Cash flow generation is severely impaired, highlighted by a 2026Q1 AFFO of negative $6.4M, which significantly trails the $835K in operating cash flow and underscores a lack of distributable earnings.
| Cash from Operations | 3.31M | 2.66M | 12.89M | 21.86M | 13.15M | 27.81M | 9.63M | 8.12M | 6.22M | 4.84M | 3.7M | 2.38M | 1.46M |
| Operating CF Growth % | -21.79% | -79.35% | -41.02% | 66.22% | -52.71% | 188.81% | 18.63% | 30.56% | 28.31% | 31.04% | 55.59% | 62.25% | - |
| Operating CF / Revenue % | 7.39% | 5.66% | 22.42% | 72.92% | 42.94% | 139.01% | 73.75% | 79.71% | 61.87% | 76.5% | 104.43% | 92.64% | 94.72% |
| Net Income | -673K | 6.31M | -39.57M | 15.9M | 20.91M | 13.32M | 8.99M | 6.2M | 7.77M | 4.86M | 3.05M | 2.31M | 1.47M |
| Depreciation & Amortization | 1.3M | 2.2M | 372K | 266.33K | 106.41K | 83.53K | 61.87K | 63.57K | 32.53K | 28.36K | 47.68K | 0 | 0 |
| Stock-Based Compensation | 843K | 840K | 863K | 822.23K | 495.01K | 191.32K | 16.43K | 43.15K | 37.59K | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 2.6M | -2.03M | 53.41M | 9.32M | 5.41M | 1.89M | 500.92K | 1.19M | 141.56K | -44.49K | 87.97K | 32.39K | 0 |
| Working Capital Changes | -765K | -4.66M | -2.19M | -4.45M | -13.77M | 12.32M | 54.73K | 626.64K | -1.77M | 0 | 510.92K | 36.9K | -5.3K |
| Cash from Investing | 7.1M | 29.35M | 79.91M | -72.49M | -159.54M | -166M | -82.82M | -37.82M | -16.84M | -28.93M | -6.94M | -13.18M | -5.15M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -1.51M | 0 | -26.04M | -42.65M | -76.43M | -210.12M | -97.56M | -16M | 0 | 0 | -886.01K | 0 | 0 |
| Sale of Investments | 24.7M | 17.97M | 51.25M | 18.57M | 84.59M | 180.53M | 78.96M | 0 | 0 | 0 | 1.06M | 0 | 0 |
| Other Investing | -15.97M | 11.55M | 54.77M | -48.41M | -166.12M | -135.59M | -64.08M | -21.58M | -16.12M | -28.8M | -6.72M | -13.18M | -5.15M |
| Cash from Financing | -23.25M | -39.15M | -87.33M | 39.52M | 128.16M | 160.72M | 73.76M | 48.38M | 9.82M | 23.48M | 2.97M | 6.76M | 8.64M |
| Dividends Paid | -11.77M | -9.5M | -20.81M | -25.73M | -22.5M | -14.12M | -7.96M | -9.68M | -6.79M | -5.8M | -3.88M | -1.4M | -636.64K |
| Common Dividends | -7.15M | 0 | -16.51M | -21.93M | -18.81M | -12.27M | -7.96M | -9.68M | -6.79M | -5.8M | -3.88M | -1.4M | -636.64K |
| Debt Issuance (Net) | 2M | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Share Repurchases | 0 | 0 | -1.49M | -226.33K | 0 | 0 | 0 | 0 | 0 | 0 | -580.89K | -45K | 0 |
| Other Financing | -79.47M | -4.47M | 7.25M | -16.07M | 18.93M | -2.34M | 25.42M | -2.79M | -755.76K | -2.69M | 4.43M | 7.16M | 4.28M |
| Net Change in Cash | -12.85M | -7.14M | 5.47M | -11.11M | -18.23M | 22.53M | 566.09K | 18.68M | -795.36K | -607.64K | -272.22K | -4.04M | 4.95M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 10.92M | 18.07M | 12.6M | 23.71M | 41.94M | 19.41M | 18.84M | 158.86K | 954.22K | 1.56M | 1.83M | 5.87M | 922.53K |
| Cash at End | 11.56M | 10.92M | 18.07M | 12.6M | 23.71M | 41.94M | 19.41M | 18.84M | 158.86K | 954.22K | 1.56M | 1.83M | 5.87M |
| Free Cash Flow | 2.82M | 2.5M | 12.81M | 21.86M | 11.57M | 26.98M | 9.48M | 7.87M | 5.51M | 4.71M | 3.3M | 2.38M | 1.46M |
| FCF Growth % | -67.79% | -80.49% | -41.37% | 88.95% | -57.13% | 184.67% | 20.38% | 43.03% | 16.83% | 42.8% | 38.87% | 62.25% | - |
| FCF / Revenue % | 6.31% | 5.31% | 22.28% | 72.92% | 37.77% | 134.9% | 72.61% | 77.34% | 54.79% | 74.41% | 93.2% | 92.64% | 94.72% |
Portfolio credit quality deterioration
As reported in recent financial filings, Sachem Capital's AFFO turned negative in 2026Q1 at -$6.4M, rendering the dividend payout unsustainable and indicating that the company is currently unable to generate sufficient distributable cash flow to cover its obligations without relying on external capital or balance sheet liquidation.
The transition from positive AFFO in late 2025 to a significant deficit in the most recent quarter suggests that the underlying loan portfolio is failing to produce the cash yields necessary to support the dividend. Investors should monitor whether management continues to prioritize distributions despite the absence of recurring free cash flow, as this may necessitate further dilutive financing or asset sales.
Based on the provided quarterly data, the extreme volatility in FFO relative to GAAP operating cash flow, exemplified by the 2026Q1 FFO of -$6.0M against positive OCF of $835K, suggests that non-cash provisions and accounting adjustments are significantly distorting the company's reported earnings performance.
The disconnect between GAAP operating cash flow and FFO indicates that the company's reported earnings are highly sensitive to credit loss provisions and non-cash valuation changes. This volatility warrants further investigation into whether the positive OCF figures are sustainable or merely a result of temporary working capital shifts that mask underlying operational weakness.
According to historical financial statements, the wide variance between GAAP Net Income and FFO, particularly during the 2024Q4 period where Net Income reached -$36.1M, underscores how significant non-cash impairments and CECL provisions are currently overwhelming the company's ability to report stable, cash-based earnings.
The magnitude of these adjustments suggests that the company's GAAP figures are not reflective of its true economic capacity to generate cash. Analysts should focus on the trend of these provisions, as they appear to be a leading indicator of the deteriorating credit quality within the mortgage portfolio.
As indicated by the shift in cash flow patterns, the company's transition toward holding Real Estate Owned (REO) appears to be creating an operational drag, as maintenance and carrying costs for these non-yielding assets are likely suppressing the net cash flow available for distribution.
The presence of REO on the balance sheet suggests that the company is increasingly acting as a property manager rather than a lender, which fundamentally alters the risk profile of the cash flows. Investors should be wary of the potential for these carrying costs to continue eroding margins as the company attempts to liquidate distressed collateral.
Quick answers to the most common questions about buying SACH stock.
Sachem Capital Corp. (SACH) generated $2.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sachem Capital Corp. (SACH) generated $2.5M 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.
Sachem Capital Corp. (SACH) spent $0.2M 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, Sachem Capital Corp. (SACH) returned $9.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.