Cash conversion efficiency remains highly erratic, with an operating cash flow to net income ratio of negative 13.36x in 2026Q2, indicating a profound disconnect between accounting earnings and actual cash generation.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 |
|---|
| Cash from Operations | 161.13M | 66.12M | -172.4M | 222.94M | -17.29M | 7.91M | -129.6M | -81.12M | 66.94M | 69.25M | 157.71M | 3.02M | -172.54M | 40.32M | -115.34M | -137.81M | -127.05M | -42.36M | -390.75M | -37.87M |
| Operating CF Margin % | - | 79.59% | -166.25% | 1158.68% | -72.66% | 4.08% | -580.92% | -135.07% | 90.83% | 73.27% | 319.76% | 13.8% | -118.61% | 34.8% | -151.24% | -862.78% | -596.73% | -105.43% | 1065.13% | 281.33% |
| Operating CF Growth % | 1024.65% | 138.35% | -177.33% | 1389.2% | -318.68% | 106.1% | -59.75% | -221.19% | -3.33% | -56.09% | 5127.78% | 101.75% | -527.87% | 134.96% | 16.31% | -8.47% | -199.96% | 89.16% | -931.78% | - |
| Net Income | 13.81M | 0 | 48.85M | -33.81M | -24.74M | 166.62M | -15.97M | 15.92M | 47.71M | 61.71M | 18.74M | -10.25M | 110.98M | 91.78M | 63.35M | 10.26M | 16.54M | 35.8M | -40.7M | -16.7M |
| Depreciation & Amortization | 56.91M | -42.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -47.39B | 46.82B | 23.92M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 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 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 11.67M | 79.29M | -219.52M | 129.94M | 26.71M | -153.31M | -117.2M | -92.35M | 19.42M | 7.86M | 141.32M | 2.03M | -227.67M | -109.68M | -171.57M | -150.97M | -159.3M | 47.28B | -46.9B | -314.94M |
| Working Capital Changes | 87.7M | 29.46M | -1.73M | 126.8M | -19.26M | -5.39M | 3.57M | -4.7M | -194.7K | -322.02K | -2.35M | 11.23M | -55.85M | 58.22M | -7.13M | 2.9M | 15.71M | 27.28M | -268.91M | 269.84M |
| Change in Receivables | 2.01M | 783K | 993K | 23.61M | -16.06M | -13.05M | -173K | 1.38M | -1.7M | 1.13M | 557.34K | 6.11M | -2.81M | 4.03M | 8.19M | 19.07M | -34.8M | 0 | 0 | -319.77M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 84M | 28.61M | -3.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 274.61M |
| Cash from Investing | -46.53M | 38.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -84.74B | -136.67B | 0 |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 0% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 1.2B | 1.29B | 1.33B | 1.1B | 1.23B | 1.26B | 318.34M | 233.45M | 148.74M | 114.55M | 125.02M | 106.83M | 37.69M | 32.97M | 990.48M | 827.55M | 664.72M | 469.76M | 372.15M | 582.03M |
| Other Investing | -44.38M | -26.25M | 219.06M | -43.45M | 22.14M | 6.89M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -102.3M | -102.91M | 183.43M | -239.16M | 52.04M | -13.42M | 95.78M | 121.08M | -85.58M | -107.59M | -132.67M | -20.13M | 180.9M | 10.56M | 51.29M | 207.6M | 95.62M | 35.35M | 173.04M | 295.83M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 0 | 0 | 552K | 0 | -13.25M | 0 | 0 | -14.47M | -15.01M | 0 | -12.18M | -17.9M | 98.86M | 7.57M | 206.57M | 114.08M | 107.71M | 34.4M | 0 | 315.38M |
| Dividends Paid | -62.68M | -67.91M | -65.9M | -45.66M | -34.85M | -32.18M | -44.25M | -48.81M | -50.97M | -65.38M | -80.31M | -83.87M | -73.46M | -68.5M | -51.66M | -39.58M | -27.92M | -20.23M | -18.96M | -6.97M |
| Share Repurchases | 0 | 0 | 0 | 0 | -13.25M | 0 | 0 | -14.47M | -15.01M | 0 | -12.18M | -17.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -250K | 0 | 0 | 0 | 0 | 0 | 0 | -1.51M | -1.15M | 0 | -4.22M | -265.09K | -7.72M | -10.19M | -6.67M | -1.92M | 0 | -22.57M |
| Net Change in Cash | 12.22M | 1.92M | 11.09M | -16M | 34.42M | -5.45M | -33.71M | 40.01M | -18.7M | -37.41M | 25.99M | -16.9M | 8.08M | 50.88M | -64.05M | 69.79M | -31.43M | -7M | -217.71M | 257.96M |
| Free Cash Flow | 161.13M | 66.12M | -172.4M | 222.94M | -17.29M | 7.91M | -129.6M | -81.12M | 66.94M | 69.25M | 157.71M | 3.02M | -172.54M | 40.32M | -115.34M | -137.81M | -127.05M | -42.36M | -390.75M | -37.87M |
