Cash flow conversion is highly erratic, evidenced by an OCF/NI ratio that reached an extreme 71.84x in 2025Q1, complicating the assessment of true economic earnings.
| Cash from Operations | 202M | 183.54M | 148.77M | 92.06M | 216.51M | 178.8M | 68.17M | 96.19M | 117.03M |
| Operating CF Growth % | 186.11% | 23.37% | 61.6% | -57.48% | 21.09% | 162.29% | -29.13% | -17.8% | - |
| Net Income | 50.38M | 45.37M | 36.6M | 12.77M | 19.82M | 21.48M | 4.05M | 60M | 63.69M |
| Depreciation & Amortization | 4.33M | 4.42M | 3.32M | 2.7M | 7.71M | 4.02M | 9.82M | 10.34M | 11.66M |
| Deferred Taxes | 1.25M | 4.08M | 7.76M | 2.83M | 5.84M | 5.69M | 629K | 0 | 0 |
| Other Non-Cash Items | 72.92M | 111.73M | 86.63M | -41.16M | 122.27M | 87.89M | 109.63M | 44.77M | 4.06M |
| Working Capital Changes | -11.46M | -28.11M | -16.9M | -11.77M | 28.81M | 12.23M | -60.52M | -18.91M | 16.34M |
| Cash from Investing | -115.98M | -120.5M | -31.83M | -18.84M | -10.07M | -28.11M | -5.53M | 6.13M | 7.96M |
| Purchase of Investments | -120.78M | -131.82M | -26.24M | -27.64M | -29.44M | -40.33M | -23.91M | -21.5M | -23.21M |
| Sale/Maturity of Investments | 12.63M | 19.82M | 0 | 0 | 21.93M | 14.93M | 19.69M | 31.63M | 32.04M |
| Net Investment Activity | -108.15M | -112M | -26.24M | -27.64M | -7.5M | -25.4M | -4.22M | 10.13M | 8.83M |
| Acquisitions | 0 | 0 | 0 | 0 | -21.93M | -14.93M | -18.38M | 0 | 0 |
| Other Investing | 3.34M | 0 | 11.14M | 12.56M | 20.14M | 12.79M | 18.38M | 0 | 0 |
| Cash from Financing | -15.5M | 89.13M | -70.38M | -113.66M | -215.07M | -251.27M | 54.76M | -90.87M | -153.77M |
| Dividends Paid | -27.79M | -25.34M | -20.55M | -20.32M | -18.43M | -14.53M | -153.67M | 0 | -82.25M |
| Share Repurchases | -48.13M | -30.66M | -12.75M | -4.48M | -26.39M | -887K | -6.75M | 0 | 0 |
| Stock Issued | 166.79M | 169.55M | 0 | 0 | 0 | 0 | 6.75M | 0 | 0 |
| Net Stock Activity | 118.66M | 138.89M | -12.75M | -4.48M | -26.39M | -887K | 0 | 0 | 0 |
| Debt Issuance (Net) | -4M | -1000K | 1000K | -1000K | -1000K | 1000K | -1000K | 1000K | -1000K |
| Other Financing | -37M | -20.05M | -83.89M | -84.86M | -163.68M | -285.67M | 317.88M | -108.55M | -44.08M |
| Net Change in Cash | 69.89M | 152.66M | 45.1M | -40.81M | -11.02M | -101.96M | 118.28M | 11.77M | -28.96M |
| Exchange Rate Effect | -618K | 492K | -1.46M | -372K | -2.4M | -1.38M | 884K | 314K | -182K |
| Cash at Beginning | 242.12M | 89.45M | 44.35M | 85.16M | 96.19M | 198.15M | 79.87M | 68.1M | 97.06M |
| Cash at End | 164.39M | 242.12M | 89.45M | 44.35M | 85.16M | 96.19M | 198.15M | 79.87M | 68.1M |
| Interest Paid | 21.44M | 28.61M | 32.27M | 30.02M | 18.41M | 13.78M | 21.46M | 22.67M | 23.59M |
| Income Taxes Paid | 5.17M | 6.5M | 5.02M | 3.45M | 8.54M | 4.37M | 3.16M | 1.74M | 1.35M |
| Free Cash Flow | 190.82M | 175.04M | 132.04M | 88.3M | 215.73M | 178.23M | 66.86M | 92.2M | 116.16M |
| FCF Growth % | 32.4% | 32.56% | 49.54% | -59.07% | 21.04% | 166.56% | -27.48% | -20.63% | - |
Performance fee realization volatility
As reported in financial statements, GCMG exhibits a significant divergence between net income and operating cash flow, with the OCF/NI ratio reaching an extreme 71.84x in 2025Q1, suggesting that GAAP earnings are a poor proxy for the firm's actual cash-generating capacity during periods of performance fee volatility.
The massive gap between net income and operating cash flow indicates that non-cash items and working capital adjustments dominate the firm's reported profitability. Investors should interpret this as a signal that core cash generation is decoupled from accounting earnings, likely due to the timing of carried interest and complex accrual accounting inherent in private market asset management.
Based on GCMG's reported figures, free cash flow margins have fluctuated wildly from a low of 10.9% in 2024Q2 to a high of 58.8% in 2025Q3, highlighting the inherent instability in the firm's cash flow trajectory as it navigates the cyclical nature of private market realizations.
The inconsistency in FCF margins suggests that the firm's ability to convert revenue into cash is highly sensitive to the timing of fund exits and performance fee recognition. This volatility warrants caution, as it implies that the firm's cash flow profile may not provide the consistent dividend coverage that institutional investors typically demand from asset managers.
According to recent SEC filings, GCMG experienced a substantial $43.3 million working capital outflow in 2025Q4, which stands in stark contrast to the $29.3 million inflow seen in 2025Q3, suggesting that the firm's cash position is highly susceptible to the timing of client capital calls and distributions.
These erratic swings in working capital suggest that the firm's operating cash flow is frequently distorted by the mechanics of fund-level cash movements. Analysts should monitor whether these fluctuations represent temporary timing differences or a more structural challenge in managing the liquidity requirements of customized separate accounts.
As evidenced by the $17.5 million in share repurchases during 2026Q1, GCMG continues to prioritize capital return to shareholders despite the inherent volatility in its underlying cash flow, a strategy that may limit the firm's flexibility to reinvest in growth during periods of market-wide liquidity contraction.
The firm's commitment to buybacks and dividends, even when operating cash flow is inconsistent, suggests a management focus on supporting the stock price. However, this approach may be viewed as aggressive given the firm's reliance on lumpy performance fees, potentially leaving less room for the capital expenditures required to maintain its competitive research infrastructure.
Quick answers to the most common questions about buying GCMG stock.
GCM Grosvenor Inc. (GCMG) generated $183.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
GCM Grosvenor Inc. (GCMG) generated $175.0M 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.
GCM Grosvenor Inc. (GCMG) spent $8.5M 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, GCM Grosvenor Inc. (GCMG) returned $25.3M to shareholders via cash dividends and spent $30.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.