The firm's liquidity position appears precarious, as evidenced by a cash balance of only $1.9M in 2025Q4 and an OCF/NI ratio of 0.04, indicating a disconnect between earnings and cash generation.
| Metric | 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 | 1.2M | 8.55M | 9.96M | 10.48M | 12.47M | 23.73M | 25.27M | -55.12M | -69.57M | -51.87M | -82.74M | -11.52M | -62.88M | -131.79M |
| Operating CF Margin % | 5.64% | 24.31% | 36.87% | 53.87% | 23.09% | 106.34% | 60.19% | -562.23% | -292.51% | -149.04% | -380.69% | -67.15% | -496.06% | -10653.84% |
| Operating CF Growth % | -86.02% | -14.08% | -4.95% | -16.01% | -47.45% | -6.07% | 145.85% | 20.77% | -34.11% | 37.31% | -618.45% | 81.69% | 52.28% | - |
| Net Income | 11.41M | 9.7M | 371K | -2.79M | 32.46M | 1.65M | 19.21M | 5.85M | 12.15M | 24.36M | 17.89M | 13.91M | 9.77M | 950K |
| Depreciation & Amortization | 834K | 0 | 0 | 0 | 0 | 0 | 0 | -853K | -818K | -2.88M | -20K | 848K | -1.13M | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -8.22M | 5.67M | 13.73M | 19.33M | -17.51M | 20.89M | 4.67M | -58.25M | -79.06M | -68.08M | -106.73M | -25.96M | -73.61M | -132.67M |
| Working Capital Changes | -2.83M | -6.82M | -4.14M | -6.07M | -2.48M | 1.19M | 1.39M | -1.86M | -1.84M | -5.28M | 6.11M | -315K | 2.09M | -72K |
| Change in Receivables | -1.34M | -4.58M | -2.89M | -6.98M | -4.87M | 4.08M | -915K | -2.44M | -2.69M | -1.04M | -654K | -314K | -135K | -503K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -1.17M | -1.49M | -1.3M | 1.29M | 1.23M | -2.33M | 1.89M | 395K | -85K | -5.3M | 5.3M | 450K | 433K | 0 |
| Cash from Investing | 114.68M | 27.4M | 41.77M | 3.63M | 7.54M | 51.2M | -64.51M | -81.26M | -90.95M | -66.33M | -7.41M | -25.11M | -73.62M | 0 |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Acquisitions | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 334.86M | 457.05M | 0 | 1.51M | 781K | 39.28M | 42.41M | 27.65M | 494.14M | 412.92M | 341.09M | 234.71M | 207.92M | 132.75M |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 97.84M | 0 | -389K | 0 |
| Cash from Financing | -122.99M | -31.87M | -52.22M | -26.72M | -34.3M | -72.15M | 51.16M | 65.66M | 68.44M | 46.34M | 90.87M | 2.65M | 73.43M | 135.84M |
| Debt Issued (Net) | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 4.09M | 6.5M | 0 | 2.4M | 0 | 0 | 49.62M | -5.79M | -472K | 84.63M |
| Dividends Paid | -20.15M | -21.67M | -21.67M | -21.67M | -21.51M | -23.06M | -28.62M | -28.18M | -26.52M | -20.57M | -16.71M | -13.03M | -10.3M | -1.96M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.79M | -472K | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3M | 50.45M | 51.32M | -1.83M | -964K | 55.2M | -1.84M |
| Net Change in Cash | -7.12M | 4.09M | -492K | -12.63M | -14.35M | 2.78M | 11.92M | 10.53M | -1.13M | -5.54M | 717K | -8.87M | 10.54M | 4.05M |
| Free Cash Flow | 115.87M | 8.55M | 9.96M | 10.48M | 12.47M | 23.73M | 25.27M | -55.12M | -69.57M | -51.87M | -82.74M | -11.52M | -62.88M | -131.79M |
| FCF Margin % | 546.36% | 24.31% | 36.87% | 53.87% | 23.09% | 106.34% | 60.19% | -562.23% | -292.51% | -149.04% | -380.69% | -67.15% | -496.06% | -10653.84% |
| FCF Growth % | 1254.45% | -14.08% | -4.95% | -16.01% | -47.45% | -6.07% | 145.85% | 20.77% | -34.11% | 37.31% | -618.45% | 81.69% | 52.28% | - |
| FCF per Share | 5.35 | 0.39 | 0.46 | 0.48 | 0.58 | 1.13 | 1.24 | -2.71 | -3.74 | -3.57 | -7.08 | -1.20 | -8.25 | -24.47 |
| FCF Conversion (FCF/Net Income) | 0.10x | 0.88x | 26.84x | -3.76x | 0.38x | 14.42x | 1.32x | -9.42x | -5.72x | -2.13x | -4.62x | -0.83x | -6.44x | -138.72x |
| Interest Paid | 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 |
Dividend Coverage Sustainability Risk
As reported in recent financial filings, MRCC exhibits a profound disconnect between net income and operating cash flow, with the OCF/NI ratio fluctuating wildly, including a 0.04 reading in 2025Q4, which suggests that reported earnings provide little insight into the firm's actual liquidity generation.
The extreme volatility in the OCF/NI ratio indicates that accrual-based accounting adjustments are masking the underlying cash reality of the portfolio. Investors should monitor this divergence, as it suggests that the firm's net income is heavily influenced by non-cash fair value marks rather than realized cash interest.
Based on the provided cash flow data, MRCC's free cash flow trajectory is highly erratic, swinging from a positive $23.2M in 2025Q4 to a negative $1.9M in 2025Q3, which underscores the instability of the firm's cash-generating capacity relative to its dividend obligations.
The inconsistency in FCF generation appears to be driven by lumpy portfolio exits and unpredictable interest receipts. This lack of cash flow predictability warrants further investigation into whether the current dividend payout is being funded by capital recycling rather than sustainable net investment income.
According to the quarterly cash flow statements, MRCC experiences significant working capital fluctuations, such as the -$2.0M impact observed in 2025Q3, which suggests that timing differences in interest collections and fee accruals are creating noise in the reported operating cash flow figures.
These working capital movements appear to be a primary driver of the quarter-to-quarter variance in cash flow. Analysts should interpret these shifts as a sign of potential friction in the collection process, which may indicate underlying stress within the borrower base.
As indicated by the historical cash flow data, MRCC has consistently paid out dividends of $5.4M per quarter for most of the observed period, often exceeding the net cash generated from operations, which suggests a reliance on balance sheet liquidity to maintain distributions.
The persistent gap between dividend outflows and operating cash flow implies that the firm may be depleting its cash reserves or relying on external financing to sustain its payout policy. This trend appears unsustainable and warrants close monitoring by investors concerned with capital preservation.
Based on the reported financial statements, the absence of significant cash-based adjustments alongside persistent net losses suggests that the cash flow statement may be obscuring the true extent of PIK interest and non-cash accruals embedded within the firm's reported investment income.
The reliance on non-cash income to bolster the income statement likely creates a false sense of security regarding the firm's ability to generate distributable cash. Investors should be wary that the reported cash flow figures may not fully capture the credit deterioration occurring within the portfolio.
Quick answers to the most common questions about buying MRCC stock.
Monroe Capital Corporation (MRCC) generated $1.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Monroe Capital Corporation (MRCC) generated $115.9M 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.
Monroe Capital Corporation (MRCC) 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, Monroe Capital Corporation (MRCC) returned $20.1M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.