Operating cash flow of $32.5 million in Q3 2026 shows solid conversion from net income, but it is largely directed toward a $500 million net reinvestment into the securities portfolio rather than liquidity building.
TFS Financial Corporation (TFSL) cash flow statement — 21-year operating, investing & financing cash flows
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 |
|---|
| Cash from Operations | 97.8M | 82.42M | 88.6M | 90.72M | 38.93M | 83.16M | 121.8M | 103M | 92.11M | 101.17M | 84.91M | 102.1M | 103.51M | 140.81M | 155.63M | 135.57M | 116.52M | 272.02M | 29M | 273.44M | 356.15M | -95.72M |
| Operating CF Growth % | 114.71% | -6.98% | -2.34% | 133.04% | -53.19% | -31.73% | 18.25% | 11.82% | -8.95% | 19.14% | -16.83% | -1.36% | -26.49% | -9.52% | 14.8% | 16.34% | -57.16% | 837.89% | -89.39% | -23.22% | 472.08% | - |
| Net Income | 102.06M | 90.96M | 79.59M | 75.25M | 74.56M | 81.01M | 83.32M | 80.24M | 85.41M | 88.88M | 80.55M | 72.59M | 65.89M | 55.96M | 11.48M | 9.34M | 11.34M | 14.39M | 54.49M | 25.61M | 43.54M | 64.51M |
| Depreciation & Amortization | 25.09M | 23.05M | 19.03M | 18.11M | 27.04M | 32.57M | 32.82M | 22.95M | 25.19M | 20.89M | 19.37M | 17.45M | 13.29M | 21.32M | 22.77M | 19.4M | 18.46M | 18.5M | 8.85M | 6.88M | 11.59M | 19.42M |
| Deferred Taxes | 1.27M | 1.35M | 2.7M | 3.73M | -26.88M | -14.25M | 21.8M | 21.94M | 3.95M | 3.55M | 11.1M | 9.19M | 9.66M | 6.49M | -19.27M | -8.24M | -10.54M | -15.51M | 1.11M | -22.97M | 4.53M | 420K |
| Other Non-Cash Items | -26.43M | -30.4M | -31.09M | -13.51M | -32.61M | -52.48M | -35.21M | -20.42M | -19.77M | -20.72M | -22.33M | -12.91M | 9.92M | 30.52M | 114.44M | 95.5M | 121.03M | 240.67M | -54.55M | 57.49M | -646.57M | -1.13B |
| Working Capital Changes | -15.86M | -12.19M | 8.86M | -2.87M | -14.2M | 22.6M | 6.95M | -13.48M | -14.01M | -2.68M | -17.21M | 1.8M | -7.4M | 15.17M | 15.1M | 9.43M | -36.91M | 793K | 7.32M | 206.43M | 943.07M | 950.65M |
| Cash from Investing | -571.46M | -383.98M | -124.71M | -1.01B | -1.88B | 547.36M | 147.58M | -341.98M | -474.86M | -754.81M | -454.38M | -600.39M | -668.65M | 145.19M | -741.36M | -392.4M | -125.87M | 118.97M | -1.16B | -1.3B | 130M | -315.33M |
| Purchase of Investments | -3.4B | -160.34M | -133.53M | -144.66M | -250.02M | -297.47M | -171.46M | -158.01M | -151.6M | -183.52M | -95.18M | -171.13M | -250.83M | -276.45M | -228M | -14.71M | -390.4M | -36.76M | -231.28M | -848.68M | 0 | -69.71M |
| Sale/Maturity of Investments | 2.92B | 170.34M | 141.72M | 83.57M | 163.57M | 317.07M | 268.56M | 152.56M | 139.85M | 153.31M | 154.52M | 153.94M | 157.39M | 206.39M | 214.12M | 274.07M | 318.71M | 283.94M | 263.44M | 150.01M | 1.36B | 723.81M |
| Net Investment Activity | -481.98M | 10M | 8.19M | -61.1M | -86.45M | 19.6M | 97.1M | -5.45M | -11.75M | -30.2M | 59.34M | -17.18M | -93.44M | -70.07M | -13.88M | 259.36M | -71.69M | 247.19M | 32.16M | -698.67M | 1.36B | 654.1M |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -77.95M | -382.53M | -129.84M | -942.43M | -1.79B | 529.09M | 53.68M | -332.75M | -454.73M | -720.46M | -504.6M | -577.69M | -572.39M | 218.07M | -720.16M | -649.14M | -49.78M | -123.97M | -1.18B | -613.13M | -1.22B | -968M |
