Liquidity is tightening as cash reserves declined from $64.6 million in 2024Q1 to $30.6 million in 2026Q1, complicating the firm's ability to cover its dividend obligations.
| 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 |
|---|
| Cash from Operations | 9.57M | 10.1M | 27.13M | 24.74M | 16.29M | 13.85M | 12.22M | 7.28M | 12.25M | 4.24M | 2.34M | 2.06M | 20.74M | 13.33M | 1.33M |
| Operating CF Growth % | -209.2% | -62.78% | 9.67% | 51.87% | 17.64% | 13.32% | 67.79% | -40.57% | 189.13% | 81.03% | 13.45% | -90.05% | 55.64% | 901.12% | - |
| Operating CF / Revenue % | 12.77% | 12.75% | 77.82% | 77.12% | 81.34% | 65.73% | 63.84% | 44.77% | 245.47% | 23.47% | 30.79% | 11.31% | 139.71% | 163.97% | 15.39% |
| Net Income | -2.02M | -2.75M | 22.65M | 19.71M | 9.86M | 10.53M | 8.45M | 6.25M | -5.47M | 4.71M | -7.99M | 450.48K | 3.31M | 3.23M | 7.23M |
| Depreciation & Amortization | 1.49M | 779.26K | 0 | 0 | 61.14K | 425.66K | -40M | 0 | 2.14B | -1.48B | -6.75B | 0 | -4.71B | -1.97B | 0 |
| Stock-Based Compensation | 199.99K | 189.99K | 147.44K | 6.19K | 15.98K | 15.61K | 20.29K | 8.96K | 3.43K | -6.28K | 35.78K | 63.27K | 13.46K | 125.92K | 0 |
| Other Non-Cash Items | 7.55M | 11.8M | 4.18M | 4.49M | 6.52M | 4.57M | 3.91M | 3.33M | -285.78K | -1.9M | 5.64M | 825.23K | -4.53M | -2.24M | -5.9M |
| Working Capital Changes | 2.36M | 75.38K | 154.98K | 531.32K | -172.86K | -1.27M | -158.44K | -2.3M | 2.79M | -2.38M | 1.13M | 724.49K | -781.28K | 74.35K | -284.05K |
| Cash from Investing | -182.97M | -142.92M | 334.09M | -316.72M | -51.83M | -477.29M | 87.92M | -42.3M | 1.02B | -430.63M | -219.13M | 191.3M | -250.91M | -402.94M | -120.51M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -58.22M | 10.91K | 0 | 4.94M | 0 | 0 | 0 |
| Purchase of Investments | -448.02M | 0 | 0 | 0 | -345.92M | -983.69M | -57.6B | 0 | -25.58M | -1.06B | -591.4M | -253.53M | -521.17M | -1.2B | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 37.79M | 1.32B | 633.97M | 359.81M | 404.15M | 323.45M | 807.47M | 0 |
| Other Investing | 265.05M | -141.4M | 334.09M | -316.72M | 294.09M | 506.4M | 57.69B | -80.09M | -1.12M | -486.48K | 12.46M | 40.68M | -53.18M | -11.41M | -120.51M |
| Cash from Financing | 139.5M | 87.87M | -341.17M | 296.13M | 64.63M | 412.35M | -46.77M | -8.19M | -1.02B | 434.12M | 218.18M | -199.49M | 229.38M | 419.07M | 124.6M |
| Dividends Paid | -12.71M | -23.05M | -20.42M | -17.8M | -16.39M | -12.09M | -7.65M | -7.17M | -8.68M | -15.43M | -33.42M | -23.4M | -21.12M | -10.31M | -1.41M |
| Common Dividends | -4.96M | -18.31M | -15.68M | -13.06M | -11.65M | -9.98M | -7.64M | -6.63M | -5.16M | -11.9M | -29.9M | -19.87M | -18.23M | -10.3M | -1.41M |
| Debt Issuance (Net) | -2M | 1000K | -1000K | 1000K | 0 | 1000K | -1000K | 1000K | -1000K | 0 | 0 | 1000K | 0 | 0 | 1000K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -57.25M | 0 | 0 | 0 | 0 | -283.56K | -358.99K | 0 | -110K | 0 |
| Other Financing | 225.68M | -7.21M | 0 | -3.81M | -119.38K | -8.75M | 0 | -1.02M | 99.5K | 449.55M | 251.88M | -225.44M | 250.5M | 429.37M | 36.41M |
| Net Change in Cash | -33.9M | -44.95M | 20.05M | 4.15M | 29.09M | -51.1M | 53.36M | -43.2M | 13.59M | 7.73M | 1.39M | -6.13M | -788.65K | 29.45M | 5.41M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 26.62M | 71.56M | 51.52M | 47.37M | 18.28M | 69.38M | 16.01M | 59.21M | 45.62M | 37.89M | 26.14M | 32.27M | 33.06M | 3.61M | 0 |
| Cash at End | 30.62M | 26.62M | 71.56M | 51.52M | 47.37M | 18.28M | 69.38M | 16.01M | 59.21M | 45.62M | 27.53M | 26.14M | 32.27M | 33.06M | 5.41M |
