Operating cash flow has stabilized significantly, reaching $325.6 million in 2026Q1 compared to the negative $68.7 million outflow observed during the 2025Q1 loss spike.
| 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 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 1.48B | 1.09B | 1.04B | 452.99M | 352.59M | 501.58M | 605.62M | 519.68M | 383.43M | 341.4M | 287.47M | 190.24M | 246.53M | 209.8M | 148.06M | 158.53M | 91.78M | 189.03M | 64.6M | 216.12M | 361.94M | 489.82M | 468.66M | 444.45M | 342.56M | 199.45M | 153.07M | 188.93M | 192.14M | 268.21M | 196.62M |
| Operating CF Growth % | 679.37% | 4.83% | 128.95% | 28.47% | -29.7% | -17.18% | 16.54% | 35.53% | 12.31% | 18.76% | 51.11% | -22.83% | 17.51% | 41.7% | -6.6% | 72.72% | -51.44% | 192.6% | -70.11% | -40.29% | -26.11% | 4.51% | 5.45% | 29.74% | 71.75% | 30.3% | -18.98% | -1.67% | -28.36% | 36.41% | 43.99% |
| Operating CF / Revenue % | 24.14% | 18.14% | 18.94% | 9.78% | 9.68% | 12.56% | 16% | 13.08% | 11.34% | 9.99% | 8.91% | 6.32% | 8.19% | 7.44% | 5.32% | 5.71% | 3.31% | 6.06% | 2.68% | 6.8% | 11.42% | 16.37% | 17.57% | 19.62% | 19.18% | 13.24% | 11.21% | 14.75% | 15.72% | 23.78% | 23.83% |
| Net Income | 839.84M | 541.09M | 467.95M | 96.34M | -512.67M | 247.94M | 374.61M | 320.09M | -5.73M | 144.88M | 73.04M | 74.48M | 177.95M | 112.14M | 116.91M | 191.16M | 152.2M | 403.07M | -242.12M | 237.83M | 214.82M | 253.26M | 286.21M | 184.32M | 66.11M | 105.34M | 109.37M | 133.71M | 177.53M | 156.31M | 105.76M |
| Depreciation & Amortization | 77.59M | 74.99M | 73.43M | 72.24M | 82.39M | 79.06M | 68.46M | 64.73M | 58.79M | 55.34M | 26.39M | 26.48M | 28.05M | 30.59M | 36.97M | 40.66M | 40.73M | 35.69M | 27.04M | 26.32M | 24.26M | 18.78M | 16.19M | 16.13M | 10.23M | 8.48M | 6.93M | 6.9M | 5.44M | 5.16M | 4.07M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 15K | 141K | 142K | 123K | 145K | 60K | 142K | 5.21M | 4.11M | 974K | -370K | 899K | 812K | 763K | 652K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | -15K | -111.66M | -85.73M | 0 | 133.52M | -86.73M | 60.22M | 105.14M | -62.41M | 23.75M | -59.71M | -53.84M | -56.16M | -339.79M | 562.66M | 0 | 0 | -6.44M | 0 | 0 | -27M | 0 | 0 | 0 | -9M | 500K | 1M |
| Other Non-Cash Items | -91.5M | -108.82M | -90.37M | -45.95M | 485.38M | 16.32M | 14.29M | -249.96M | 13.66M | 42.46M | -4.06M | -1.5M | -1.95M | -10.32M | -6.18M | -4.11M | 4.23M | -3.77M | -5.49M | -739K | -61.3M | -195.35M | -16.62M | -235.4M | -186.97M | -97.63M | -6.14M | 16.36M | -10.57M | -103.53M | -51.29M |
| Working Capital Changes | 655.59M | 579.93M | 586.1M | 330.36M | 297.5M | 269.78M | 233.84M | 384.69M | 183.04M | 185.39M | 131.75M | -19.57M | 100.79M | 52.67M | 60.44M | -16.24M | -50.04M | 93.07M | -278.15M | -47.3M | 184.17M | 407.75M | 182.88M | 479.4M | 487.18M | 183.27M | 42.91M | 31.96M | 32.89M | 212.06M | 137.08M |
| Cash from Investing | -1.34B | -420.16M | -796.66M | -295.44M | -316.38M | -373.67M | -411.29M | -401.2M | -222.44M | -185.6M | -226.72M | -81.68M | -194.03M | -18.35M | -69.75M | 124.61M | 33.1M | -31.7M | 34.65M | -92.88M | -281.61M | -387.27M | -403.47M | -349.19M | -267.63M | -164.72M | -106.6M | -142.19M | -138.49M | -236.57M | -220.92M |
| Capital Expenditures | -62.09M | -58.43M | -46.14M | -36.81M | -35.51M | -41.44M | -39.95M | -40.09M | -27.96M | -19.44M | -16.98M | -20.11M | -26.04M | -18.67M | -15.18M | -18.08M | -28.89M | -36.34M | -48.51M | -42.04M | -40.64M | -42.21M | -26.18M | -35.02M | -29.39M | -18.09M | -8.34M | -9.27M | -7.16M | -6.85M | -5.97M |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6.24M | 14K | 7.77M | 224K | 820K | 2.04M | 2.99M | 1.34M | -115.49M | 1.51M | 1.11M | 529K | 1.21M | 0 | 1.42M | 2.24M | 563K | -5.14M | 916K | 11.02M | 0 | -33.63M |
