Liquidity is under pressure as cash reserves have declined from $15.5 million in 2024Q3 to $4.3 million in 2026Q3, highlighting the difficulty of funding operations through sporadic, lumpy liquidity events.
| Cash from Operations | -4.39M | -1.69M | -595.52K | -6.62M | 4.62M | 970.78K | -1.73M |
| Operating CF Growth % | -582.2% | -183.8% | 91.01% | -243.24% | 376.12% | 156.22% | - |
| Operating CF / Revenue % | -29.72% | -7.66% | -3.78% | -43.83% | 44.58% | 21.66% | -19.78% |
| Net Income | -17.48M | -23.97M | -11.22M | -4.1M | 4.28M | 264.16K | -11.73M |
| Depreciation & Amortization | 11.33M | 11.43M | 7.15M | 5.2M | 4.54M | 2.19M | 0 |
| Stock-Based Compensation | 62.64K | 628.14K | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -1.06M | 10.76M | 3.11M | -5.75M | -7.01M | -1.73M | 9.7M |
| Working Capital Changes | -203.4K | -544.13K | 361.66K | -2.45M | 2.81M | 238.97K | 296.61K |
| Cash from Investing | -13.1M | -19.12M | -1.3M | 2.36M | -32.16M | -21.22M | 0 |
| Acquisitions (Net) | 0 | 0 | 2.53M | 1.33K | 1.07M | 0 | 0 |
| Purchase of Investments | -4.6M | -1.18M | -11.3M | -20.42M | -24.87M | -37.93M | 0 |
| Sale of Investments | 3.74M | 962.72K | 10.56M | 23.93M | 33.69M | 10.71M | 0 |
| Other Investing | -12.24M | -18.9M | -1.5M | 1.8M | -40.99M | 6M | 0 |
| Cash from Financing | 16.49M | 11.85M | -3.17M | 451K | 28.79M | 13.85M | 9.41M |
| Dividends Paid | -1.78M | -4.8M | -6.08M | -4.47M | -2.82M | -461.04K | -4.53M |
| Common Dividends | -786.93K | -4.8M | -5.18M | -3.85M | -2.82M | -461.04K | -4.53M |
| Debt Issuance (Net) | 3.81M | 1000K | 1000K | -1000K | 1000K | 1000K | 0 |
| Share Repurchases | -1.87K | -5.55K | -1.48M | -1.62M | -1.43M | -408.82K | -3.19M |
| Other Financing | -178.07K | 930.01K | -662.85K | -1.2M | -398.17K | 0 | -2.38M |
| Net Change in Cash | -1.03M | -8.96M | -5.06M | 9.14M | 1.24M | 0 | 7.68M |
| Exchange Rate Effect | -26.27K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 4.71M | 13.08M | 18.14M | 9M | 7.75M | 8.96M | 1.28M |
| Cash at End | 4.32M | 4.12M | 13.08M | 18.14M | 9M | 7.75M | 8.96M |
| Free Cash Flow | -4.39M | -1.69M | -595.52K | -6.62M | 4.62M | 970.78K | -1.73M |
| FCF Growth % | -444.92% | -183.8% | 91.01% | -243.24% | 376.12% | 156.22% | - |
| FCF / Revenue % | -29.72% | -7.66% | -3.78% | -43.83% | 44.58% | 21.66% | -19.78% |
Illiquid Level 3 Assets
According to quarterly financial disclosures, MKZR's FFO to net income conversion ratio has exhibited extreme instability, ranging from -0.51 to 0.66, which underscores the difficulty in reconciling GAAP earnings with the actual cash-generating performance of its fragmented, secondary-market investment portfolio across the observed ten-quarter period.
The wide variance in FFO relative to net income suggests that non-cash valuation adjustments on Level 3 assets are heavily distorting the company's reported earnings. Investors should interpret these figures with caution, as the lack of consistent conversion indicates that FFO may not yet serve as a reliable proxy for operational cash flow.
As reported in recent financial statements, MKZR's ability to cover dividend distributions via AFFO is inconsistent, with a 0.53 payout ratio in 2026Q3 being the only period where distributable cash flow was clearly defined, leaving the sustainability of shareholder payouts in question for the majority of the cycle.
The absence of consistent AFFO data for most quarters suggests that the company may be funding distributions through capital recycling or balance sheet liquidity rather than recurring property-level cash flow. This reliance on non-operating sources to maintain dividends warrants further investigation into the long-term viability of the current payout policy.
Based on the provided data, the persistent gap between GAAP net losses and the company's operating cash flow suggests that non-cash charges, likely related to the valuation of illiquid secondary interests, are significantly depressing reported profitability while masking the underlying cash-generating capacity of the investment portfolio.
The recurring net losses appear to be a function of accounting-driven write-downs rather than a total absence of cash inflow. Analysts should focus on the divergence between these GAAP figures and the sporadic positive operating cash flow to determine if the company is truly burning cash or merely experiencing valuation volatility.
As indicated by the historical cash flow statements, the company's reliance on sporadic liquidity events from its underlying non-traded REIT holdings creates a lumpy cash flow profile that is not captured by standard REIT metrics, potentially hiding the true duration risk of its illiquid asset base.
The lack of consistent, predictable cash flow suggests that MKZR is highly dependent on the exit strategies of third-party REITs, which are currently constrained by broader market conditions. This structural dependency implies that the company's cash flow profile may remain erratic until the underlying assets reach their respective liquidity milestones.
Quick answers to the most common questions about buying MKZR stock.
MacKenzie Realty Capital, Inc. (MKZR) generated $-1.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
MacKenzie Realty Capital, Inc. (MKZR) reported negative free cash flow of $1.7M in 2025, indicating capital requirements exceeded cash from operations.
MacKenzie Realty Capital, Inc. (MKZR) 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, MacKenzie Realty Capital, Inc. (MKZR) returned $4.8M to shareholders via cash dividends and spent $0.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.