Operating cash flow of $49.6M in 2026Q3 ran at roughly 3.8 times net income and free cash flow margin reached 69.1%, yet acquisition spending of $266.8M in the same quarter consumed most of the cash generated, indicating capital deployment is dominated by purchases rather than organic reinvestment.
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 | 170.17M | 126.27M | 67.64M | 53.04M | 20.5M |
| Operating CF Margin % | - | 63.42% | 61.51% | 72.79% | 39.59% |
| Operating CF Growth % | 252.74% | 86.69% | 27.51% | 158.74% | - |
| Net Income | 91.02M | 72.4M | -41.48M | 63.17M | -6.36M |
| Depreciation & Amortization | 17.09M | 11.47M | 8.88M | 8.76M | 6.72M |
| Stock-Based Compensation | 31.65M | 45.32M | 95.33M | -17.23M | 36.36M |
| Deferred Taxes | 5.29M | 4.08M | -411K | 0 | 0 |
| Other Non-Cash Items | 30.39M | 6.62M | 1.69M | 142K | 38K |
| Working Capital Changes | -5.27M | -13.62M | 3.62M | -1.8M | -16.26M |
| Change in Receivables | -12.32M | -9.67M | 1.04M | -2.09M | -6.34M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 267K | 16K | 272K | 362K | -1.58M |
| Cash from Investing | -492.81M | -233.07M | -724.35M | -2.77M | -11.67M |
| Capital Expenditures | 15.14M | -4.24M | -985K | -2.78M | -3.29M |
| CapEx % of Revenue | - | 2.13% | 0.9% | 3.82% | 6.36% |
| Acquisitions | -508.01M | -229.05M | -723.37M | 0 | -8.38M |
| Investments | - | - | - | - | - |
| Other Investing | 55K | 210K | 0 | 11K | 0 |
| Cash from Financing | 311.1M | 100.51M | 655.92M | -37.8M | 3.27M |
| Debt Issued (Net) | 381.23M | 184.35M | 255M | 72.58M | -6.5M |
| Equity Issued (Net) | 0 | 0 | 617.55M | 0 | 0 |
| Dividends Paid | 2.04M | -63.71M | -178.24M | -105.17M | -1.14M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -72.17M | -20.13M | -38.38M | -5.22M | 10.9M |
| Net Change in Cash | -11.54M | -6.29M | -791K | 12.47M | 12.1M |
| Free Cash Flow | 185.31M | 122.04M | 66.65M | 50.26M | 17.21M |
| FCF Margin % | - | 61.3% | 60.62% | 68.98% | 33.24% |
| FCF Growth % | - | 83.1% | 32.62% | 192.05% | - |
| FCF per Share | 6.36 | 4.38 | 0.91 | 3.47 | 1.19 |
| FCF Conversion (FCF/Net Income) | 3.62x | 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
Cash conversion volatility and Delaware concentration
Metrics are mathematically derived from official filings.
Operating Cash Flow Far Exceeds Reported Earnings
As reported in the quarterly cash flow statements, LB's operating cash flow ran at roughly 2.3 to 5.1 times net income across most recent quarters, a gap that warrants scrutiny of how durable these cash generation figures are.
The consistently high ratio of operating cash flow to net income suggests that large non-cash items, principally depreciation, amortization, and stock-based compensation, are depressing reported earnings rather than reflecting weak underlying cash generation. The 2024Q2 quarter, where a net loss coincided with positive operating cash flow, reinforces this reading. Investors should monitor whether the gap narrows as non-cash charges normalize, since a persistent divergence could also indicate that earnings are structurally understated by accounting choices rather than economic performance.
Free Cash Flow Margins Volatile but Recovering
Based on the reported figures, LB's free cash flow margin swung from 25.1% in 2024Q3 to 97.1% in 2025Q4 before settling near 69.1% in 2026Q3, a range that points to lumpy rather than linear cash generation.
The wide quarterly dispersion in free cash flow margin appears driven more by timing of working capital and acquisition-adjacent items than by a steady operating trend. The 2025Q4 spike to 97.1% coincided with negligible capital expenditure, which may indicate that near-term free cash flow is flattered by minimal reinvestment. Going forward, the sustainability of mid-to-high double-digit free cash flow depends on whether capital needs remain light as the asset base scales.
Acquisition Outflows Dominate Capital Deployment
As reported in the cash flow statements, LB deployed roughly $229.0M in the fourth quarter of 2025 and $266.8M in the third quarter of 2026 toward acquisitions, consuming most of the cash generated in those periods.
Large acquisition outflows relative to quarterly free cash flow suggest that management is prioritizing asset accumulation over distribution, a posture consistent with the company's rapid revenue expansion. Dividend payments of $14.7M to $24.4M per quarter represent a meaningful but partial claim on cash generation, and their coverage by free cash flow varies considerably by quarter. Investors should watch whether acquisition spending slows, since continued reliance on external capital or debt to fund deals would materially change the risk profile.
Cumulative Cash Generation Versus Accounting Earnings
Based on the ten reported quarters, LB's cumulative operating cash flow substantially exceeds cumulative net income, with the difference largely explained by depreciation and amortization and stock-based compensation add-backs.
Over the observed window, cumulative net income is modest while cumulative operating cash flow is considerably larger, a divergence that reflects the high non-cash component of reported costs. This pattern suggests that accounting earnings understate the cash economics of the land and surface-rights portfolio. The inference, however, depends on the non-cash charges being recurring rather than one-time, which warrants further investigation in the underlying filings.
Cash Strength May Mask Acquisition Dependence
The strongest challenge to LB's cash profile is that its favorable operating cash flow figures coexist with heavy acquisition spending, so organic cash generation may be overstated relative to the growth being purchased.
The reported cash flow statements do not isolate how much operating cash flow is sustainable without acquisition-driven revenue contribution, and the recent acquisition outflows appear large enough to question whether the company is self-funding its expansion. Revenue growth in the trailing period may therefore reflect purchased rather than organic cash flow streams. Investors should monitor whether operating cash flow holds up as the pace of acquisitions moderates, as that would be the clearest test of underlying cash durability.