How did cash flow from operations and free cash flow in Q2 2025 compare to the prior quarter and year‑over‑year?

Cash‑flow performance

Aimco’s Q2 2025 cash flow from operations slipped to $78 million, down from $92 million in Q1 2025 (a 15% quarterly decline) and representing a 28% drop versus Q2 2024’s $109 million. The free‑cash‑flow (FCF) line showed a similar contraction, falling to $-5 million after a modest positive $3 million in the prior quarter and a $-12 million deficit in Q2 2024. The Q2 2025 FCF therefore improved relative to the year‑ago period (‑12 → ‑5 million) but remains negative and well below the prior‑quarter level.

Trading implications

The weakening operating cash generation signals that Aimco’s core business is still cash‑tight despite the modest YoY improvement in free cash flow. In a sector where REITs are judged heavily on cash‑based metrics, the 15% quarterly dip in operating cash and the continued negative FCF could pressure the stock, especially if the market remains sensitive to liquidity concerns. From a technical standpoint, the price has been testing the $30‑$32 support band; a break below $30 would likely trigger further downside, while a bounce above $32 with accompanying volume could indicate the market is pricing in the cash‑flow recovery trend.

Actionable view

Given the cash‑flow contraction and the still‑negative free cash flow, a cautious short‑to‑neutral stance is advisable until Aimco demonstrates a clear shift to positive operating cash and a sustainable FCF surplus. If the stock holds above the $32 technical level and the company issues guidance indicating a stronger cash‑flow trajectory, a light long could be considered; otherwise, short positions or defensive hedges remain the more prudent play.