Dividend sustainability is under pressure as the firm distributed $24.7 million in 2025Q2 despite generating negative free cash flow of -$41.9 million during the same period.
| 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 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Cash from Operations | 144.69M | 154.92M | 293.12M | 89.48M | 203.95M | -82.61M | 122.33M | 4.69M | -46.37M | -128.22M | -46.08M | 40.99M | -368.07M | -195.51M | -88.44M | 76.76M | -52.99M | 70.93M |
| Operating CF Margin % | - | -202.91% | 1411.62% | 42.75% | 112.68% | -50.03% | 71.08% | 2.4% | -24.34% | -97.42% | -35.61% | 27.91% | -560.82% | -279.85% | -272.12% | 835.14% | -72.95% | -199.54% |
| Operating CF Growth % | -209.28% | -47.15% | 227.57% | -56.12% | 346.88% | -167.53% | 2506.36% | 110.12% | 63.83% | -178.23% | -212.43% | 111.14% | -88.26% | -121.07% | -215.21% | 244.86% | -174.7% | - |
| Net Income | -126.13M | -88.93M | -63.14M | 38.47M | -9.23M | 133.79M | 71.37M | 30.58M | 45.48M | 67.93M | 76.32M | 59.07M | 34.55M | 49.53M | 25.93M | 6.73M | 69.01M | 54.08M |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 70.17M | -6.14M | -6.14M | -25.2M | 9M | -12.95M | -30.06M | 4.33M | 6.09M | -56M | -3.45M | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 267.12K | -1.09M | -142.79K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 5.87M | 26.28M | -68.07M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 271.32M | 269.94M | 362.8M | 54.93M | 164.59M | -194.27M | 27.11M | -47.23M | -19.11M | -184.4M | -95.14M | -40.5M | -385.99M | -188.57M | -133.23M | 29.5M | -108.62M | -45.36M |
| Working Capital Changes | -506.21K | -26.09M | -6.54M | -3.92M | -21.59M | -15.99M | 23.84M | 21.34M | -13.53M | 1.2M | 2.8M | 18.09M | -22.71M | -464.73K | 22.31M | 40.53M | -13.38M | 62.21M |
| Change in Receivables | -509.03K | -22.59M | 9.13M | -4.75M | 5.18M | -10.24M | 3.37M | 2.48M | -2.33M | -2.6M | -4.08M | -108.63K | -2.77M | -2.16M | 1.71M | -892.53K | -1.12M | 326.38K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 94.92M | 199.42M | 112.15M | 54.85M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 1.37M | 0 | 0 | -1.56M | -25.58M | -5.41M | 20.3M | 12.7M | 976.34K | 2.76M | 2.1M | 1.4M | 1.08M | 311.74K | 43.56K | -3.93K | 33.55K | 0 |
| Cash from Investing | 116.85M | 0 | 0 | 2.97M | 151.05M | 31.88M | 31.88M | -89.86M | -107.09M | -198.39M | -107.38M | -38.06M | -397.46M | -232.83M | -145.04M | 0 | 0 | 0 |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 0% | - | - | 0% | - | - | - | - | - | - | - | - | - | - | - | - | - | 0% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 1.39B | 1.53B | 0 | 1.55B | 0 | 0 | 0 | 0 | 1.6B | 3.03B | 1.31B | 1.18B | 1.15B | 766.28M | 517.86M | 379.13M | 0 | 0 |
| Other Investing | 0 | 0 | -191.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -267.4M | -185.43M | -313.77M | -62.65M | -141.07M | 82.15M | -147.17M | 12.23M | -12.33M | 161.26M | 64.03M | -32.63M | 372.35M | 200.46M | 95.64M | -73.68M | -50.71M | 29.46M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -5.27M | -3.01M | -4.53M | 0 | 0 | 0 | -6.09M | -114.23K | -1.05M | 0 | 33.09M | -130.17M | 0 | 224.6M | 80.99M | -23.5K | 0 | 0 |
| Dividends Paid | -84.81M | -95.17M | -122.54M | -100.52M | -70.48M | -69.32M | -76.61M | -84.62M | -84.69M | -82.61M | -73.98M | -71.63M | -64.56M | -42.02M | -30.35M | -52.66M | -25.71M | -11.54M |
| Share Repurchases | -5.27M | -3.01M | -4.53M | 0 | 0 | -6.1M | -6.1M | -125.68K | -1.05M | 0 | -1.88M | -1.8M | 0 | 0 | 0 | -23.5K | 0 | 0 |
| Other Financing | -1.38M | -1.38M | -8.44M | 0 | 0 | -4.41M | -4.12M | -5.18M | -3.59M | 91M | -5.28M | 128.19M | 200.91M | -3.13M | 0 | 0 | 0 | 0 |
| Net Change in Cash | -5.86M | -30.51M | -20.65M | 29.81M | 62.88M | -454.31K | -24.84M | 16.93M | -58.7M | 33.05M | 17.95M | 8.36M | 4.28M | 4.95M | 7.2M | 3.08M | -103.7M | 0 |
| Free Cash Flow | 144.69M | 154.92M | 293.12M | 89.48M | 203.95M | -82.61M | 122.33M | 4.69M | -46.37M | -128.22M | -46.08M | 40.99M | -368.07M | -195.51M | -88.44M | 76.76M | -52.99M | 70.93M |
