Free cash flow has deteriorated to a -33.7% margin in 2026Q1, driven by a surge in capital intensity to 34.7% of revenue and persistent working capital outflows of $23.6M.
| Cash from Operations | 89.02M | 134M | 144.55M | 86.55M | 164.73M | 31.98M | 0 |
| Operating CF Margin % | - | 23.35% | 18.28% | 12.8% | 16.49% | - | - |
| Operating CF Growth % | 78.97% | -7.29% | 67.01% | -47.46% | 415.01% | - | - |
| Net Income | -100.69M | 46.65M | 121.41M | -135.67M | 131.7M | 661.44M | -360K |
| Depreciation & Amortization | 56.85M | 0 | 95.28M | 67.56M | 85.29M | 28.29M | 0 |
| Stock-Based Compensation | 398K | 0 | 6.34M | 9.81M | 1.18M | 0 | 0 |
| Deferred Taxes | 230.49K | 0 | -84.88M | 19.04M | -87.68M | 0 | 0 |
| Other Non-Cash Items | 108.74M | 92.45M | 26.03M | 100.3M | 30.66M | -650.84M | 360K |
| Working Capital Changes | -36.86M | -5.09M | -19.64M | 25.51M | 3.57M | -6.91M | 0 |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -115.83M | -98.42M | -94.41M | -12.1M | -63.75M | -336.53M | 0 |
| Capital Expenditures | -130M | -109.75M | -87.4M | -33.43M | -39.59M | -4.59M | 0 |
| CapEx % of Revenue | 23.08% | 19.13% | 11.05% | 4.95% | 3.96% | - | - |
| Acquisitions | 0 | 0 | -4.39M | 0 | 0 | -359.54M | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 14.17M | 11.34M | -2.61M | 21.32M | -24.15M | 27.6M | 0 |
| Cash from Financing | -53.4M | -57.13M | -95.43M | 2K | -123.64M | 365.61M | 0 |
| Debt Issued (Net) | -320.55M | -323.39M | -91.21M | 87.71M | -123.64M | 365.59M | 0 |
| Equity Issued (Net) | 289.86M | 289.86M | 0 | 25.65M | 0 | 15K | 0 |
| Dividends Paid | 0 | 0 | 0 | -59.39M | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -41.46M | 0 | 0 | 0 |
| Other Financing | -22.71M | -23.6M | -4.21M | -53.97M | 0 | 0 | 0 |
| Net Change in Cash | -84.35M | -22.31M | -42.11M | 74.16M | -25.51M | 60.87M | 0 |
| Free Cash Flow | -25.79M | 24.25M | 57.14M | 53.12M | 125.14M | 27.39M | 0 |
| FCF Margin % | -4.58% | 4.23% | 7.22% | 7.86% | 12.53% | - | - |
| FCF Growth % | -215.06% | -57.56% | 7.57% | -57.55% | 356.85% | - | - |
| FCF per Share | -0.21 | 0.33 | 0.80 | 0.98 | 1.82 | 0.73 | - |
| FCF Conversion (FCF/Net Income) | 0.26x | 2.87x | 1.19x | -0.64x | 1.25x | -44.95x | - |
| Interest Paid | 842K | 0 | 39.95M | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Commodity price volatility exposure
As reported in quarterly financial statements, Greenfire Resources exhibits a profound disconnect between net income and operating cash flow, evidenced by an OCF/NI ratio that frequently swings into negative territory, most notably reaching -0.02 in 2026Q1 despite significant net losses during the same period.
The erratic relationship between accounting earnings and cash generation suggests that non-cash charges and working capital volatility are obscuring the underlying cash-generating capacity of the Hangingstone assets. Investors should monitor this divergence closely, as the inability to consistently convert earnings into cash flow may indicate that the company's reported profitability is highly sensitive to non-operating accounting adjustments.
Based on the provided cash flow data, Greenfire Resources has seen its free cash flow margin deteriorate significantly, falling to -33.7% in 2026Q1, which highlights the company's struggle to maintain positive cash generation amidst a backdrop of declining revenue and persistent capital expenditure requirements.
The shift from positive free cash flow in mid-2025 to deep negative territory in early 2026 suggests that the company's current operational scale is insufficient to cover both its fixed operating costs and necessary sustaining capital. This trajectory warrants further investigation into whether the company can achieve self-funding status without external financing or a material improvement in bitumen netbacks.
According to recent SEC filings, Greenfire Resources' capital intensity has surged, with CapEx/Revenue reaching 34.7% in 2026Q1, a substantial increase from the 0.8% observed in 2025Q1, indicating that the company is aggressively reinvesting in its assets despite a challenging commodity price environment.
This high level of capital expenditure appears to be a double-edged sword, as it may be necessary to maintain production levels at the Hangingstone facility but simultaneously drains the company's liquidity. Analysts should evaluate whether this spending is truly maintenance-oriented or if it represents an attempt to force growth in a market that may not currently reward such capital deployment.
As evidenced by the cash flow statements, working capital changes have acted as a significant drag on liquidity, with a $23.6M outflow in 2026Q1, reflecting the inherent difficulties in managing inventory and receivables within the highly cyclical and transactional nature of the heavy oil industry.
The frequent swings in working capital suggest that the company's cash flow is highly susceptible to timing differences in bitumen sales and diluent procurement. Investors should monitor whether these fluctuations are merely seasonal or if they indicate a structural inefficiency in the company's ability to manage its cash conversion cycle effectively.
Quick answers to the most common questions about buying GFR stock.
Greenfire Resources Ltd. (GFR) generated $134.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Greenfire Resources Ltd. (GFR) generated $24.3M 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.
Greenfire Resources Ltd. (GFR) spent $109.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.