Cash conversion efficiency has deteriorated significantly, evidenced by an operating cash flow to net income ratio of 0.00 and a free cash flow margin of 0.0% 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 | 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 | 1.74B | 1.87B | 1.68B | 2.2B | 668.47M | 1B | 1.78B | 1.08B | 1.45B | 663.08M | 68.27M | -348.13M | 309.25M | 881.14M | 760.14M | 17.22M | 580.26M | 738.85M | 1.22B | 1.22B | -267.53M | 18.7M | -698.28M | -301.85M | 162.2M | -418.8M | 23.32M | 11.5M | -131.3M | -45.2M | -73.1M |
| Operating CF Margin % | - | 10.81% | 9.37% | 13.68% | 4.18% | 7.31% | 16.17% | 10.55% | 14.23% | 7.73% | 0.89% | -5.82% | 5.31% | 15.51% | 15.77% | 0.42% | 12.7% | 18.09% | 19.49% | 13.15% | -1.87% | 0.13% | -6.06% | -3.42% | 2.18% | -7.77% | 0.55% | 0.31% | -4.58% | -1.79% | -3.07% |
| Operating CF Growth % | -46.36% | 11.33% | -23.49% | 228.63% | -33.42% | -43.73% | 65.59% | -25.67% | 118.64% | 871.26% | 119.61% | -212.57% | -64.9% | 15.92% | 4313.77% | -97.03% | -21.47% | -39.46% | 0.18% | 555.38% | -1530.31% | 102.68% | -131.34% | -286.1% | 138.73% | -1895.71% | 102.8% | 108.76% | -190.49% | 38.17% | -90.36% |
| Net Income | 2.04B | 2.22B | 3.08B | 2.6B | 2.62B | 1.95B | 1.41B | 1.02B | 1.02B | 447.22M | 602.7M | 494.09M | 474.34M | 2.62B | 206.15M | -210.39M | -1.1B | -1.18B | -1.47B | -2.26B | 687.47M | 1.49B | 986.54M | 624.63M | 453.64M | 301.39M | 188.51M | 178.2M | 102.1M | 52.8M | 179.6M |
| Depreciation & Amortization | 87.86M | 112.51M | 89.16M | 80.82M | 70.92M | 69.95M | 66.08M | 54M | 49.43M | 51M | 54.01M | 46.22M | 39.86M | 31.59M | 30.03M | 32.1M | 45.66M | 54.25M | 73.98M | 83.85M | 83.67M | 61.51M | 46.3M | 40.16M | 29.78M | 32.88M | 14.23M | 13.5M | 5M | 7.8M | 6.7M |
| Stock-Based Compensation | 36.72M | 54.82M | 54.69M | 48.2M | 42.99M | 36.74M | 32.84M | 28.37M | 28.29M | 33.68M | 22.23M | 24.75M | 29.29M | 30.48M | 22.9M | 16.46M | 32.08M | 46.34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -9.62M | 10.78M | 151.1M | 104.27M | 106.58M | 59.17M | 137.6M | 105.44M | 362.78M | 422.31M | 334.79M | 311.7M | 223.77M | -2.1B | 52.7M | 460.35M | 912.26M | 37.59M | 105.91M | 73.16M | -157.83M | 39.51M | -25.4M | 19.62M | 39.23M | -8.18M | 652K | 1.6M | 24.2M | 18.3M | -47.8M |
| Other Non-Cash Items | 180.36M | 205.48M | -20.53M | 41.7M | 66.56M | 60.27M | 39.38M | 33.18M | 95.83M | 190.12M | 21.63M | 6.6M | 17.19M | 46.9M | 63.05M | 297.94M | 923.8M | 1.57B | 1.54B | 2.68B | 559.85M | 68.72M | 38.16M | -4.9M | -1.13M | 299K | 0 | -1.7M | -41K | -2.9M | -25.3M |
| Working Capital Changes | -254.41M | -731.07M | -1.68B | -680.6M | -2.24B | -1.17B | 101.6M | -161.69M | -108.61M | -481.26M | -967.08M | -1.24B | -483.86M | 248.48M | 438.02M | -113.42M | 681.11M | 216.72M | 936.34M | 636.89M | -1.44B | -1.64B | -1.74B | -1.01B | -360.46M | -744.89M | -180.07M | -178.4M | -233.4M | -78.5M | -186.3M |
