Free cash flow turned sharply negative at -$90.8M in 2026Q2 as capex rose to 18.8% of revenue, while operating cash flow conversion swung wildly from 0.37x to 3.09x net income, underscoring earnings quality volatility.
Liberty Energy Inc. (LBRT) cash flow statement — 11-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Cash from Operations | 388.33M | 609.6M | 829.37M | 1.01B | 530.36M | 135.47M | 85.36M | 261.1M | 351.26M | 195.11M | -40.71M | 6.12M |
| Operating CF Margin % | - | 15.22% | 19.22% | 21.37% | 12.78% | 5.48% | 8.84% | 13.12% | 16.3% | 13.1% | -10.86% | 1.34% |
| Operating CF Growth % | -186.36% | -26.5% | -18.25% | 91.3% | 291.51% | 58.7% | -67.31% | -25.67% | 80.03% | 579.29% | -765.27% | - |
| Net Income | 122.42M | 147.87M | 316.01M | 556.32M | 399.6M | -179.24M | -115.58M | 39M | 126.35M | 168.5M | -60.56M | -9.06M |
| Depreciation & Amortization | 471.5M | 500.33M | 505.05M | 421.51M | 326.76M | 266.58M | 183.75M | 168.57M | 125.11M | 81.47M | 41.36M | 36.44M |
| Stock-Based Compensation | 26.44M | 41.92M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 114.3M | 54.64M | 33.84M | 120.31M | -12.47M | 5.08M | -25.55M | 23.41M | 20.49M | 0 | 0 | 0 |
| Other Non-Cash Items | -167.1M | -135.31M | -14.8M | 31.42M | 97.12M | -3.29M | -19.69M | 57.14M | 131.21M | 2.72M | -2.04M | 12.87M |
| Working Capital Changes | -179.22M | 143K | -10.73M | -114.98M | -280.65M | 46.34M | 62.43M | -27.02M | -51.9M | -57.58M | -19.47M | -34.13M |
| Change in Receivables | -165.86M | -65.6M | 59.46M | -243K | -192.13M | -90.14M | 62.69M | -6M | 11.98M | -130.23M | -42.97M | 9.29M |
| Change in Inventory | 13.52M | 12.02M | 66K | -114K | -84.99M | -24.61M | 2.14M | -30.48M | -4.61M | -27.64M | -11.69M | 3.73M |
| Change in Payables | -105.13M | 97.55M | -40.74M | -45.13M | 55.93M | 164.46M | -15.28M | 21.39M | -26.5M | 112.9M | 38.57M | -47.04M |
| Cash from Investing | -610.35M | -435.04M | -643.11M | -672.33M | -450.66M | -186.49M | -100.27M | -194.35M | -255.49M | -310.04M | -96.35M | -38.49M |
| Capital Expenditures | -704.91M | -595.49M | -651.03M | -603.3M | -459.32M | -198.79M | -103.64M | -195.17M | -258.83M | -311.79M | -102.43M | -38.49M |
| CapEx % of Revenue | 16.8% | 14.86% | 15.09% | 12.71% | 11.07% | 8.05% | 10.73% | 9.81% | 12.01% | 20.93% | 27.33% | 8.45% |
| Acquisitions | 2.54M | -15.21M | 0 | -95.94M | -15M | 25.41M | 3.37M | 826K | 3.34M | 1.75M | 6.08M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 31.58M | 24.69M | 23.98M | 26.91M | 23.66M | 25.41M | 0 | 0 | 3.34M | 1.75M | 6.08M | 0 |
| Cash from Financing | 758.59M | -167.54M | -202.71M | -349.31M | -55.77M | 2.06M | -28.87M | -57.38M | -8.78M | 119.77M | 148.54M | 21.48M |
| Debt Issued (Net) | 1.07B | -24.71M | 198K | -97.11M | 88.3M | 8.89M | -13.41M | -13.89M | -91.05M | 95.94M | -6.53M | 21.54M |
| Equity Issued (Net) | 0 | -24.88M | -129.25M | -203.32M | -135.03M | -3.58M | -1.64M | -18.4M | 121.37M | -62.74M | 155.48M | 0 |
| Dividends Paid | -57.85M | -54.48M | -48.31M | -37.68M | -9.16M | -168K | -4.43M | -14.78M | -6.91M | 0 | 0 | 0 |
| Share Repurchases | 0 | -24.88M | -129.25M | -203.1M | -125.31M | -3.58M | 0 | -18.4M | -108.8M | -62.74M | 0 | 0 |
| Other Financing | -255.76M | -63.48M | -25.34M | -11.2M | 120K | -3.08M | -9.38M | -10.31M | -32.2M | 86.57M | -413K | -50K |
| Net Change in Cash | 535.8M | 7.57M | -16.8M | -6.89M | 23.68M | -48.98M | -43.71M | 9.38M | 86.99M | 4.84M | 148.54M | 21.48M |
| Free Cash Flow | -316.58M | 14.11M | 178.34M | 411.29M | 71.04M | -63.33M | -18.21M | 65.93M | 92.42M | -116.69M | -143.14M | -32.37M |
| FCF Margin % | -7.54% | 0.35% | 4.13% | 8.66% | 1.71% | -2.56% | -1.89% | 3.31% | 4.29% | -7.83% | -38.19% | -7.11% |
| FCF Growth % | -321.43% | -92.09% | -56.64% | 478.92% | 212.19% | -247.72% | -127.62% | -28.67% | 179.21% | 18.48% | -342.15% | - |
| FCF per Share | -1.89 | 0.08 | 1.05 | 2.33 | 0.38 | -0.36 | -0.21 | 0.63 | 0.78 | -1.69 | -2.55 | -0.27 |
| FCF Conversion (FCF/Net Income) | -2.59x | 4.12x | 2.62x | 1.82x | 1.33x | -0.76x | -0.74x | 6.69x | 2.78x | - | - | -0.68x |
| Interest Paid | 34.3M | 39.73M | 33.08M | 26.65M | 20.31M | 13.27M | 0 | 12.64M | 13.96M | 0 | 0 | 0 |
| Taxes Paid | -9.52M | 11.05M | 35.86M | 66.69M | 10.74M | 0 | 0 | 1.04M | 27.26M | 0 | 0 | 0 |
Quick answers to the most common questions about buying LBRT stock.
