Cash conversion remains fundamentally strained, evidenced by a 2026Q1 OCF/NI ratio of -25.72 and a volatile free cash flow deficit of $56.2M.
| 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 |
|---|
| Cash from Operations | -68.37M | -139.97M | -143.74M | -56.97M | -370.45M | 21.7M | 202.16M | -41.93M | -116.72M | -68.47M | -108.18M | -89.16M | -173.21M | -54.49M | -4.65M | 9.55M |
| Operating CF Margin % | - | -8.21% | -6.53% | -2.42% | -16.08% | 0.71% | 8.54% | -2.28% | -7.76% | -5.44% | -12.9% | -14.15% | -45.19% | -33.47% | -6.11% | 18.94% |
| Operating CF Growth % | 130.61% | 2.62% | -152.32% | 84.62% | -1807.15% | -89.27% | 582.09% | 64.07% | -70.48% | 36.71% | -21.34% | 48.53% | -217.89% | -1070.95% | -148.7% | - |
| Net Income | 70.72M | 72.55M | 196.07M | 199.23M | 326.57M | 429.64M | 323.89M | 178.61M | 155.29M | 113.31M | 75.03M | 52.83M | 28.21M | 21.74M | 9.87M | 4.51M |
| Depreciation & Amortization | 4.65M | 4.32M | 3.11M | 2.41M | 1.58M | 1.15M | 710K | 643K | 711K | 791K | 1.09M | 883K | 825K | 291.61K | 185.12K | 79.75K |
| Stock-Based Compensation | 6.79M | 6M | 10.48M | 8.93M | 9.19M | 13.6M | 13.52M | 7.54M | 5.94M | 4.19M | 3.4M | 2.28M | 862K | 42.81K | 0 | 0 |
| Deferred Taxes | -767K | -633K | -1.11M | -1.98M | 12K | 788K | -2.37M | -1.83M | -724K | -2.09M | -2.56M | 42K | 1K | -287.78K | 0 | 0 |
| Other Non-Cash Items | -290.9M | -222.22M | -12.94M | 357K | -10.18M | 13.26M | -4K | 206K | 3.59M | 13K | -137K | -47K | -342K | -5.25M | 18.97K | -107.26K |
| Working Capital Changes | 141.13M | 0 | -339.35M | -265.91M | -697.62M | -436.74M | -133.59M | -227.1M | -281.53M | -184.67M | -185M | -145.14M | -202.77M | -71.03M | -14.73M | 5.07M |
| Change in Receivables | -19.54M | 0 | 12.6M | -16.18M | 32.77M | 58.03M | -59.55M | -13.55M | 1.87M | -27.65M | 270K | -9.96M | -1.96M | -3.87M | -204.91K | -429.83K |
| Change in Inventory | 87.52M | 0 | -365.89M | -255.52M | -823.92M | -463.64M | -70.23M | -266.65M | -234.66M | -200.61M | -183.88M | -151.71M | -198.36M | -74.6M | -15.96M | 7.75M |
| Change in Payables | 3.8M | 0 | 1.66M | 6.33M | 11.12M | -760K | 1.18M | 3.25M | -2.78M | -257K | -11.75M | 9.63M | 1.48M | 5.83M | 1.67M | -6.4K |
| Cash from Investing | 34.63M | 27.94M | 15.62M | -13.65M | -5.97M | -70.39M | -5.65M | -1.79M | -74.94M | -518K | -722K | -1.12M | -16.36M | -31.26M | -2.65M | -1.74M |
| Capital Expenditures | -789K | -924K | -1.95M | -1.44M | -1.19M | -1.73M | -2.69M | -734K | -475K | -518K | -722K | -1.12M | -1.2M | -684.45K | -434.89K | -451.21K |
| CapEx % of Revenue | 0.05% | 0.05% | 0.09% | 0.06% | 0.05% | 0.06% | 0.11% | 0.04% | 0.03% | 0.04% | 0.09% | 0.18% | 0.31% | 0.42% | 0.57% | 0.89% |
| Acquisitions | 0 | 0 | 0 | 0 | -4.78M | -68.66M | -2.96M | -1.06M | -74.46M | 0 | 0 | 0 | -15.17M | -31.07M | -2.24M | -1.3M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 35.41M | 28.86M | 17.57M | -12.21M | -4.78M | -68.66M | -2.96M | -1.06M | 0 | 0 | 0 | 0 | 0 | 492.55K | 33.49K | 14.71K |
| Cash from Financing | 37.01M | 120.08M | 132.34M | 87.6M | 357.9M | 63.26M | -198.91M | 35.45M | 170.71M | 87.04M | 120.86M | 96.47M | 166.88M | 132.75M | 9.26M | -7.97M |
| Debt Issued (Net) | -133.87M | 0 | 164.46M | 96.66M | 451.62M | 270.82M | -152.94M | 35.55M | 176.48M | 75M | 95M | 90.6M | 188.87M | 20.89M | 8.55M | -6.33M |
| Equity Issued (Net) | 5.47M | 3.61M | -26.14M | 5.26M | -95.1M | -186.67M | -43.82M | 2.89M | 1.18M | 0 | 0 | 9.59M | -16.55M | 102.64M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -9.11M | -4.13M | -5.77M |
| Share Repurchases | 3.05M | 0 | -30.97M | 0 | -95.1M | -193.78M | -48.08M | 0 | -1.51M | 0 | 0 | 0 | -16.55M | 0 | 0 | 0 |
| Other Financing | 165.41M | 116.48M | -5.98M | -14.32M | 1.38M | -20.89M | -2.15M | -2.98M | -6.95M | 12.04M | 25.86M | -3.72M | -5.44M | 18.33M | 4.84M | 4.13M |
| Net Change in Cash | 3.26M | 8.05M | 4.22M | 16.98M | -18.52M | 14.57M | -2.4M | -8.28M | -20.95M | 18.05M | 11.95M | 6.2M | -22.7M | 47M | 1.96M | -151.1K |