| Change in Receivables | 29.13M | 15.92M | -113.33M | 160.93M | 266.31M | -382.81M | -56.73M | -48.26M | 107.33M | -33.01M | -99.53M | -104.61M | -53.73M | 28.45M | -60.83M | -82.11M | -7.99M | -552.79M | -110.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 56.83M | -213.37M | -787.48M | -354.02M | -2.26B | -1.27B | 2.99M | -237.74M | -50.36M | -569.03M | -897.09M | -927.77M | -346.6M | 265.06M | 455.22M | 54.89M | -43.18M | 396.59M | 1.11B | 622.36M | -1.15B | -1.69B | -2.07B | -1.41B | -503.14M | -648.27M | -210.03M | -258.2M | -224.8M | -124.7M | -157.5M |
| Change in Payables | -118.63M | -239.71M | -286.46M | -196.88M | -104.76M | 640.68M | 201.65M | 140.98M | -101.4M | 65.68M | 75.26M | -23.9M | -38.65M | -10.23M | 20.8M | -189.44M | -187.51M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -40.72M | -80.42M | -94.48M | -129.09M | -171.74M | -124.13M | -107.95M | -226.23M | -41.94M | -50.24M | -471.19M | -30.85M | -67.62M | -45.98M | 9.71M | -93.63M | -19.45M | 1.69B | -55.94M | -221.42M | -86.89M | -25.28M | -198.56M | -34.1M | 4.63M | 9.82M | -5.18M | 2.5M | -44.7M | 68M | 250.6M |
| Capital Expenditures | -93.14M | -122.72M | -118.55M | -92.2M | -112.66M | -72.78M | -58.35M | -58.12M | -59.04M | -32.05M | -39.3M | -45.44M | -48.79M | -28.9M | -13.94M | -21.24M | -15.18M | -39.25M | -18.88M | -70.12M | -98.63M | -88.89M | -75.22M | -39.12M | 0 | 0 | 0 | -24.7M | -158.8M | 0 | 0 |
| CapEx % of Revenue | 0.55% | 0.71% | 0.66% | 0.57% | 0.7% | 0.53% | 0.53% | 0.57% | 0.58% | 0.37% | 0.51% | 0.76% | 0.84% | 0.51% | 0.29% | 0.51% | 0.33% | 0.96% | 0.3% | 0.76% | 0.69% | 0.6% | 0.65% | 0.44% | - | - | - | 0.66% | 5.54% | - | - |
| Acquisitions | -9.06M | -15.74M | -16.04M | -23.4M | -75.1M | -111.99M | -84M | -163.72M | -1M | -23.04M | -445M | -454K | -82.43M | 0 | -16.46M | -4.6M | -22.89M | 1.75B | 0 | 0 | -16.56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 61.48M | 58.04M | 40.11M | -13.49M | 16.02M | 60.64M | 34.41M | -4.39M | 19.56M | 4.85M | 13.1M | 11.33M | 8.61M | -17.08M | 40.1M | -63.51M | 28.9M | 10.66M | 5.31M | 6.04M | 19.09M | 94.78M | -123.34M | 34.8M | 35.81M | 31.04M | -5.18M | -5.7M | 138.4M | 14.6M | 36.7M |
| Cash from Financing | -963.74M | -1.44B | -1.78B | -1.31B | -1.24B | -1.68B | -295.62M | -733.56M | -580.27M | -1.03B | 350.74M | -159.72M | -529.09M | -659.59M | -448.16M | -323.91M | -948.4M | -2.23B | -567.65M | -487.64M | -96.18M | 700.4M | 809.63M | 128.86M | 374.2M | 297.13M | 114.05M | -87.6M | 54.1M | 31.9M | -280.6M |
| Debt Issued (Net) | 83.67M | -19.08M | -328.55M | -210.37M | -44.27M | -622.59M | 19.98M | -331.83M | -172.17M | -28.56M | 1.07B | 386.53M | -216.05M | -512.96M | -480M | -321.13M | -954.31M | -2.01B | -525.82M | -448.78M | 51.95M | 845.94M | 805.79M | 121.29M | 353.49M | 291.2M | 157.8M | -81.8M | 23.7M | 155.1M | -179.1M |
| Equity Issued (Net) | -900.91M | -1.22B | -1.22B | -1.01B | -1.09B | -908.14M | -185.53M | -285.78M | -302.48M | -916.33M | -603.21M | -442.74M | -253.02M | -127.66M | -961K | -2.84M | 4.64M | -2.6M | -717K | 1.62M | -113.94M | -112M | 29.27M | 21.19M | 30.25M | 13.54M | -37.6M | 1.6M | 7M | -74.7M | -99.6M |
