Cash conversion efficiency remains erratic, evidenced by a negative 0.10 OCF/NI ratio and a $143.8 million working capital outflow in 2026Q1.
| 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 |
|---|
| Cash from Operations | 751.47M | 847.75M | 210.08M | 806.17M | 1.11B | 376.65M | 1.12B | 393.22M | 135.59M | 386.23M | 372.6M | -262.69M | -133.69M | -151.93M | -214.47M | 158.43M |
| Operating CF Margin % | - | 10.44% | 2.57% | 10.87% | 13.47% | 5.02% | 18.33% | 8.26% | 3.21% | 9.94% | 10.5% | -8.82% | -4.94% | -7.93% | -20.6% | 11.56% |
| Operating CF Growth % | 50.56% | 303.54% | -73.94% | -27.23% | 194.11% | -66.47% | 185.67% | 190% | -64.89% | 3.66% | 241.84% | -96.49% | 12.01% | 29.16% | -235.37% | - |
| Net Income | 672.14M | 782.5M | 886.57M | 768.93M | 1.06B | 682.37M | 249.53M | 254.91M | 210.48M | 176.65M | 206.56M | 229.04M | 267.5M | 94.87M | 430.85M | 76.79M |
| Depreciation & Amortization | 33.42M | 40.18M | 41.19M | 33.41M | 33.84M | 39.98M | 37.34M | 31.42M | 26.39M | 3.95M | 3.97M | 4.11M | 4.09M | 3.46M | 4.37M | 4.22M |
| Stock-Based Compensation | 14.58M | 0 | 22.46M | 26.09M | 26.9M | 19.94M | 32.13M | 14.76M | 21.12M | 11.59M | 10.91M | 7.89M | 5.83M | 87.32M | 1.98M | 0 |
| Deferred Taxes | 1.89M | 1.89M | -8.42M | -169K | 83.58M | 86.84M | 50.58M | 2.65M | 44.47M | 88.5M | 26.85M | 24.7M | -17.7M | 30.66M | -278.88M | -11.25M |
| Other Non-Cash Items | 178.67M | 205.9M | 116.39M | 26.66M | 87.67M | 43.14M | 39.53M | 36.36M | 30.71M | 2.67M | 7.96M | -50.08M | 19.76M | 2.71M | 21.64M | 12.54M |
| Working Capital Changes | -151.64M | -182.72M | -848.11M | -48.76M | -180.47M | -495.62M | 714.18M | 53.1M | -197.58M | 102.87M | 116.34M | -478.35M | -413.17M | -370.96M | -394.42M | 81.44M |
| Change in Receivables | 0 | 0 | 0 | 31.01M | 0 | -524.06M | -15.83M | -22.89M | -31.78M | 61.18M | -48.32M | -76.7M | -125.19M | 28.01M | -86.23M | 16.98M |
| Change in Inventory | -20.82M | 26.58M | -797.33M | -78.58M | -50.79M | -343.13M | 535.24M | 990K | -248.22M | 41.72M | 166.34M | -424.61M | -310.55M | -450.15M | -331.12M | 76.42M |
| Change in Payables | 25.28M | 0 | 215.99M | 84.81M | -61.85M | 197.12M | 62.33M | 73.11M | 63.64M | -20.99M | -20.48M | 3M | 33.95M | 35.39M | 6.09M | 3.08M |
| Cash from Investing | -149.59M | -185.17M | -136.44M | -97.19M | -14.88M | -74.26M | -312.8M | -19.3M | -159.72M | -35.99M | -81.35M | 50.17M | -89.45M | -75.79M | -138.94M | -5.33M |
| Capital Expenditures | -41.82M | -40.37M | -36.33M | -33.43M | -30.58M | -21.2M | -37.76M | -30.12M | -20.46M | -3.42M | -1.91M | -4.3M | -3.72M | -3.79M | -2.75M | -2.76M |
| CapEx % of Revenue | 0.55% | 0.5% | 0.44% | 0.45% | 0.37% | 0.28% | 0.62% | 0.63% | 0.48% | 0.09% | 0.05% | 0.14% | 0.14% | 0.2% | 0.26% | 0.2% |
| Acquisitions | 0 | 0 | 0 | -64.59M | -109.57M | -74.98M | -315.11M | -12.77M | -196.26M | -36.66M | -85.18M | 14.39M | -98.2M | -68.63M | -127.54M | -1M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -26.97M | 0 | -100.11M | 824K | 125.28M | 31.91M | 40.06M | 23.58M | 57M | 4.08M | 5.73M | 40.08M | 12.47M | -3.37M | -8.64M | -1.57M |
| Cash from Financing | -326.55M | -298.51M | -393.57M | -628.51M | -1.2B | -155K | -604.94M | -377.2M | -219.52M | -76.55M | -117.26M | -103M | 309.33M | 337.95M | 375.53M | -29.3M |
| Debt Issued (Net) | 83.81M | 86.46M | -32.5M | -517.57M | -796.44M | 322.49M | -451.65M | -224.01M | 120.33M | -74.63M | -84.45M | -78.61M | 323.19M | 167.23M | 395.2M | -75.07M |
| Equity Issued (Net) | -398.54M | -381.51M | -347.6M | -127.96M | -376.27M | -281.42M | -103.33M | -157.44M | -341.25M | -6.55M | -28.54M | -15M | 0 | 182.82M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2M | 0 | 0 |
| Share Repurchases | -398.05M | -381.02M | -347.6M | -127.96M | -376.27M | -281.42M | -103.33M | -157.44M | -1.11B | -1.12B | -28.54M | -15M | 0 | -485.78M | 0 | 0 |
| Other Financing | -11.82M | -3.46M | -13.47M | 17.01M | -29.88M | -41.22M | -49.96M | 4.25M | 1.4M | 4.64M | -4.26M | -9.4M | -13.86M | -12.1M | -19.67M | 45.77M |
| Net Change in Cash | 275.33M | 364.06M | -319.93M | 80.46M | -109.7M | 302.23M | 205.54M | -3.29M | -243.64M | 273.69M | 173.99M | -336.02M | 73.02M | 88.58M | 21.25M | 113.91M |
