Cash flow generation remains highly inconsistent, with quarterly capital expenditures reaching as high as $54.4 million in 2024Q4, frequently outpacing operating cash flow and necessitating ongoing external debt injections.
| Cash from Operations | 24.89M | 36.5M | 33.03M | 38.27M | -1.35M | 18.86M | 2.29M | 4.34M |
| Operating CF Growth % | -1685.91% | 10.49% | -13.68% | 2924.28% | -107.19% | 724.49% | -47.28% | - |
| Operating CF / Revenue % | 7.44% | 10.46% | 11.01% | 14.94% | -0.58% | 11.35% | 1.94% | 3.62% |
| Net Income | 19.26M | 36.41M | 14.32M | 29.95M | 32.58M | 40.77M | -25.37M | -5.25M |
| Depreciation & Amortization | 23.46M | 22.47M | 18.13M | 15.21M | 13.79M | 10.08M | 8.15M | 7.85M |
| Deferred Taxes | -22.16M | -16.46M | 0 | 0 | 0 | -17.94M | 18.3M | 0 |
| Other Non-Cash Items | 6.5M | 2M | 3.31M | -20.25M | -34.91M | -15.52M | -522K | 2.26M |
| Working Capital Changes | -15.1M | -14.43M | -9.18M | 7.46M | -14.28M | 832K | 1.22M | -845K |
| Capital Expenditures | -83.54M | -70.74M | -127.24M | -113.83M | -131.41M | -89.65M | -24.94M | -29.85M |
| CapEx / Revenue % | 24.96% | 20.26% | 42.42% | 44.44% | 55.79% | 53.96% | 21.19% | 24.94% |
| CapEx / D&A | 3.56x | 3.15x | 7.02x | 7.48x | 9.53x | 8.90x | 3.06x | 3.80x |
| CapEx Coverage (OCF/CapEx) | 0.30x | 0.52x | 0.26x | 0.34x | -0.01x | 0.21x | 0.09x | 0.15x |
| Cash from Investing | -92.59M | -77.32M | -134.55M | -74.15M | -184.03M | -117.2M | -22.18M | -29.85M |
| Acquisitions | -4.94M | 0 | 828K | -20.26M | -597K | -20.8M | 0 | -27.79M |
| Purchase of Investments | 0 | 0 | -22.32M | 0 | -64.98M | -1.57M | 0 | 0 |
| Sale of Investments | 0 | 0 | 9.88M | 55.1M | 0 | 1.98M | 0 | 0 |
| Other Investing | -4.11M | -6.58M | 4.3M | 4.84M | 12.96M | -7.16M | 2.76M | 3.41M |
| Cash from Financing | 161.42M | 41.56M | 83.5M | 5.9M | 220.55M | 125.01M | 21.45M | 24.65M |
| Dividends Paid | -11.3M | -10.47M | -13.09M | -16.54M | 0 | -3.69M | -852K | -404K |
| Dividend Payout Ratio % | - | - | - | - | - | 1759.52% | - | - |
| Debt Issuance (Net) | 2M | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | -1000K |
| Stock Issued | -58K | 0 | 170K | 366K | 0 | 0 | 0 | 0 |
| Share Repurchases | -5K | 0 | 0 | -16.39M | 0 | 0 | 0 | 0 |
| Other Financing | 63.98M | -1.01M | -1.96M | 3.36M | 153.67M | 58.31M | 23.44M | 30.06M |
| Net Change in Cash | 92.65M | 738K | -18.01M | -29.98M | 35.17M | 26.67M | 1.56M | -857K |
| Exchange Rate Effect | -1.07M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 28.32M | 27.58M | 47.24M | 77.22M | 42.05M | 15.39M | 13.83M | 14.68M |
| Cash at End | 136.97M | 28.32M | 29.23M | 47.24M | 77.22M | 42.05M | 15.39M | 13.83M |
| Free Cash Flow | -58.65M | -34.24M | -94.21M | -75.56M | -132.76M | -70.79M | -22.65M | -25.51M |
| FCF Growth % | 3.08% | 63.65% | -24.68% | 43.09% | -87.55% | -212.5% | 11.2% | - |
| FCF Margin % | -17.52% | -9.81% | -31.4% | -29.5% | -56.37% | -42.61% | -19.25% | -21.31% |
| FCF / Net Income % | -304.46% | -232.11% | -854.01% | -252.3% | -1172.52% | -33709.52% | 89.33% | 486% |
Environmental credit price volatility
As reported in financial statements, OPAL's capital expenditure intensity remains elevated, with quarterly outflows reaching as high as $54.4 million in 2024Q4, consistently outpacing operating cash flow and indicating that the company is in a heavy investment phase to expand its biogas project portfolio.
The persistent gap between CAPEX and operating cash flow suggests that the company is prioritizing long-term asset base expansion over immediate cash generation. Investors should monitor whether these capital outlays translate into higher throughput volumes, as the current trend of negative free cash flow is a structural feature of this growth-stage utility model.
Based on quarterly data, OPAL's operating cash flow exhibits significant instability, swinging from a peak of $36.0 million in 2023Q4 to a negative $7.9 million in 2025Q2, which suggests that cash generation is highly sensitive to the timing of environmental credit monetization and project-related revenue recognition.
This volatility implies that the company's cash flow quality lacks the predictability typically associated with regulated utilities. The reliance on non-cash adjustments and credit-linked revenue suggests that operating cash flow may not be a reliable proxy for the underlying health of the core RNG production business.
According to recent SEC filings, OPAL frequently relies on external debt issuance to bridge its free cash flow deficits, with consistent $1 million quarterly debt injections observed across most periods, highlighting a structural dependence on external capital markets to fund its ongoing infrastructure development projects.
While the company maintains a low debt-to-equity ratio, the recurring need for external financing to cover negative free cash flow warrants caution. If market conditions for debt tighten, the company's ability to maintain its current pace of project commissioning may be constrained, potentially slowing its long-term growth trajectory.
As indicated by the company's financial history, the OCF-to-dividend coverage ratio has fluctuated wildly, ranging from a negative 3.0 in 2025Q2 to a high of 11.3 in 2025Q1, suggesting that dividend sustainability is currently tied to volatile cash inflows rather than stable, recurring earnings.
The inconsistency in dividend coverage ratios appears to reflect the underlying volatility of the company's cash flow rather than a deliberate payout policy. Investors should interpret these fluctuations as a signal that the dividend may be subject to adjustment if the current cash burn persists or if environmental credit markets face sustained downward pressure.
Quick answers to the most common questions about buying OPAL stock.
OPAL Fuels Inc. (OPAL) generated $36.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
OPAL Fuels Inc. (OPAL) reported negative free cash flow of $34.2M in 2025, indicating capital requirements exceeded cash from operations.
OPAL Fuels Inc. (OPAL) spent $70.7M 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, OPAL Fuels Inc. (OPAL) returned $10.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.