Persistent free cash flow deficits, reaching a margin of -69.5% in 2026Q1, indicate that the company is unable to fund its 24.0% CapEx-to-revenue intensity through internal operations.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Cash from Operations | -18.55M | -10.22M | 11.16M | 21.2M | 3.46M | 39.78M | -61.46M | 104.6M | 258.49M | 46.6M | -11.86M | -6.07M | -17.07M | -3.65M | -2.91M | -4.88M | -1.38M | -889.7K | -2M | -2.43M | -343.21K | -493.97K | -357.69K | -153.92K | -101.9K | -44.05K |
| Operating CF Margin % | - | -9.3% | 8.93% | 10.67% | 1.51% | 20.06% | -51.22% | 76.64% | 67.52% | 34.94% | -19.63% | -110.8% | - | - | - | - | - | - | - | - | - | - | - | -1851.89% | -1956.29% | - |
| Operating CF Growth % | -91.27% | -191.6% | -47.36% | 512.63% | -91.3% | 164.72% | -158.76% | -59.54% | 454.72% | 492.88% | -95.45% | 64.44% | -367.75% | -25.24% | 40.27% | -253.82% | -54.95% | 55.44% | 17.83% | -608.09% | 30.52% | -38.1% | -132.39% | -51.05% | -131.31% | - |
| Net Income | -65.71M | -68.74M | -50.56M | -32.36M | -2.23M | 22.57M | 7.12M | -26.97M | 231.97M | -8.28M | -41.39M | -93.65M | -45.11M | -10.87M | -25.34M | -3.81M | -3.41M | -802.28K | -6.28M | -5.3M | -2.47M | -627.49K | -650.13K | -362.94K | -91.4K | -86.12K |
| Depreciation & Amortization | 23.29M | 22M | 28.68M | 29.25M | 23.28M | 22.51M | 18.43M | 23.87M | 22.79M | 26.42M | 25.08M | 6.03M | 50.82K | 30.99K | 62.41K | 6.47K | 2.39K | 4.2K | 6.06K | 1.92K | 1.25K | 758 | 654 | 2.11K | 998 | 0 |
| Stock-Based Compensation | 1.53M | 2.29M | 1.32M | -362K | 2.37M | 3.13M | 0 | 3.55M | 1.48M | 85.09K | 1.68M | 2.05M | 1.21M | 1.46M | 30.16K | 0 | 778.58K | 219.96K | 4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 19.88M | 17.06M | -20.68M | -2.7M | 6.26M | 9.19M | 866.48K | 3.48M | 4.92M | 3.83M | -19.34M | 61.83M | 23.17M | 4.24M | 0 | 0 | 905.31K | -380.1K | -963.02K | 0 | -1.27M | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 20.96M | 26.28M | 44.48M | 15.5M | -8.27M | -2.04M | -12.52M | 17.7M | 34.84M | 31.33M | 26.24M | 5M | 8.63M | 1.34M | 21.06M | 0 | 34.99K | 51.42K | 651.45K | 3.34M | 3.14M | 217.32K | 249.67K | 242.55K | 0 | 11.83K |
| Working Capital Changes | -18.94M | -9.11M | 7.92M | 11.86M | -17.96M | -15.59M | -75.35M | 82.97M | -37.51M | -6.79M | -4.13M | 12.68M | -5.02M | 149.33K | 1.28M | -1.08M | 310.61K | 17.09K | 587.78K | -473.96K | 251.51K | -84.56K | 42.12K | -35.64K | -11.49K | 30.23K |
| Change in Receivables | 8.5M | -595K | 14.1M | -3.86M | 3.57M | -5.45M | -15.14M | 38.85M | -31.86M | 1.27M | -8.69M | -249.34K | -2.68M | 939 | -238.93K | 107.89K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -29.48M | -15.71M | -5.84M | 1.29M | -15.71M | -11.05M | -11.77M | -7.84M | -1.65M | -2.08M | -2.4M | 2.23M | -2.71M | -39.45K | 394.84K | -635.97K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -1.24M | 8.61M | -383K | 4.61M | 5.18M | 1.82M | -49.36M | 55.81M | 0 | 0 | 0 | 0 | 0 | 155K | 1.09M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -25.18M | -26.44M | -42.23M | -62.88M | -60.15M | -27.4M | -19.06M | -37.95M | -13.94M | -15.43M | -11.58M | -28.69M | -32.82M | -101.69M | -137.74M | -37.9M | -12.74M | -3.8M | -13.99M | -9.15M | -2.23M | -1.53M | -1.37M | -5.9K | -68.5K | -11.83K |
