Cash conversion remains inconsistent, as demonstrated by a 0.64 operating cash flow to net income ratio in 2026Q1, reflecting significant working capital volatility.
| Cash from Operations | 39.2M | 37.15M | 35.99M | -13.54M | -1.69M | 60.3M | -2.04M | -4.19M | 2.82M | 4.69M | -1.9M |
| Operating CF Margin % | - | 22.58% | 19.54% | -7.16% | -0.66% | 30.53% | -1.15% | -2.48% | 1.74% | 3.64% | -1.72% |
| Operating CF Growth % | 209.67% | 3.22% | 365.91% | -700.47% | -102.8% | 3060.04% | 51.42% | -248.69% | -39.88% | 346.51% | - |
| Net Income | 42.46M | 41.81M | 61.64M | 54.46M | 67.77M | 49.87M | 37.99M | 28.84M | 21.51M | 26.35M | 17.34M |
| Depreciation & Amortization | 2.1M | 1.86M | 1.91M | 2.29M | 1.94M | 1.59M | 1.21M | 1.01M | 838K | 652K | 576K |
| Stock-Based Compensation | 286K | 458K | 777K | 0 | 4.94M | 230K | 0 | 630K | 0 | 0 | 0 |
| Deferred Taxes | -3.2M | -3.2M | -132K | -524K | 61K | 1.03M | 205K | -76K | 1.84M | 0 | 0 |
| Other Non-Cash Items | 3.91M | 4.45M | -10.14M | -257K | -2.22M | 1.5M | 979K | -42.87M | -18.59M | -15.63M | -18.69M |
| Working Capital Changes | -6.36M | -8.21M | -18.06M | -69.51M | -74.18M | 6.08M | -42.43M | 8.27M | -3.63M | -6.68M | -1.12M |
| Change in Receivables | -7.79M | -15.04M | -17.71M | -56.71M | -52.46M | 11.88M | -55.23M | 826K | 839K | -2.31M | -284K |
| Change in Inventory | -6.62M | -1.04M | 3.38M | -1.96M | -20.85M | -7.84M | 3.28M | 10.28M | -2.49M | -9.96M | -3.54M |
| Change in Payables | 4.89M | 11.34M | 0 | -5K | 0 | -6.04M | 5.03M | 2.34M | -3.45M | 1.9M | 905K |
| Cash from Investing | -20.76M | -22.08M | -6.71M | -9.77M | 9.08M | -31.94M | -2.72M | -15.11M | -4.45M | -2.26M | -3.47M |
| Capital Expenditures | -9.27M | -9M | -9.21M | -7.71M | -3.8M | -5.95M | -2.85M | -4.21M | -6.14M | -1.43M | -2.17M |
| CapEx % of Revenue | 5.68% | 5.47% | 5% | 4.08% | 1.48% | 3.01% | 1.61% | 2.49% | 3.79% | 1.11% | 1.96% |
| Acquisitions | 1.05M | 0 | 0 | 1.11M | 0 | 0 | 30K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -12.54M | -13.08M | 2.5M | -11.66M | 21.27M | -25.99M | 97K | -10.91M | 1.68M | -828K | -1.3M |
| Cash from Financing | -7.73M | -7.75M | -28.88M | 21.23M | -5.61M | -28.08M | 3.8M | 18.43M | 3.8M | -3.02M | 6.08M |
| Debt Issued (Net) | -227K | -136K | -23.68M | 21.14M | -5.61M | -28.18M | 5.02M | 13.22M | -41.14M | 13.3M | 11.82M |
| Equity Issued (Net) | -8.18M | -7.61M | -5.4M | 100K | 0 | 0 | -1.42M | 4.14M | 48M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -17.67M | -6.91M |
| Share Repurchases | -8.18M | -7.61M | -5.4M | 0 | 0 | 0 | -1.42M | -3.06M | 0 | 0 | 0 |
| Other Financing | 675K | 0 | 200K | 0 | 0 | 100K | 199K | 1.07M | -3.06M | 1.35M | 1.17M |
| Net Change in Cash | 10.7M | 7.33M | 401K | -2.07M | 1.78M | 274K | -956K | -875K | 2.17M | -581K | 709K |
| Free Cash Flow | 29.93M | 28.15M | 26.78M | -21.25M | -5.49M | 54.34M | -4.88M | -8.4M | -3.32M | 3.26M | -4.07M |
| FCF Margin % | 18.33% | 17.11% | 14.54% | -11.23% | -2.14% | 27.52% | -2.76% | -4.97% | -2.05% | 2.53% | -3.68% |
| FCF Growth % | 46.03% | 5.12% | 226.03% | -286.98% | -110.1% | 1213.15% | 41.87% | -153.21% | -201.65% | 180.17% | - |
| FCF per Share | 1.26 | 1.17 | 1.08 | -0.85 | -0.22 | 2.24 | -0.20 | -0.34 | -0.16 | 0.14 | -0.20 |
| FCF Conversion (FCF/Net Income) | 0.70x | 0.89x | 0.58x | -0.25x | -0.02x | 1.21x | -0.05x | -0.15x | 0.13x | 0.18x | -0.11x |
