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Despite strong cash conversion with an OCF/NI ratio of 2.00, free cash flow remains deeply negative at a -88.8% margin as capital expenditures of $6.9B in 2026Q2 completely overwhelm operating cash generation.
Venture Global, Inc. (VG) cash flow statement — 4-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 |
|---|
| Cash from Operations | 7.59B | 6.57B | 2.15B | 4.55B | 3.7B |
| Operating CF Margin % | - | 47.69% | 43.22% | 57.62% | 57.41% |
| Operating CF Growth % | 849.11% | 205.54% | -52.77% | 22.91% | - |
| Net Income | 3.65B | 2.73B | 1.75B | 3.62B | 3.1B |
| Depreciation & Amortization | 1.22B | 941M | 322M | 277M | 158M |
| Stock-Based Compensation | 39M | 46M | 22M | 28M | 26M |
| Deferred Taxes | 864M | 638M | 446M | 674M | 446M |
| Other Non-Cash Items | 1.17B | 1.99B | -472M | 236M | -355M |
| Working Capital Changes | -72M | 216M | 85M | -281M | 330M |
| Change in Receivables | -62M | -564M | -90M | -75M | -190M |
| Change in Inventory | -58M | -61M | -127M | -18M | -26M |
| Change in Payables | -463M | 873M | 0 | 0 | 0 |
| Cash from Investing | -16.49B | -13.22B | -14.16B | -8.72B | -2.9B |
| Capital Expenditures | -17B | -13.37B | -13.72B | -8.09B | -4.62B |
| CapEx % of Revenue | 100.29% | 97.07% | 275.88% | 102.46% | 71.62% |
| Acquisitions | 0 | 0 | -106M | -539M | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 511M | 164M | -336M | -79M | 1.7B |
| Cash from Financing | 10.19B | 5.46B | 10.75B | 7.63B | 235M |
| Debt Issued (Net) | 13.2B | 4.25B | 8.46B | 10.23B | 2.63B |
| Equity Issued (Net) | -1.74B | 1.75B | 3B | 0 | 0 |
| Dividends Paid | -487M | -465M | -139M | -164M | -6M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -780M | -74M | -564M | -2.44B | -2.38B |
| Net Change in Cash | 322M | -1.19B | -1.26B | 3.46B | 1.04B |
| Free Cash Flow | -9.41B | -6.8B | -11.57B | -3.54B | -916M |
| FCF Margin % | -55.5% | -49.38% | -232.66% | -44.84% | -14.21% |
| FCF Growth % | 9.39% | 41.23% | -226.69% | -286.57% | - |
| FCF per Share | -3.56 | -2.58 | -4.78 | -1.37 | -0.36 |
| FCF Conversion (FCF/Net Income) | -2.58x | 2.43x | 1.39x | 1.70x | 1.99x |
| Interest Paid | 0 | 0 | 338M | 368M | 220M |
| Taxes Paid | 0 | 0 | 10M | 127M | 0 |
Quick answers to the most common questions about buying VG stock.
Venture Global, Inc. (VG) generated $6.57B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Venture Global, Inc. (VG) reported negative free cash flow of $6.80B in 2025, indicating capital requirements exceeded cash from operations.
Venture Global, Inc. (VG) spent $13.37B 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, Venture Global, Inc. (VG) returned $465.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Massive CapEx consuming all operating cash flow
Metrics are mathematically derived from official filings.
Strong Cash Conversion Amidst Growth
Operating cash flow consistently exceeds net income, with a 2.00x OCF/NI ratio in 2026Q2, indicating high-quality earnings driven by strong cash collections from commissioning cargo sales.
The persistent premium of operating cash flow over net income suggests the company's reported profits are backed by actual cash inflows, a positive sign for earnings quality. This conversion strength is likely fueled by the upfront cash nature of spot LNG sales, which contrasts with the accrual-based recognition of long-term contract revenues. Investors should monitor if this conversion ratio normalizes as the revenue mix shifts toward fixed-fee contracts.
FCF Negative Despite Operational Profitability
Free cash flow has been deeply negative for ten consecutive quarters, with a -88.8% FCF margin in 2026Q2, as massive capital expenditures for facility expansion completely overwhelm robust operating cash generation.
The trajectory reveals a company in a heavy investment phase, where operational success is being reinvested into future capacity. The negative FCF is not a sign of operational weakness but a direct result of the capital-intensive nature of building LNG infrastructure. The key question for investors is the timeline to FCF inflection, which depends on the completion of major projects like Plaquemines and the potential resolution of the CP2 permitting pause.
Capital Intensity Dominates Cash Profile
Capital expenditures reached $6.9B in 2026Q2 alone, representing 150.7% of revenue, which underscores the immense upfront investment required to execute the company's modular construction strategy.
The CapEx/Rev ratio exceeding 100% is a clear indicator that the company is spending more on building future capacity than it is generating from current operations. This level of capital intensity is typical for a greenfield LNG developer but creates significant cash burn. The modular approach may offer a speed advantage, but it does not eliminate the fundamental need for massive, front-loaded capital deployment.
Volatile Working Capital Swings
Working capital changes have been erratic, swinging from a $226M source of cash in 2025Q4 to a $186M use in 2026Q2, suggesting lumpy collections and inventory movements tied to the commissioning cargo sales cycle.
The volatility in working capital is likely a function of the timing of large LNG cargo shipments and payments, rather than a structural inefficiency. The negative swings in recent quarters may indicate a build-up of receivables or inventory ahead of sales, which temporarily consumes cash. This pattern is expected to stabilize as the business transitions to more predictable, contract-based cash flows.
Cash Deployment Favors Growth Over Shareholders
Capital deployment is overwhelmingly directed toward growth CapEx, with minimal returns to shareholders via dividends or buybacks, as evidenced by only $89M in dividends paid against $6.9B in CapEx in 2026Q2.
The allocation profile confirms management's priority is funding the expansion of its liquefaction portfolio over returning capital to investors. The modest dividend appears to be a token gesture rather than a core component of the investment thesis. This strategy aligns with the company's growth phase but offers little near-term cash yield to shareholders, placing the burden of returns entirely on future project execution and commodity prices.
Cash Flow Obscures True Leverage
The cash flow statement does not fully capture the project-level debt likely held in off-balance-sheet entities, as suggested by the reported 3.39% Debt/Equity ratio, which appears inconsistent with the scale of capital expenditure.
The massive CapEx figures imply significant financing activity that is not fully reflected in the company's reported leverage metrics. This suggests the use of non-recourse project finance vehicles, which can mask the true financial risk of the enterprise. Analysts should scrutinize the financing cash flows and footnotes to understand the full scope of obligations supporting the capital-intensive growth plan.