Cash flow generation is fundamentally impaired, as demonstrated by the negative $846,000 AFFO reported in 2025Q4, which necessitates reliance on external capital to sustain operations.
| Cash from Operations | 3.31M | 2.66M | 12.89M | 21.86B | 13.15B | 27.81B | 9.63B | 8.12B |
| Operating CF Growth % | -21.79% | -79.35% | -99.94% | 66.22% | -52.71% | 188.81% | 18.63% | - |
| Operating CF / Revenue % | -18.93% | - | -0.61% | 72.92% | 42.94% | 139.01% | 73.75% | 79.71% |
| Net Income | -6.26M | 1.84M | -39.57M | 15.9B | 20.91B | 13.32B | 8.99B | 6.2B |
| Depreciation & Amortization | 2.26M | 2.2M | 2.46M | 2.68B | 2.21B | 1.37B | 663.82M | 786.15M |
| Stock-Based Compensation | 879K | 840K | 863K | 822.23M | 495.01M | 191.32M | 16.43M | 43.15M |
| Other Non-Cash Items | 4.9M | -2.22M | 3.28B | 7.57B | 3.94B | 3.43B | 914.58M | 371.61M |
| Working Capital Changes | -4.06M | 0 | -3.23B | -5.12B | -14.41B | 9.49B | -960.88M | 719.04M |
| Cash from Investing | 7.1M | 29.35M | 79.91M | -72.49B | -159.54B | -166B | -82.82B | -37.82B |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | -7.77M | -42.65B | 0 | 0 | 0 | 0 |
| Sale of Investments | 16.79M | 17.97M | 43.89M | 18.12B | 0 | 0 | 0 | 0 |
| Other Investing | -9.57M | 11.55M | 43.87M | -47.96B | -157.96B | -165.17B | -82.67B | -37.58B |
| Cash from Financing | -23.25M | -39.15M | -87.33M | 39.52B | 128.16B | 160.72B | 73.76B | 48.38B |
| Dividends Paid | -11.77M | -9.5M | -16.51M | -25.73B | -22.5B | -14.12B | -7.96B | -9.68B |
| Common Dividends | -5.87M | 0 | -16.51M | -25.73B | -22.5B | -14.12B | -7.96B | -9.68B |
| Debt Issuance (Net) | 1000K | 0 | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K |
| Share Repurchases | 0 | 0 | -1.49B | -226.33M | 0 | 0 | 0 | 0 |
| Other Financing | -34.39M | -29.65M | 52.41B | 81.22B | 5.11B | 99.18B | 25.42B | -664.92M |
| Net Change in Cash | -12.85M | -7.14M | 5.47M | -11.11B | -18.23B | 22.53B | 566.09M | 18.68B |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 10.92M | 18.07M | 12.6M | 23.71B | 41.94B | 19.41B | 18.84B | 158.86M |
| Cash at End | 11.56M | 10.92M | 18.07M | 12.6B | 23.71B | 41.94B | 19.41B | 18.84B |
| Free Cash Flow | 3.19M | 2.5M | 12.81M | 22.37B | 11.57B | 26.98B | 9.48B | 7.87B |
| FCF Growth % | -63.65% | -80.49% | -99.94% | 93.4% | -57.13% | 184.67% | 20.38% | - |
| FCF / Revenue % | -18.24% | - | -0.61% | 74.64% | 37.77% | 134.9% | 72.61% | 77.34% |
High leverage and liquidity
As reported in recent financial statements, Sachem Capital's AFFO has frequently turned negative, with the company reporting a loss of $846,000 in 2025Q4, which indicates that the current dividend payout is not supported by recurring cash flow and likely relies on capital recycling or external financing.
The consistent inability to generate positive AFFO suggests that the company is effectively distributing capital rather than earnings to its shareholders. Investors should monitor the sustainability of these payments, as the lack of a positive AFFO buffer implies that any further deterioration in loan performance will necessitate a dividend reduction or suspension.
According to quarterly SEC filings, the company's FFO has experienced extreme swings, including a negative $6.7 million in 2026Q1, which highlights a significant disconnect between GAAP operating cash flow and the firm's ability to generate sustainable earnings from its underlying mortgage loan portfolio.
The wide variance between FFO and GAAP operating cash flow suggests that non-cash adjustments and loan loss provisions are heavily distorting the reported earnings picture. This volatility appears to reflect the underlying instability of the loan book, where interest income recognition is frequently interrupted by borrower defaults and non-accrual events.
Based on the company's reported figures, the massive $36.1 million net loss in 2024Q4 illustrates how significant credit loss provisions and asset write-downs can obscure the firm's true cash-generating capacity, rendering traditional GAAP metrics largely ineffective for assessing the company's ongoing liquidity and operational health.
The recurring divergence between net income and FFO suggests that management is frequently forced to recognize substantial impairments on its collateral. This pattern warrants further investigation into whether the current valuation of the loan portfolio accurately reflects the realizable value of the underlying real estate assets.
As indicated by the provided financial data, the company's reliance on interest income from potentially distressed loans may be inflating reported earnings, as evidenced by the negative cash flow trends observed in periods where interest accruals were high but actual cash collections remained constrained.
The potential for 'default interest' to be recognized as revenue before it is collected in cash suggests that the company's cash flow statement may be overstating its true liquidity. Analysts should be wary of the gap between accrued interest income and actual cash receipts, as this often precedes a sharp increase in non-accrual loans.
Quick answers to the most common questions about buying SCCD stock.
Sachem Capital Corp. 6.00% Notes Due 2026 (SCCD) generated $2.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sachem Capital Corp. 6.00% Notes Due 2026 (SCCD) 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. 6.00% Notes Due 2026 (SCCD) 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. 6.00% Notes Due 2026 (SCCD) returned $9.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.