| Dividends Paid | -130.91M | -176.68M | -167.71M | -142.46M | -144.12M | -147.83M | -130.18M | -122.35M | -104.02M | -112.75M | -124.67M | -115.96M | -75.65M | -38.38M | 0 | 0 | 0 | 0 | -41.12M | -41M | -40.88M | -33.55M | -25.43M | -13.61M | -9.77M | -8.11M | -6.58M | -6.9M | -6.5M | -5.2M | -6M |
| Share Repurchases | -900.88M | -1.22B | -1.22B | -1.01B | -1.09B | -908.14M | -185.53M | -285.78M | -302.48M | -916.33M | -603.21M | -442.74M | -253.02M | -127.66M | -961K | -2.84M | -4.02M | -7.38M | -5.26M | -6.25M | -122.3M | -143.25M | -14.69M | -18.3M | -4.34M | 0 | -66.38M | 0 | 0 | -74.7M | -99.6M |
| Other Financing | -15.58M | -15.63M | -66.97M | 51.78M | 41.65M | 11K | 111K | 6.4M | -1.61M | 27.72M | 5.84M | 10.54M | 15.63M | 19.41M | 32.81M | 57K | 0 | 0 | 0 | 523K | 6.7M | 0 | 0 | 0 | 233K | 0 | 433K | -500K | 29.9M | -43.3M | 4.1M |
| Net Change in Cash | 732.73M | 355.1M | -195.5M | 754.62M | -739.01M | -798.67M | 1.38B | 117.76M | 827.53M | -417.08M | -52.19M | -538.7M | -287.47M | 175.57M | 321.69M | -400.32M | -387.61M | 202.97M | 594.95M | 509.02M | -450.98M | 694.15M | -87.25M | -209.08M | 541.02M | -111.84M | 132.19M | -73.6M | 54.1M | 31.9M | -280.6M |
| Free Cash Flow | 1.64B | 1.75B | 1.56B | 2.1B | 555.8M | 931.24M | 1.73B | 1.02B | 1.39B | 631.03M | 28.98M | -393.57M | 260.46M | 852.24M | 746.2M | -4.02M | 565.08M | 699.6M | 1.2B | 1.15B | -366.15M | -70.18M | -773.5M | -340.97M | 162.2M | -418.8M | 23.32M | -13.2M | -290.1M | -45.2M | -73.1M |
| FCF Margin % | 9.77% | 10.1% | 8.7% | 13.1% | 3.47% | 6.78% | 15.64% | 9.98% | 13.65% | 7.36% | 0.38% | -6.58% | 4.47% | 15.01% | 15.48% | -0.1% | 12.37% | 17.13% | 19.18% | 12.39% | -2.57% | -0.48% | -6.72% | -3.87% | 2.18% | -7.77% | 0.55% | -0.35% | -10.12% | -1.79% | -3.07% |
| FCF Growth % | 13.29% | 11.92% | -25.77% | 278.65% | -40.32% | -46.05% | 69.31% | -26.7% | 120.39% | 2077.83% | 107.36% | -251.11% | -69.44% | 14.21% | 18680.63% | -100.71% | -19.23% | -41.77% | 4.65% | 413.57% | -421.71% | 90.93% | -126.85% | -310.21% | 138.73% | -1895.71% | 276.68% | 95.45% | -541.81% | 38.17% | -90.36% |
| FCF per Share | 8.48 | 8.76 | 7.45 | 9.52 | 2.35 | 3.58 | 6.41 | 3.70 | 4.88 | 2.06 | 0.08 | -1.09 | 0.70 | 2.20 | 1.94 | -0.01 | 1.48 | 2.22 | 4.74 | 4.55 | -1.42 | -0.27 | -2.97 | -1.36 | 0.66 | -2.08 | 0.14 | -0.08 | -1.65 | -0.26 | -0.36 |
| FCF Conversion (FCF/Net Income) | 0.80x | 0.84x | 0.55x | 0.84x | 0.26x | 0.52x | 1.27x | 1.06x | 1.42x | 1.48x | 0.11x | -0.70x | 0.65x | 0.34x | 3.69x | -0.08x | -0.53x | -0.62x | -0.83x | -0.54x | -0.39x | 0.01x | -0.71x | -0.48x | 0.36x | -1.39x | 0.12x | 0.06x | -1.29x | -0.86x | -0.41x |
| Interest Paid | 13.91M | 17.25M | 26.05M | 10.79M | 1.8M | 10.86M | 3.06M | 5.61M | 557K | 0 | 0 | 0 | 0 | 0 | 0 | 9.62M | 18.37M | 42.36M | 10M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 629.01M | 698.76M | 739.68M | 784.45M | 641.95M | 457.41M | 264.25M | 137.12M | 89.2M | 14.88M | 2.74M | 0 | 1.03M | 373K | 0 | 62.17M | 941.28M | 357.19M | 194.67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical working capital volatility
