Capital intensity remains a primary concern, evidenced by $17.4M in capital expenditures during 2025Q4, which continues to pressure the company's ability to generate sustainable free cash flow.
| 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 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 |
|---|
| Cash from Operations | 88.38M | 88.15M | 56.95M | 60.37M | 69.18M | 70.13M | 65.49M | 60.19M | 55.6M | 46.84M | 41.16M | 31.49M | 28.2M | 19.89M | 23.41M | 19.66M | 18.11M | 17.01M | 17.58M | 16.1M | 12.02M | 7.56M | 2.95M | -192.18K |
| Operating CF Growth % | 374.92% | 54.78% | -5.66% | -12.74% | -1.35% | 7.07% | 8.8% | 8.26% | 18.69% | 13.8% | 30.72% | 11.67% | 41.8% | -15.04% | 19.04% | 8.55% | 6.47% | -3.2% | 9.19% | 33.87% | 59.08% | 156.22% | 1634.94% | - |
| Operating CF / Revenue % | 53.32% | 54.64% | 38.12% | 40.9% | 46.43% | 50.93% | 49.19% | 52.62% | 52.06% | 49.41% | 47.66% | 37.59% | 38.23% | 32.42% | 45.65% | 44.71% | 43.2% | 39.93% | 42.96% | 49.08% | 46.34% | 56.13% | 68.41% | -60.76% |
| Net Income | 21.13M | 19.29M | 24.04M | 4.55M | 10.35M | 9.73M | 14.12M | 9.54M | 12.32M | 5.94M | 3.96M | 3.6M | -5.9M | 1.53M | 3.76M | 5.71M | 4.93M | 4.6M | 4.91M | 6.14M | 4.37M | 3.6M | 1.62M | -240.87K |
| Depreciation & Amortization | 52.39M | 52.22M | 55.79M | 57.86M | 60.15M | 60.35M | 55.42M | 52.09M | 47.62M | 42.8M | 37.52M | 35.29M | 28.86M | 22.83M | 16.83M | 14.15M | 13.26M | 13.17M | 13.99M | 10.53M | 8.35M | 4.3M | 973.35K | 5.83K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 394.41K | 0 | 0 | 0 |
| Other Non-Cash Items | 19.2M | 20.91M | -17.58M | 3.48M | 1.92M | -2.39M | -3.75M | -1.79M | -2.35M | 3.09M | 2.03M | -1.25M | 7.67M | 364K | -831K | 553K | 473.12K | 955.14K | -388.51K | 1.09M | -194.09K | 0 | 0 | 148.57K |
| Working Capital Changes | -4.44M | -4.26M | -5.3M | -5.52M | -3.24M | 2.42M | -304K | 349K | -2M | -4.98M | -2.35M | -6.14M | -2.43M | -4.83M | 3.64M | -754K | -551.4K | -1.72M | -937.86K | -1.66M | -504.42K | -345.39K | 352.58K | -105.71K |
| Cash from Investing | -144.26M | -221.38M | -1.73M | 1.24M | -82.03M | -94.78M | -100.28M | -132.04M | -34.44M | -99.23M | -58.67M | -74.48M | -130.44M | -137.06M | -91.98M | -46.01M | 8.04M | -834.92K | -50.77M | -107.63M | -47.66M | -129.19M | -70.03M | -5.8M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 94.72M | 0 | -1.54M | -1.59M | -3.15M | -2M | -1.7M | -3.05M | -2.38M | -550K | 0 | -7.04K | -250K | -1.65M | 0 | -900K | -2.69M | -50K | 0 |
| Purchase of Investments | 73.91M | 0 | 0 | -33.69M | -120.43M | -102.28M | -131.18M | 0 | -44.73M | -126.94M | -69.57M | -81.48M | 0 | 0 | 0 | -3.38M | -1.75M | -1.8M | -1.62M | 0 | 2.1M | 0 | 0 | 0 |
| Sale of Investments | -347K | 0 | 0 | 42.08M | 45.93M | 12.9M | 37.14M | 0 | 14.69M | 37.43M | 17.26M | 13.01M | 0 | 0 | 0 | 0 | 1.62M | 1.67M | 874.23K | 2.11M | 1.2M | 1.99M | 0 | 0 |
| Other Investing | -219.04M | -221.38M | -1.73M | -481K | -706K | -94.78M | 118K | -130.5M | -594K | 1.46M | 7.34M | 3.22M | -11.04M | -134.68M | -3.64M | 1.9M | 10.6M | 1.13M | 986.51K | -4.14M | -1.73M | -10.96M | -11.11M | 0 |
| Cash from Financing | 54.05M | 134.74M | -56.29M | -61.47M | 15.66M | 21.75M | 39.37M | 74.25M | -21.16M | 54.41M | 17.02M | 39.55M | 102.3M | 120.17M | 70.8M | 22.61M | -22.18M | -17.59M | 36.34M | 56.88M | 69.91M | 94.62M | -2.84M | 105.07M |
| Dividends Paid | -51.69M | -68.17M | -62.79M | -60.62M | -71.09M | -67.59M | -63.76M | -58.89M | -54.38M | -50.41M | -42.49M | -36.87M | -30.36M | -23.94M | -20.61M | -19.61M | -16.98M | -16.94M | -16.94M | -16.43M | -13.47M | -8.28M | -2.83M | 0 |
| Common Dividends | -17.6M | -68.17M | -62.79M | 0 | 0 | -67.59M | 0 | -58.89M | -54.56M | -50.41M | -42.49M | -36.87M | -30.36M | -23.94M | -20.61M | -19.61M | -16.98M | -16.94M | -16.94M | -16.43M | -13.47M | -8.28M | -2.83M | 0 |
| Debt Issuance (Net) | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -649.52K | 1000K | 1000K | 1000K | 1000K | 0 | 0 |
| Share Repurchases | 581K | -4.5M | -1.71M | -1.55M | -360K | -87.74M | 0 | 0 | -34K | -24K | -38.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 146.82M | 0 | 0 |
| Other Financing | 180.13M | -4.43M | -1.22M | 0 | 0 | -5.27M | 0 | -6.1M | -784K | -4.24M | -4.38M | -2.53M | -4.11M | -7M | -4.75M | -2.93M | 747.3K | 2.86K | -1.26M | 65.23M | -5.61M | -2.02M | -7.73K | 0 |
