AbCellera Biologics Inc. (ABCL) Cash Flow Statement

The OCF/NI ratio fluctuates wildly, from 0.23 in 2024Q4 to 3.88 in 2025Q4, indicating that net income is not a reliable proxy for cash generation. Non-cash charges like SBC (averaging $12M per quarter) and D&A (which spiked to $38M in 2024Q3) distort the relationship, suggesting that reported losses understate the true cash outflow. Investors should focus on operating cash flow as the primary measure of burn, as it consistently shows negative values across all quarters.

FCF margins have been consistently negative, ranging from -2.7% to -99.4%, with no quarter showing positive FCF. The 2025Q4 revenue of $44.9M improved FCF to -$44.6M, but this was a one-time milestone event, and subsequent quarters reverted to deeper losses. The trajectory suggests that without recurring revenue streams, the company's cash burn will continue to erode its balance sheet, making external funding or partnerships critical.

The reduction in CapEx suggests that the company has largely completed its initial investment in lab facilities and equipment, allowing it to redirect cash toward R&D. However, the elevated CapEx/Revenue ratio in recent quarters (52.6% in 2026Q2) reflects the low revenue base rather than high capital intensity. This implies that future growth will depend more on operational efficiency than on additional capital spending.

The large negative working capital changes in 2025Q4 and 2026Q1 suggest that the company is using cash to fund receivables or pay down liabilities, possibly due to milestone-related accruals. The positive change in 2025Q1 indicates a collection of receivables, but this is not consistent. This volatility makes it difficult to predict cash flow from operations, and investors should monitor the company's ability to manage its working capital cycle as it scales.

The absence of capital returns is consistent with a company in a high-burn phase, where preserving liquidity is paramount. The small acquisition outflows (ranging from -$1.7M to -$5.9M) suggest opportunistic investments, but they are immaterial relative to the cash burn. This deployment strategy implies that management is prioritizing runway extension over shareholder returns, which is typical for pre-profit biotechs.

The divergence between net income and operating cash flow is significant, with the gap widening in quarters where D&A spiked (e.g., 2024Q3 and 2024Q4). This suggests that the company's cash burn is less severe than its accounting losses, but the underlying trend remains negative. The cumulative gap indicates that non-cash expenses are a substantial portion of reported losses, but they do not alleviate the need for external funding to sustain operations.