Free cash flow was -$223.5M in 2026Q2 as capex surged to $230.3M, while operating cash flow turned positive at $6.8M only due to working capital timing, with cumulative FCF over ten quarters exceeding -$800M, indicating that expansion is heavily outpacing cash generation.
MP Materials Corp. (MP) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Cash from Operations | -83.96M | -155.75M | 13.35M | 62.7M | 343.51M | 101.97M | 3.28M | -437K | 20.2M |
| Operating CF Margin % | - | -56.54% | 6.55% | 24.74% | 65.12% | 30.72% | 2.44% | -0.6% | 29.96% |
| Operating CF Growth % | -383.77% | -1266.79% | -78.71% | -81.75% | 236.87% | 3011.72% | 849.89% | -102.16% | - |
| Net Income | -60.62M | -85.87M | -65.42M | 24.31M | 289M | 135.04M | -21.82M | -6.75M | -13.47M |
| Depreciation & Amortization | 93.24M | 89.27M | 78.06M | 56.62M | 18.36M | 24.38M | 6.93M | 4.69M | 4.45M |
| Stock-Based Compensation | 41.48M | 30.16M | 23.18M | 25.24M | 31.78M | 22.93M | 5.01M | 0 | 0 |
| Deferred Taxes | -25.9M | -30.39M | -27.77M | 8.46M | 17.79M | 17.43M | -17.79M | 1K | 0 |
| Other Non-Cash Items | -1.95M | -22.72M | -52.9M | -19.69M | -17.62M | -63.52M | 68.6M | -281K | 18.02M |
| Working Capital Changes | -130.21M | -136.2M | 58.21M | -32.23M | 4.21M | -34.29M | -37.65M | 1.91M | 11.19M |
| Change in Receivables | -118.4M | -106.44M | -9.34M | 3.52M | 15.95M | -47.42M | -3.22M | -145K | 4.67M |
| Change in Inventory | -83.39M | -115.02M | -41.54M | 2.29M | -24.31M | -8.23M | -9.22M | -9.57M | 4.33M |
| Change in Payables | 4.08M | 9.39M | 1.33M | 11.3M | 1.96M | 5.53M | -3.85M | 6.25M | 0 |
| Cash from Investing | -914.79M | -206.05M | 10.06M | 68.7M | -1.36B | -119.36M | -22.37M | 5.62M | -5.88M |
| Capital Expenditures | -420.61M | -172.38M | -186.42M | -261.9M | -326.6M | -123.87M | -22.37M | -2.27M | -7.79M |
| CapEx % of Revenue | 137.74% | 62.58% | 91.45% | 103.33% | 61.91% | 37.32% | 16.66% | 3.1% | 11.55% |
| Acquisitions | 1.67M | 0 | 0 | -9.67M | 0 | 125K | 0 | 7.9M | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 10.37M | 37.94M | 96K | 12.49M | 5.13M | 4.38M | 0 | 0 | 1.91M |
| Cash from Financing | 1.17B | 1.25B | -4.79M | -9.92M | -24.19M | 666.11M | 521.96M | -4.1M | -30.74M |
| Debt Issued (Net) | -71.96M | 55.4M | 316.37M | -2.73M | -5.83M | 687.57M | 18.63M | -4.1M | 0 |
| Equity Issued (Net) | -51M | 1.2B | -225.07M | -7.18M | -18.36M | -3.33M | -996K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -51M | -31.1M | -225.07M | -7.18M | -18.36M | -3.33M | -996K | 0 | 0 |
| Other Financing | 1.29B | -14.7M | -96.09M | 0 | 0 | -18.13M | 504.32M | 0 | -30.74M |
| Net Change in Cash | 166.62M | 883.76M | 18.61M | 121.48M | -1.04B | 648.72M | 502.87M | 1.09M | -16.42M |
| Free Cash Flow | -504.58M | -328.13M | -173.07M | -199.2M | 16.92M | -21.9M | -19.09M | -2.71M | 12.41M |
| FCF Margin % | -165.23% | -119.12% | -84.9% | -78.6% | 3.21% | -6.6% | -14.22% | -3.69% | 18.4% |
| FCF Growth % | -164.47% | -89.59% | 13.12% | -1277.36% | 177.26% | -14.7% | -604.28% | -121.85% | - |
| FCF per Share | -2.83 | -1.93 | -1.02 | -1.12 | 0.09 | -0.12 | -0.24 | -0.04 | 0.18 |
| FCF Conversion (FCF/Net Income) | 8.32x | 1.81x | -0.20x | 2.58x | 1.19x | 0.76x | -0.15x | 0.06x | -1.50x |
| Interest Paid | 0 | 0 | 12.13M | 2.06M | 2.1M | 1.2M | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 870K | 22.17M | 18.86M | 4.17M | 0 | 0 | 0 |
Quick answers to the most common questions about buying MP stock.
