Cash flow quality remains poor, evidenced by a 2023Q4 AFFO of negative $72.6M which failed to cover the $42.0M in dividend payments, indicating a reliance on non-cash accounting adjustments.
| 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 repo sensitivity
As reported in financial statements, EFC-PD exhibits a persistent and significant disconnect between GAAP operating cash flow and net income, with the FFO-to-Net Income ratio frequently turning negative, which suggests that GAAP metrics are poor indicators of the company's actual recurring cash generation capabilities.
The extreme volatility in operating cash flow, which swung from negative $298.1M in 2025Q4 to positive $147.1M in 2026Q1, highlights the distortive impact of mark-to-market accounting on the company's reported cash position. This suggests that investors should prioritize core earnings metrics over GAAP operating cash flow to avoid misinterpreting transient valuation shifts as sustainable operational performance.
Based on historical data from 2023Q4, the company reported an AFFO of negative $72.6M against dividend payments of $42.0M, which indicates that the dividend was not covered by recurring cash flow and warrants extreme caution regarding the sustainability of current distribution levels for preferred shareholders.
The negative AFFO figure suggests that the company may be relying on capital recycling or balance sheet liquidation rather than recurring interest income to fund distributions. This structural shortfall implies that the dividend is potentially vulnerable to any tightening in credit spreads or liquidity constraints within the mortgage-backed securities market.
According to recent SEC filings, the company's net income consistently fails to align with cash flow realities, as evidenced by the wide variance between reported earnings and the negative cash flow trends observed throughout 2024 and 2025, suggesting a reliance on non-cash accounting adjustments.
The reliance on unrealized gains to bolster net income appears to obscure the underlying cash burn associated with maintaining a 9.07x leveraged portfolio. This discrepancy suggests that the company's reported profitability may be significantly more fragile than the headline net income figures imply, necessitating a focus on cash-based earnings to assess true solvency.
Data from 2023Q4 indicates that capitalized maintenance costs and other non-cash adjustments significantly impacted the free cash flow profile, as reported in financial statements, which suggests that the company's true economic maintenance burden is likely higher than the minimal capital expenditure figures would otherwise imply.
The minimal reported CapEx relative to the scale of the portfolio suggests that the company may be deferring necessary maintenance or that such costs are being buried within the broader investment portfolio accounting. This warrants further investigation into whether the company is under-investing in its asset base to artificially inflate its distributable cash flow metrics.
Quick answers to the most common questions about buying EFC-PD stock.
Ellington Financial Inc. (EFC-PD) 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-PD) 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-PD) 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-PD) returned $183.6M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.