| Cash from Financing | 590.01M | 267.28M | 33.08M | 1.02B | 1.72B | -640.22M | -46.48M | 244.35M | 384.3M | 690.62M | 445.33M | 472.25M | 460.55M | -308.26M | 599.15M | -192.06M | 446.04M | -216.32M | 428.79M | 1.61B | -353.54M | 366.2M |
| Dividends Paid | -59.81M | -59.53M | -58.95M | -58.29M | -58.3M | -56.64M | -55.47M | -50.47M | -37.63M | -27.71M | -23.41M | -19.49M | -4.89M | 0 | 0 | 0 | -15.56M | -19.68M | -13.8M | 0 | 0 | 0 |
| Share Repurchases | -8.73M | -3.98M | -1.93M | -5.98M | -6.29M | -5.59M | -2.32M | -9.09M | -19.74M | -54.03M | -128.36M | -172.55M | -101.36M | 0 | 0 | 0 | -1.81M | -103.14M | -186.05M | 0 | 0 | 0 |
| Stock Issued | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 993.61M | 0 | 0 |
| Net Stock Activity | -8.73M | -3.98M | -1.93M | -5.98M | -6.29M | -5.59M | -2.32M | -9.09M | -19.74M | -54.03M | -128.36M | -172.55M | -101.36M | 0 | 0 | 0 | -1.81M | -103.14M | -186.05M | 993.61M | 0 | 0 |
| Debt Issuance (Net) | 2M | 1000K | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 0 | -1000K | 1000K | -1000K | -1000K | 1000K |
| Other Financing | -273.78M | 248.22M | 574.34M | 390.34M | 322.2M | -148.3M | 392.54M | 122.62M | 391.35M | -180.22M | 46.94M | -365.7M | 173.27M | -565.19M | 250.82M | -261.76M | 463.41M | 334.37M | 130.61M | 638.81M | 338.73M | -156.3M |
| Net Change in Cash | 116.35M | -34.28M | -3.03M | 97.18M | -118.76M | -9.71M | 222.89M | 5.37M | 1.56M | 36.98M | 75.87M | -26.03M | -104.59M | -22.27M | 13.42M | -448.89M | 436.69M | 174.67M | -697.34M | 576.79M | 132.61M | -44.85M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 437.28M | 463.72M | 466.75M | 369.56M | 488.33M | 498.03M | 275.14M | 269.77M | 268.22M | 231.24M | 155.37M | 181.4M | 286M | 308.26M | 294.85M | 743.74M | 307.05M | 132.38M | 829.72M | 252.93M | 120.32M | 165.17M |
| Cash at End | 568.93M | 429.44M | 463.72M | 466.75M | 369.56M | 488.33M | 498.03M | 275.14M | 269.77M | 268.22M | 231.24M | 155.37M | 181.4M | 286M | 308.26M | 294.85M | 743.74M | 307.05M | 132.38M | 829.72M | 252.93M | 120.32M |
| Interest Paid | 505.46M | 529.08M | 532.61M | 363.75M | 113.68M | 114.58M | 213M | 225.11M | 161.56M | 123.59M | 116.37M | 112.09M | 101.65M | 115.45M | 156M | 180.42M | 212.73M | 257.69M | 329.84M | 0 | 0 | 0 |
| Income Taxes Paid | 1.23M | 16.48M | 15.68M | 21.78M | 39.6M | 25.77M | 1.67M | 9.69M | 32.52M | 38.21M | 31.82M | 22.53M | 25.1M | 19.64M | 19.79M | 7.6M | 19.9M | 19.4M | 25M | 0 | 0 | 0 |
| Free Cash Flow | 86.27M | 70.97M | 85.54M | 85.62M | 36.23M | 81.82M | 118.59M | 99.22M | 83.74M | 97.02M | 75.79M | 96.58M | 100.69M | 137.99M | 148.29M | 132.95M | 112.13M | 267.77M | 23.84M | 281.86M | 352.66M | -97.14M |
| FCF Growth % | 247.63% | -17.03% | -0.1% | 136.33% | -55.72% | -31.01% | 19.52% | 18.49% | -13.68% | 28.01% | -21.53% | -4.08% | -27.03% | -6.95% | 11.54% | 18.57% | -58.13% | 1023.44% | -91.54% | -20.08% | 463.05% | - |
Quick answers to the most common questions about buying TFSL stock.
