Free cash flow has turned negative, reaching -120.7% of revenue in 2025Q3, driven by a surge in capital intensity that saw CapEx reach 198.9% of revenue.
| Cash from Operations | 141.66M | 146.11M | 207.74M | 116.2M | 115.42M |
| Operating CF Margin % | - | 45.3% | 57.48% | 52.74% | 71.26% |
| Operating CF Growth % | -40.65% | -29.67% | 78.78% | 0.68% | - |
| Net Income | 59.13M | 98.14M | 176.36M | 84.1M | 54.35M |
| Depreciation & Amortization | 125.73M | 64.42M | 61.23M | 58.97M | 43.39M |
| Stock-Based Compensation | 3.23M | 2.01M | 2.21M | 349.09K | 0 |
| Deferred Taxes | 0 | 0 | 0 | -118.08M | 0 |
| Other Non-Cash Items | -41.38M | -24.44M | -34.42M | 78.01M | 1.26M |
| Working Capital Changes | -3.36M | 5.97M | 2.35M | 12.86M | 16.42M |
| Change in Receivables | -5.16M | 7.67M | -7.31M | -418.81K | 3.58M |
| Change in Inventory | -4.54M | -7K | -2.77M | 0 | 915K |
| Change in Payables | -1.02M | -940K | 19.18M | 627.73K | 672.93K |
| Cash from Investing | -489.73M | -187.62M | -12.13M | -346.73M | -39.93K |
| Capital Expenditures | -489.73M | -187.49M | -195.09M | -346.73M | -39.93K |
| CapEx % of Revenue | 147.75% | 58.13% | 53.98% | 157.38% | 0.02% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 0 | -132K | 182.96M | 0 | 0 |
| Cash from Financing | 265.63M | 69.89M | -182.53M | 311.14M | -100.47M |
| Debt Issued (Net) | 297.14M | 153.96M | -93.13M | 463.97M | -145.96M |
| Equity Issued (Net) | -2M | 0 | 0 | 1000K | 0 |
| Dividends Paid | -8.05M | -74.11M | -87.51M | 0 | 0 |
| Share Repurchases | -9.28M | 0 | 0 | 0 | 0 |
| Other Financing | -14.18M | -9.96M | -1.89M | -577.17M | 45.49M |
| Net Change in Cash | -82.45M | 28.38M | 4.26M | 56.12M | 14.95M |
| Free Cash Flow | -348.07M | -41.38M | 2.49M | -230.53M | 115.38M |
| FCF Margin % | -105.01% | -12.83% | 0.69% | -104.63% | 71.24% |
| FCF Growth % | -537.99% | -1759.18% | 101.08% | -299.8% | - |
| FCF per Share | - | -0.77 | 0.05 | -4.29 | 114.24 |
| FCF Conversion (FCF/Net Income) | -5.89x | 1.49x | 1.19x | 1.38x | 5.28x |
| Interest Paid | 0 | 96.96M | 85.08M | 0 | 0 |
| Taxes Paid | 0 | 812K | 512K | 0 | 0 |
TFDE fleet obsolescence risk
According to the provided cash flow statements, the OCF/NI ratio has fluctuated wildly, reaching a high of 6.22 in 2025Q3, which suggests that reported net income is frequently decoupled from actual cash generation due to significant non-cash charges and accounting adjustments.
The extreme variance in the OCF/NI ratio indicates that net income is a poor proxy for the company's underlying cash-generating capacity. Investors should interpret this divergence as a sign that non-cash items, likely related to depreciation or impairment, are heavily distorting the bottom line.
As reported in financial statements, the company's FCF margin has swung from a positive 72.7% in 2023Q2 to a negative 120.7% in 2025Q3, highlighting a highly erratic cash trajectory that complicates long-term valuation and dividend sustainability assessments.
The persistent inability to maintain positive free cash flow suggests that the business model is currently struggling to balance operational requirements with capital intensity. This volatility warrants further investigation into whether the cash outflows are truly growth-oriented or merely necessary maintenance for an aging fleet.
Based on reported figures, the CapEx/Revenue ratio spiked to 198.9% in 2025Q3, indicating that the company is currently deploying capital at a rate that significantly exceeds its top-line intake, which may signal an urgent need for fleet upgrades or heavy maintenance.
The massive capital outlays observed in recent quarters suggest that the company is in a period of intense reinvestment. If these expenditures do not translate into improved day rates or extended charter durations, the current capital intensity may prove to be a drag on long-term shareholder returns.
Data from recent filings shows that while the company has historically prioritized dividends, the shift toward negative FCF in recent periods suggests that the current payout model may be unsustainable without relying on balance sheet liquidity or external financing.
The decision to continue share repurchases while free cash flow is negative appears to be a aggressive capital allocation strategy. Investors should monitor whether management continues to prioritize these returns over the necessary capital expenditures required to keep the TFDE fleet competitive.
Quick answers to the most common questions about buying CLCO stock.
Cool Company Ltd. (CLCO) generated $146.1M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Cool Company Ltd. (CLCO) reported negative free cash flow of $41.4M in 2024, indicating capital requirements exceeded cash from operations.
Cool Company Ltd. (CLCO) spent $187.5M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, Cool Company Ltd. (CLCO) returned $74.1M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.