Free cash flow has deteriorated to a -14.6% margin in 2026Q1, forcing the company to fund $14.6 million in dividends despite negative cash generation.
| Cash from Operations | 425.88M | 609.6M | 829.37M | 1.01B | 530.36M | 135.47M | 85.36M | 261.1M | 351.26M | 195.11M | -40.71M | 6.12M |
| Operating CF Margin % | - | 15.22% | 19.22% | 21.37% | 12.78% | 5.48% | 8.84% | 13.12% | 16.3% | 13.1% | -10.86% | 1.34% |
| Operating CF Growth % | -195.62% | -26.5% | -18.25% | 91.3% | 291.51% | 58.7% | -67.31% | -25.67% | 80.03% | 579.29% | -765.27% | - |
| Net Income | 150.32M | 147.87M | 316.01M | 556.32M | 399.6M | -179.24M | -115.58M | 39M | 126.35M | 168.5M | -60.56M | -9.06M |
| Depreciation & Amortization | 486.65M | 500.33M | 505.05M | 421.51M | 326.76M | 266.58M | 183.75M | 168.57M | 125.11M | 81.47M | 41.36M | 36.44M |
| Stock-Based Compensation | 31.87M | 41.92M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 63.94M | 54.64M | 33.84M | 120.31M | -12.47M | 5.08M | -25.55M | 23.41M | 20.49M | 0 | 0 | 0 |
| Other Non-Cash Items | -269.45M | -135.31M | -14.8M | 31.42M | 97.12M | -3.29M | -19.69M | 57.14M | 131.21M | 2.72M | -2.04M | 12.87M |
| Working Capital Changes | -37.45M | 143K | -10.73M | -114.98M | -280.65M | 46.34M | 62.43M | -27.02M | -51.9M | -57.58M | -19.47M | -34.13M |
| Change in Receivables | -186.34M | -65.6M | 59.46M | -243K | -192.13M | -90.14M | 62.69M | -6M | 11.98M | -130.23M | -42.97M | 9.29M |
| Change in Inventory | 15.5M | 12.02M | 66K | -114K | -84.99M | -24.61M | 2.14M | -30.48M | -4.61M | -27.64M | -11.69M | 3.73M |
| Change in Payables | 18.85M | 97.55M | -40.74M | -45.13M | 55.93M | 164.46M | -15.28M | 21.39M | -26.5M | 112.9M | 38.57M | -47.04M |
| Cash from Investing | -466.2M | -435.04M | -643.11M | -672.33M | -450.66M | -186.49M | -100.27M | -194.35M | -255.49M | -310.04M | -96.35M | -38.49M |
| Capital Expenditures | -618.56M | -595.49M | -651.03M | -603.3M | -459.32M | -198.79M | -103.64M | -195.17M | -258.83M | -311.79M | -102.43M | -38.49M |
| CapEx % of Revenue | 15.27% | 14.86% | 15.09% | 12.71% | 11.07% | 8.05% | 10.73% | 9.81% | 12.01% | 20.93% | 27.33% | 8.45% |
| Acquisitions | 2.54M | -15.21M | 0 | -95.94M | -15M | 25.41M | 3.37M | 826K | 3.34M | 1.75M | 6.08M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 28.75M | 24.69M | 23.98M | 26.91M | 23.66M | 25.41M | 0 | 0 | 3.34M | 1.75M | 6.08M | 0 |
| Cash from Financing | 714.93M | -167.54M | -202.71M | -349.31M | -55.77M | 2.06M | -28.87M | -57.38M | -8.78M | 119.77M | 148.54M | 21.48M |
| Debt Issued (Net) | -26.56M | -24.71M | 198K | -97.11M | 88.3M | 8.89M | -13.41M | -13.89M | -91.05M | 95.94M | -6.53M | 21.54M |
| Equity Issued (Net) | -924K | -24.88M | -129.25M | -203.32M | -135.03M | -3.58M | -1.64M | -18.4M | 121.37M | -62.74M | 155.48M | 0 |
| Dividends Paid | -55.91M | -54.48M | -48.31M | -37.68M | -9.16M | -168K | -4.43M | -14.78M | -6.91M | 0 | 0 | 0 |
| Share Repurchases | -924K | -24.88M | -129.25M | -203.1M | -125.31M | -3.58M | 0 | -18.4M | -108.8M | -62.74M | 0 | 0 |
| Other Financing | 798.32M | -63.48M | -25.34M | -11.2M | 120K | -3.08M | -9.38M | -10.31M | -32.2M | 86.57M | -413K | -50K |
| Net Change in Cash | 675.05M | 7.57M | -16.8M | -6.89M | 23.68M | -48.98M | -43.71M | 9.38M | 86.99M | 4.84M | 148.54M | 21.48M |
| Free Cash Flow | -192.68M | 14.11M | 178.34M | 411.29M | 71.04M | -63.33M | -18.21M | 65.93M | 92.42M | -116.69M | -143.14M | -32.37M |
| FCF Margin % | -4.76% | 0.35% | 4.13% | 8.66% | 1.71% | -2.56% | -1.89% | 3.31% | 4.29% | -7.83% | -38.19% | -7.11% |
| FCF Growth % | -186.75% | -92.09% | -56.64% | 478.92% | 212.19% | -247.72% | -127.62% | -28.67% | 179.21% | 18.48% | -342.15% | - |
| FCF per Share | -1.16 | 0.08 | 1.05 | 2.33 | 0.38 | -0.36 | -0.21 | 0.63 | 0.78 | -1.69 | -2.55 | -0.27 |
| FCF Conversion (FCF/Net Income) | -1.28x | 4.12x | 2.62x | 1.82x | 1.33x | -0.76x | -0.74x | 6.69x | 2.78x | - | - | -0.68x |
| Interest Paid | 30.69M | 39.73M | 33.08M | 26.65M | 20.31M | 0 | 0 | 12.64M | 13.96M | 0 | 0 | 0 |
