Operating cash flow exhibits significant instability, including a $2.5 billion outflow in 2026Q1, suggesting that liquidity is heavily impacted by collateral calls and financing requirements.
| 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 |
|---|
| Cash from Operations | -9.15B | -7.21B | -2.7B | 1.34B | 1.78B | -2.82B | 671.66M | -2.99B | -573.75M | 223.13M | -621.54M | -863.19M | -366.04M | -242.83M | -820.4M | -275.13M | -22.79M |
| Operating CF Growth % | -1388.26% | -166.87% | -301.68% | -24.9% | 163.29% | -519.82% | 122.5% | -420.27% | -357.14% | 135.9% | 27.99% | -135.82% | -50.74% | 70.4% | -198.19% | -1107.3% | - |
| Operating CF / Revenue % | -955.96% | -701.36% | -535.65% | 184.63% | -1225.06% | -372.25% | 47.69% | -313.17% | -139.99% | 49.7% | -199.85% | -295.18% | -89.69% | -57.18% | -249.77% | -303.2% | -64.44% |
| Net Income | 132.35M | 127.87M | 160.2M | 199.65M | -73.29M | 56.85M | 52.37M | 226.36M | 152.8M | 117.75M | 75.81M | 90.1M | 194.54M | 200.19M | 138.25M | 64.44M | 24.48M |
| Depreciation & Amortization | 4.83M | 0 | 0 | 110K | 6.75M | 0 | 0 | 383.73M | 94.33M | 81.62M | 65.65M | 43.98M | 31.91M | 26.24M | 11.73M | 48K | 0 |
| Stock-Based Compensation | 2.75M | 3.87M | -1.85M | 5.21M | 4.31M | 2.42M | 2.29M | 5.53M | 5.32M | 4.9M | 5.75M | 6.35M | 5.75M | 5.45M | 5.07M | 3.74M | 1.81M |
| Other Non-Cash Items | -9.05B | -7.3B | -2.11B | 992.61M | 1.81B | -2.38B | -3.83M | -3.31B | -712.94M | 112.12M | -676.15M | -876.68M | -488.45M | -394.67M | -728.13M | -223.25M | -36.72M |
| Working Capital Changes | -248.45M | -46.72M | -753.08M | 142.59M | 41.44M | -497.4M | 620.82M | 105.75M | 13.62M | -11.64M | -26.95M | -82.95M | -77.88M | -53.8M | 35.63M | -27.79M | -12.36M |
| Cash from Investing | 1.65B | 429.67M | 1.36B | -21.73M | -1.87B | 1.09B | -15.37M | -704.68M | -1.42B | 681.68M | 193.95M | 11.5M | 27.97M | -1.03B | -111.44M | -277.79M | -167.33M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | -28.82M | 0 | 0 | 0 | 79K | 2.74M | 2.33M | 0 | 1.42M | 23K | 0 | 0 |
| Purchase of Investments | -922.45M | -1.03B | 0 | -3.17B | -3.8B | -2.3B | -2.38B | -1.27B | -1.87B | -252.59M | -852.91M | -363.19M | -339.8M | -391.97M | -120.91M | -101.74M | -91.14M |
| Sale of Investments | 451.72M | 756.65M | 0 | 3.11B | 1.38B | 1.83B | 3.18B | 1.16B | 220.61M | 286.26M | 335.55M | 241.07M | 126.04M | 261.85M | 239.17M | 67.66M | 272.19M |
| Other Investing | 2.13B | 702.79M | 1.36B | 37.81M | 551.2M | 1.56B | -822.28M | -595.22M | 227.29M | 648.01M | 711.31M | 133.62M | 241.73M | -898.88M | -229.7M | -243.71M | -348.38M |
| Cash from Financing | 6.25B | 6.72B | 1.4B | -1.15B | 135.89M | 1.73B | -702.64M | 3.73B | 1.98B | -861.63M | 403.96M | 833.41M | 387.04M | 1.27B | 951.01M | 522.07M | 235.51M |
| Dividends Paid | -135.89M | -181.19M | -181.12M | -182.44M | -215.37M | -214.12M | -176.53M | -165.94M | -140.54M | -140.2M | -131.56M | -173.02M | -174.43M | -147.57M | -94.82M | -39.55M | -12.96M |
| Common Dividends | -104.53M | -139.37M | -139.3M | -140.62M | -173.55M | -183.97M | -151.58M | -141M | -115.6M | -126.14M | -131.56M | -173.02M | -174.43M | -147.57M | -94.82M | -39.55M | -12.96M |
| Debt Issuance (Net) | 3M | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 0 |
| Share Repurchases | 0 | 0 | 0 | -28.49M | -87.99M | -56.85M | -37.27M | 0 | -10.72M | -91.2M | -98.37M | -16.34M | 0 | 0 | 0 | 0 | -150K |
| Other Financing | 1.8B | 1.5B | 759.45M | -1.01B | -70.07M | 245.78M | -366.3M | 1.82B | 1.57B | 285.98M | 486.11M | 538.57M | 570.04M | 760.92M | -1.36M | 14.29M | 248.47M |
| Net Change in Cash | 24.03M | -65.72M | 56.61M | 169.22M | 52.88M | 1.28M | -46.35M | 44.21M | -17.8M | 43.17M | -23.63M | -18.28M | 48.98M | -6.34M | 19.17M | -30.86M | 45.39M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 0 | 337.69M | 281.08M | 111.87M | 58.98M | 57.7M | 104.06M | 59.84M | 77.65M | 34.48M | 58.11M | 76.39M | 27.41M | 33.76M | 14.59M | 45.45M | 54K |
| Cash at End | 0 | 271.97M | 337.69M | 281.08M | 111.87M | 58.98M | 57.7M | 104.06M | 59.84M | 77.65M | 34.48M | 58.11M | 76.39M | 27.41M | 33.76M | 14.59M | 45.45M |
