Cash flow remains highly volatile, evidenced by a massive working capital outflow of $364.8 million in 2024Q2 and an inconsistent OCF/NI ratio that reached a negative 0.97 in 2025Q3.
| 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 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 262.17M | 118.29M | -227.58M | 355.57M | 405.27M | -152.09M | 530.36M | 346.82M | 262.2M | -87.13M | -103.4M | -3.33M | -211.25M | -86.28M | -220.49M | -74.14M | 32.55M | 184.07M | 199.83M | -20.61M | -21.96M | 72.24M | 60.17M | -56.89M | -5.84M | -19.85M | 6.25M | -36.39M | -5.2M | 6.68M | 2.4M |
| Operating CF Margin % | - | 2.02% | -3.56% | 5.79% | 6.44% | -2.96% | 11.78% | 9.46% | 7.43% | -2.69% | -3.4% | -0.13% | -9.69% | -4.74% | -18.46% | -8.61% | 3.46% | 18.97% | 13.12% | -0.88% | -0.63% | 2.41% | 2.95% | -3.87% | -0.52% | -2.67% | 1.2% | -10.65% | -2.03% | 4.46% | 109.09% |
| Operating CF Growth % | 789.4% | 151.98% | -164% | -12.26% | 366.46% | -128.68% | 52.92% | 32.27% | 400.92% | 15.73% | -3000.51% | 98.42% | -144.85% | 60.87% | -197.41% | -327.75% | -82.32% | -7.88% | 1069.43% | 6.15% | -130.4% | 20.06% | 205.76% | -874.88% | 70.6% | -417.45% | 117.18% | -600.31% | -177.83% | 178.18% | 84.62% |
| Net Income | 385.52M | 453.01M | 786.19M | 738.75M | 992.19M | 737.44M | 423.48M | 249.66M | 227.33M | 143.25M | 149.54M | 128.74M | 142.24M | 124.46M | 105.16M | -21.11M | 7.15M | -66.46M | -291.94M | -288.85M | 225.35M | 255.66M | 138.97M | 94.41M | 69.94M | 50.66M | 35.76M | 18.95M | 24M | 14.24M | 300K |
| Depreciation & Amortization | 24.71M | 25.29M | 25.96M | 25.33M | 24.75M | 26.25M | 31.05M | 27.92M | 26.97M | 16.7M | 15.98M | 14.24M | 11.61M | 9.93M | 8.2M | 7.18M | 7.97M | 8.84M | 15.67M | 17.82M | 23.73M | 17.21M | 13.23M | 8.54M | 6.78M | 5.74M | 3.41M | 2.53M | 1.64M | 432.08K | 0 |
| Stock-Based Compensation | 14.31M | 19.68M | 25.81M | 22.51M | 22.33M | 20.07M | 20M | 19.61M | 17.17M | 12.06M | 13.74M | 15.78M | 12.21M | 9.48M | 8.32M | 7.41M | 5.36M | 6.2M | 5.51M | 8.97M | 11.54M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 18.48M | -902K | 7.13M | -2.74M | 19.69M | 956K | -2.04M | -2.3M | -8.67M | -77.97M | 22.49M | -4.86M | 124.83M | 118.56M | -112.3M | -48.98M | -5.96M | 609K | 1.5M | -89K | -2.07M | 156K | 6.24M | 4.97M | 0 | 0 |
| Other Non-Cash Items | 67.91M | 59M | 13.33M | 5.44M | 10.67M | -2.91M | 14.41M | 9.27M | 15.66M | 5.23M | 7.46M | 11.42M | 11.34M | 19.86M | 34.17M | -21.11M | 3.45M | -9.39M | 286.15M | 537.53M | 66.09M | 13.24M | 184K | -214.46M | -78.9M | -73.88M | -44.2M | -74.35M | -42.58M | -13.69M | 1.6M |
| Working Capital Changes | -230.28M | -438.69M | -1.08B | -436.46M | -644.67M | -951.42M | 42.33M | 33.23M | -22.18M | -284.06M | -291.07M | -171.47M | -386.36M | -241.35M | -298.36M | -69M | 13.48M | 120.04M | 65.87M | -183.78M | -299.7M | -207.91M | -92.82M | 53.13M | -3.56M | -294K | 11.13M | 10.25M | 6.77M | 5.7M | 500K |
| Change in Receivables | -40.2M | 0 | 39.78M | -64.17M | -102.95M | -65.11M | -88.94M | -42.65M | 3.04M | -17.77M | -17.51M | -7.08M | -25.03M | -18.43M | -6.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -191.36M | -257.04M | -881.81M | -319.91M | -624.52M | -948.05M | -40.09M | 3.62M | -19.43M | -301.48M | -311.43M | -209.41M | -338.59M | -281.94M | -299.19M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -90.32M | -92.37M | -41.93M | 22.61M | 76.98M | 948.05M | 88.94M | 42.65M | -376K | 8.13M | 43.38M | 31.88M | 14.69M | 86.6M | 29.39M | -21.73M | -21.73M | -24.21M | -118.24M | -139.94M | -55.68M | 208.97M | 63.17M | 54.69M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -54.02M | -57.7M | -44.07M | -43.62M | -32.29M | -26.82M | -18.23M | -13.49M | -33.53M | -17.07M | -20.11M | -16.49M | -62.87M | 1.03M | 23.84M | 141.18M | -174.51M | -145.42M | -23.26M | -9.68M | -57.72M | -247.43M | -81.8M | -29.22M | -142.81M | -73.03M | -8.18M | -9.9M | -1.1M | 11.07M | 18M |
