Cash flow conversion remains erratic, highlighted by a 2025Q4 operating cash flow of -$298.1 million and a negative FFO/NI ratio of -13.77, indicating a disconnect between accounting earnings and actual cash generation.
| 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 liquidity sensitivity
As reported in financial statements, EFC exhibits a persistent and significant disconnect between GAAP operating cash flow and net income, with the FFO/NI ratio reaching -13.77 in 2025Q4, suggesting that standard accounting metrics fail to capture the underlying cash volatility inherent in the company's mortgage-backed portfolio.
The extreme volatility in the FFO/NI ratio indicates that GAAP net income is heavily influenced by non-cash mark-to-market adjustments rather than recurring interest income. Investors should monitor this divergence closely, as it implies that reported earnings may provide a misleading picture of the company's actual ability to generate cash from its credit-sensitive assets.
Based on historical data from 2023Q4, the company reported an AFFO of -$72.6M against dividend payments of -$42.0M, resulting in a dividend-to-AFFO ratio of 2.22, which suggests that the current distribution policy may not be supported by recurring cash flow generated from the core investment portfolio.
The negative AFFO figure highlights the significant impact of recurring capital requirements and management fees on the company's distributable cash. This coverage gap warrants further investigation, as it suggests that the dividend may be funded through capital recycling or financing activities rather than organic earnings, potentially threatening long-term sustainability.
According to recent SEC filings, the company's reliance on mark-to-market accounting creates substantial noise in reported earnings, as evidenced by the erratic swings in operating cash flow that frequently turn negative, such as the -$298.1M reported in 2025Q4, obscuring the true economic performance of the firm.
The frequent negative operating cash flow figures appear to be a byproduct of the company's active trading strategy and the accounting treatment of its credit portfolio. This distortion makes it difficult to assess the underlying profitability of the firm without normalizing for these non-cash valuation fluctuations and realized gains or losses.
As indicated by the provided financial data, the company's cash flow statement hides the impact of capitalized maintenance costs and potential off-balance-sheet obligations, which may be masked by the high leverage ratio of 9.07x, suggesting that the reported cash position may be more fragile than it appears.
The reliance on repo financing and securitized debt means that a significant portion of the company's cash flow is committed to servicing debt and maintaining collateral requirements. Investors should monitor whether these hidden obligations could lead to liquidity constraints during periods of market stress, particularly given the high sensitivity to interest rate volatility.
Quick answers to the most common questions about buying EFC stock.
Ellington Financial Inc. (EFC) 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) 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) 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) returned $183.6M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.