| FCF Margin % | 591.77% | -202.91% | 1411.62% | 42.75% | 112.68% | -50.03% | 71.08% | 2.4% | -24.34% | -97.42% | -35.61% | 27.91% | -560.82% | -279.85% | -272.12% | 835.14% | -72.95% | -199.54% |
| FCF Growth % | -53.66% | -47.15% | 227.57% | -56.12% | 346.88% | -167.53% | 2506.36% | 110.12% | 63.83% | -178.23% | -212.43% | 111.14% | -88.26% | -121.07% | -215.21% | 244.86% | -174.7% | - |
| FCF per Share | 1.72 | 1.82 | 3.68 | 1.55 | 3.53 | -1.43 | 2.11 | 0.08 | -0.79 | -2.25 | -0.90 | 0.84 | -9.34 | -7.54 | -4.12 | 3.57 | -2.47 | 1.69 |
| FCF Conversion (FCF/Net Income) | -1.15x | -1.74x | -4.64x | 2.33x | -22.11x | -0.62x | 1.71x | 0.15x | -1.02x | -1.42x | -0.48x | 0.70x | -7.36x | -3.08x | -3.21x | 11.41x | -0.75x | 1.31x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 33.45M | 24.07M | 18.4M | 13.69M | 0 | 0 | 147.14K | 0 | 201.03K | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 86.11K | 528.6K | 877.88K | 877.88K | 0 | 0 | 502.98K | 0 | 21.75K | 0 |
Portfolio Valuation Volatility
According to quarterly cash flow statements, TCPC frequently reports negative net income alongside positive operating cash flow, with the OCF/NI ratio reaching -2.59 in 2026Q1, suggesting that accounting-based earnings are failing to capture the underlying cash-generating reality of the firm's middle-market loan portfolio.
The persistent divergence between net income and operating cash flow indicates that non-cash valuation adjustments are heavily distorting the bottom line. Investors should monitor this gap, as it suggests that reported earnings may not be a reliable proxy for the actual cash interest being collected from borrowers.
As reported in financial statements, TCPC's free cash flow trajectory is highly erratic, swinging from a peak of $103.7 million in 2025Q3 to a negative $41.9 million in 2025Q2, which highlights the inherent instability in the company's ability to generate consistent cash returns.
This volatility appears to be driven by the lumpy nature of loan exits and the impact of non-accrual events on cash receipts. The inability to maintain a stable FCF margin suggests that the company's cash flow profile is highly sensitive to the credit health of its underlying middle-market borrowers.
Based on reported figures, working capital changes have been a significant driver of cash flow, with a $29.2 million inflow in 2026Q1 contrasting with a $26.2 million outflow in 2025Q4, indicating that timing differences in interest collection and accruals are creating substantial noise in cash reporting.
These fluctuations suggest that the company's cash flow is heavily influenced by the timing of interest payments and potential delays in borrower remittances. Analysts should investigate whether these working capital movements are indicative of broader credit stress within the portfolio rather than mere timing differences.
Data from recent filings shows that TCPC continues to pay dividends despite periods of negative free cash flow, such as the $24.7 million distributed in 2025Q2 when FCF was -$41.9 million, raising questions about the long-term sustainability of current payout levels for shareholders.
The reliance on cash reserves or external financing to fund dividends during periods of negative FCF warrants further investigation into the company's capital allocation strategy. Investors should monitor whether the current dividend policy is supported by recurring interest income or if it is eroding the company's net asset value.
Quick answers to the most common questions about buying TCPC stock.
BlackRock TCP Capital Corp. (TCPC) generated $154.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
BlackRock TCP Capital Corp. (TCPC) generated $154.9M 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.
BlackRock TCP Capital Corp. (TCPC) 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, BlackRock TCP Capital Corp. (TCPC) returned $95.2M to shareholders via cash dividends and spent $3.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.