TFS Financial Corporation (TFSL) generated $82.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
TFS Financial Corporation (TFSL) generated $71.0M 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.
TFS Financial Corporation (TFSL) spent $11.5M 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, TFS Financial Corporation (TFSL) returned $59.5M to shareholders via cash dividends and spent $4.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Extreme interest rate sensitivity
Metrics are mathematically derived from official filings.
Record Earnings Drive Strong Organic Capital Build
TFSL generated $32.5 million of operating cash flow against $30.5 million in net income in Q3 2026, translating to a 106% OCF/NI ratio that indicates robust earnings quality and supports internal capital generation.
The Q3 2026 operating cash flow of $32.5 million represents a significant improvement from the negative $11.1 million in Q4 2025, suggesting the company has moved past a period of cash flow volatility tied to securities portfolio activity. This positive conversion of earnings to cash provides a reliable internal funding source for organic balance sheet growth and dividend payments, reducing reliance on external capital. The bank's ability to generate cash from operations at a level exceeding its net income suggests the core residential lending and deposit franchise is performing efficiently.
Massive Q3 Securities Reinvestment Signals Portfolio Shift
In Q3 2026, TFSL purchased $3.3 billion in investment securities against $2.8 billion in sales and maturities, a dramatic shift from the modest net purchases of prior quarters that suggests a major strategic redeployment of capital into the securities portfolio.
The $3.3 billion purchase volume in Q3 2026 is an order of magnitude larger than any quarter in the displayed history, indicating a potential strategic shift toward securities rather than loan growth or a significant reshuffling of the existing portfolio. This level of activity warrants investigation into whether the bank is locking in yields on longer-duration securities or adjusting its asset-liability profile in response to the rate environment. The net outflow of approximately $500 million from this activity appears to have consumed a substantial portion of the quarter's operating cash flow.
Record Origination Volume Contradicts Weak Loan Cash Flows
Despite reporting record first mortgage originations exceeding $600 million in Q3 2026, the cash flow statement does not isolate loan origination volume from the broader operating activities, masking the underlying health of the core lending business.
The discrepancy between the reported record origination volume and the aggregated operating cash flow line item highlights a key limitation of analyzing a bank's cash flow statement. The core credit-generating activity is embedded within operating cash flows alongside numerous other adjustments, making it impossible to assess loan growth funding from this statement alone. Investors must rely on balance sheet data and management commentary to assess whether the strong origination pace is being funded by deposit growth, which would be healthy, or by more volatile wholesale funding sources.
Zero Provisioning Signals Credit Confidence in Q3
TFSL reported zero loan loss provisions in Q3 2026, a notable improvement from the $1.0 million expense in Q1 2026 and $1.5 million in Q3 2025, suggesting management's view of credit risk in the residential portfolio has materially improved.
The absence of a provision expense in the most recent quarter, coupled with record earnings, indicates management believes the credit quality of the Ohio and Florida residential mortgage book is strong enough to not require additional reserves. This contrasts with the volatile provisioning pattern seen in prior quarters, which included both charges and releases. The shift to a zero provision suggests the bank may be experiencing a favorable credit cycle tailwind, potentially from strong collateral values and low delinquencies in its core markets.
Q3 Cash Flow Quality Masked by Securities Blitz
The reported $32.5 million of operating cash flow in Q3 2026 is largely consumed by the $500 million net investment outflow from securities activity, indicating that the underlying cash generation, while positive, is being directed toward balance sheet restructuring rather than building liquidity.
A closer examination reveals that the strong OCF/NI ratio in Q3 2026 is partially an artifact of timing in the securities portfolio. The massive purchases suggest management is actively deploying capital, which could be a response to attractive yields but also locks in duration risk. Furthermore, the statement provides no visibility into the composition of deposit inflows—whether they are stable core deposits or more sensitive time deposits—which is critical for assessing the sustainability of the funding for this securities accumulation. The cash flow statement ultimately obscures more than it reveals about the bank's true liquidity position and funding stability.