| Interest Paid | 4K | 0 | 1M | 0 | 251K | 873K | 0 | 722K | 2.75M | 1.91M | 1.2M |
| Taxes Paid | 0 | 0 | 15M | 0 | 10.31M | 8.2M | 0 | 9.31M | 5.15M | 150K | 145K |
Loan Portfolio Credit Sensitivity
As reported in recent financial statements, Legacy Housing's operating cash flow to net income ratio has frequently dipped below 1.0, with a 0.64 reading in 2026Q1, indicating that reported earnings are not consistently translating into realized cash inflows due to significant working capital adjustments.
The persistent gap between net income and operating cash flow suggests that a substantial portion of the company's profitability is tied to non-cash accruals or the expansion of its internal loan portfolio. Investors should monitor whether this divergence reflects legitimate growth in financing assets or an accumulation of receivables that may eventually require higher credit loss provisions.
Based on the company's reported figures, free cash flow trajectory remains highly erratic, swinging from a negative $11.4 million in 2023Q4 to a positive $15.7 million in 2025Q4, highlighting the inherent difficulty in predicting cash generation within a vertically integrated manufacturing and financing business model.
This volatility appears to be driven by the cyclical nature of home sales combined with the lumpy cash requirements of the financing arm. The lack of a stable free cash flow trend suggests that the company's liquidity is highly sensitive to the timing of loan originations and the subsequent collection cycles.
According to quarterly filings, working capital changes have been a primary driver of cash flow variance, including a significant $10.0 million inflow in 2025Q4 followed by a $5.4 million outflow in 2026Q1, reflecting the company's aggressive management of inventory and internal credit extensions.
These fluctuations indicate that the company's cash position is heavily influenced by the timing of dealer inventory financing and consumer loan disbursements. The frequent negative working capital adjustments suggest that the company is effectively using its balance sheet to subsidize its distribution network, which may constrain liquidity during periods of market contraction.
As indicated by historical cash flow statements, Legacy Housing has maintained a disciplined approach to capital deployment, characterized by minimal dividend payments and opportunistic share repurchases, such as the $6.5 million buyback in 2025Q2, while prioritizing the retention of cash for its internal lending operations.
The company's preference for maintaining a fortress balance sheet with zero debt suggests that management prioritizes operational flexibility over aggressive capital returns. While this strategy mitigates insolvency risk, it may also lead to capital inefficiency if the internal loan portfolio does not generate returns that exceed the cost of holding excess cash.
Quick answers to the most common questions about buying LEGH stock.
Legacy Housing Corporation (LEGH) generated $37.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Legacy Housing Corporation (LEGH) generated $28.2M 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.
Legacy Housing Corporation (LEGH) spent $9.0M 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, Legacy Housing Corporation (LEGH) spent $7.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.