Free cash flow remains deeply negative, with a $79.3M outflow in 2026Q1 driven by capital expenditures that consumed 58.2% of quarterly revenue.
| Cash from Operations | -94.47M | -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 % | -782.98% | -1266.79% | -78.71% | -81.75% | 236.87% | 3011.72% | 849.89% | -102.16% | - |
| Net Income | -71.19M | -85.87M | -65.42M | 24.31M | 289M | 135.04M | -21.82M | -6.75M | -13.47M |
| Depreciation & Amortization | 109.62M | 89.27M | 78.06M | 56.62M | 18.36M | 24.38M | 6.93M | 4.69M | 4.45M |
| Stock-Based Compensation | 15.12M | 30.16M | 23.18M | 25.24M | 31.78M | 22.93M | 5.01M | 0 | 0 |
| Deferred Taxes | -31.01M | -30.39M | -27.77M | 8.46M | 17.79M | 17.43M | -17.79M | 1K | 0 |
| Other Non-Cash Items | -10.01M | -22.72M | -52.9M | -19.69M | -17.62M | -63.52M | 68.6M | -281K | 18.02M |
| Working Capital Changes | -107M | -136.2M | 58.21M | -32.23M | 4.21M | -34.29M | -37.65M | 1.91M | 11.19M |
| Change in Receivables | -33.86M | -106.44M | -9.34M | 3.52M | 15.95M | -47.42M | -3.22M | -145K | 4.67M |
| Change in Inventory | -92.77M | -115.02M | -41.54M | 2.29M | -24.31M | -8.23M | -9.22M | -9.57M | 4.33M |
| Change in Payables | 8.35M | 9.39M | 1.33M | 11.3M | 1.96M | 5.53M | -3.85M | 6.25M | 0 |
| Cash from Investing | -450.16M | -206.05M | 10.06M | 68.7M | -1.36B | -119.36M | -22.37M | 5.62M | -5.88M |
| Capital Expenditures | -219.28M | -172.38M | -186.42M | -261.9M | -326.6M | -123.87M | -22.37M | -2.27M | -7.79M |
| CapEx % of Revenue | 63.09% | 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 | 34.6M | 37.94M | 96K | 12.49M | 5.13M | 4.38M | 0 | 0 | 1.91M |
| Cash from Financing | 1.23B | 1.25B | -4.79M | -9.92M | -24.19M | 666.11M | 521.96M | -4.1M | -30.74M |
| Debt Issued (Net) | -6.46M | 51.62M | 316.37M | -2.73M | -5.83M | 687.57M | 18.63M | -4.1M | 0 |
| Equity Issued (Net) | -1.88M | 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 | -1.88M | 0 | -225.07M | -7.18M | -18.36M | -3.33M | -996K | 0 | 0 |
| Other Financing | 1.24B | -10.92M | -96.09M | 0 | 0 | -18.13M | 504.32M | 0 | -30.74M |
| Net Change in Cash | 687.12M | 883.76M | 18.61M | 121.48M | -1.04B | 648.72M | 502.87M | 1.09M | -16.42M |
| Free Cash Flow | -313.75M | -328.13M | -173.07M | -199.2M | 16.92M | -21.9M | -19.09M | -2.71M | 12.41M |
| FCF Margin % | -90.27% | -119.12% | -84.9% | -78.6% | 3.21% | -6.6% | -14.22% | -3.69% | 18.4% |
| FCF Growth % | -80.55% | -89.59% | 13.12% | -1277.36% | 177.26% | -14.7% | -604.28% | -121.85% | - |
| FCF per Share | -1.57 | -1.93 | -1.02 | -1.12 | 0.09 | -0.12 | -0.24 | -0.04 | 0.18 |
| FCF Conversion (FCF/Net Income) | 4.41x | 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 |
Chemical separation technical failure
According to recent financial disclosures, MP's operating cash flow frequently diverges from net income, as evidenced by the 2025Q4 period where the company reported $9.4M in net income while simultaneously suffering a $46.9M outflow from operations, highlighting significant volatility in working capital and non-cash adjustments.
The persistent gap between net income and operating cash flow suggests that accounting earnings are not currently reflective of the company's underlying cash-generating capacity. Investors should monitor whether this divergence is driven by temporary inventory build-ups or more structural issues related to the high-cost commissioning of the separation facility.
As reported in quarterly filings, MP's free cash flow remains deeply negative, with the company recording a $79.3M outflow in 2026Q1, reflecting the heavy capital intensity required to sustain its transition toward a vertically integrated rare earth magnet manufacturer in the United States.
The trajectory of free cash flow indicates that the business is currently in a heavy investment phase where capital expenditures consistently outpace operational inflows. This trend suggests that the company remains reliant on its existing cash reserves to fund ongoing operations until the separation and magnetics segments reach commercial scale.
Based on the provided data, MP's capital expenditure as a percentage of revenue reached 58.2% in 2026Q1, underscoring the massive infrastructure requirements necessary to maintain the Mountain Pass facility and expand into downstream refining and magnet production capabilities.
The high ratio of capital expenditure to revenue suggests that the company is prioritizing long-term asset development over immediate cash preservation. This level of spending warrants investigation into whether these outlays are primarily for maintenance or if they represent aggressive growth investments that may face future impairment risks.
Analysis of recent cash flow statements reveals significant swings in working capital, including a $78.6M outflow in 2025Q4, which suggests that the company's cash position is highly sensitive to the timing of inventory accumulation and the efficiency of its receivables collection process.
The erratic nature of working capital changes may indicate challenges in managing the supply chain during the transition to refined oxide production. Investors should monitor these fluctuations as they may signal potential bottlenecks in the conversion of raw concentrate into higher-value, saleable refined products.
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.