| Free Cash Flow | -69.16M | -140.9M | -145.69M | -58.41M | -371.64M | 19.97M | 199.47M | -42.67M | -117.2M | -68.98M | -108.91M | -90.27M | -174.41M | -55.17M | -5.09M | 9.1M |
| FCF Margin % | -4.13% | -8.26% | -6.61% | -2.48% | -16.13% | 0.65% | 8.42% | -2.32% | -7.79% | -5.48% | -12.99% | -14.32% | -45.51% | -33.89% | -6.68% | 18.04% |
| FCF Growth % | 60.06% | 3.29% | -149.42% | 84.28% | -1960.89% | -89.99% | 567.48% | 63.59% | -69.89% | 36.66% | -20.64% | 48.24% | -216.11% | -984.32% | -155.89% | - |
| FCF per Share | -2.98 | -6.06 | -6.17 | -2.47 | -15.66 | 0.80 | 7.86 | -1.68 | -4.71 | -2.88 | -4.94 | -4.15 | -8.23 | -2.66 | -0.68 | 1.22 |
| FCF Conversion (FCF/Net Income) | -0.98x | -1.93x | -0.73x | -0.29x | -1.13x | 0.05x | 0.62x | -0.23x | -0.75x | -0.60x | -1.44x | -1.69x | -6.14x | -2.44x | -0.48x | 2.85x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Inventory liquidity and absorption
According to the provided cash flow statements, LGIH consistently reports positive net income while generating negative operating cash flow, as evidenced by the 2026Q1 OCF/NI ratio of -25.72, which highlights a fundamental inability to convert accounting profits into actual liquidity during the current housing cycle.
The recurring divergence between net income and operating cash flow suggests that the company's earnings quality is heavily impacted by non-cash accruals and inventory-related capital requirements. Investors should monitor whether this trend reflects a structural reliance on debt-funded inventory growth that fails to translate into realized cash inflows.
As reported in financial statements, LGIH's free cash flow trajectory remains highly erratic, with the company posting a negative $56.2M in 2026Q1, a stark contrast to the $86.8M generated in 2025Q4, indicating that cash generation is highly sensitive to the timing of home closings.
The extreme swings in free cash flow margins suggest that the company's business model is prone to significant liquidity lulls. This volatility may indicate that the firm struggles to maintain a self-sustaining cash cycle when absorption rates falter, necessitating careful scrutiny of its reliance on external financing.
Based on the reported figures, working capital changes have been a primary drain on liquidity, with a $141.1M outflow in 2025Q1 alone, suggesting that the company's spec-heavy production model requires massive upfront cash commitments that are not being offset by timely sales in the current environment.
The consistent negative working capital adjustments imply that capital is being trapped in unsold inventory for extended periods. This dynamic appears to be the primary driver of the company's cash flow struggles, as the cost of carrying finished homes continues to outpace the cash received from customer closings.
Data from recent filings shows that despite significant operating cash outflows, LGIH has continued to engage in share repurchases, such as the $23.6M spent in 2025Q4, which warrants investigation given the company's simultaneous struggle to maintain positive free cash flow across most of the observed quarters.
The decision to prioritize share buybacks while operating cash flow remains negative suggests a management focus on supporting equity valuation over balance sheet preservation. This approach may leave the company with limited flexibility should the housing market experience a more prolonged or severe downturn in absorption rates.
Quick answers to the most common questions about buying LGIH stock.
LGI Homes, Inc. (LGIH) generated $-140.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
LGI Homes, Inc. (LGIH) reported negative free cash flow of $140.9M in 2025, indicating capital requirements exceeded cash from operations.
LGI Homes, Inc. (LGIH) spent $0.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.