New Fortress Energy has gotten torched over the last six months - since October 2025, its stock price has dropped 72.2% to $0.61 per share. This was partly due to its softer quarterly results and might have investors contemplating their next move.

Is there a buying opportunity in New Fortress Energy, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it’s free.

Why Is New Fortress Energy Not Exciting?

Despite the more favorable entry price, we're sitting this one out for now. Here are two reasons you should be careful with NFE and a stock we'd rather own.

1. Cash Burn Ignites Concerns

Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

New Fortress Energy’s demanding reinvestments have drained its resources over the last five years, putting it in a pinch and limiting its ability to return capital to investors. Its free cash flow margin averaged negative 71.3%, meaning it lit $71.26 of cash on fire for every $100 in revenue.

2. Short Cash Runway Exposes Shareholders to Potential Dilution

As long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by.

New Fortress Energy burned through $1.89 billion of cash over the last year, and its $9.33 billion of debt exceeds the $551.1 million of cash on its balance sheet. This is a deal breaker for us because indebted loss-making companies spell trouble.

Unless the New Fortress Energy’s fundamentals change quickly, it might find itself in a position where it must raise capital from investors to continue operating. Whether that would be favorable is unclear because dilution is a headwind for shareholder returns.

We remain cautious of New Fortress Energy until it generates consistent free cash flow or any of its announced financing plans materialize on its balance sheet.

Final Judgment

New Fortress Energy isn’t a terrible business, but it doesn’t pass our bar. Following the recent decline, the stock trades at 79.8× forward EV-to-EBITDA (or $0.61 per share). This valuation multiple is fair, but we don’t have much faith in the company. We're fairly confident there are better investments elsewhere. We’d recommend looking at one of our top digital advertising picks.

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