Dividend sustainability appears highly questionable as the company continues to distribute capital despite reporting negative FFO of -$188.7 million in 2026Q1, suggesting a reliance on external funding sources.
| 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 |
|---|
| Cash from Operations | 873.42M | -203.48M | -51.22M | 33.07M | 359.15M | -34.44M | 68.89M | -52.4M | 140.3M | 352.49M | 14.76M | -23.08M | -4.69M | 8.13M | 2.63M |
| Operating CF Growth % | 120392.9% | -297.27% | -254.89% | -90.79% | 1142.79% | -149.99% | 231.48% | -137.35% | -60.2% | 2287.65% | 163.96% | -392.15% | -157.68% | 209.39% | - |
| Operating CF / Revenue % | 497.69% | -40.74% | -187.25% | 8.48% | 93.69% | -11.62% | 17.91% | -26.48% | 88.65% | 230.66% | 11.82% | -39.81% | -9.44% | 50.03% | 10.75% |
| Net Income | -510.15M | -224.38M | -418.49M | 341M | 203.16M | 159.97M | 46.07M | 75.06M | 61.46M | 45.81M | 55.56M | -1.42M | 29.85M | 7.55M | 20.27M |
| Depreciation & Amortization | -3.92M | 51.77M | 19.77M | 20.23M | 25.07M | 16.01M | 0 | 6.25M | 15.47M | 14.53M | 1.48M | 933.81K | 154.01K | 88.46M | -893.79M |
| Stock-Based Compensation | 7.44M | 0 | 0 | 0 | 7.5M | 6.92M | 5.3M | 1.48M | 447K | 290K | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.47B | 125.05M | 482.28M | -195.18M | 176.78M | -184.09M | -53.25M | -113.75M | 171.49M | 379.79M | -16.69M | -31.31M | -38.07M | -87.86M | 876.18M |
| Working Capital Changes | -104.52M | -155.93M | -134.79M | -132.97M | -28.29M | -17.25M | 70.78M | -15.17M | -12.58M | 20.28M | -25.59M | 8.72M | 3.38M | -18.41K | -27.23K |
| Cash from Investing | 2.04B | 2.28B | 1.86B | 1.04B | -1.56B | -1.72B | -59.44M | -1.21B | -580.76M | -242.23M | 384.69M | 45.94M | -31.48M | -386.81M | -8.86M |
| Acquisitions (Net) | -16.02M | 16.02M | -44.37M | 38.71M | 123.71M | -11.54M | 0 | -5M | 20.88M | 0 | 34.93M | 1.68M | -49.54M | -1.61M | 0 |
| Purchase of Investments | 5.03M | -30.29M | -34.65M | -37.79M | -128.24M | -59.71M | -37.92M | -26.66M | 362K | -54.32M | -17.39M | -23.39M | -59.96M | -406.26M | -104.3M |
| Sale of Investments | -4.23M | 105.8M | 80.83M | 93.63M | 214.22M | 2.02B | 12.49M | 15.58M | 799.06M | 436.44M | 303.88M | 50.63M | 141.9M | 338.1M | 97.49M |
| Other Investing | 2.06B | 2.19B | 1.86B | 942.95M | -1.77B | 41.75M | -34.01M | -1.2B | -1.4B | -624.36M | -2.67M | 2.77M | -9.82M | -318.65M | -2.05M |
| Cash from Financing | -2.95B | -2.04B | -1.88B | -1.09B | 1.17B | 1.88B | 63.05M | 1.3B | 444.48M | -106.4M | -381.46M | -35.85M | 12.9M | 416.68M | 18.96M |
| Dividends Paid | -72.9M | -113.32M | -206.06M | -215.09M | -187.83M | -111.92M | -56.88M | -63.33M | -51.32M | -48.26M | -46.87M | -14.24M | -19.13M | -10.41M | -10.6M |
| Common Dividends | -49.06M | 0 | 0 | 0 | -187.83M | -111.92M | -56.88M | -63.33M | -51.32M | -48.26M | -46.87M | -35.61M | -17.32M | -10.41M | -10.59M |
| Debt Issuance (Net) | -2M | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 0 |
| Share Repurchases | -50.21M | -67.6M | -82.25M | -18.11M | -36.97M | -98.24M | -9.23M | 0 | -103K | 0 | 0 | 0 | 0 | -148.38K | -14.18M |
| Other Financing | -1.8B | -6.43M | -41.89M | 35.27M | -166.26M | -63.4M | -14.47M | -29.39M | 63.56M | -56K | -1.56M | -2.7M | 963.58M | 16.54M | 18.5M |
| Net Change in Cash | -6.54M | 73.22M | 5.77M | -50.37M | -26.3M | 122.85M | 72.5M | 33.01M | 4.02M | 3.86M | 18M | -13M | -23.27M | 38M | 12.73M |
| Exchange Rate Effect | 25.57M | 36.26M | 75.72M | -35.86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 249.53M | 174.36M | 168.59M | 218.97M | 323.33M | 200.48M | 127.98M | 94.97M | 90.95M | 59.57M | 41.57M | 33.79M | 57.06M | 19.06M | 6.33M |
| Cash at End | 241.2M | 247.59M | 174.36M | 168.59M | 297.03M | 323.33M | 200.48M | 127.98M | 94.97M | 63.42M | 59.57M | 20.79M | 33.79M | 57.06M | 19.06M |