| Free Cash Flow | -9.15B | -7.21B | -2.73B | 1.33B | 1.78B | -2.79B | 671.66M | -2.99B | -573.75M | 223.05M | -624.28M | -865.52M | -366.04M | -244.25M | -820.42M | -275.13M | -22.79M |
| FCF Growth % | -209.32% | -164.01% | -306.12% | -25.72% | 163.94% | -515.53% | 122.5% | -420.27% | -357.23% | 135.73% | 27.87% | -136.46% | -49.86% | 70.23% | -198.19% | -1107.3% | - |
| FCF / Revenue % | -955.96% | -701.36% | -541.44% | 182.61% | -1225.06% | -368.44% | 47.69% | -313.17% | -139.99% | 49.68% | -200.73% | -295.98% | -89.69% | -57.52% | -249.78% | -303.2% | -64.44% |
Interest rate volatility exposure
As reported in financial statements, PMTU exhibits a significant disconnect between GAAP operating cash flow and FFO, with the former frequently showing multi-billion dollar outflows while FFO remains positive, suggesting that standard operating cash metrics are heavily distorted by the company's mortgage-related asset financing and hedging activities.
The extreme volatility in operating cash flow, which swung from positive $533 million in 2023Q4 to a negative $2.5 billion in 2026Q1, indicates that GAAP cash flow is an unreliable proxy for operational health. Investors should monitor the FFO/NI ratio, which frequently reaches triple-digit negative values, confirming that non-cash fair value adjustments are the primary driver of reported earnings rather than recurring cash generation.
Based on the limited AFFO data provided, PMTU's dividend coverage appears inconsistent, with the payout ratio fluctuating between 0.67 and 1.15, indicating that the company may occasionally rely on capital recycling or balance sheet liquidity to sustain distributions rather than consistent, recurring distributable cash flow.
The lack of consistent AFFO reporting across the ten-quarter period makes it difficult to ascertain a sustainable dividend policy. When AFFO is available, the margin of safety appears thin, suggesting that any sustained compression in net interest spreads could force management to re-evaluate the current dividend payout level.
According to historical data, the reliance on fair value marks for MSRs and derivatives creates a persistent disconnect between reported net income and actual cash flow, as evidenced by the erratic FFO/NI ratios that frequently deviate from standard operational expectations for a mortgage-focused investment vehicle.
The company's earnings are structurally tethered to mark-to-market valuations of its servicing rights, which are inherently volatile and non-cash in nature. This accounting reality implies that reported net income provides little insight into the actual liquidity available for reinvestment or shareholder returns, necessitating a focus on EAD metrics over GAAP figures.
Analysis of the cash flow statement suggests that PMTU's reliance on short-term repo financing creates significant off-balance-sheet liquidity pressure, as evidenced by the massive swings in operating cash flow that likely reflect collateral calls and margin requirements rather than core business operational performance.
The extreme negative operating cash flow figures in recent quarters warrant further investigation into the company's collateral management practices. It appears that the firm's cash position is highly sensitive to interest rate shocks, which may necessitate rapid liquidity deployment to maintain financing lines, potentially constraining the capital available for new asset acquisition.
Quick answers to the most common questions about buying PMTU stock.
PennyMac Mortgage Investment Trust (PMTU) generated $-7213.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
PennyMac Mortgage Investment Trust (PMTU) reported negative free cash flow of $7.21B in 2025, indicating capital requirements exceeded cash from operations.
PennyMac Mortgage Investment Trust (PMTU) 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, PennyMac Mortgage Investment Trust (PMTU) returned $181.2M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.