Liberty Energy Inc. (LBRT) generated $609.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Liberty Energy Inc. (LBRT) generated $14.1M 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.
Liberty Energy Inc. (LBRT) spent $595.5M 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, Liberty Energy Inc. (LBRT) returned $54.5M to shareholders via cash dividends and spent $24.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Negative FCF and thin cash buffer
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Working Capital Swings
LBRT's operating cash flow exceeded net income by 3.1x in 2026Q2, but 2026Q1 showed a mere 0.37x conversion, indicating volatile earnings quality tied to working capital swings.
The wide quarterly swings in OCF/NI, from 0.37x in 2026Q1 to 3.09x in 2026Q2, suggest that reported net income is not a reliable indicator of cash generation. The negative working capital change of -$112.7M in 2026Q1 likely reflects delayed collections or inventory buildup, while the positive swing in 2026Q2 may indicate a reversal. Investors should monitor the sustainability of these swings, as they may obscure underlying operational performance.
Free Cash Flow Turns Negative Amid Capex Surge
LBRT's free cash flow turned negative in 2026Q2 at -$90.8M, a stark reversal from the +$33.1M in 2025Q2, as capex surged to 18.8% of revenue.
The FCF margin deteriorated from +3.2% in 2025Q2 to -7.6% in 2026Q2, driven by a 63% increase in capex year-over-year while revenue declined. This suggests the company is investing heavily in fleet expansion or maintenance, likely related to its electric fleet transition, but the near-term cash drain is significant. The negative FCF trajectory, if sustained, could pressure the already thin cash balance of $27.5M.
Capital Intensity Rising as Fleet Transition Accelerates
Capex as a percentage of revenue climbed to 18.8% in 2026Q2, up from 13.2% a year earlier, indicating a deliberate push toward electric fleet expansion despite revenue contraction.
The elevated capex-to-revenue ratio, well above the 2024 average of ~14%, suggests LBRT is prioritizing growth capex over near-term cash generation. This aligns with the strategic shift to digiFrac electric fleets, which require significant upfront investment. However, with revenue declining, the payback period for these investments may extend, and investors should assess whether the company can maintain this pace without straining its balance sheet.
Working Capital Volatility Signals Operational Disruption
Working capital changes swung from -$112.7M in 2026Q1 to -$6.9M in 2026Q2, a $105.8M swing that drove the erratic operating cash flow pattern.
The large negative working capital change in 2026Q1 likely reflects a buildup in receivables or inventory, possibly due to delayed customer payments or mobilization costs. The subsequent stabilization in 2026Q2 suggests some normalization, but the volatility indicates that LBRT's cash conversion cycle is not stable. This may be a result of project-based revenue and the timing of large contracts, which can distort quarterly cash flows.
Capital Returns Persist Despite Cash Constraints
LBRT paid $15.7M in dividends in 2026Q2, up from $13.8M a year earlier, while buybacks were suspended, reflecting a commitment to shareholder returns even as FCF turned negative.
The company continued to pay dividends despite negative free cash flow, which may indicate a strategic decision to maintain shareholder returns. However, with a cash balance of only $27.5M, this could strain liquidity if FCF remains negative. The suspension of buybacks in 2026Q2, after modest repurchases in prior quarters, suggests management is prioritizing dividend stability over buybacks, but the sustainability of this approach warrants monitoring.
Cumulative Cash Generation Lags Reported Earnings
Over the last ten quarters, LBRT's cumulative operating cash flow of $1.58B exceeded cumulative net income of $529.6M, but the gap narrowed recently as capex outpaced cash generation.
While operating cash flow has historically been strong relative to net income, the recent surge in capex has caused cumulative free cash flow to turn negative in the last two quarters. This divergence suggests that reported earnings are not translating into shareholder cash returns, as the company reinvests heavily. The cumulative FCF of -$27.4M over the last two quarters indicates that the company is in an investment phase, which may limit near-term cash returns.
What the Cash Flow Statement Obscures
LBRT's cash flow statement may understate true cash generation due to significant stock-based compensation and potential off-balance-sheet financing, as suggested by the low debt-to-equity ratio.
Stock-based compensation of $10.0M in 2026Q2 is a non-cash expense that inflates operating cash flow relative to net income, but it represents real dilution to shareholders. The extremely low debt-to-equity ratio of 0.42% may indicate that the company is under-leveraged, but it could also suggest reliance on off-balance-sheet arrangements for equipment financing, which would not appear in the cash flow statement. Investors should scrutinize the footnotes for lease obligations or other commitments that could alter the true cash flow picture.