| Purchase of Investments | -1.11B | 0 | 0 | -2.19B | -2.84B | -2.42B | -2.11B | -1.91B | -1.73B | -1.61B | -1.98B | -1.72B | -1.47B | -1.45B | -1.01B | -824.9M | -705.39M | -726.21M | -1.06B | -2.36B | -3.13B | -2.19B | -1.42B | -1.12B | -902.73M | -431.54M | -378.2M | -691.49M | -1.1B | -971.19M | -712.98M |
| Sale/Maturity of Investments | -130.92M | 0 | 0 | 1.93B | 2.53B | 2.07B | 1.72B | 1.54B | 1.53B | 1.44B | 1.77B | 1.64B | 1.3B | 1.45B | 948.86M | 961.71M | 759.16M | 842.08M | 1.14B | 2.31B | 1.95B | 1.75B | 1.04B | 793.26M | 663.49M | 392.73M | 284.25M | 560.7M | 953.56M | 740.31M | 531.49M |
| Other Investing | -36.11M | -361.73M | -750.52M | 3.82M | 27.88M | 17.42M | 20.58M | 3.71M | 10.11M | 1.93M | 3.6M | 2.61M | 3.47M | 1.74M | 2.25M | 2.89M | 6.87M | 4.25M | 4.28M | -1.69M | 934.74M | 100.57M | 797K | 6.71M | -1.25M | -108.38M | 831K | -3.05M | 444K | 1.17M | 167K |
| Cash from Financing | -71.36M | -71.72M | -71.11M | 103.58M | -81.99M | -140.84M | -140.25M | -138.37M | -138.12M | -84.71M | -104.66M | -134.25M | -29.1M | -83.13M | -131.53M | -253.13M | -129M | -7.22M | -112.1M | -122.61M | -102.51M | -91.47M | -78.44M | -71.49M | -65.59M | -36.82M | -48.59M | -40.57M | -54.78M | -32.23M | 25.03M |
| Dividends Paid | -70.34M | -70.34M | -70.33M | -70.32M | -105.48M | -140.23M | -139.64M | -139.07M | -138.48M | -137.89M | -137.2M | -136.39M | -135.5M | -134.78M | -134.1M | -132.14M | -129.86M | -127.62M | -127.01M | -113.8M | -104.96M | -93.87M | -80.63M | -71.82M | -65.17M | -57.43M | -51.91M | -45.85M | -38.45M | -31.88M | -26.29M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6.98M | -8.44M | -24.29M | 0 | 0 |
| Stock Issued | 0 | 0 | 752K | 0 | 0 | 215K | 0 | 0 | 358K | 2.16M | 1.63M | 2.11M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.17M | 1.94M | 2.39M | 2.19M | 1.33M | 1.58M | 1.34M | 1.3M | 565K | 1.97M | 1.4M | 1.32M |
| Debt Issuance (Net) | -618K | -1000K | -1000K | 1000K | 1000K | -825K | -609K | 0 | 0 | 1000K | 1000K | 0 | 1000K | 1000K | 0 | -1000K | 0 | 1000K | 1000K | -1000K | 0 | 0 | 0 | 0 | 0 | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K |
| Other Financing | -398K | 0 | 0 | 0 | 0 | 0 | 0 | 701K | 358K | 2.16M | 5.84M | 2.14M | 6.39M | 1.65M | 2.58M | 2.01M | 865K | 398K | 1.41M | 273K | 505K | 0 | 0 | -1M | -2M | -104.04M | -34.98M | -848K | 3M | 50K | 0 |
| Net Change in Cash | 66.09M | 595.32M | 169.35M | 261.13M | -45.78M | -12.92M | 54.08M | -19.89M | 22.88M | 71.09M | -43.9M | -25.69M | 23.4M | 108.33M | -53.21M | 30M | -4.12M | 150.11M | -12.85M | 639K | -22.18M | 11.08M | -13.25M | 23.77M | 9.34M | -2.08M | -2.12M | 6.17M | -1.12M | -594K | 733K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 1.32B | 720.26M | 550.9M | 289.78M | 335.56M | 348.48M | 294.4M | 314.29M | 291.41M | 220.32M | 264.22M | 289.91M | 266.51M | 158.18M | 211.39M | 181.39M | 185.5M | 35.4M | 48.24M | 47.61M | 69.78M | 23.71M | 36.96M | 13.19M | 3.85M | 5.93M | 8.05M | 1.89M | 3.01M | 3.6M | 2.87M |
| Cash at End | 1.35B | 1.32B | 720.26M | 550.9M | 289.78M | 335.56M | 348.48M | 294.4M | 314.29M | 291.41M | 220.32M | 264.22M | 289.91M | 266.51M | 158.18M | 211.39M | 181.39M | 185.5M | 35.4M | 48.24M | 47.61M | 34.79M | 23.71M | 36.96M | 13.19M | 3.85M | 5.93M | 8.05M | 1.89M | 3.01M | 3.6M |
| Free Cash Flow | 1.42B | 1.03B | 990.98M | 416.18M | 317.08M | 460.14M | 565.66M | 479.59M | 355.48M | 321.96M | 270.49M | 170.13M | 220.5M | 191.13M | 132.88M | 140.45M | 62.9M | 152.69M | 16.09M | 174.09M | 321.3M | 447.61M | 442.48M | 409.44M | 313.17M | 181.36M | 144.73M | 179.66M | 184.98M | 261.35M | 190.65M |
| FCF Growth % | 95.31% | 3.81% | 138.11% | 31.25% | -31.09% | -18.65% | 17.95% | 34.92% | 10.41% | 19.03% | 58.99% | -22.84% | 15.36% | 43.83% | -5.38% | 123.3% | -58.81% | 849.09% | -90.76% | -45.82% | -28.22% | 1.16% | 8.07% | 30.74% | 72.68% | 25.31% | -19.44% | -2.88% | -29.22% | 37.08% | 43.95% |