| Taxes Paid | 10.22M | 11.05M | 35.86M | 66.69M | 10.74M | 0 | 0 | 1.04M | 27.26M | 0 | 0 | 0 |
Cyclical demand and margin compression
According to recent financial statements, LBRT's operating cash flow to net income ratio plummeted to 0.37 in 2026Q1, suggesting a significant disconnect between accounting profits and actual cash generation that warrants further investigation into the company's accrual-heavy earnings profile during this period of market contraction.
The sharp divergence between net income and operating cash flow indicates that reported earnings are increasingly supported by non-cash items or working capital adjustments rather than core operational efficiency. Investors should monitor whether this trend reflects a structural decline in the quality of earnings or merely temporary timing differences in revenue recognition.
As reported in quarterly filings, LBRT's free cash flow margin deteriorated to -14.6% in 2026Q1, a stark reversal from the 14.6% margin observed in 2023Q4, highlighting the company's struggle to maintain positive cash generation amidst a cooling North American hydraulic fracturing service environment.
The transition from consistent positive free cash flow to significant cash burn suggests that the company's capital intensity is currently outpacing its ability to generate internal liquidity. This trajectory appears to be driven by a combination of declining operational profitability and the persistent need for fleet maintenance and modernization.
Based on reported figures, LBRT's capital expenditure as a percentage of revenue reached 15.4% in 2026Q1, indicating that the company remains tethered to high reinvestment requirements to sustain its digiFrac electric fleet technology despite the broader downturn in regional completion activity.
The high level of capital intensity relative to revenue suggests that LBRT is prioritizing long-term fleet competitiveness over short-term cash preservation. This strategy may indicate that management views the transition to electric pumping as a necessary defensive moat, even if it currently pressures the company's free cash flow profile.
As disclosed in recent financial statements, LBRT's working capital changes have swung from a $95.8 million outflow in 2025Q3 to a neutral position in 2026Q1, suggesting that the company is facing increased difficulty in managing its cash conversion cycle during this period of revenue contraction.
The volatility in working capital suggests that the company may be experiencing delays in collections or inventory management challenges as E&P customers tighten their own spending. This lack of stability in working capital management may indicate that the company's cash position is more vulnerable to operational disruptions than its low debt levels would imply.
Based on the provided data, LBRT continued to pay $14.6 million in dividends during 2026Q1 despite generating negative free cash flow, which may indicate a commitment to shareholder returns that could potentially strain the company's limited cash buffer if market conditions do not improve.
The decision to maintain dividend payments while free cash flow is negative warrants further investigation into the sustainability of this capital allocation strategy. Investors should consider whether this reflects management's confidence in a near-term recovery or a potential misalignment between capital returns and the company's current liquidity realities.
Quick answers to the most common questions about buying LBRT stock.
Liberty Energy Inc. (LBRT) generated $609.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Liberty Energy Inc. (LBRT) generated $14.1M 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.
Liberty Energy Inc. (LBRT) spent $595.5M 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, Liberty Energy Inc. (LBRT) returned $54.5M to shareholders via cash dividends and spent $24.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.