| Capital Expenditures | -24.44M | -25.72M | -28.66M | -38.19M | -26.97M | -25.66M | -19.93M | -24.39M | -33.41M | -18.1M | -16.66M | -16.09M | -20.79M | -15.78M | -10.86M | -7.08M | -6.39M | -3.61M | -9.69M | -13.35M | -25.85M | -25.28M | -15.11M | -17.13M | -8.29M | -7.27M | -3.02M | -2.94M | -1.57M | -174.26K | 0 |
| CapEx % of Revenue | 0.44% | 0.44% | 0.45% | 0.62% | 0.43% | 0.5% | 0.44% | 0.66% | 0.95% | 0.56% | 0.55% | 0.62% | 0.95% | 0.87% | 0.91% | 0.82% | 0.68% | 0.37% | 0.64% | 0.57% | 0.75% | 0.84% | 0.74% | 1.16% | 0.74% | 0.98% | 0.58% | 0.86% | 0.61% | 0.12% | - |
| Acquisitions | -11.54M | 0 | -18.55M | -5.99M | -5.8M | -1.71M | -5K | -1.11M | -808K | -670K | -7.24M | -481K | -131.19M | -18.62M | -407K | 7.78M | -243.8M | 0 | 0 | 0 | 0 | -152.43M | -24.16M | 0 | -129.58M | -65.76M | -5.16M | -6.97M | -6.91M | -1.95M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -3.37M | -31.98M | 3.13M | 560K | 481K | 551K | 1.7M | 12.01M | 696K | 1.69M | 3.8M | 86K | 327K | 39.05M | -26.26M | -10.52M | 250.12M | -16.11M | -13.57M | 32.3M | 20.04M | -69.72M | -42.53M | -12.09M | -4.94M | 0 | 0 | 0 | 7.39M | 8.5M | 13.7M |
| Cash from Financing | -453.18M | 63.01M | 1.98M | -252.28M | -129.76M | 51.63M | -85.97M | -325.33M | -87.95M | 143.25M | -7M | 178.7M | 103.31M | 188.92M | 193.49M | 2.61M | -3.41M | 4.75M | 1.68M | 1.26M | 70.58M | 193.12M | 64.71M | 84.31M | 151.86M | 91.86M | -7.1M | 47.32M | 10.44M | -25.07M | -8.1M |
| Debt Issued (Net) | -10.92M | 479.08M | 315.37M | -153.68M | -20.45M | 118.72M | -16.38M | -309.3M | 12.05M | 147.34M | -6.27M | 176.77M | -10.45M | 178.88M | 102.11M | 0 | -5.48M | 0 | -82M | 5.5M | 153.49M | 130.82M | 96.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -380M | -295M | -125.93M | -59.07M | -109.3M | -60.99M | -69.59M | -16.04M | -100M | 0 | 0 | 2.89M | 0 | 0 | 91.38M | 2.61M | 2.06M | 4.75M | 83.68M | -4.59M | -91.85M | 62.3M | -31.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -122.2M | -121.07M | -108.59M | -39.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -194.33K | -300K |
| Share Repurchases | -380M | -295M | -125.93M | -59.07M | -109.3M | -60.99M | -69.59M | -16.04M | -100M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -11K | 0 | -105.38M | -14.4M | -35.42M | -5.18M | -17.15M | -207K | -9.11M | -1.9M | 0 | 0 | 0 |
| Other Financing | 59.95M | 0 | -78.87M | 0 | 0 | -6.1M | 0 | 0 | 0 | -4.09M | -724K | -963K | 113.76M | 10.05M | 0 | 0 | 0 | 0 | 0 | 346K | 8.94M | 0 | 0 | 84.31M | 151.86M | 91.86M | -7.1M | 47.32M | 10.44M | -24.88M | -7.8M |
| Net Change in Cash | -245.02M | 123.6M | -269.67M | 59.67M | 243.23M | -127.29M | 426.15M | 8M | 140.72M | 39.04M | -130.51M | 158.88M | -170.8M | 103.68M | -3.15M | 69.66M | -145.38M | 43.41M | 178.25M | -29.03M | -9.1M | 17.94M | 43.08M | -1.8M | 3.22M | -1.01M | -9.03M | 1.04M | 4.14M | -7.32M | 12.3M |
| Free Cash Flow | 237.74M | 92.57M | -256.23M | 317.38M | 378.3M | -177.76M | 510.43M | 322.44M | 228.78M | -105.23M | -120.06M | -19.43M | -232.04M | -102.06M | -231.35M | -81.22M | 26.16M | 180.47M | 190.14M | -33.96M | -47.81M | 46.96M | 45.06M | -74.03M | -14.12M | -27.12M | 3.23M | -39.32M | -6.76M | 6.5M | 2.4M |
| FCF Margin % | 4.23% | 1.58% | -4.01% | 5.17% | 6.01% | -3.46% | 11.34% | 8.79% | 6.48% | -3.25% | -3.95% | -0.75% | -10.64% | -5.61% | -19.37% | -9.43% | 2.78% | 18.6% | 12.48% | -1.45% | -1.38% | 1.56% | 2.21% | -5.03% | -1.26% | -3.64% | 0.62% | -11.51% | -2.64% | 4.35% | 109.09% |
| FCF Growth % | 162.55% | 136.13% | -180.73% | -16.1% | 312.82% | -134.82% | 58.3% | 40.93% | 317.42% | 12.36% | -518.03% | 91.63% | -127.35% | 55.89% | -184.85% | -410.44% | -85.5% | -5.09% | 659.85% | 28.97% | -201.81% | 4.23% | 160.87% | -424.23% | 47.93% | -938.24% | 108.23% | -481.3% | -204.04% | 170.91% | 84.62% |