| Capital Expenditures | -25.18M | -27.44M | -42.23M | -53.7M | -45.64M | -27.4M | -19.06M | -37.95M | -13.94M | -15.43M | -11.58M | -55.66M | -61.22M | -137.58M | -79.83M | -36.79M | -12.64M | -3.88M | -13.99M | -12.17M | -2.23M | -1.54M | -1.37M | 0 | -68.5K | -7.22K |
| CapEx % of Revenue | 23.14% | 24.97% | 33.8% | 27.03% | 19.91% | 13.82% | 15.89% | 27.8% | 3.64% | 11.57% | 19.16% | 1016.29% | - | - | - | - | - | - | - | - | - | - | - | - | 1315.06% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.9K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -7.82K | 1M | 0 | -9.18M | -14.51M | 0 | 0 | 0 | 0 | 0 | 0 | 26.97M | 28.39M | 35.89M | -57.91M | -1.11M | -105.63K | 84.75K | 0 | 3.02M | -3.7K | 8.61K | 0 | 0 | 0 | -4.61K |
| Cash from Financing | 47.15M | 23.89M | 12.04M | 29.13M | 26.43M | -6.9M | 30.55M | -85.31M | -130.53M | 13.97M | 29.19M | 28.82M | 45.31M | 127.45M | 135.85M | 48.71M | 14.58M | 4.86M | 15.57M | 11.34M | 3.54M | 1.43M | 2.27M | 451.27K | 180.59K | 22.44K |
| Debt Issued (Net) | 16.25M | 14.79M | 16.68M | 34.42M | 24.43M | -10.02M | 26.1M | -92.81M | -127M | -3.79M | 47.19M | -10.75M | 34.6M | 112.29M | 43.93M | 3.29M | 606.61K | -133.7K | 0 | 0 | 0 | 0 | 0 | 0 | -3.62K | 0 |
| Equity Issued (Net) | 19M | 21.68M | 0 | 0 | -5.81M | 3.16M | 4.46M | 9.98M | 6.85M | 39.53M | 0 | 54.19M | 26.26M | 21.96M | 98.87M | 121.82M | 5M | 5.14M | 0 | 11.34M | 3.54M | 1.43M | 2.27M | 451.27K | 57.17K | 18.86K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -6.09M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -277.83K | 0 | 0 | 0 |
| Other Financing | 11.9M | -12.57M | -4.64M | -5.29M | 7.82M | -45K | 0 | -2.48M | -10.38M | -21.76M | -25.47M | -14.62M | -15.56M | -14.56M | -6.95M | -76.4M | 8.98M | -142.53K | 15.57M | 0 | 0 | 0 | 0 | 0 | 127.04K | 3.58K |
| Net Change in Cash | 2.79M | -12.39M | -20.61M | -11.76M | -29.32M | 4.64M | -49M | -23.89M | 111.2M | 42.92M | -1.57M | -6.16M | -4.81M | 13.96M | -5.31M | 5.93M | 458.01K | 176.2K | -415.35K | -241.29K | 966.28K | -598.97K | 535.25K | 291.45K | 10.19K | -33.44K |
| Free Cash Flow | -43.73M | -37.66M | -31.07M | -32.51M | -42.18M | 12.38M | -80.52M | 66.65M | 244.55M | 31.17M | -23.44M | -61.73M | -78.29M | -141.23M | -82.74M | -41.66M | -14.02M | -4.77M | -15.99M | -14.6M | -2.57M | -2.03M | -1.73M | -153.92K | -170.39K | -51.28K |
| FCF Margin % | -40.19% | -34.27% | -24.87% | -16.36% | -18.4% | 6.24% | -67.11% | 48.83% | 63.88% | 23.37% | -38.79% | -1127.09% | - | - | - | - | - | - | - | - | - | - | - | -1851.89% | -3271.35% | - |
| FCF Growth % | 13.77% | -21.23% | 4.43% | 22.93% | -440.74% | 115.37% | -220.81% | -72.75% | 684.7% | 232.95% | 62.03% | 21.15% | 44.57% | -70.68% | -98.6% | -197.24% | -193.76% | 70.16% | -9.53% | -467.89% | -26.37% | -17.42% | -1025.52% | 9.67% | -232.31% | - |
| FCF per Share | -0.49 | -0.55 | -0.48 | -0.51 | -0.65 | 0.19 | -1.31 | 1.25 | 3.81 | 0.67 | -0.61 | -3.69 | -7.76 | -15.76 | -12.35 | -10.67 | -5.50 | -2.41 | -12.73 | -16.45 | -4.68 | -7.62 | -9.04 | -1.53 | -2.62 | -0.82 |
