Liquidity remains highly unpredictable, as evidenced by the extreme volatility in free cash flow, which swung from a -$14.6M outflow in 2024Q4 to a $21.8M inflow in 2026Q1.
| 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 |
|---|
| Cash from Operations | 41.63M | 20.47M | 33.01M | 21.37M | 2.95M | -12.01M | 80.63M | -101.64M | -101.09M | 10.67M | -11.32M | 83.74M | -65.21M | 29.18M | -27.31M | -606K | 3.47M | 6.64M |
| Operating CF Margin % | - | -173.33% | 66.66% | 88.03% | 23.21% | -14.01% | 276.67% | -339.41% | -434.28% | 61% | -49.35% | 286.46% | -335.16% | 187.13% | -292.22% | -241.43% | 40.27% | 22.86% |
| Operating CF Growth % | 263.23% | -37.99% | 54.48% | 625.32% | 124.53% | -114.89% | 179.33% | -0.54% | -1047.14% | 194.32% | -113.51% | 228.41% | -323.49% | 206.84% | -4406.77% | -117.48% | -47.82% | - |
| Net Income | -37.39M | -33.09M | 28.44M | -465K | -7.59M | 56.86M | 3.69M | 9.55M | 9.57M | 7.91M | 13.83M | 18.23M | 9.94M | 7.67M | 6.22M | -2.19M | 5.24M | 3.26M |
| Depreciation & Amortization | 8.72M | 0 | 69K | 408K | 409K | 222K | 206K | 195K | 195K | 195K | 195K | 195K | 209K | -389K | -409K | 0 | 0 | 59K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 9K | 0 | 24.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -126K |
| Other Non-Cash Items | 58.44M | 46.77M | 40.95M | 21.6M | -16.45M | -58.37M | 77.57M | -118.24M | -118.65M | 3.56M | -24.34M | 63.99M | -75.4M | 20.27M | -33.45M | 1.61M | -490K | 1.49M |
| Working Capital Changes | 2.23M | 6.79M | -8.02M | -171K | 2.5M | -10.73M | -845K | 6.85M | 7.8M | -992K | -999K | 1.32M | 44K | 1.63M | 334K | -26K | -1.28M | -1.12M |
| Change in Receivables | 1.32M | 10.3M | -8.8M | -15K | 14.17M | -15.07M | 2.05M | -562K | -53K | -964K | -937K | -113K | -139K | 1.25M | -553K | -230K | -371K | -629K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.24M | -91K | -172K | 0 | -307K | 957K | 1.17M | 0 | 0 | 0 |
| Change in Payables | -139K | -2.68M | 0 | -353K | -11.1M | 3.34M | -2.71M | 6.52M | 1.2M | -3K | 51K | 233K | 272K | -361K | -425K | 0 | -20K | -28K |
| Cash from Investing | 40.45M | 23.17M | 0 | 60.2M | -107.55M | -216.11M | -59.63M | -187.14M | -224.72M | -105.86M | -62.96M | 71.2M | 450K | -6.72M | 10.04M | 2.1M | 65.9M | 72.88M |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 35.77M | 65.53M | 0 | 0 | -14K |
| CapEx % of Revenue | 0% | - | - | - | - | - | - | - | - | - | - | - | - | 229.41% | 701.1% | - | - | 0.05% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 308.12M | 342.01M | 409.67M | 420.29M | 499.47M | 494.15M | 431.51M | 508.21M | 396.8M | 277.5M | 281.63M | 257.3M | 312.23M | 237.92M | 0 | 45.58M | 150.48M | 219.14M |
| Other Investing | -2.77M | 0 | 47.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 153.78M | 172K | -110K | 4.06M | 66.31M | 2.82M |
| Cash from Financing | -63.37M | -46.35M | -72.29M | -51.15M | -31.06M | 17.35M | -56.36M | 76.91M | 66.31M | 44.62M | -3.74M | -63.47M | 48.64M | -2.16M | 24.73M | -1.62M | -75.8M | -107.76M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 53.42M | 0 | -4K | 0 | 0 | 93.77M | 0 | 0 | 0 |
| Dividends Paid | -13.67M | -15.94M | -18.22M | -17.95M | -15.38M | -12.07M | -11.37M | -17.95M | -22.89M | -16.7M | -13.06M | -12.69M | -12.85M | -10.72M | -6.93M | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.97M | -374K | 0 | 0 | 0 | -836K | -239K | -1.86M | -643K | -203K | -177K | -750K | -3.47M | -1.16M | -10.45M | -1.62M | 19.51M | -2.75M |
| Net Change in Cash | -796K | -2.71M | -39.28M | 30.41M | -28.11M | 5.34M | 24.26M | -24.73M | -34.78M | 55.29M | -15.05M | 20.27M | -16.12M | 20.3M | 7.46M | -128K | -6.43M | -28.24M |
| Free Cash Flow | 62.57M | 43.64M | 33.01M | 21.37M | 2.95M | -12.01M | 80.63M | -101.64M | -101.09M | 10.67M | -11.32M | 83.74M | -65.21M | 64.95M | 38.21M | -606K | 3.47M | 6.63M |