As reported in recent financial statements, PulteGroup's operating cash flow to net income ratio plummeted to 0.00 in 2026Q1, highlighting a significant divergence between accounting profits and actual cash generation that warrants immediate investigation into the company's underlying accrual-based revenue recognition and inventory management practices.
The stark gap between net income and operating cash flow suggests that the company's earnings are heavily reliant on non-cash adjustments or timing differences in home closings. Investors should monitor whether this disconnect reflects a structural shift in the business model or merely a temporary timing mismatch in the construction cycle.
Based on the provided quarterly data, PulteGroup's free cash flow margin has experienced a sharp decline, reaching 0.0% in 2026Q1 compared to 16.0% in 2025Q4, which indicates that the company's ability to convert operational success into discretionary liquidity is currently under significant pressure.
The volatility in FCF margins suggests that the company's capital-intensive nature makes it highly sensitive to fluctuations in delivery volume. This trend may indicate that the company is struggling to maintain its historical cash conversion efficiency as market demand cools.
According to historical cash flow records, PulteGroup has consistently utilized substantial cash for working capital, with outflows reaching as high as $481.1 million in 2024Q2, suggesting that the company's inventory-heavy business model requires significant ongoing capital investment to sustain its current pace of home deliveries.
The persistent negative working capital changes imply that the company is aggressively deploying cash into land development and construction in anticipation of future sales. This strategy appears to be a double-edged sword, as it ties up liquidity that could otherwise be used for shareholder returns during periods of market uncertainty.
As evidenced by the company's financial filings, PulteGroup has maintained a consistent share repurchase program of approximately $300 million per quarter, even as operating cash flow has shown extreme variability, which may indicate a management preference for returning capital over maintaining a flexible cash buffer.
The commitment to buybacks despite fluctuating cash flows suggests a high degree of confidence in the long-term earnings power of the business. However, investors should monitor whether this capital allocation strategy remains sustainable if the current revenue contraction persists and further constrains internal cash generation.
Quick answers to the most common questions about buying PHM stock.
PulteGroup, Inc. (PHM) generated $1.87B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
PulteGroup, Inc. (PHM) generated $1.75B 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.
PulteGroup, Inc. (PHM) spent $122.7M 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, PulteGroup, Inc. (PHM) returned $176.7M to shareholders via cash dividends and spent $1.22B on share repurchases. This shows the company's commitment to returning capital to its equity investors.