Cash conversion efficiency appears highly volatile, with the OCF/NI ratio swinging from a high of 11.70 in 2024Q1 to a low of -6.97 in 2024Q2, complicating the assessment of true operating cash generation.
| Cash from Operations | 68.33M | -98.72M | 105.03M | 79.85M | 46.11M | 9.47M |
| Operating CF Margin % | - | -41.86% | 57.85% | 60.31% | 67.24% | 32.94% |
| Operating CF Growth % | 379.48% | -193.99% | 31.53% | 73.19% | 386.72% | - |
| Net Income | 88.73M | 93.71M | 131.94M | 77.08M | 45.77M | 22.29M |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -13.34M | -178.76M | -14.28M | -8.73M | -2.85M | -13.25M |
| Working Capital Changes | -7.06M | -13.67M | -12.63M | 11.51M | 3.19M | 434K |
| Change in Receivables | -7.44M | -13.31M | -2.53M | -2.42M | -8.42M | -2.13M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | -956K | 956K | -58K |
| Cash from Investing | 0 | 0 | -649.53M | -189.91M | -587.88M | -568.61M |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 0% | - | - | - | - | - |
| Acquisitions | 0 | - | - | - | - | - |
| Investments | 2.21B | 0 | 0 | 1.39B | 7.15M | 250K |
| Other Investing | 0 | 0 | -1.14M | 21.37M | 0 | 0 |
| Cash from Financing | -71.38M | 94.37M | 532.81M | 135.6M | 548.26M | 561.16M |
| Debt Issued (Net) | 0 | - | - | - | - | - |
| Equity Issued (Net) | -69M | -47.99M | 481M | 90.58M | 268.22M | 299.5M |
| Dividends Paid | -119.02M | -123.33M | -101.75M | -70.01M | -23.1M | -4.41M |
| Share Repurchases | -69M | -47.99M | 0 | 0 | 0 | 0 |
| Other Financing | -5.86M | -6.3M | -1.52M | -3.72M | -6.86M | -932K |
| Net Change in Cash | -3.05M | -4.35M | -11.69M | 25.54M | 6.49M | 2.02M |
| Free Cash Flow | 68.33M | -98.72M | 105.03M | 79.85M | 46.11M | 9.47M |
| FCF Margin % | 34.57% | -41.86% | 57.85% | 60.31% | 67.24% | 32.94% |
| FCF Growth % | 119.7% | -193.99% | 31.53% | 73.19% | 386.72% | - |
| FCF per Share | 1.02 | -1.41 | 1.65 | 1.23 | 0.71 | 0.15 |
| FCF Conversion (FCF/Net Income) | 0.77x | -1.05x | 0.80x | 1.04x | 1.01x | 0.43x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Portfolio cash flow volatility
As reported in financial statements, KBDC's OCF/NI ratio has fluctuated wildly, ranging from a high of 11.70 in 2024Q1 to a low of -6.97 in 2024Q2, indicating that net income is a poor proxy for the firm's actual cash-generating capacity in any given quarter.
The extreme variance in the conversion of net income to operating cash flow suggests that non-cash fair value adjustments and the timing of interest receipts significantly distort reported earnings. Investors should monitor whether this disconnect persists, as it complicates the assessment of the firm's ability to sustain its dividend payout through organic cash generation.
Based on the provided cash flow data, KBDC's free cash flow margins have swung from a positive 130.2% in 2025Q4 to a negative 115.9% in 2025Q3, reflecting a lack of consistency in the firm's ability to generate surplus cash after accounting for investment activities.
The erratic nature of FCF suggests that the firm's cash flow profile is heavily influenced by the lumpy timing of loan repayments and new originations rather than steady-state interest income. This volatility warrants further investigation into whether the current dividend policy is supported by recurring cash flows or if it relies on periodic capital recycling.
According to recent SEC filings, KBDC experienced a massive working capital swing of $298.9 million in 2024Q1, which directly correlates with the extreme volatility observed in operating cash flow during that period, highlighting the sensitivity of the firm's liquidity to portfolio-level movements.
The significant shifts in working capital appear to be driven by the timing of loan funding and repayments, which are inherent to the BDC business model but are particularly pronounced here. This suggests that the firm's short-term liquidity position is highly dependent on the velocity of its investment portfolio rather than operational efficiency.
As reported in financial statements, KBDC has consistently returned capital to shareholders through dividends and buybacks, with quarterly dividend payments reaching $27.2 million in 2026Q1, even during periods where operating cash flow was significantly lower than the total capital distributed to investors.
The firm's commitment to returning capital appears to be a core pillar of its strategy, yet the reliance on cash reserves or potential financing to fund these distributions during low-cash-flow quarters may indicate a structural pressure on the balance sheet. Investors should monitor the sustainability of this payout ratio relative to the underlying cash yield of the loan book.
Quick answers to the most common questions about buying KBDC stock.
Kayne Anderson BDC, Inc. (KBDC) generated $-98.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Kayne Anderson BDC, Inc. (KBDC) reported negative free cash flow of $98.7M in 2025, indicating capital requirements exceeded cash from operations.
Kayne Anderson BDC, Inc. (KBDC) 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, Kayne Anderson BDC, Inc. (KBDC) returned $123.3M to shareholders via cash dividends and spent $48.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.