| FCF Margin % | -527.12% | -369.54% | 66.66% | 88.03% | 23.21% | -14.01% | 276.67% | -339.41% | -434.28% | 61% | -49.35% | 286.46% | -335.16% | 416.54% | 408.88% | -241.43% | 40.27% | 22.81% |
| FCF Growth % | 453.07% | 32.2% | 54.48% | 625.32% | 124.53% | -114.89% | 179.33% | -0.54% | -1047.14% | 194.32% | -113.51% | 228.41% | -200.4% | 69.96% | 6405.94% | -117.48% | -47.71% | - |
| FCF per Share | 4.67 | 3.26 | 2.46 | 1.59 | 0.22 | -0.90 | 6.02 | -7.61 | -7.57 | 0.86 | -1.17 | 8.66 | -6.77 | 6.75 | 3.99 | -0.06 | 0.36 | 0.69 |
| FCF Conversion (FCF/Net Income) | -1.67x | -0.62x | 1.16x | -45.95x | -0.39x | -0.21x | 21.83x | -10.64x | -10.56x | 1.35x | -0.82x | 4.59x | -6.56x | 3.80x | -4.39x | 0.28x | 0.66x | 2.04x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.16M |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3K |
Portfolio Credit Quality Erosion
As reported in quarterly financial filings, OFS consistently generates positive operating cash flow despite reporting net losses, with the OCF/NI ratio frequently reaching negative values, such as -1.79 in 2025Q4, highlighting a significant disconnect between accounting profitability and the actual cash collected from the investment portfolio.
The recurring gap between net income and operating cash flow suggests that non-cash valuation adjustments are the primary driver of reported losses rather than immediate cash insolvency. Investors should monitor whether this cash-generative capacity remains sustainable if the underlying portfolio companies continue to face credit stress.
Based on the provided cash flow data, OFS exhibits highly erratic free cash flow generation, swinging from a peak of $21.8M in 2026Q1 to a low of -$14.6M in 2024Q4, which indicates that the firm's ability to fund dividends is subject to significant, unpredictable fluctuations in portfolio performance.
The lack of a stable FCF trajectory complicates the assessment of the firm's long-term dividend sustainability. The volatility appears to be tied to the timing of interest collections and potential realized losses, which may necessitate a more conservative approach to capital distribution.
According to recent SEC filings, OFS experiences substantial quarterly volatility in working capital, including a notable $19.9M outflow in 2024Q4, which suggests that the timing of interest accruals and collections is creating meaningful friction in the firm's ability to maintain consistent cash flow from operations.
These swings may indicate that portfolio companies are experiencing delays in interest payments or that the firm is managing significant accrual-based adjustments. Such instability warrants further investigation into the underlying credit health of the borrowers within the lower-middle-market portfolio.
As reported in financial statements, OFS has maintained consistent dividend payments of $4.6M per quarter for most of the observed period, despite periods where operating cash flow was insufficient to cover these distributions, such as the -$14.6M FCF recorded in 2024Q4.
The commitment to dividend payouts during periods of negative cash flow suggests a potential reliance on balance sheet liquidity or capital recycling to satisfy shareholder expectations. This strategy appears increasingly risky if the portfolio's cash-generating capacity does not stabilize in the near term.
Quick answers to the most common questions about buying OFS stock.
OFS Capital Corporation (OFS) generated $20.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
OFS Capital Corporation (OFS) generated $43.6M 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.
OFS Capital Corporation (OFS) 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 Capital Corporation (OFS) returned $15.9M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.