Free cash flow has deteriorated to a quarterly outflow of $67.2 million in 2025Q3, with stock-based compensation rising to $9.3 million, providing only a limited buffer against operational cash burn.
| Cash from Operations | -250.17M | -230.11M | -145.37M | -92.52M | -79.68M | -70.8M | -35.63M | -4.63M | -4.38M |
| Operating CF Margin % | - | - | - | - | - | - | - | - | - |
| Operating CF Growth % | -109.88% | -58.29% | -57.12% | -16.11% | -12.54% | -98.74% | -670.31% | -5.55% | - |
| Net Income | -292.82M | -252.06M | -151.76M | -112.03M | -100.78M | -79.21M | -43.76M | -81.71M | -4.56M |
| Depreciation & Amortization | -4.76M | 18K | 29K | 43K | 41K | 17K | -104K | 0 | 0 |
| Stock-Based Compensation | 34.28M | 29.7M | 21.5M | 23.24M | 10.05M | 6.02M | 1.77M | 121K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 1.07M | 83K | 104K | 0 | 0 |
| Other Non-Cash Items | 3.44M | -10.76M | -8.46M | 689K | 203K | 196K | -104K | 75.91M | -60K |
| Working Capital Changes | 9.69M | 3M | -6.67M | -4.46M | 9.73M | 2.08M | 6.46M | 1.06M | 182K |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -11.91M | 2.01M | -645K | 968K | 3.27M | 2.48M | -426K | 1.31M | 60K |
| Cash from Investing | -330.79M | -109.71M | -223.62M | -63.83M | 42.28M | -9.76M | -71.51M | -5M | 0 |
| Capital Expenditures | 0 | -999K | 0 | 0 | 0 | -148K | 0 | -5M | 0 |
| CapEx % of Revenue | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 9.61K | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 56.78M | 0 | 0 | 0 | 0 | -9.61K | 0 | -5K | 0 |
| Cash from Financing | 440.93M | 445.85M | 353.32M | 255.63M | 602K | 203.11M | 95.99M | 85.01M | 5M |
| Debt Issued (Net) | 0 | 10M | 15M | 10M | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 3M | 1000K | 1000K | 1000K | 602K | 1000K | 1000K | 1000K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -25.67M | 12.77M | 2.89M | 4.43M | 0 | 553K | 536K | -493K | 5M |
| Net Change in Cash | -140.03M | 106.03M | -15.67M | 99.29M | -36.8M | 122.54M | -11.15M | 75.38M | 618K |
| Free Cash Flow | -250.17M | -231.11M | -145.37M | -92.52M | -79.68M | -70.95M | -35.63M | -9.63M | -4.38M |
| FCF Margin % | - | - | - | - | - | - | - | - | - |
| FCF Growth % | -17.65% | -58.98% | -57.12% | -16.11% | -12.3% | -99.15% | -270.15% | -119.65% | - |
| FCF per Share | -3.05 | -3.44 | -2.77 | -2.37 | -2.29 | -2.26 | -2.36 | -0.45 | -0.15 |
| FCF Conversion (FCF/Net Income) | 0.85x | 0.91x | 0.96x | 0.83x | 0.79x | 0.89x | 0.81x | 0.06x | 0.96x |
| Interest Paid | 2.27M | 3.98M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Clinical trial funding dependency
As reported in financial statements, Akero's operating cash flow consistently tracks its net loss, with an OCF/NI ratio hovering near 0.82 to 0.97 in recent quarters, suggesting that non-cash expenses like stock-based compensation are providing only a modest buffer against the company's underlying cash burn.
The tight correlation between net loss and operating cash flow indicates that the company's reported losses are largely representative of actual cash outflows rather than accounting artifacts. Investors should note that the lack of significant divergence suggests that the company's burn rate is highly sensitive to R&D spending levels, leaving little room for operational efficiency gains until clinical milestones are reached.
Based on Akero's reported figures, free cash flow has deteriorated from a quarterly outflow of $22.4 million in 2023Q2 to $67.2 million in 2025Q3, reflecting the intensifying capital requirements of late-stage clinical development as the company pushes toward critical Phase 3 data readouts.
The consistent expansion of negative free cash flow highlights the company's reliance on external financing to sustain its pipeline. This trajectory warrants close monitoring, as the widening gap between cash reserves and operational requirements may necessitate further equity issuance if clinical timelines extend beyond current projections.
According to recent SEC filings, Akero's working capital changes have been erratic, swinging from a $15.7 million inflow in 2025Q2 to a $992,000 outflow in 2025Q3, which appears to reflect the timing of vendor payments and CRO milestone settlements rather than underlying operational efficiency.
These fluctuations in working capital suggest that the company's cash position is susceptible to the timing of clinical trial activities and associated contractual obligations. Analysts should interpret these swings as a byproduct of project-based spending rather than a sustainable trend in liquidity management.
Based on the provided data, stock-based compensation has grown from $4.8 million in 2023Q2 to $9.3 million in 2025Q3, effectively acting as a non-cash expense that obscures the true economic cost of talent retention required to maintain the company's competitive position in the MASH space.
While SBC is a standard tool for preserving cash in pre-revenue biotech, the rising absolute dollar amount suggests an increasing reliance on equity-based compensation to manage human capital costs. This trend may lead to significant shareholder dilution over time, which is a critical factor for investors to weigh against the company's clinical progress.
Quick answers to the most common questions about buying AKRO stock.
Akero Therapeutics, Inc. (AKRO) generated $-230.1M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Akero Therapeutics, Inc. (AKRO) reported negative free cash flow of $231.1M in 2024, indicating capital requirements exceeded cash from operations.
Akero Therapeutics, Inc. (AKRO) spent $1.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.