Cash flow quality remains highly volatile, highlighted by a 2026Q1 divergence where operating cash flow reached $590.2 million while FFO remained deeply negative at -$188.7 million.
| 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% |
Portfolio Credit Quality Deterioration
As reported in recent financial statements, Ready Capital's FFO frequently decouples from GAAP operating cash flow, with 2026Q1 showing a $590.2 million OCF against a negative $188.7 million FFO, highlighting the extreme distortion caused by fair value adjustments and non-cash credit loss provisions within the portfolio.
The wide variance between GAAP operating cash flow and FFO suggests that the company's reported cash generation is heavily influenced by working capital swings and non-recurring items rather than core earnings. Investors should monitor this divergence, as it indicates that GAAP metrics may be providing a misleading picture of the company's actual ability to generate sustainable cash from its lending operations.
Based on the provided financial data, the company has largely ceased reporting AFFO, and the historical dividend payout ratio of 3.77x in 2023Q4 suggests that distributions have frequently exceeded the actual cash available for shareholders, raising significant questions regarding the long-term sustainability of the current dividend policy.
The absence of consistent AFFO reporting in recent periods makes it difficult to assess the true margin of safety for dividend distributions. Given the persistent negative net income and the volatility in FFO, it appears that the dividend may be supported by capital recycling or balance sheet liquidity rather than recurring operational cash flow.
According to historical filings, the company's net income is consistently undermined by non-cash charges, as evidenced by the 2024Q4 period where a $316.1 million net loss was recorded, illustrating how significant fair value write-downs and CECL reserves distort the underlying economic reality of the mortgage portfolio.
The reliance on FFO as a primary metric is intended to strip away these non-cash distortions, yet the continued negative FFO figures suggest that the underlying assets are facing genuine economic impairment. This implies that the company's earnings power is not merely obscured by accounting conventions but is actively being eroded by credit deterioration within the transitional loan book.
As indicated by the provided cash flow statements, the company's reliance on non-operating cash inflows to offset operational losses warrants further investigation, as these figures may mask the true extent of capitalized maintenance costs and potential off-balance-sheet obligations associated with its complex securitization and servicing platforms.
The volatility in OCF suggests that the company may be utilizing its securitization pipeline to manage liquidity, which could hide underlying credit defaults or straight-line rent adjustments. Analysts should remain cautious, as the lack of transparency regarding these cash flow drivers may obscure the true risk profile of the company's transitional real estate assets.
Quick answers to the most common questions about buying RCD stock.
Ready Capital Corporation Notes -15.12.29 (RCD) generated $-203.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ready Capital Corporation Notes -15.12.29 (RCD) reported negative free cash flow of $203.5M in 2025, indicating capital requirements exceeded cash from operations.
Ready Capital Corporation Notes -15.12.29 (RCD) 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 Notes -15.12.29 (RCD) 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.