| FCF Conversion (FCF/Net Income) | 0.67x | 0.15x | -0.22x | -0.70x | -2.38x | 1.76x | -9.09x | -2.99x | 1.11x | -5.63x | 0.29x | 0.06x | 0.38x | 0.34x | 0.11x | 1.28x | 0.40x | 1.11x | 0.32x | 0.46x | 0.14x | 0.79x | 0.55x | 0.42x | 1.11x | 0.51x |
| Interest Paid | 0 | 0 | 0 | 0 | 616K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and solvency crisis
According to the latest quarterly filings, Largo's operating cash flow frequently diverges from net income, with an OCF/NI ratio of 1.99 in 2026Q1, suggesting that non-cash charges and working capital volatility are masking the true extent of the company's underlying cash-generating challenges.
The persistent gap between net income and operating cash flow indicates that accounting earnings are not reflective of the company's actual liquidity position. Investors should monitor this divergence closely, as it suggests that the business is struggling to convert its operational activities into tangible cash inflows.
As reported in financial statements, Largo has consistently posted negative free cash flow, with a 2026Q1 FCF margin of -69.5%, highlighting a structural inability to fund operations and capital expenditures through internal cash generation during the current commodity cycle.
The consistent negative FCF trajectory underscores the company's reliance on external financing to sustain its mining and clean energy initiatives. This trend appears to be worsening, as the company continues to burn through its limited cash reserves to cover ongoing operational shortfalls.
Based on reported figures, Largo's capital intensity remains elevated, with a CapEx/Revenue ratio of 24.0% in 2026Q1, which indicates that the company is forced to maintain significant investment levels despite the lack of positive operating cash flow to support such expenditures.
The high level of capital expenditure relative to revenue suggests that the company is prioritizing asset maintenance or expansion despite the current negative margin environment. This capital-intensive nature may further exacerbate liquidity risks if the company cannot achieve a rapid improvement in operational efficiency.
Financial data reveals significant volatility in working capital, with a $6.9 million outflow in 2026Q1, indicating that fluctuations in inventory and receivables are placing additional strain on the company's already thin cash position during periods of operational stress.
The erratic nature of working capital changes suggests that the company is struggling to manage its cash conversion cycle effectively. This volatility, combined with the lack of positive operating cash flow, warrants further investigation into the company's ability to manage its short-term liabilities.
Quick answers to the most common questions about buying LGO stock.
Largo Inc. (LGO) generated $-10.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Largo Inc. (LGO) reported negative free cash flow of $37.7M in 2025, indicating capital requirements exceeded cash from operations.
Largo Inc. (LGO) spent $27.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.