexibility during periods of market stress.
Quick answers to the most common questions about buying EFC-PC stock.
Ellington Financial Inc. (EFC-PC) generated $509.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ellington Financial Inc. (EFC-PC) generated $509.0M 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.
Ellington Financial Inc. (EFC-PC) 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, Ellington Financial Inc. (EFC-PC) returned $183.6M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.