Cleveland-Cliffs (CLF) Financials

Cleveland-Cliffs’ first quarter of 2026 shows little improvement in the core business, with revenue up modestly but profitability still deeply negative. The company generated $4.92 billion in revenue, up from $4.31 billion in Q4 2025 and slightly above $4.63 billion in Q1 2025. However, cost of revenue still exceeded sales, producing a gross loss of $82 million and an operating loss of $213 million.

Bottom line: CLF remains stuck in a cycle where higher sales do not yet translate into earnings power. The company reported a net loss of $229 million, or $0.42 per share, roughly in line with recent quarters. That suggests the turnaround is not yet taking hold, even though revenue has recovered from the weaker Q4 2025 period.

Cash flow also remains under pressure. Operating cash flow was negative $325 million in Q1 2026, a sharp reversal from the positive $45 million in Q2 2025 and well below the positive $142 million in Q1 2025. Heavy working capital usage, along with another quarter of losses, continues to weigh on cash generation.

On the balance sheet, liquidity looks thin. Cleveland-Cliffs ended Q1 2026 with just $45 million in cash and equivalents, compared with $57 million in Q1 2025 and $66 million in Q3 2025. The company is carrying $7.76 billion in long-term debt and total liabilities of $14.10 billion against $5.82 billion in common equity.

• Revenue rebounded sequentially to $4.92 billion in Q1 2026 from $4.31 billion in Q4 2025, showing some improvement in top-line demand.
• Depreciation and non-cash charges continue to support cash flow earnings add-backs, with $259 million of depreciation in the quarter.
• The company accessed external financing, issuing $507 million of debt in Q1 2026, which helped offset the cash burn.
• Capital spending was relatively restrained at $152 million, in line with recent quarters and below some prior-year periods.
• Gross margin remains under pressure, as revenue still did not cover production costs in the quarter.
• SG&A was lower than Q4 2025 at $125 million versus $143 million, but it was still not enough to restore operating profitability.
• Shares outstanding were flat at about 570.4 million, so dilution was not a major issue this quarter.
• The company posted a gross loss of $82 million, meaning the core steel business is still not covering direct costs.
• Operating loss widened to $213 million, compared with a $339 million loss in Q4 2025, but remains deeply negative and far from breakeven.
• Operating cash flow was negative $325 million, a major deterioration from the prior quarter and a sign of ongoing working capital stress.

Longer-term trend: CLF’s results over the last four years show a very cyclical and volatile business. The company had profitable periods in 2022 and parts of 2023, but since 2024 the trend has weakened materially, with recurring quarterly losses, negative operating cash flow in several periods, and rising dependence on debt issuance. The balance sheet has also shifted from a stronger equity position in 2023 to a much tighter liquidity profile today.

For retail investors, the key takeaway is that Cleveland-Cliffs is still waiting for a sustained improvement in steel pricing, volumes, or cost structure to restore durable profitability. Until that happens, the stock will likely continue to trade more on commodity-cycle expectations and balance-sheet concerns than on consistent earnings growth.