| FCF Margin % | 23.12% | 17.17% | 18.1% | 8.99% | 8.7% | 11.52% | 14.95% | 12.07% | 10.52% | 9.43% | 8.38% | 5.65% | 7.32% | 6.78% | 4.77% | 5.06% | 2.27% | 4.89% | 0.67% | 5.48% | 10.14% | 14.96% | 16.58% | 18.07% | 17.53% | 12.03% | 10.59% | 14.03% | 15.14% | 23.17% | 23.11% |
| FCF per Share | 25.63 | 18.57 | 17.9 | 7.52 | 5.73 | 8.31 | 10.22 | 8.66 | 6.42 | 5.82 | 4.89 | 3.08 | 4.01 | 3.48 | 2.42 | 2.56 | 1.15 | 2.77 | 0.29 | 3.18 | 5.86 | 8.18 | 8.1 | 7.51 | 5.73 | 3.34 | 2.67 | 3.28 | 3.34 | 4.72 | 3.47 |
California Regulatory Rate Lag
As reported in recent financial statements, Mercury General generated $325.6 million in operating cash flow during 2026Q1, reflecting a significant recovery from the negative $68.7 million outflow observed in 2025Q1, which suggests that premium rate adjustments are successfully outpacing the underlying claims payment obligations.
The consistent OCF/NI ratio, which reached 1.71 in 2026Q1, indicates that the company is effectively converting accounting earnings into tangible cash. This trend appears to validate the efficacy of recent rate filings in California, allowing the firm to rebuild its float after the severe underwriting strain experienced throughout early 2025.
Based on quarterly cash flow data, Mercury General maintained an active investment posture, with 2025Q3 showing $1.0 billion in purchases against $711.6 million in sales, suggesting a strategic effort to optimize the yield on its float as interest rate environments shifted over the past ten quarters.
The frequent turnover in the investment portfolio implies that management is actively managing duration and credit risk to support the underwriting float. Investors should monitor whether this high level of portfolio activity continues to generate sufficient investment income to supplement the core underwriting margins during periods of claims volatility.
According to historical cash flow filings, claims payments peaked at $1.4 billion in 2025Q1 before moderating to $933.0 million by 2026Q1, a trend that appears to correlate with the stabilization of loss ratios following the inflationary spikes that previously pressured the company's liquidity position.
The reduction in cash outflows for claims suggests that the company has successfully navigated the peak of the recent inflationary cycle in auto repair costs. However, the historical volatility in these payments warrants further investigation into whether the current lower levels are sustainable or if they represent a temporary lull in loss development.
As evidenced by consistent quarterly dividend payments of $17.6 million, Mercury General has maintained a stable capital return policy despite the significant fluctuations in operating cash flow, which suggests a management preference for predictable shareholder distributions over aggressive, variable capital allocation strategies.
The company's ability to sustain dividends even during the 2025Q1 period of negative cash flow indicates a strong commitment to capital preservation and shareholder trust. This conservative approach appears to be supported by the company's low debt profile, providing a buffer that allows for consistent payouts regardless of short-term underwriting performance.
Quick answers to the most common questions about buying MCY stock.
Mercury General Corporation (MCY) generated $1.09B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Mercury General Corporation (MCY) generated $1.03B 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.
Mercury General Corporation (MCY) spent $58.4M 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, Mercury General Corporation (MCY) returned $70.3M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.