Operating cash flow consistently exceeds net income, with the Q2 2026 OCF/NI ratio at 3.37, highlighting strong cash conversion, though the $22.5M in Q2 2026 stock-based compensation adds back a non-cash charge that dilutes unitholders.
LandBridge Company LLC (LB) cash flow statement — 4-year operating, investing & financing cash flows
| Metric | TTM | Jan'26 | Dec'24 | Dec'23 | Dec'22 |
|---|
| Cash from Operations | 155.52M | 126.27M | 67.64M | 53.04M | 20.5M |
| Operating CF Margin % | - | 63.42% | 61.51% | 72.79% | 39.59% |
| Operating CF Growth % | 579.39% | 86.69% | 27.51% | 158.74% | - |
| Net Income | 46.32M | 72.4M | -41.48M | 63.17M | -6.36M |
| Depreciation & Amortization | 15.12M | 11.47M | 5.2M | 4.6M | 6.72M |
| Stock-Based Compensation | 33.73M | 45.32M | 95.33M | -17.23M | 36.36M |
| Deferred Taxes | 4.74M | 4.08M | -411K | 0 | 0 |
| Other Non-Cash Items | 30.25M | 6.62M | 5.37M | 4.3M | 38K |
| Working Capital Changes | -5.59M | -13.62M | 3.62M | -1.8M | -16.26M |
| Change in Receivables | -2.04M | -9.67M | 1.04M | -2.09M | -6.34M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 209K | 16K | 272K | 362K | -1.58M |
| Cash from Investing | -226.55M | -233.07M | -724.35M | -2.77M | -11.67M |
| Capital Expenditures | 14.53M | -4.24M | -985K | -2.78M | -3.29M |
| CapEx % of Revenue | 6.44% | 2.13% | 0.9% | 3.82% | 6.36% |
| Acquisitions | -241.22M | -229.05M | -723.37M | 0 | -8.38M |
| Investments | - | - | - | - | - |
| Other Investing | 140K | 210K | 0 | 11K | 0 |
| Cash from Financing | 90.48M | 100.51M | 655.92M | -37.8M | 3.27M |
| Debt Issued (Net) | 156.41M | 184.35M | 255M | 72.58M | -6.5M |
| Equity Issued (Net) | 0 | 0 | 617.55M | 0 | 0 |
| Dividends Paid | 4.6M | -63.71M | -178.24M | -105.17M | -1.14M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -70.52M | -20.13M | -38.38M | -5.22M | 10.9M |
| Net Change in Cash | 19.45M | -6.29M | -791K | 12.47M | 12.1M |
| Free Cash Flow | 170.05M | 122.04M | 66.65M | 50.26M | 17.21M |
| FCF Margin % | 75.42% | 61.3% | 60.62% | 68.98% | 33.24% |
| FCF Growth % | 98.22% | 83.1% | 32.62% | 192.05% | - |
| FCF per Share | 6.11 | 4.38 | 0.91 | 3.47 | 1.19 |
| FCF Conversion (FCF/Net Income) | 3.67x | 4.19x | 13.24x | 0.84x | -3.22x |
| Interest Paid | 0 | 0 | 19.68M | 5.91M | 3.2M |
| Taxes Paid | 0 | 0 | 385K | 213K | 8.5M |
Quick answers to the most common questions about buying LB stock.
LandBridge Company LLC (LB) generated $126.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
LandBridge Company LLC (LB) generated $122.0M 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.
LandBridge Company LLC (LB) spent $4.2M 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, LandBridge Company LLC (LB) returned $63.7M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Extreme geographic concentration risk
Metrics are mathematically derived from official filings.
Cash Conversion Quality Surges as Non-Cash Charges Dominate
Based on reported figures, LandBridge's operating cash flow consistently triples or quadruples its net income, with the latest quarter's OCF/NI ratio at 3.37, suggesting non-cash items like depletion and amortization are suppressing GAAP earnings.
The persistent and widening gap between net income and operating cash flow is the most critical cash flow signal for LandBridge. In Q2 2026, $41.4M of operating cash flow was generated from just $12.3M of net income, implying that substantial non-cash charges, likely depletion of land assets or amortization of intangible rights, are the primary driver of the low reported net margin. This high cash conversion quality indicates that the company's core cash generation power is far stronger than the GAAP income statement suggests, and the earnings quality is high from a cash perspective.
Free Cash Flow Trajectory Volatile But Structurally Strong
As reported in financial statements, LandBridge's TTM FCF margin stands at 68.0%, with the latest quarter's FCF of $42.2M representing a 63.2% margin, demonstrating a powerful, albeit quarter-to-quarter volatile, free cash flow profile.
The FCF trajectory shows significant quarterly swings, from a high of 97.1% in Q4 2025 to a low of 25.1% in Q3 2024, which is characteristic of a business with lumpy, project-based revenue from surface easements. However, the overall trend is one of robust and growing cash generation, with FCF consistently exceeding $30M per quarter in recent periods. This volatility should be expected given the nature of the revenue streams, and the key takeaway is the underlying strength of the FCF margin, which positions the company to self-fund growth or return capital without external financing.
Minimal Capital Intensity Reflects Royalty Business Model
According to recent SEC filings, LandBridge's capital expenditures are negligible, with the last ten quarters showing CapEx consistently below 2% of revenue, culminating in a 1.3% CapEx-to-Revenue ratio in Q2 2026.
The extremely low capital intensity is a defining feature of LandBridge's cash flow profile, confirming its business model as a land and mineral rights owner rather than an operator. This minimal CapEx requirement means nearly all operating cash flow converts directly to free cash flow, creating a significant structural advantage. The absence of material maintenance or growth capital needs in this data suggests the asset base is essentially perpetual, requiring only negligible upkeep, which is a hallmark of the royalty and surface rights model.
Capital Deployment Balances Distributions and Strategic Acquisitions
Based on EDBL's reported figures, management has deployed cash toward shareholder distributions and strategic land acquisitions, most notably a $229.0M net acquisition in Q4 2025 and consistent quarterly dividends, indicating a balanced capital allocation strategy.
The capital deployment pattern shows a clear priority on inorganic growth through acquisitions, with several large cash outlays for purchases, most prominently the $229.0M in Q4 2025. This aligns with the strategy of aggregating Delaware Basin acreage to solidify the 'gatekeeper' position. Simultaneously, the company has initiated and maintained a dividend program, paying $18.6M in Q2 2026 alone, which suggests a commitment to returning cash to unitholders. The combination of strategic investment and income return is supported by the asset-light, high-FCF business model.
Cash Flow Statement May Obscure Full Earnings Reality
The significant $22.5M in stock-based compensation added back to Q2 2026 operating cash flow suggests a non-cash expense that dilutes unitholders but is excluded from free cash flow calculations, potentially masking the true economic cost of equity compensation.
A key item that the cash flow statement obscures is the substantial non-cash expense for stock-based compensation (SBC), which peaked at $810.0K in early 2024 but surged to $22.5M in Q2 2026. This is added back to derive operating cash flow, meaning FCF is calculated after effectively ignoring this significant dilutive cost. Investors should monitor the SBC trend as it represents a real economic cost to shareholders that is not reflected in the FCF metric. Additionally, the lumpy nature of acquisition-related cash outflows can make underlying cash generation appear more volatile than it is on a normalized basis.