While the company reported $174.0 million in operating cash flow for 2026Q1, this figure is heavily distorted by $265.3 million in depreciation and amortization, masking the underlying operational volatility.
| Cash from Operations | 841.59M | 935.83M | 962.59M | 519.07M | 709.74M | 411.39M | 301.92M | 393.73M | 263.44M | 176.05M | 116.12M | 138.37M |
| Operating CF Margin % | - | 52.57% | 48.77% | 35.6% | 42.96% | 33.06% | 52.42% | 43.36% | 29.56% | 42.91% | 46.48% | 44.68% |
| Operating CF Growth % | -105.66% | -2.78% | 85.45% | -26.86% | 72.52% | 36.26% | -23.32% | 49.46% | 49.64% | 51.61% | -16.08% | - |
| Net Income | -742.65M | -495.32M | -76.39M | 187.33M | 381.92M | -182.95M | -465.61M | 58.73M | 221.54M | -62.87M | -208.09M | -646.68M |
| Depreciation & Amortization | 858.71M | 1.18B | 1.14B | 749.69M | 470.63M | 454.12M | 420.89M | 385.53M | 324.06M | 176.65M | 146.52M | 232.08M |
| Stock-Based Compensation | 14.69M | 18.42M | 14.46M | 12.95M | 15.95M | 10.99M | 8.67M | 6.96M | 2.89M | 875K | 1.08M | 1.72M |
| Deferred Taxes | -48.45M | 0 | 0 | 0 | 0 | 455.34M | 0 | 0 | -60.19M | 27.82M | 57.62M | 423.3M |
| Other Non-Cash Items | 1.09B | 323.2M | -123.22M | -224.87M | -220.94M | -344.77M | 306.34M | 31.09M | -219.84M | -6.36M | 154.49M | 107.08M |
| Working Capital Changes | -40.83M | -92.04M | 6.58M | -206.03M | 62.18M | 18.65M | 31.63M | -88.58M | -5.02M | 39.93M | -35.5M | 20.87M |
| Change in Receivables | 40.37M | 85.46M | 8.58M | 20.35M | 14.93M | -35.4M | -34.65M | 5.79M | -786K | -9.13M | -20.1M | 32.23M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 45.9M | 0 | 0 | 29.42M | 41.92M | 48.2M | -1.23M |
| Change in Payables | -3.54M | -22.83M | -3.83M | -60.4M | 24.26M | -6.26M | 0 | 0 | -48.83M | 2.41M | -68.04M | -10.89M |
| Cash from Investing | -493.02M | -546.75M | -1.32B | -512.63M | -311.98M | -293.75M | -678.9M | -495.96M | 37.49M | -157.64M | -198.92M | -285.14M |
| Capital Expenditures | -119.61M | 0 | 1.16M | -12.37M | -323.16M | -293.33M | -362.94M | -463.41M | -240.91M | -155.18M | -239.22M | -523.6M |
| CapEx % of Revenue | 6.88% | 27.07% | 0.06% | 0.85% | 19.56% | 23.57% | 63.02% | 51.03% | 27.03% | 37.82% | 95.76% | 169.06% |
| Acquisitions | -35.44M | -49.98M | -812.53M | -11.83M | 9.25M | -5.4M | -315.96M | -37.92M | 278.41M | -2.46M | -85.89M | -39.42M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -385.07M | -496.77M | -508.91M | -488.43M | -10.81M | 4.98M | 0 | 5.37M | -240.91M | -155.18M | -113.03M | -245.72M |
| Cash from Financing | -195.59M | -164.52M | 436.12M | 85.41M | -423.47M | -82.02M | 324.19M | 48.08M | -193.21M | -18.41M | 91.62M | 108.23M |
| Debt Issued (Net) | -14.82M | -19.59M | 135.05M | 153.69M | -418.68M | -70.94M | 267.13M | 60.3M | -193.21M | -18.41M | -267K | 35M |
| Equity Issued (Net) | -102.17M | -119.46M | 342.54M | -47.5M | -4.6M | -3.16M | -827K | -333K | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.86M | -1.5M |
| Share Repurchases | -102.17M | -119.46M | -45.18M | -47.5M | -4.6M | -3.16M | -827K | -333K | 0 | 0 | 0 | 0 |
| Other Financing | -78.6M | -25.47M | -41.47M | -20.78M | -189K | -7.92M | 57.89M | -11.88M | 0 | 0 | 91.89M | 73.23M |
| Net Change in Cash | 152.52M | 224.56M | 78.43M | 91.85M | -25.71M | 35.62M | -52.79M | -54.14M | 107.73M | 0 | 8.83M | -38.54M |
| Free Cash Flow | 488.68M | 453.92M | 453.68M | -42.37M | 386.57M | 118.06M | -61.02M | -69.68M | 22.53M | 20.88M | 3.09M | -107.35M |
| FCF Margin % | 28.1% | 25.5% | 22.99% | -2.91% | 23.4% | 9.49% | -10.59% | -7.67% | 2.53% | 5.09% | 1.24% | -34.66% |
