Prairie Operating Co. (PROP) Cash Flow Statement

The OCF/NI ratio is highly erratic, ranging from -37.6 in 2025Q4 to 44.8 in 2025Q3, indicating that operating cash flows are not consistently translating into retained earnings. The $301M swing in net income between 2026Q1 and 2026Q2, coupled with OCF of only $52.0M in 2026Q2, suggests that reported profits may not be backed by equivalent cash generation, warranting scrutiny of earnings quality.

The sharp rise in loan loss provisions, reaching $31.8M in 2026Q1, appears to be absorbing a significant portion of operating cash flow, which was $42.3M that quarter. This trend may signal deteriorating asset quality and could pressure future cash flows if provisions continue to outpace recoveries. Investors should monitor whether these provisions translate into actual charge-offs, as the cash flow statement does not separately disclose charge-offs.

With zero dividends and minimal buybacks, the company is not returning capital to shareholders, which may reflect a need to preserve liquidity amid volatile earnings and rising provisions. The absence of capital return, combined with positive operating cash flow in recent quarters, suggests a conservative capital allocation strategy, but also raises questions about management's confidence in future cash flow stability.

While deposit flows are not directly disclosed, the persistent negative net interest income, reaching -$8.0M in 2026Q1, suggests that the cost of funding exceeds earning asset yields. This may indicate that the company is relying on expensive non-core funding sources, which could pressure future cash flows if deposit betas remain high. The lack of detail on deposit composition warrants further investigation into the stability and cost of the funding base.

The rapid escalation in provisions, which reached $31.8M in 2026Q1, appears to be building reserves rather than reflecting realized losses, as no charge-off data is provided. This could indicate either a precautionary build-up or a deterioration in asset quality that has not yet materialized as cash losses. Investors should monitor future charge-off disclosures to assess whether provisions are adequate or excessive.