| Free Cash Flow | 709.65M | 807.37M | 173.75M | 772.74M | 1.08B | 355.45M | 1.09B | 363.1M | 115.14M | 382.81M | 370.69M | -266.99M | -137.41M | -155.72M | -217.22M | 155.67M |
| FCF Margin % | 9.32% | 9.94% | 2.13% | 10.42% | 13.1% | 4.74% | 17.71% | 7.62% | 2.72% | 9.85% | 10.44% | -8.97% | -5.07% | -8.13% | -20.86% | 11.36% |
| FCF Growth % | 83.15% | 364.68% | -77.52% | -28.26% | 203.05% | -67.26% | 198.96% | 215.36% | -69.92% | 3.27% | 238.84% | -94.29% | 11.76% | 28.31% | -239.54% | - |
| FCF per Share | 7.28 | 8.02 | 1.64 | 7.02 | 9.27 | 2.78 | 8.40 | 3.35 | 1.00 | 3.17 | 3.07 | -2.18 | -1.12 | -1.27 | -1.78 | 0.22 |
| FCF Conversion (FCF/Net Income) | 1.06x | 1.08x | 0.24x | 1.05x | 1.05x | 0.57x | 4.61x | 1.54x | 0.66x | 4.23x | 7.08x | -4.30x | -1.87x | -3.35x | -0.50x | 2.22x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 73.48M | 0 | 264.43M | 204.27M | 270.03M | 146.17M | 3.36M | 20.13M | 63.48M | 96.53M | 107.96M | 90.76M | 99.07M | 24.35M | 45.09M | 42.01M |
Working Capital Volatility
As reported in recent financial filings, TMHC's OCF/NI ratio has fluctuated wildly, reaching a negative 0.10 in 2026Q1, which suggests that reported net income is frequently decoupled from actual cash generation due to the timing of land development and home closing cycles.
The significant divergence between net income and operating cash flow indicates that accounting profits are heavily reliant on non-cash accruals and inventory valuation. Investors should monitor whether this disconnect reflects a structural inability to convert earnings into liquidity or merely the timing of large-scale community development expenditures.
Based on the provided quarterly data, TMHC's free cash flow trajectory remains highly erratic, with margins swinging from a positive 30.8% in 2025Q4 to a negative 1.5% in 2026Q1, highlighting the company's sensitivity to cyclical capital requirements and fluctuating delivery volumes.
The inability to maintain consistent positive free cash flow suggests that the company's operational model is prone to periodic liquidity drains. This volatility warrants further investigation into whether management's capital allocation strategy is sufficiently flexible to withstand prolonged periods of negative cash generation.
According to the cash flow statements, working capital changes have been a persistent headwind, with a massive $143.8 million outflow in 2026Q1 alone, indicating that the company is aggressively consuming cash to fund land acquisition and construction in anticipation of future demand.
The recurring negative working capital adjustments suggest that the company is prioritizing inventory growth over immediate cash preservation. This strategy appears to be a double-edged sword, as it ties up significant liquidity in land assets that may face valuation risks if market absorption rates continue to soften.
As evidenced by the financial statements, TMHC has continued to prioritize share repurchases, including $157.1 million in 2026Q1, even as operating cash flow turned negative, which suggests a potentially aggressive capital allocation policy that may prioritize shareholder returns over balance sheet liquidity.
The decision to return capital to shareholders during periods of negative operating cash flow may indicate management's confidence in future cash generation or a desire to support the stock price during cyclical downturns. However, this approach warrants scrutiny, as it reduces the company's financial buffer against potential market volatility.
Quick answers to the most common questions about buying TMHC stock.
Taylor Morrison Home Corporation (TMHC) generated $847.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Taylor Morrison Home Corporation (TMHC) generated $807.4M 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.
Taylor Morrison Home Corporation (TMHC) spent $40.4M 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, Taylor Morrison Home Corporation (TMHC) spent $381.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.