| FCF Margin % | 195.83% | 79.59% | -166.25% | 1158.68% | -72.66% | 4.08% | -580.92% | -135.07% | 90.83% | 73.27% | 319.76% | 13.8% | -118.61% | 34.8% | -151.24% | -862.78% | -596.73% | -105.43% | 1065.13% | 281.33% |
| FCF Growth % | 15.44% | 138.35% | -177.33% | 1389.2% | -318.68% | 106.1% | -59.75% | -221.19% | -3.33% | -56.09% | 5127.78% | 101.75% | -527.87% | 134.96% | 16.31% | -8.47% | -199.96% | 89.16% | -931.78% | - |
| FCF per Share | 2.52 | 1.01 | -2.64 | 3.42 | -0.27 | 0.12 | -1.93 | -1.20 | 0.95 | 0.97 | 2.20 | 0.04 | -2.57 | 0.61 | -2.18 | -3.27 | -4.30 | -2.01 | -18.55 | -1.81 |
| FCF Conversion (FCF/Net Income) | 11.67x | 2.02x | -3.53x | -6.59x | 0.70x | 0.05x | 8.12x | -5.09x | 1.40x | 1.12x | 8.42x | -0.29x | -1.55x | 0.44x | -1.82x | -13.43x | -7.68x | -1.18x | 9.60x | 2.27x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10.64M | 4.15M | 3.16M | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 123.82K | 98.29K | 0 | 0 | 0 |
Portfolio Credit Quality Erosion
As reported in recent financial statements, PNNT's operating cash flow to net income ratio has fluctuated wildly, reaching a negative 13.36x in 2026Q2, which highlights a profound disconnect between accounting profitability and the actual cash-generating capacity of the firm's underlying investment portfolio.
The extreme variance between net income and operating cash flow suggests that non-cash valuation adjustments are heavily influencing reported earnings. Investors should monitor this divergence, as it implies that the firm's reported profitability may not be supported by recurring cash inflows from its debt investments.
Based on the provided cash flow data, PNNT's free cash flow trajectory has been highly erratic, swinging from a negative $155.1M in 2024Q1 to a positive $31.1M in 2026Q2, indicating that the firm's ability to fund distributions is subject to significant and unpredictable cash flow swings.
The inconsistency in free cash flow generation suggests that the firm's dividend policy may be disconnected from its operational reality. This volatility warrants further investigation into whether the firm is relying on capital recycling or asset sales to maintain its payout levels.
According to the firm's quarterly cash flow statements, working capital changes have been a primary driver of cash flow variance, with a notable $56.3M inflow in 2026Q1, suggesting that timing differences in interest collections or portfolio adjustments are creating significant noise in the cash flow statement.
These large, non-operational working capital swings appear to mask the underlying trend of the core business. Analysts should look past these fluctuations to determine if the firm is effectively collecting interest income or if it is experiencing delays in portfolio company payments.
As indicated by the historical cash flow data, PNNT has consistently paid out dividends despite periods of negative operating cash flow, such as the $155.1M outflow in 2024Q1, which suggests that the firm may be utilizing balance sheet liquidity to sustain its shareholder distribution commitments.
The persistence of dividend payments during periods of cash burn raises concerns regarding the long-term preservation of net asset value. Investors should monitor whether this capital allocation strategy is sustainable without further diluting the equity base or increasing leverage.
Quick answers to the most common questions about buying PNNT stock.
PennantPark Investment Corporation (PNNT) generated $66.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
PennantPark Investment Corporation (PNNT) generated $66.1M 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.
PennantPark Investment Corporation (PNNT) 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, PennantPark Investment Corporation (PNNT) returned $67.9M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.