Operational cash flow exhibits significant instability, highlighted by a $157.0 million outflow in 2026Q1 despite the company reporting $16.3 million in FFO for the same period.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'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 |
|---|
| Cash from Operations | 267M | -197.7M | -158.4M | 364.1M | 108.7M | -303.1M | -168.4M | -391.2M | -285.28M | -16.21M | 66.88M | 35.13M | 107.08M | 88.78M | -26.02M | 34.99M | 13.55M | 142.12M | -51.89M | -66.28M | -29.07M | 21.09M |
| Operating CF Growth % | 1172.91% | -24.81% | -143.5% | 234.96% | 135.86% | -79.99% | 56.95% | -37.13% | -1659.38% | -124.25% | 90.39% | -67.2% | 20.62% | 441.16% | -174.37% | 158.22% | -90.47% | 373.89% | 21.72% | -128.01% | -237.82% | - |
| Operating CF / Revenue % | 15.63% | -11.89% | -10.49% | 25.34% | 7.16% | -22.86% | -18.07% | -91.34% | -273.27% | -14.18% | 33.89% | 13.39% | 34.91% | 26.82% | -15.08% | 25.81% | 13.37% | 97.18% | -32.49% | -37.24% | -12.89% | 13.57% |
| Net Income | 167.4M | 167.9M | 203.4M | 166.9M | 178.8M | 110.5M | 61.7M | 36.3M | 91.75M | 52.33M | 60.18M | -212.37M | 17.09M | 35.06M | 17.88M | 9.24M | 5.83M | 61.57M | 11.97M | 24.8M | 51.84M | 34.9M |
| Depreciation & Amortization | 3.3M | 3.5M | 3M | 3M | 2.7M | 2.7M | 4.9M | 9.4M | 5.2M | 9.17M | 55.17M | 304.5M | 130.84M | 134.97M | 46.45M | -3.68M | 9.01M | 9.79M | 7.67M | 2.92M | 2.35M | 2.25M |
| Stock-Based Compensation | 8M | 7.3M | 5.3M | 4.3M | 3.3M | 2.6M | 2M | 1.3M | 4.4M | 6.64M | 4.04M | 4.25M | 3.42M | 16.81M | 14.93M | 7.07M | 11.6M | 12M | 4.52M | 0 | 0 | 0 |
| Other Non-Cash Items | -56.7M | 3.3M | -5.4M | 22.4M | 8.1M | 18.5M | 200K | 100K | -453.66M | -71.78M | 6.46M | 216.36M | 88.08M | 40.7M | -38.34M | 34.21M | -367K | 86.77M | -65.57M | -82.55M | -84.71M | -17.8M |
| Working Capital Changes | 135.5M | -398.4M | -381.5M | 153.7M | -96.7M | -456.6M | -260.3M | -447.8M | 56.42M | -1.7M | -2.44M | -14.37M | -3.15M | -2.93M | -14.13M | 11.65M | -6M | -5.27M | 915K | 8.1M | 6.35M | 170K |
| Cash from Investing | 2.7M | 3.2M | 7.3M | 300K | 1.3M | 1M | 5M | -800K | 258.97M | 134.54M | 420.74M | -60.33M | -129.73M | -103.93M | -105.12M | -4.89M | -26.6M | -6.37M | -16.67M | -10.83M | 7.41M | -5.53M |
| Acquisitions (Net) | 4.5M | 4.5M | 0 | 1.6M | 1.6M | 0 | 4.3M | 100K | 0 | 6.85M | -389K | -14.18M | -33.05M | 2.64M | -110.48M | 0 | -38.05M | 0 | 52K | -14.49M | 0 | -29.61M |
| Purchase of Investments | 0 | 0 | 0 | 0 | 1.9M | 0 | -3.7M | 800K | 0 | 0 | -6.09M | -26.35M | 0 | 0 | 0 | -2.01M | -3.29M | -2.88M | -17.84M | -14.49M | 0 | 0 |
| Sale of Investments | 0 | 900K | 0 | 0 | 1.6M | 2.6M | 4.3M | 100K | 756K | 0 | 5.7M | 12.17M | 0 | 0 | 0 | 3.07M | 14.85M | 3.8M | 6.17M | 3.24M | 0 | 0 |
| Other Investing | -300K | 0 | 9.5M | 0 | -300K | 0 | 700K | -100K | 258.26M | 130.09M | 421.71M | 3.57M | 5.56M | -10.49M | 26.78M | 393K | 2.6M | 0 | 207K | 18.11M | 7.41M | 25.7M |
| Cash from Financing | -81.8M | 92.5M | 16.3M | -13.2M | 1.2M | 61.4M | 174.9M | 439.8M | 22.11M | -62.34M | -318.26M | -48.48M | 469K | 197.1M | 123.22M | -17.18M | -2.64M | -122.82M | 69.16M | 74.28M | 19.07M | -16.83M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -27.7M | 0 | 0 |
| Common Dividends | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -27.7M | 0 | 0 |
| Debt Issuance (Net) | -2M | 1000K | 0 | -1000K | 0 | 1000K | 1000K | 1000K | -291K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K |
| Share Repurchases | -200K | -1.8M | -3.4M | -700K | -500K | -600K | -300K | -100K | 0 | 0 | -3.54M | -762K | -24.59M | 0 | -1.41M | -12.98M | -15.18M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -600K | 500K | -3.4M | 0 | -500K | -7.4M | -5.9M | -10.8M | 22.41M | -15.5M | -2.46M | -964K | -13.99M | -6.53M | -4.79M | -451K | 673K | 300K | -366K | -8.86M | -78.61M | -27.78M |
| Net Change in Cash | 187.9M | -102M | -134.8M | 351.2M | 111.2M | -240.7M | 11.5M | 47.8M | 69.18M | 55.98M | 169.36M | -73.69M | -22.18M | 181.95M | -7.92M | 12.92M | -15.69M | 12.92M | 607K | -2.83M | -2.59M | -1.27M |
| 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 |
