Liquidity is under severe pressure as cash reserves plummeted to $5.6 million, and the company continues to struggle with erratic free cash flow, which reached negative $8.4 million in 2026Q1.
KLX Energy Services Holdings, Inc. (KLXE) cash flow statement — 10-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 |
|---|
| Cash from Operations | 30M | 7.5M | 54.2M | 115.6M | 15.7M | -55.6M | -64.9M | 58.1M | 62M | -9.4M | -37.5M |
| Operating CF Margin % | - | 1.18% | 7.64% | 13.01% | 2.01% | -12.75% | -23.45% | 10.68% | 12.52% | -2.93% | -24.64% |
| Operating CF Growth % | -46.52% | -86.16% | -53.11% | 636.31% | 128.24% | 14.33% | -211.7% | -6.29% | 759.57% | 74.93% | - |
| Net Income | -62.9M | -77.1M | -53M | 19.2M | -3.1M | -93.8M | -332.2M | -96.4M | 14.4M | -24.1M | -89.6M |
| Depreciation & Amortization | 87.2M | 95.2M | 94M | 72.8M | 56.8M | 53.9M | 61.7M | 64.1M | 41.5M | 33.5M | 36.2M |
| Stock-Based Compensation | 2M | 2.6M | 3.9M | 3M | 3M | 3.4M | 17.8M | 18.5M | 23.5M | 12.5M | 9M |
| Deferred Taxes | -2M | 0 | 0 | 0 | 0 | 0 | -100K | -8.9M | 300K | 0 | 0 |
| Other Non-Cash Items | 4.5M | 13.5M | -9M | -10.8M | -10M | -4.4M | 169.3M | 65.5M | 300K | 500K | 2.2M |
| Working Capital Changes | 1.2M | -26.7M | 18.3M | 31.4M | -31M | -14.7M | 18.6M | 15.3M | -18M | -31.8M | 4.7M |
| Change in Receivables | -14.2M | -6M | 30.6M | 44M | -51M | -36.6M | 31.4M | 39.9M | -23.2M | -43M | 8.9M |
| Change in Inventory | -2M | -1.8M | 1.4M | -9M | -6.2M | -2.4M | -100K | 3.6M | -6.8M | -900K | 1.1M |
| Change in Payables | -2.2M | -2M | -16.6M | -4.2M | 11.7M | 29.1M | -16.1M | -13.8M | 3.7M | 12.6M | -3.9M |
| Cash from Investing | -39.8M | -32.9M | -51.1M | -39.7M | -18.7M | 4.5M | -11.9M | -97.7M | -214.1M | -48.8M | -29M |
| Capital Expenditures | -39.3M | -49.1M | -65.1M | -57.1M | -35.6M | -11M | -12.2M | -70.8M | -84M | -48.8M | -29M |
| CapEx % of Revenue | 6% | 7.71% | 9.18% | 6.43% | 4.55% | 2.52% | 4.41% | 13.01% | 16.96% | 15.23% | 19.05% |
| Acquisitions | 0 | 0 | 0 | 1.1M | 0 | 15.5M | -4M | -27.6M | -140M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -500K | 16.2M | 14M | 16.3M | 16.9M | 0 | 4.3M | 700K | 9.9M | 600K | 0 |
| Cash from Financing | 6.4M | -60.5M | -24M | -20.8M | 32.4M | 32M | 400K | -700K | 315.9M | 58.2M | 66.5M |
| Debt Issued (Net) | 15.1M | -60.4M | -16.2M | -14.6M | 10.3M | 27.4M | -1.1M | 0 | 250M | 0 | 0 |
| Equity Issued (Net) | -300K | 0 | -400K | -400K | 24.5M | 5.5M | -400K | -700K | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -400K | -400K | -300K | -300K | -400K | -2.2M | 0 | 0 | 0 |
| Other Financing | -8.4M | -100K | -7.4M | -5.8M | -2.4M | -900K | 1.9M | 0 | 65.9M | 58.2M | 66.5M |
| Net Change in Cash | -3.4M | -85.9M | -20.9M | 55.1M | 29.4M | -19.1M | -76.4M | -40.3M | 163.8M | 0 | 0 |
| Free Cash Flow | -9.3M | -41.6M | -10.9M | 58.5M | -19.9M | -66.6M | -77.1M | -12.7M | -22M | -58.2M | -66.5M |
| FCF Margin % | -1.42% | -6.53% | -1.54% | 6.58% | -2.55% | -15.27% | -27.85% | -2.33% | -4.44% | -18.16% | -43.69% |
| FCF Growth % | 72.65% | -281.65% | -118.63% | 393.97% | 70.12% | 13.62% | -507.09% | 42.27% | 62.2% | 12.48% | - |
| FCF per Share | -0.41 | -2.22 | -0.67 | 3.73 | -1.76 | -7.66 | -11.86 | -2.85 | -5.45 | -14.26 | -16.30 |
| FCF Conversion (FCF/Net Income) | 0.15x | -0.10x | -1.02x | 6.02x | -5.06x | 0.59x | 0.20x | -0.60x | 4.31x | 0.39x | 0.42x |
| Interest Paid | -3.6M | 0 | 37.1M | 35M | 33.7M | 0 | 0 | 29.4M | 0 | 0 | 0 |
| Taxes Paid | 400K | 0 | 3.3M | 600K | 600K | 0 | 0 | 1M | 0 | 0 | 0 |
Quick answers to the most common questions about buying KLXE stock.