| FCF per Share | 3.53 | 1.31 | -3.49 | 4.28 | 5.10 | -2.32 | 6.63 | 4.15 | 2.81 | -1.25 | -1.41 | -0.23 | -2.79 | -1.32 | -3.29 | -1.25 | 0.40 | 2.88 | 3.24 | -0.65 | -0.88 | 0.82 | 0.82 | -1.34 | -0.27 | -0.58 | 0.07 | -0.81 | -0.14 | 0.15 | 0.06 |
| FCF Conversion (FCF/Net Income) | 0.62x | 0.26x | -0.29x | 0.48x | 0.41x | -0.21x | 1.25x | 1.39x | 1.15x | -0.61x | -0.69x | -0.03x | -1.49x | -0.69x | -2.10x | 3.51x | 4.55x | -2.77x | -0.68x | 0.07x | -0.10x | 0.28x | 0.43x | -0.60x | -0.08x | -0.39x | 0.17x | -1.92x | -0.22x | 0.47x | 12.00x |
| Interest Paid | 4.91M | 0 | 0 | 1.45M | 2.28M | 0 | 355K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 90.91M | 0 | 207.61M | 211.25M | 311.73M | 221.1M | 84.74M | 64.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Inventory absorption and margin erosion
As reported in recent financial statements, MTH's OCF/NI ratio has fluctuated wildly, reaching a negative 0.97 in 2025Q3, which highlights a significant disconnect between accounting profits and actual cash generation that investors should monitor closely as the company navigates a cooling housing market.
The persistent gap between net income and operating cash flow suggests that earnings are heavily reliant on non-cash accruals rather than realized cash inflows. This volatility indicates that the company's reported profitability may be overstated relative to its ability to convert sales into liquid capital.
Based on the provided cash flow data, MTH's FCF margin has swung from a negative 7.3% in 2024Q2 to a positive 16.6% in 2025Q4, illustrating a highly inconsistent cash trajectory that reflects the cyclical nature of the company's spec-heavy homebuilding business model.
The erratic FCF performance suggests that the company is struggling to maintain a predictable cash flow profile amidst shifting demand. This inconsistency warrants further investigation into whether the recent positive FCF is sustainable or merely a result of temporary inventory liquidation.
According to quarterly filings, MTH experienced a massive working capital outflow of $364.8 million in 2024Q2, underscoring the intense cash requirements inherent in the company's strategy of maintaining high levels of spec inventory to drive future home sales.
The recurring negative working capital changes suggest that the company is consistently reinvesting cash into land and construction before realizing revenue. This aggressive capital deployment may leave the company vulnerable if absorption rates in the Sunbelt region continue to decelerate.
Based on reported figures, MTH returned $150 million to shareholders via buybacks in 2025Q4, a move that appears aggressive given the -8.40% revenue contraction and the inherent volatility in the company's operating cash flow generation over the last ten quarters.
While the low debt-to-equity ratio provides a buffer, the decision to prioritize share repurchases over cash preservation during a period of declining revenue may limit future strategic flexibility. Investors should monitor whether this capital allocation strategy is sustainable if the current cyclical downturn persists.
Quick answers to the most common questions about buying MTH stock.
Meritage Homes Corporation (MTH) generated $118.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Meritage Homes Corporation (MTH) generated $92.6M 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.
Meritage Homes Corporation (MTH) spent $25.7M 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, Meritage Homes Corporation (MTH) returned $121.1M to shareholders via cash dividends and spent $295.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.