| Cash at Beginning | 211.7M | 481.2M | 616M | 264.8M | 153.6M | 394.3M | 382.8M | 335M | 265.8M | 265.8M | 96.44M | 170.13M | 192.31M | 10.36M | 18.28M | 5.37M | 21.05M | 8.13M | 7.52M | 10.35M | 12.94M | 14.21M |
| Cash at End | 362.2M | 379.2M | 481.2M | 616M | 264.8M | 153.6M | 394.3M | 382.8M | 334.98M | 321.78M | 265.8M | 96.44M | 170.13M | 192.31M | 10.36M | 18.28M | 5.37M | 21.05M | 8.13M | 7.52M | 10.35M | 12.94M |
| Free Cash Flow | 265.5M | -199.9M | -160.6M | 362.8M | 105.2M | -304.7M | -169M | -392.1M | -285.33M | -18.67M | 60.16M | -29.28M | -11.56M | -19.12M | -50.17M | 28.64M | 10.85M | 134.82M | -57.09M | -69.48M | -29.07M | 19.48M |
| FCF Growth % | 164.07% | -24.47% | -144.27% | 244.87% | 134.53% | -80.3% | 56.9% | -37.42% | -1428.53% | -131.03% | 305.46% | -153.27% | 39.53% | 61.89% | -275.16% | 164.02% | -91.95% | 336.18% | 17.84% | -139.01% | -249.25% | - |
| FCF / Revenue % | 15.54% | -12.02% | -10.64% | 25.25% | 6.93% | -22.98% | -18.14% | -91.55% | -273.31% | -16.33% | 30.49% | -11.16% | -3.77% | -5.78% | -29.07% | 21.13% | 10.7% | 92.19% | -35.74% | -39.04% | -12.89% | 12.53% |
Cyclical lot absorption volatility
As reported in quarterly financial statements, Forestar Group exhibits a stark disconnect between FFO and GAAP operating cash flow, with OCF frequently turning negative despite positive FFO, as evidenced by the -$157.0 million OCF figure against $16.3 million in FFO during 2026Q1.
The persistent negative operating cash flow suggests that the company is aggressively reinvesting in land inventory, which masks the underlying cash-generating capability of its developed lots. Investors should monitor this divergence, as it implies that FFO may overstate the immediate liquidity available to the firm during periods of heavy land acquisition.
Based on the provided financial data, the relationship between Net Income and FFO is highly volatile, with FFO/NI ratios fluctuating from -27.27 in 2025Q1 to 4.73 in 2026Q2, indicating that GAAP metrics fail to capture the true cash-based performance of the development cycle.
The extreme variance in the FFO/NI ratio suggests that non-cash charges and the timing of lot sales create significant noise in GAAP earnings. This volatility warrants further investigation into whether the company's accounting for land development costs is creating optical distortions that obscure the true cash-on-cash return of its projects.
According to recent SEC filings, Forestar Group reports negligible maintenance capital expenditures, consistently remaining below $1.0 million per quarter, which appears to reflect the company's focus on new development rather than the upkeep of existing, long-term income-producing assets.
The low level of reported maintenance capex is consistent with a land-development model where assets are sold rather than held. However, this may imply that the company's true capital requirements are buried within inventory development costs rather than traditional property-level maintenance, potentially understating the total capital intensity of the business.
Financial data indicates that the company's cash flow statement frequently hides the true cost of inventory accumulation, as evidenced by the massive swings in OCF that are not reflected in the relatively stable FFO figures reported across the last ten quarters.
The recurring negative OCF suggests that the company may be relying on external financing or parent-level support to fund its land pipeline, which is not immediately apparent in the FFO metrics. Analysts should be cautious, as the lack of dividend payments suggests that all available cash is being funneled back into land acquisition, leaving little margin for error if lot absorption slows.
Quick answers to the most common questions about buying FOR stock.
Forestar Group Inc. (FOR) generated $-197.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Forestar Group Inc. (FOR) reported negative free cash flow of $199.9M in 2025, indicating capital requirements exceeded cash from operations.
Forestar Group Inc. (FOR) spent $2.2M 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, Forestar Group Inc. (FOR) spent $1.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.