Cash flow generation appears disconnected from GAAP earnings, as evidenced by a dividend-to-AFFO ratio that reached 8.09 in 2024Q4, indicating potential reliance on capital recycling to sustain distributions.
| 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 |
|---|
| Cash from Operations | 164.42M | 157.09M | 183.16M | 237.79M | 196.08M | 152.29M | 170.46M | 343.36M | 304.26M | 290.6M | 295.8M | 358.58M | 379.66M | 490.49M | 427.45M | 305.36M | 71.53M | 11.48M |
| Operating CF Growth % | 78.82% | -14.24% | -22.97% | 21.27% | 28.75% | -10.66% | -50.36% | 12.85% | 4.7% | -1.76% | -17.51% | -5.55% | -22.6% | 14.75% | 39.98% | 326.91% | 523.18% | - |
| Operating CF / Revenue % | 58.57% | 46.24% | 55.63% | 125.28% | -44.81% | 302.57% | -10.34% | 84.15% | 71.68% | 71.59% | 88.84% | 81.38% | -230.55% | 230.31% | 111.76% | 65.02% | 51.95% | 54.91% |
| Net Income | 61.76M | 101.28M | 59.88M | -15.86M | -402.92M | -90M | -1.67B | 364.1M | -70.54M | 353.06M | 257.7M | 114.06M | -217.54M | 159.82M | 342.78M | 286.8M | 103.72M | 17.51M |
| Depreciation & Amortization | 512K | 688K | 587K | -9.84M | -19.09M | -21.38M | -23.28M | -23.21M | -25.18M | -23.89M | 7.76M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 440K | 557K | 0 | 0 | 336K | 0 | 0 | 0 |
| Other Non-Cash Items | 163.7M | 62.86M | 106.38M | 270.51M | 606.13M | 263.73M | 1.87B | 4.37M | 379.65M | -32M | 28.51M | 235.35M | 594.27M | 321.52M | 92.42M | 85.77M | 219K | -5.53M |
| Working Capital Changes | -61.21M | -7.05M | 16.31M | -7.03M | 11.97M | -58K | 2.18M | -1.91M | 20.33M | -6.57M | 1.39M | 9.96M | 2.93M | 10.82M | -5.19M | -16.9M | -13.79M | -2.23M |
| Cash from Investing | -181.36M | -892.87M | -497.43M | -536.8M | 2.42B | 120.75M | 11.55B | -4.32B | 621.55M | -3.09B | 979.73M | 1.24B | -912.38M | -2.3B | -3.68B | -9.15B | -4.43B | -793.18M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | 1.05B | -2.88B | -2.22B | -6.17B | -25.71B | -17.14B | -13.61B | -9.84B | -2.83M | -6.27B | -468.78M | -49.45M | -111.74M | -72.72M | -18.81M | -13.76B | -5.06B | -961.36M |
| Sale of Investments | -2.12B | 1.46B | 1.34B | 5.29B | 27.75B | 16.43B | 25.03B | 3.31B | 4.75B | 67.84M | 524.48M | 907.15M | 3.27B | 114.54M | 2.85B | 3.12B | 680.68M | 172.53M |
| Other Investing | 885.73M | 531.88M | 389.76M | 348.59M | 387.01M | 829.04M | 132.99M | 2.21B | -4.13B | 3.11B | 924.04M | 380.03M | -4.07B | -2.35B | -6.51B | 1.49B | -43.45M | -4.36M |
| Cash from Financing | 26.35M | 691.33M | 326.51M | 218.87M | -2.92B | -88.57M | -11.62B | 4.13B | -879.2M | 2.73B | -1.17B | -1.71B | 486.25M | 1.74B | 3.34B | 8.98B | 4.39B | 805.74M |
| Dividends Paid | -127.46M | -106.9M | -105.47M | -102.19M | -140.3M | -133.07M | -137.5M | -271.23M | -234.37M | -212.69M | -204.49M | -239.36M | -264.53M | -332.78M | -306.44M | -267.49M | -72.95M | -6.29M |
| Common Dividends | -127.46M | -106.9M | -105.47M | -102.19M | -140.3M | -133.07M | -137.5M | -271.23M | -234.37M | -212.69M | -204.49M | -239.36M | -264.53M | -332.78M | -306.44M | -267.49M | -72.95M | -6.29M |
| Debt Issuance (Net) | 0 | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | 0 | -1000K | 1000K | 0 | 1000K | 1000K | 1000K | 0 | 0 | -1000K | 1000K |
| Share Repurchases | -5.63M | -8.51M | -117.31M | 0 | -1K | 0 | 0 | 0 | -1.14M | 2.92B | -25M | -125.59M | -21.13M | -160.53M | 0 | 0 | 0 | 0 |
| Other Financing | 1.21M | -180K | -2.84M | -329K | -351K | -354K | -35K | 3.9B | -21.93M | 4.89M | -940.69M | -1.56B | -86.69M | 45.4M | 3.5B | 7.95B | 3.72B | 531.54M |
| Net Change in Cash | 9.42M | -44.45M | 12.24M | -80.14M | -298.27M | 184.47M | 103.08M | 153.88M | 46.62M | -73.41M | 108.59M | -110.94M | -46.47M | -75.86M | 89.25M | 133.67M | 39.51M | 24.04M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 166.43M | 210.88M | 198.64M | 278.78M | 577.05M | 392.58M | 289.5M | 135.62M | 89M | 161.79M | 53.2M | 164.14M | 210.61M | 286.47M | 197.22M | 63.55M | 24.04M | 1K |