| Free Cash Flow | 873.42M | -203.48M | -51.22M | 33.07M | 359.15M | -3.74B | 68.89M | -53.29M | 139.94M | 352.49M | 80.71M | -8.84M | -58.75M | 8.13M | 2.63M |
| FCF Growth % | 13755.66% | -297.27% | -254.89% | -90.79% | 109.6% | -5527.62% | 229.28% | -138.08% | -60.3% | 336.76% | 1013.23% | 84.96% | -822.52% | 209.39% | - |
| FCF / Revenue % | 497.69% | -40.74% | -187.25% | 8.48% | 93.69% | -1261.83% | 17.91% | -26.93% | 88.42% | 230.66% | 64.6% | -15.24% | -118.26% | 50.03% | 10.75% |
Dividend coverage and liquidity
According to the provided financial data, the disconnect between GAAP operating cash flow and FFO has widened significantly, with FFO reaching negative $188.7 million in 2026Q1 while operating cash flow remained positive, suggesting that non-cash adjustments and acquisition-related accounting are heavily distorting the company's reported performance.
The extreme volatility in the FFO-to-Net Income relationship suggests that standard REIT metrics are currently failing to capture the underlying economic reality of the firm. Investors should monitor whether this divergence is a temporary byproduct of recent M&A integration or a structural issue where cash earnings are consistently failing to materialize as reported.
Based on the reported figures, the absence of consistent AFFO data since 2023Q4 makes it impossible to verify dividend coverage, yet the persistent negative FFO trends suggest that distributions are likely being funded through capital recycling or balance sheet leverage rather than recurring operational cash flow generation.
The lack of transparent AFFO reporting is a significant red flag for income-focused investors. Without a clear line of sight into the recurring cash available for distribution, the current dividend policy appears to be disconnected from the company's actual ability to generate sustainable, non-dilutive cash flow.
As indicated by the financial statements, the consistent gap between net losses and FFO suggests that substantial non-cash charges, likely related to CECL reserves and acquisition-related impairments, are obscuring the true run-rate profitability of the platform, making it difficult to assess the company's actual cash-generating capacity.
The recurring net losses, such as the $201.7 million loss in 2026Q1, imply that the company is struggling to absorb the costs associated with its aggressive growth strategy. This suggests that the reported earnings are heavily influenced by accounting estimates that may not reflect the actual cash-on-cash returns of the underlying loan portfolio.
Financial data suggests that Ready Capital's reliance on external funding is elevated, as the company has continued to pay dividends despite reporting negative FFO and volatile operating cash flows, which may indicate a structural dependency on debt or equity issuance to maintain its current distribution levels.
The company's capital allocation strategy appears to prioritize growth and dividend maintenance over organic cash flow self-sufficiency. Investors should monitor whether the firm's access to capital markets remains robust, as any tightening in financing conditions could immediately threaten the sustainability of the current dividend and operational platform.
Quick answers to the most common questions about buying RC stock.
Ready Capital Corporation (RC) generated $-203.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ready Capital Corporation (RC) reported negative free cash flow of $203.5M in 2025, indicating capital requirements exceeded cash from operations.
Ready Capital Corporation (RC) 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, Ready Capital Corporation (RC) returned $113.3M to shareholders via cash dividends and spent $67.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.