Liquidity is under pressure as cash reserves dropped to $12.4 million in 2026Q1 from a peak of $56.8 million in 2024Q1, complicating the firm's ability to cover operational shortfalls.
| 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 | -4.03M | 6.31M | -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 | -6.69M | 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 % | -63.75% | -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% |
Collateral Liquidation and Default
According to reported financial statements, Sachem Capital's dividend payout coverage has become increasingly erratic, with the ratio of dividends paid to AFFO reaching 5.52x in 2025Q3, signaling that current distributions are not supported by recurring cash earnings and may rely on external capital or asset liquidation.
The extreme volatility in the dividend-to-AFFO ratio suggests that the company is struggling to maintain its payout policy amidst a deteriorating loan portfolio. Investors should monitor whether the firm continues to distribute capital that is not being generated by core lending operations, as this practice may accelerate the depletion of liquidity.
Based on the company's reported figures, the relationship between FFO and GAAP operating cash flow has become increasingly disconnected, evidenced by a 2025Q4 FFO of $1.5 million against a negative $3.0 million in operating cash flow, highlighting significant quality issues in reported earnings.
This divergence suggests that non-cash adjustments and interest capitalization are playing an outsized role in the firm's reported FFO. The inability to convert earnings into actual operating cash flow indicates that the company's reported profitability may be significantly overstated relative to its actual liquidity position.
As indicated by the wide variance between Net Income and FFO, such as the -$36.1 million net loss in 2024Q4 compared to a -$35.4 million FFO, the company's financial results are heavily impacted by non-cash charges and potential loan loss provisions that obscure underlying cash flow trends.
The massive swings in net income relative to FFO suggest that the firm is frequently forced to recognize significant impairment charges on its loan book. This volatility makes it difficult to ascertain a baseline level of cash-based earnings, warranting further investigation into the adequacy of current loan loss reserves.
Recent SEC filings reveal that the company's reliance on interest capitalization may be masking underlying credit defaults, as evidenced by the emergence of REO assets which do not generate the cash interest income required to sustain the firm's current debt-heavy capital structure.
By adding unpaid interest to the loan principal, the company may be artificially inflating its income statement while deferring the inevitable recognition of credit losses. This accounting treatment appears to hide the true extent of borrower distress, potentially leading to a sudden and material impact on future cash flows.
Quick answers to the most common questions about buying SCCE stock.
Sachem Capital Corp. 6.00% Note (SCCE) 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% Note (SCCE) 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% Note (SCCE) 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% Note (SCCE) returned $9.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.