| Cash at End | 190.92M | 166.43M | 210.88M | 198.64M | 278.78M | 577.05M | 392.58M | 289.5M | 135.62M | 88.38M | 161.79M | 53.2M | 164.14M | 210.61M | 286.47M | 197.22M | 63.55M | 24.04M |
| Free Cash Flow | 164.42M | 157.09M | 183.16M | 237.79M | 196.08M | 152.29M | 170.46M | 343.36M | 304.26M | 290.6M | 329.71M | 358.58M | 379.66M | 490.49M | 427.45M | 305.36M | 71.53M | 11.48M |
| FCF Growth % | 13.39% | -14.24% | -22.97% | 21.27% | 28.75% | -10.66% | -50.36% | 12.85% | 4.7% | -11.86% | -8.05% | -5.55% | -22.6% | 14.75% | 39.98% | 326.91% | 523.18% | - |
| FCF / Revenue % | 58.57% | 46.24% | 55.63% | 125.28% | -44.81% | 302.57% | -10.34% | 84.15% | 71.68% | 71.59% | 99.03% | 81.38% | -230.55% | 230.31% | 111.76% | 65.02% | 51.95% | 54.91% |
High Leverage Interest Sensitivity
According to the provided quarterly data, IVR's FFO frequently diverges from GAAP operating cash flow, with FFO-to-Net Income ratios swinging from 17.64 in 2024Q4 to -1.34 in 2026Q1, illustrating that GAAP metrics provide little insight into the actual cash-generating capacity of the underlying mortgage portfolio.
The extreme variance in FFO relative to net income suggests that non-cash fair value adjustments on the MBS portfolio create significant noise that obscures operational performance. Investors should interpret these swings as evidence that the company's reported earnings are highly sensitive to mark-to-market volatility rather than consistent interest income.
As reported in financial statements, the company's reliance on fair value accounting for its mortgage assets leads to massive discrepancies between GAAP net income and economic reality, evidenced by the erratic FFO performance that often fails to align with the company's reported GAAP net income figures.
Because IVR marks its securities to market, GAAP net income is frequently disconnected from the actual cash interest received from the portfolio. This accounting treatment makes it difficult to assess the true underlying profitability of the interest spread, as realized gains and losses are often overshadowed by unrealized market fluctuations.
Based on reported figures, IVR's dividend payout coverage has been inconsistent, with the dividend-to-AFFO ratio reaching as high as 8.09 in 2024Q4, suggesting that the company may be relying on capital recycling or balance sheet liquidation to sustain distributions rather than recurring operational cash flow.
The inability to maintain a consistent dividend coverage ratio indicates that the current payout policy may be disconnected from the company's actual cash-generating power. This reliance on external capital or asset sales to fund dividends warrants further investigation into the long-term viability of the current distribution level.
Data from the last ten quarters indicates that IVR's high debt-to-equity ratio of 7.05% creates significant earnings quality concerns, as the company's cash flow statement fails to capture the off-balance-sheet risks associated with derivative hedging and potential margin calls on its repo-financed mortgage assets.
While the cash flow statement shows positive operating cash flow in most periods, it does not account for the potential for rapid liquidity drains during periods of market stress. The company's reliance on short-term repo financing means that any sudden increase in collateral requirements could force asset sales that would permanently impair the book value.
Quick answers to the most common questions about buying IVR stock.
Invesco Mortgage Capital Inc. (IVR) generated $157.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Invesco Mortgage Capital Inc. (IVR) generated $157.1M 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.
Invesco Mortgage Capital Inc. (IVR) 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, Invesco Mortgage Capital Inc. (IVR) returned $106.9M to shareholders via cash dividends and spent $8.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.