# MERCURY GENERAL CORPORATION (MCY) FY2026 YTD Q2 Statement of Cash Flows

- Company: MERCURY GENERAL CORPORATION (MCY)
- Period: 2026-01-01 to 2026-06-30
- Filing: Q2 FY2026 10-Q, filed 2026-08-04, accession number 0000064996-26-000020
- Page: https://plicit.ai/financials/mcy/fy2026-ytd-q2-cash-flow
- Chart image: https://plicit.ai/charts/mcy-fy2026-ytd-q2-cash-flow-sankey.png

## Chart details

Cash flows for Jan 1, 2026 through Jun 30, 2026. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Dec 31, 2025. Ending cash: Jun 30, 2026. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

- **Beginning cash on Dec 31, 2025**: 1,315,574,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
- **Operating activities**: 543,303,000 US dollars. Net cash provided.
- **Net income**: 453,922,000 US dollars
- **Depreciation and amortization**: 40,368,000 US dollars
- **Net realized investment gains**: negative 81,970,000 US dollars
- **Net gains on sales of fixed assets**: 0 US dollars
- **Increase in premiums receivable**: negative 77,162,000 US dollars
- **Decrease (increase) in reinsurance recoverables**: 65,423,000 US dollars
- **Changes in current and deferred income taxes**: negative 21,047,000 US dollars
- **Increase in deferred policy acquisition costs**: negative 18,290,000 US dollars
- **Increase in loss and loss adjustment expense reserves**: 41,362,000 US dollars
- **Increase in unearned premiums**: 158,901,000 US dollars
- **(Decrease) increase in accounts payable and accrued expenses**: negative 27,731,000 US dollars
- **Other, net**: 9,527,000 US dollars
- **Investing activities**: negative 491,523,000 US dollars. Net cash used.
- **Purchases**: negative 1,196,795,000 US dollars
- **Sales**: 397,341,000 US dollars
- **Calls or maturities**: 428,288,000 US dollars
- **Purchases**: negative 1,185,865,000 US dollars
- **Sales**: 1,101,376,000 US dollars
- **Changes in securities payable and receivable**: 18,310,000 US dollars
- **(Increase) decrease in short-term investments**: negative 31,360,000 US dollars
- **Purchases of fixed assets**: negative 32,932,000 US dollars
- **Sales of fixed assets**: 0 US dollars
- **Other, net**: 10,114,000 US dollars
- **Financing activities**: 333,476,000 US dollars. Net cash provided.
- **Dividends paid to shareholders**: negative 35,172,000 US dollars
- **Net proceeds from issuance of senior notes**: 519,422,000 US dollars
- **Payments on finance lease obligations**: negative 774,000 US dollars
- **Paydown of principal on credit facility**: negative 150,000,000 US dollars
- **Operating adjustment reconciliation**: 315,581,000 US dollars. Intermediate calculation joining the operating reconciliation branches. Its gross amount includes any portion of net income routed through this junction. It is not an additional cash source or use.
- **financing gross reconciliation**: 519,422,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
- **investing gross reconciliation**: 2,446,952,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
- **Exchange-rate effect**: 0 US dollars
- **Ending cash on Jun 30, 2026**: 1,700,830,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
- **Cash sources and uses**: 2,192,353,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
- **Net cash change**: 385,256,000 US dollars. Ending cash minus beginning cash.
- **Cash flow / Net income**: 1.20×. Operating cash flow divided by reconciliation net income for the same period. Black from 0.90× through 1.10×; green above 1.10×; red below 0.90×. Color uses the unrounded ratio.
- **Operating cash flow**: 543,303,000 US dollars. Operating cash flow used in the free cash flow calculation.
- **Cash purchases of property, plant and equipment**: 32,932,000 US dollars. These cash purchases are already included in investing activities above.
- **Free cash flow**: 510,371,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

### Chart connections

- Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
- Financing contributions meet at a reconciliation junction before connecting to the net cash total.
- Investing contributions meet at a reconciliation junction before connecting to the net cash total.
- Operating reconciliation adjustments are not all independent cash receipts.
- Net income enters operating cash directly in the reconciliation. The adjustment junction contributes the remaining $89.38M after reconciling the other positive and negative adjustments. These connections depict an accounting reconciliation, not traced cash receipts.
- Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
- The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
- Operating cash flow minus cash purchases of property, plant and equipment equals free cash flow: 543,303,000 US dollars minus 32,932,000 US dollars equals 510,371,000 US dollars.