| Free Cash Flow | 9.57M | 8.58M | 27.13M | 24.74M | 16.29M | 13.85M | 12.22M | 7.28M | -197.26M | 4.23M | 2.34M | -2.88M | 20.74M | 13.33M | 1.33M |
| FCF Growth % | -56.81% | -68.39% | 9.67% | 51.87% | 17.64% | 13.32% | 67.79% | 103.69% | -4766.63% | 80.56% | 181.37% | -113.87% | 55.64% | 901.12% | - |
| FCF / Revenue % | 12.77% | 10.83% | 77.82% | 77.12% | 81.34% | 65.73% | 63.84% | 44.77% | -3951.77% | 23.41% | 30.79% | -15.77% | 139.71% | 163.97% | 15.39% |
Transitional loan credit impairment
As reported in financial statements, LFT's FFO-to-Net Income ratio reached 17.28 in 2026Q1, highlighting a significant disconnect between GAAP earnings and cash-based performance metrics that suggests high sensitivity to non-cash accounting adjustments like CECL provisions.
The extreme volatility in the FFO-to-Net Income ratio indicates that GAAP net income is currently an unreliable proxy for the company's actual cash-generating capacity. Investors should monitor whether this divergence persists, as it may imply that the underlying loan portfolio is experiencing credit-related accounting noise that masks the true cash-flow reality.
Based on LFT's reported figures, the dividend payout ratio reached 4.10x relative to AFFO in 2026Q1, indicating that current distributions are significantly outpacing the cash generated from operations and warranting further investigation into the sustainability of the current payout policy.
The inability to consistently cover dividends with AFFO suggests that the company may be relying on capital recycling or balance sheet liquidity to fund distributions. This pattern appears unsustainable and may indicate that the dividend is currently being funded by a return of capital rather than recurring operational earnings.
According to recent SEC filings, the frequent swings between positive net income and multi-million dollar losses suggest that non-cash CECL provisions are creating substantial distortion, as evidenced by the $7.8 million net loss reported in 2025Q4 despite positive operating cash flow.
The discrepancy between GAAP net income and operating cash flow suggests that the company's reported earnings are heavily influenced by management's forward-looking credit loss estimates. This accounting treatment makes it difficult to assess the true cash-flow health of the portfolio without adjusting for these non-cash provisions.
As indicated by the provided financial data, the company's consistent dividend payments despite negative or volatile AFFO suggest a potential dependency on external financing or capital recycling to maintain distributions, which may indicate a strained liquidity position in the current high-rate environment.
The structural reliance on external funding to bridge the gap between cash generation and dividend obligations appears to be a primary risk factor. Investors should monitor whether the company's access to CLO financing remains sufficient to support both its loan portfolio growth and its current dividend commitments.
Quick answers to the most common questions about buying LFT stock.
Lument Finance Trust, Inc. (LFT) generated $10.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Lument Finance Trust, Inc. (LFT) generated $8.6M 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.
Lument Finance Trust, Inc. (LFT) spent $1.5M 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, Lument Finance Trust, Inc. (LFT) returned $23.1M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.