| Net Change in Cash | -1.47M | 1.52M | -1.06M | -1.16M | 4.33M | -2.9M | 6.51M | 2.41M | 2K | 2.02M | -494K | -3.45M | 53K | 3M | 2.22M | -3.73M | 3.96M | -1.41M | 3.15M | -34.65M | 34.27M | -27.01M | -69.92M | 99.08M |
| Exchange Rate Effect | 362K | 0 | 0 | -1.3M | 1.51M | 0 | 1.92M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 16.59M | 15.07M | 16.14M | 24.81M | 20.48M | 16.08M | 18.71M | 9.08M | 9.08M | 4.66M | 5.15M | 8.6M | 8.55M | 5.55M | 3.33M | 7.06M | 3.1M | 4.5M | 1.36M | 36.01M | 1.74M | 28.75M | 99.08M | 0 |
| Cash at End | 13.53M | 16.59M | 15.07M | 23.65M | 24.81M | 13.18M | 25.22M | 11.49M | 9.08M | 6.68M | 4.66M | 5.15M | 8.6M | 8.55M | 5.55M | 3.33M | 7.06M | 3.1M | 4.5M | 1.36M | 36.01M | 1.74M | 29.15M | 99.08M |
| Free Cash Flow | 89.6M | 67.17M | 56.95M | 53.69M | 62.35M | 64.78M | 59.13M | 60.19M | 23.34M | -50.7M | -22.85M | -44.52M | -88.15M | 19.89M | -64.39M | -24.87M | 15.69M | 15.43M | -31.78M | -89.5M | -36.32M | -109.97M | -55.93M | -5.99M |
| FCF Growth % | 62.17% | 17.94% | 6.07% | -13.89% | -3.74% | 9.54% | -1.76% | 157.87% | 146.04% | -121.87% | 48.66% | 49.5% | -543.31% | 130.88% | -158.92% | -258.52% | 1.66% | 148.55% | 64.49% | -146.46% | 66.98% | -96.64% | -833.31% | - |
| FCF / Revenue % | 54.06% | 41.63% | 38.12% | 36.38% | 41.85% | 47.05% | 44.41% | 52.62% | 21.86% | -53.48% | -26.46% | -53.14% | -119.52% | 32.42% | -125.59% | -56.55% | 37.42% | 36.22% | -77.69% | -272.93% | -139.97% | -816.74% | -1296.98% | -1894.6% |
Office portfolio vacancy exposure
As reported in quarterly financial statements, the ratio of FFO to Net Income has shown extreme volatility, reaching a high of 8.44 in 2024Q2, which suggests that GAAP-based earnings metrics are fundamentally disconnected from the actual cash-generating capacity of the underlying real estate portfolio.
The wide variance between GAAP Net Income and FFO indicates that non-cash charges, particularly depreciation, are heavily distorting the reported profitability of the firm. Investors should monitor this gap, as it implies that the company's reported earnings may not accurately reflect the cash available to support operations or debt service.
Based on the provided quarterly data, the dividend payout ratio relative to AFFO has remained consistently high, hovering near 0.90 in several periods, which indicates a limited buffer for the company to retain cash for reinvestment or to absorb potential shocks in tenant rent collections.
The high payout ratio suggests that the dividend is currently consuming nearly all available cash flow after recurring capital expenditures. This leaves little margin for error, particularly as the company attempts to pivot its portfolio toward industrial assets while managing legacy office vacancies.
According to the cash flow data, the company recorded significant capital expenditures of $17.4M in 2025Q4, a substantial increase that highlights the ongoing cash drain required to maintain the competitiveness of the legacy office portfolio amidst a challenging secondary-market leasing environment.
These recurring capital requirements for tenant improvements and leasing commissions appear to be a primary drag on AFFO. The necessity of these expenditures suggests that the office portfolio may be becoming increasingly capital-intensive, potentially offsetting the cash flow benefits derived from the newer industrial acquisitions.
As indicated by the persistent gap between GAAP Net Income and FFO, the company's reliance on heavy depreciation charges masks the true economic cost of maintaining its aging office assets, which appear to require increasing capital investment to remain viable in the current market.
The consistent divergence between these metrics suggests that GAAP accounting may be overstating the company's long-term profitability. Analysts should focus on the FFO and AFFO figures to understand the actual cash-based performance, as the GAAP figures appear to be heavily influenced by non-cash accounting adjustments.
Quick answers to the most common questions about buying GOOD stock.
Gladstone Commercial Corporation (GOOD) generated $88.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Gladstone Commercial Corporation (GOOD) generated $67.2M 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.
Gladstone Commercial Corporation (GOOD) 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, Gladstone Commercial Corporation (GOOD) returned $68.2M to shareholders via cash dividends and spent $4.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.