A significant liquidity disconnect is apparent, as the OCF/NI ratio of -3.81 in 2025Q4 suggests that headline earnings are not currently supported by actual cash generation.
| Cash from Operations | -50.32M | -30.55M | -23.68M | -14.6M | -65.72M | 3.46M | -28.93M | 2.57M |
| Operating CF Growth % | -64.71% | -29.05% | -62.19% | 77.79% | -2000.19% | 111.95% | -1225.02% | - |
| Net Income | -9.91M | 15.02M | -1.89M | -13.59M | 20.31M | -3.68M | -7.86M | 286.51K |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -40.9M | -46.29M | -21.87M | 4.75M | -92.5M | 7.43M | -22.17M | 1.3M |
| Working Capital Changes | 491.01K | 716K | 82.22K | -5.76M | 6.48M | -292.9K | 1.09M | 545.74K |
| Cash from Investing | 0 | 0 | -49.78M | -31.47M | -86.58M | -5.18M | -38.74M | -43.62M |
| Purchase of Investments | 0 | -124.23M | -62.88M | -49.96M | -117.6M | -5.18M | -40.92M | -43.62M |
| Sale/Maturity of Investments | 0 | 59.48M | 13.1M | 18.49M | 31.02M | 0 | 2.18M | 0 |
| Net Investment Activity | 0 | -64.74M | -49.78M | -31.47M | -86.58M | -5.18M | -38.74M | -43.62M |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 0 | 64.74M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 39.13M | 38.47M | 27.92M | 12.14M | 74.27M | -942.65K | 23.81M | 50M |
| Dividends Paid | -30.75M | -19.01M | -5M | -3.63M | -2.23M | -3.49M | -5.48M | 0 |
| Share Repurchases | -803.8K | 0 | 0 | 0 | 0 | 0 | 0 | 50M |
| Stock Issued | 45.68M | 31.96M | 32.91M | 3.33M | 48.66M | 2.82M | 9.17M | 50M |
| Net Stock Activity | 44.88M | 31.96M | 32.91M | 3.33M | 48.66M | 2.82M | 9.17M | 100M |
| Debt Issuance (Net) | 0 | 0 | 0 | 1000K | 0 | 0 | 0 | 0 |
| Other Financing | 803.8K | -246.72K | 0 | 0 | -182.11K | -267.23K | -1.21M | 50M |
| Net Change in Cash | -11.19M | 7.92M | 4.24M | -2.45M | 8.55M | 2.52M | -5.13M | 8.96M |
| Exchange Rate Effect | 0 | 0 | 0 | 31.47M | 86.58M | 5.18M | 38.74M | 0 |
| Cash at Beginning | 24.7M | 16.78M | 12.54M | 15M | 6.45M | 3.93M | 9.06M | 100K |
| Cash at End | 13.51M | 24.7M | 16.78M | 12.54M | 15M | 6.45M | 3.93M | 9.06M |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -50.32M | -30.55M | -23.68M | -14.6M | -65.72M | 3.46M | -28.93M | 2.57M |
| FCF Growth % | -64.71% | -29.05% | -62.19% | 77.79% | -2000.19% | 111.95% | -1225.02% | - |
CLO equity waterfall volatility
According to 2025Q4 financial disclosures, OCCI engaged in significant portfolio activity, purchasing $139.4 million in new investments while liquidating $54.5 million, a move that suggests management is actively rotating the fund's underlying CLO equity holdings despite the prevailing negative net income environment observed during the period.
The substantial net investment outflow of $84.9 million in the final quarter of 2025 indicates a strategic shift toward capital deployment, likely aimed at capturing higher yields or reinvesting in distressed tranches. Investors should monitor whether this aggressive purchasing pace is sustainable given the fund's reliance on external capital and the potential for further mark-to-market volatility.
Based on the reported 2025Q4 figures, OCCI distributed $30.7 million to shareholders, a payout that appears disconnected from the company's negative net income of $9.1 million, raising questions regarding the long-term sustainability of these distributions without consistent, recurring cash inflows from the underlying CLO equity portfolio.
The divergence between cash distributions and GAAP earnings suggests that the fund may be utilizing cash reserves or capital recycling to maintain its dividend profile. This practice warrants further investigation, as it may lead to a gradual erosion of the net asset value if the underlying investments fail to generate sufficient cash-on-cash returns.
As reported in recent financial statements, OCCI maintained consistent credit loss provisions, including a $2.0 million charge in 2025Q4, which suggests that the investment committee is increasingly accounting for potential defaults within the underlying corporate loan pools that underpin the fund's junior CLO equity positions.
The persistence of these provisions, even during periods of portfolio expansion, implies that the credit quality of the underlying assets remains a primary concern for management. Analysts should interpret these charges as a leading indicator of potential cash flow interruptions within the CLO waterfall structures.
Based on the provided data, the OCF/NI ratio of -3.81 in 2025Q4 highlights a significant disconnect between GAAP accounting and actual cash generation, suggesting that headline earnings figures may be heavily distorted by non-cash valuation adjustments rather than reflecting the fund's true liquidity position.
This extreme variance indicates that the cash flow statement is a more reliable, albeit volatile, indicator of the fund's health than the income statement. Investors should be wary of relying on net income as a proxy for performance, as the underlying CLO equity cash flows are subject to complex waterfall mechanics that often obscure the true economic reality.
Quick answers to the most common questions about buying OCCI stock.
OFS Credit Company, Inc. (OCCI) generated $-50.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
OFS Credit Company, Inc. (OCCI) reported negative free cash flow of $50.3M in 2025, indicating capital requirements exceeded cash from operations.
OFS Credit Company, Inc. (OCCI) 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, OFS Credit Company, Inc. (OCCI) returned $30.7M to shareholders via cash dividends and spent $0.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.