KLX Energy Services Holdings, Inc. (KLXE) generated $7.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
KLX Energy Services Holdings, Inc. (KLXE) reported negative free cash flow of $41.6M in 2025, indicating capital requirements exceeded cash from operations.
KLX Energy Services Holdings, Inc. (KLXE) spent $49.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Liquidity and solvency pressure
Metrics are mathematically derived from official filings.
Earnings Disconnect Masks Cash Reality
According to the provided quarterly data, KLXE exhibits a persistent divergence between net income and operating cash flow, with the OCF/NI ratio frequently showing extreme negative values, suggesting that reported accounting losses do not fully capture the underlying cash-burning nature of the company's current operational model.
The consistent gap between net losses and operating cash flow suggests that non-cash charges, primarily depreciation, are the only factors preventing even more severe cash depletion. Investors should monitor this disconnect, as it implies that the company's earnings profile is heavily distorted by the high fixed-cost nature of its equipment fleet.
Free Cash Flow Volatility Persists
As reported in financial statements, KLXE's free cash flow trajectory remains highly erratic, swinging from a positive $10.7 million in 2024Q4 to a negative $8.4 million in 2026Q1, which underscores the company's inability to maintain consistent cash generation throughout the current industry cycle.
The inability to sustain positive free cash flow suggests that the company's capital requirements are structurally misaligned with its current revenue-generating capacity. This volatility warrants further investigation into whether the company can achieve a sustainable cash-flow floor without further eroding its asset base.
Capital Intensity Outpaces Revenue Growth
Based on the company's reported figures, capital expenditures have remained a significant burden, with the CapEx/Revenue ratio reaching as high as 11.1% in 2024Q3, indicating that the firm is forced to reinvest heavily just to maintain its existing rental fleet despite declining top-line performance.
The high capital intensity relative to revenue suggests that the company is trapped in a cycle of maintenance spending that offers little room for growth. This appears to limit the company's flexibility, as a substantial portion of cash flow is consumed by the necessity of keeping aging equipment operational.
Working Capital Swings Signal Instability
Financial disclosures reveal that working capital changes have been a primary driver of cash flow volatility, with a massive $30.1 million inflow in 2023Q4 followed by a $34.8 million outflow in 2025Q1, highlighting the company's sensitivity to timing differences in collections and payables management.
These erratic swings in working capital suggest that the company may be struggling to manage its cash conversion cycle effectively during periods of fluctuating activity. Such instability may indicate that the company is reliant on favorable timing of receivables to meet its immediate liquidity obligations.
Cumulative Earnings vs Cash Reality
Analysis of the 10-quarter data shows a persistent cumulative gap where net income remains deeply negative while operating cash flow struggles to remain positive, suggesting that the company's accounting losses are not merely non-cash items but reflect a fundamental inability to generate sustainable operating cash.
The persistent negative net income, when viewed against the backdrop of limited cash generation, suggests that the company's business model may be structurally impaired. This divergence warrants caution, as it implies that the company's long-term viability is increasingly dependent on external financing rather than internal cash generation.