MP Materials Corp. (MP) generated $-155.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
MP Materials Corp. (MP) reported negative free cash flow of $328.1M in 2025, indicating capital requirements exceeded cash from operations.
MP Materials Corp. (MP) spent $172.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, MP Materials Corp. (MP) spent $31.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
NdPr price volatility and technical execution
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Working Capital Swings
Operating cash flow turned positive at $6.8M in 2026Q2 despite a net loss of $20.3M, per the latest quarterly report, but this appears driven by working capital timing rather than core profitability.
The OCF/NI ratio of -0.34 in 2026Q2 indicates that cash generation is not yet aligned with earnings, as the positive operating cash flow is largely attributable to a $25.9M working capital release. Over the past ten quarters, operating cash flow has been positive in only three quarters, suggesting that the company's cash conversion is highly volatile and dependent on inventory and receivable management. Investors should monitor whether the positive OCF can be sustained as the company scales production.
FCF Deeply Negative as Expansion Outpaces Cash Generation
Free cash flow remained deeply negative at -$223.5M in 2026Q2, per reported figures, with cumulative FCF over the last ten quarters exceeding -$800M, indicating that heavy capital investment is outpacing operational cash generation.
Despite revenue growth of 89% year-over-year, FCF margin was -2.1% in 2026Q2, and the company has not generated positive FCF in any of the last ten quarters. The gap between net income and FCF is widening, with cumulative net losses of approximately $180M versus cumulative FCF of -$804M, suggesting that the company is in a significant investment phase. This trajectory implies that external funding or existing cash reserves will be required to sustain the expansion, and investors should monitor the timeline to FCF breakeven.
Capital Intensity Surges with Stage II and III Buildout
Capital expenditures jumped to $230.3M in 2026Q2, representing 2.1% of revenue, per the cash flow statement, a sharp increase from prior quarters, indicating an acceleration in growth capex for the separation and magnetics facilities.
The CapEx/Revenue ratio of 2.1% in 2026Q2 is a significant outlier compared to the historical range of 50-150%, reflecting the massive investment in the 10X Facility and Texas magnetics plant. While this capex is likely growth-oriented, the company's negative gross margins suggest that maintenance and commissioning costs are also elevated. The sustainability of this capital intensity will depend on successful execution and eventual margin expansion, but the current cash burn rate of over $200M per quarter is a critical risk to monitor.
Working Capital Volatility Distorts Cash Flow Signals
Working capital changes swung from -$78.6M in 2025Q4 to -$25.9M in 2026Q2, per reported data, with large swings in both directions, indicating that inventory build-up and receivable timing are significantly impacting operating cash flow.
The working capital changes have been highly erratic, with positive contributions in some quarters (e.g., +$49.5M in 2024Q2) and large negative swings in others (e.g., -$78.6M in 2025Q4). This volatility suggests that the company is building inventory ahead of sales or experiencing delays in collections, which may be a function of the ramp-up in production. Investors should assess whether these swings are temporary or indicative of structural inefficiencies in the supply chain.
Capital Deployment Focused on Expansion, Not Shareholder Returns
No dividends were paid in any of the last ten quarters, and buybacks were minimal except for a $200.8M repurchase in 2024Q1, per the cash flow statement, indicating that capital is being retained for internal investment.
The company has not returned capital to shareholders through dividends, and buybacks have been sporadic, with the only significant repurchase occurring in 2024Q1. This suggests that management is prioritizing the vertical integration strategy over shareholder distributions, which is consistent with the heavy capex spending. The $1.16B cash balance provides a buffer, but the pace of cash burn may necessitate future equity or debt issuance if the expansion continues at this rate.
Cumulative Losses Outpace Cash Burn
Over the last ten quarters, cumulative net income was -$180M while cumulative operating cash flow was -$140M, per reported figures, indicating that the cash burn is slightly less than accounting losses, but both remain deeply negative.
The cumulative gap between net income and operating cash flow is relatively small, suggesting that non-cash charges like depreciation and stock-based compensation are partially offsetting working capital outflows. However, the company has consumed over $800M in free cash flow during this period, highlighting the scale of investment required to build out the separation and magnetics capabilities. This divergence underscores that the company is in a pre-profit phase, and the market's valuation likely hinges on future cash generation rather than current results.
What the Cash Flow Statement Obscures
The cash flow statement may understate true cash burn due to capitalized commissioning costs and stock-based compensation, per reported figures, as SBC of $11.3M in 2026Q2 is added back to operating cash flow.
The company's heavy capital expenditures may include capitalized costs that could be expensed in future periods, potentially masking the true operational cash outflow. Additionally, stock-based compensation, which totaled $11.3M in 2026Q2, is a non-cash expense that inflates operating cash flow relative to cash received from customers. Investors should adjust for these items to assess the underlying cash generation, especially as the company transitions from mining to processing.