| FCF Growth % | -23.95% | 0.05% | 1170.88% | -110.96% | 227.45% | 293.48% | 12.42% | -409.25% | 7.93% | 575.38% | 102.88% | - |
| FCF per Share | 2.90 | 2.59 | 2.58 | -0.35 | 4.62 | 1.44 | -0.90 | -1.28 | 0.49 | 0.39 | 0.06 | -1.98 |
| FCF Conversion (FCF/Net Income) | -0.66x | -1.89x | -12.60x | 2.77x | 1.86x | -2.25x | -0.65x | 6.70x | 1.19x | -2.80x | -0.56x | -0.21x |
| Interest Paid | 59.2M | 0 | 130.84M | 130.31M | 0 | 0 | 67.44M | 62.57M | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Operational leverage and volatility
As reported in recent financial statements, Talos Energy exhibits a persistent disconnect between net income and operating cash flow, with the company generating $174.0 million in cash despite a $256.2 million net loss in 2026Q1, largely driven by significant non-cash depreciation and amortization charges.
The wide gap between accounting losses and cash generation suggests that the company's reported net income is heavily influenced by non-cash items rather than operational cash-generating capacity. Investors should monitor whether this reliance on non-cash adjustments to bridge the profitability gap is sustainable as asset retirement obligations and depletion costs continue to mount.
Based on the provided cash flow data, Talos Energy's free cash flow trajectory remains highly erratic, swinging from a $49.7 million deficit in 2024Q1 to a $204.5 million surplus in 2025Q2, reflecting the inherent instability of its offshore production and capital expenditure cycles.
The inconsistency in free cash flow generation appears to be a function of lumpy capital deployment and fluctuating commodity realizations. This volatility warrants further investigation into whether the company can maintain positive cash flow during periods of lower commodity prices without compromising its long-term reserve replacement requirements.
According to recent SEC filings, Talos Energy's capital expenditure patterns show significant variability, with periods of zero reported capex in 2026Q1 contrasting sharply with the $153.7 million deployed in 2024Q4, indicating a reactive approach to capital allocation rather than a steady investment strategy.
The lack of consistent capital investment may suggest that the company is deferring necessary maintenance or growth projects to preserve liquidity. Such capital discipline, while potentially beneficial for short-term cash flow, may indicate an underlying risk to the long-term production profile of its mature offshore assets.
As evidenced by the company's cash flow statements, Talos Energy has continued to prioritize share repurchases, including $48.3 million in 2025Q3, even while reporting consistent net losses, which suggests a management focus on equity support that may be at odds with its current cash-burning operational reality.
The decision to return capital to shareholders during periods of negative net income and volatile cash flow appears aggressive and may limit the company's financial flexibility. Investors should monitor whether this capital allocation strategy is sustainable if the current margin compression persists or if commodity prices face further downward pressure.
Quick answers to the most common questions about buying TALO stock.
Talos Energy Inc. (TALO) generated $935.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Talos Energy Inc. (TALO) generated $453.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Talos Energy Inc. (TALO) spent $0.0M 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, Talos Energy Inc. (TALO) spent $119.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.