Liquidity is tightening rapidly, evidenced by a $59.4 million free cash flow outflow in 2026Q1 and a decline in cash reserves from $536.9 million in 2023Q4 to $133.1 million.
| Cash from Operations | -151.51M | -120.78M | -31.65M | -49M | -16.63M | -1.33M | -24.98M |
| Operating CF Margin % | - | - | -12659.6% | -28001.14% | -2867.24% | -63.34% | -55508.89% |
| Operating CF Growth % | -978.25% | -281.64% | 35.41% | -194.66% | -1148.38% | 94.67% | - |
| Net Income | -469.04M | -578.53M | -164.64M | -77.23M | -54.78M | -9.8M | -36.4M |
| Depreciation & Amortization | 44.27M | 62.39M | 81.62M | 50.84M | 13.17M | 0 | 13.01M |
| Stock-Based Compensation | 47.89M | 46.43M | 33.67M | 0 | 12.62M | 0 | 0 |
| Deferred Taxes | -4.7M | -4.31M | -10.58M | -5.71M | 0 | 0 | 0 |
| Other Non-Cash Items | 724.77M | 321.13M | 23.11M | -12.54M | 14.51M | 9.14M | -2.01M |
| Working Capital Changes | -637K | 32.1M | 5.17M | -4.37M | -2.16M | -670.36K | 429K |
| Change in Receivables | 5.41M | 3.43M | -931K | -2M | -301K | -7.96K | 106K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -503K | -1.66M | 2.48M | -189K | -1.14M | 0 | 0 |
| Cash from Investing | -16.37M | -8.8M | -168.67M | -103.7M | -115K | -345.03M | -220K |
| Capital Expenditures | -32.59M | -33.21M | -68.65M | -11.65M | -115K | 0 | -220K |
| CapEx % of Revenue | - | - | 27460.4% | 6656% | 19.83% | 0% | 488.89% |
| Acquisitions | 0 | 0 | 0 | 7.95M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 99.29M | 98.78M | -1.2M | 0 | 0 | 0 | 0 |
| Cash from Financing | -253K | -230K | -4.93M | 335.39M | 21.47M | 348.93M | 29M |
| Debt Issued (Net) | 1K | -199K | -67K | 0 | -8M | 0 | 0 |
| Equity Issued (Net) | 160K | 141K | 19K | 347.3M | 30M | 349.1M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -218.98M | 0 | 0 | 0 |
| Other Financing | -414K | -172K | -4.88M | -11.9M | -533K | -166.59K | 29M |
| Net Change in Cash | -166.87M | -129.82M | -205.25M | 531.76M | 4.72M | 2.57M | 3.8M |
| Free Cash Flow | -183.59M | -154M | -101.5M | -60.65M | -16.75M | -1.33M | -25.2M |
| FCF Margin % | - | - | -40601.2% | -34657.14% | -2887.07% | -63.34% | -55997.78% |
| FCF Growth % | -54.1% | -51.72% | -67.36% | -262.2% | -1157.01% | 94.71% | - |
| FCF per Share | -2.15 | -1.95 | -1.38 | -1.47 | -0.23 | -0.03 | -7.26 |
| FCF Conversion (FCF/Net Income) | 0.39x | 0.21x | 0.64x | 0.63x | 0.30x | 0.03x | 0.69x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Commercialization and execution failure
As reported in recent financial statements, NPWR's free cash flow remains consistently negative, with a quarterly outflow of $59.4 million in 2026Q1, underscoring the company's ongoing reliance on capital reserves to fund its pre-commercial development phase while lacking any meaningful offsetting revenue generation to date.
The trajectory of free cash flow reflects a company in the deep-trench phase of technology commercialization where outflows are driven by fixed operational costs rather than variable production. Investors should monitor the widening gap between cash burn and the lack of commercial milestones, as this trend suggests that the company's runway is being consumed by R&D and project-related overhead without a clear near-term path to self-sustaining operations.
Based on the provided data, the relationship between net income and operating cash flow is highly erratic, exemplified by a 2025Q3 net loss of $411.5 million against an operating cash outflow of $48.0 million, indicating that accounting adjustments currently dominate the company's reported financial performance metrics.
The extreme divergence between net income and operating cash flow suggests that non-cash charges and accounting volatility are currently masking the underlying cash-burn reality of the business. This lack of correlation makes traditional earnings-based valuation metrics unreliable, as the company's cash flow profile is driven by project-specific development costs rather than recurring operational profitability.
According to quarterly filings, working capital changes have been highly inconsistent, ranging from a $24.4 million source of cash in 2025Q4 to a $31.6 million use of cash in 2026Q1, reflecting the lumpy and unpredictable nature of the company's current project-based development and procurement activities.
These erratic working capital swings appear to be a byproduct of the company's nascent stage, where timing differences in project-related payments and potential inventory build-ups for specialized components create significant quarterly noise. Analysts should interpret these fluctuations as a sign of operational immaturity rather than a reflection of efficient cash management or sustainable collection cycles.
As disclosed in recent financial filings, stock-based compensation has been a recurring non-cash expense, reaching $22.3 million in 2025Q4, which effectively obscures the true economic cost of talent retention while simultaneously diluting existing shareholders to support the company's ongoing operational and development efforts.
While stock-based compensation is a standard tool for early-stage firms, its magnitude relative to the company's cash burn warrants further investigation into the long-term impact on equity value. Investors should be cautious, as this practice may be artificially inflating the company's reported cash flow metrics by shifting compensation costs away from the cash-based operating expense line.
Quick answers to the most common questions about buying NPWR stock.
NET Power Inc. (NPWR) generated $-120.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
NET Power Inc. (NPWR) reported negative free cash flow of $154.0M in 2025, indicating capital requirements exceeded cash from operations.
NET Power Inc. (NPWR) spent $33.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.