Free cash flow remains consistently negative, with quarterly outflows reaching $106.6 million in 2026Q1, highlighting a persistent cash burn that necessitates ongoing external financing.
| Cash from Operations | -123.17M | -50.2M | -236.84M | -312.19M | -312.39M | -228.17M | -74.3M |
| Operating CF Margin % | - | -8.56% | -48.37% | -341.43% | -376.24% | -620.5% | -111.53% |
| Operating CF Growth % | -409.43% | 78.81% | 24.13% | 0.07% | -36.91% | -207.11% | - |
| Net Income | -80.73M | 27.92M | -231.86M | -551.73M | -513.58M | -101.5M | -170.04M |
| Depreciation & Amortization | 39.88M | 37.85M | 31.3M | 24.21M | 20.41M | 18.2M | 16.42M |
| Stock-Based Compensation | 16.07M | 17.38M | 7.63M | 18.03M | 10.32M | 0 | 0 |
| Deferred Taxes | 124.69M | 108.43M | 14.3M | -99.32M | -38.07M | -47.69M | -121.73M |
| Other Non-Cash Items | -58.28M | -124.14M | 230.44M | 270.29M | 256.42M | -90.36M | 168.54M |
| Working Capital Changes | -164.8M | -117.64M | -288.64M | 26.33M | -47.89M | -6.81M | 32.52M |
| Change in Receivables | -14.05M | -6.33M | -164.24M | -24.83M | -13.23M | -13.53M | 10.1M |
| Change in Inventory | -86.28M | -90.13M | -49.97M | -11.3M | -32.41M | -29.41M | -3.25M |
| Change in Payables | -55.52M | -21.18M | 0 | 0 | 0 | 14.32M | 227K |
| Cash from Investing | -130.01M | -104.22M | -18.87M | -46.34M | -63.54M | -40.63M | -16.9M |
| Capital Expenditures | -48.42M | -64.47M | -53.66M | -33.23M | -37.88M | -20.46M | -7.49M |
| CapEx % of Revenue | 8.66% | 11% | 10.96% | 36.35% | 45.62% | 55.65% | 11.24% |
| Acquisitions | -17.01M | -14.04M | 12M | 0 | 0 | 0 | -5M |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -38.87M | 0 | 22.79M | -13.11M | -25.66M | -20.17M | -4.42M |
| Cash from Financing | 275.7M | 270.83M | 297.31M | 301.32M | 424.91M | 254.83M | 55.4M |
| Debt Issued (Net) | 206.24M | 202.48M | 151.98M | 171.19M | 257.82M | 68.97M | 21.02M |
| Equity Issued (Net) | 78.72M | 78.72M | 150.45M | 136.88M | 9.83M | 185.86M | 34.38M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -9.26M | -10.37M | -5.13M | -6.75M | 157.27M | 0 | 0 |
| Net Change in Cash | 25.29M | 120.93M | 40.27M | -55.27M | 48.87M | -14.13M | -35.71M |
| Free Cash Flow | -210.47M | -114.67M | -293.84M | -358.66M | -361.39M | -268.8M | -86.28M |
| FCF Margin % | -37.62% | -19.56% | -60.01% | -392.26% | -435.26% | -731% | -129.51% |
| FCF Growth % | 6.13% | 60.98% | 18.07% | 0.76% | -34.44% | -211.56% | - |
| FCF per Share | -0.64 | -0.41 | -1.10 | -1.58 | -1.83 | -8.60 | -2.76 |
| FCF Conversion (FCF/Net Income) | 2.61x | -1.80x | 1.02x | 0.57x | 0.61x | 2.25x | 0.44x |
| Interest Paid | 58.95M | 58.95M | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 780K | 780K | 0 | 0 | 0 | 0 | 0 |
Regulatory and milestone dependency
As reported in financial statements, Alvotech's net income frequently diverges from operating cash flow, with the company recording a $109.7 million profit in 2025Q1 while generating only $12.5 million in operating cash, suggesting that reported earnings are significantly decoupled from actual cash generation capabilities.
The persistent gap between net income and operating cash flow indicates that accounting profits are heavily influenced by non-cash items or milestone recognition rather than recurring operational inflows. Investors should monitor this disconnect, as it suggests that the company's reported profitability may not be sustainable without a fundamental shift toward volume-based product sales.
Based on Alvotech's reported figures, the company has struggled to maintain positive free cash flow, with quarterly outflows reaching as high as $106.6 million in 2026Q1, underscoring a persistent cash burn that necessitates ongoing external financing to support its intensive R&D and manufacturing infrastructure.
The inability to generate consistent positive free cash flow, even in quarters with reported net income, highlights the capital-intensive nature of the biosimilar business model. This trajectory suggests that the company remains in a high-risk development phase where cash outflows are structurally tied to pipeline progression rather than commercial maturity.
According to recent SEC filings, Alvotech's working capital dynamics are highly erratic, with a significant $114.1 million outflow in 2024Q2, indicating that the company's cash position is frequently strained by the timing of inventory build-ups and the collection of milestone-related receivables from commercial partners.
The extreme swings in working capital suggest that the company lacks a stable cash conversion cycle, likely due to the lumpy nature of milestone payments and the complexities of managing biologics inventory. This volatility warrants further investigation into the efficiency of the company's receivables management and its ability to forecast cash needs.
As indicated by the provided data, Alvotech's capital expenditures have remained a significant burden, peaking at 24.9% of revenue in 2025Q3, which reflects the ongoing requirement to maintain and upgrade its specialized Reykjavik manufacturing facility to meet stringent regulatory standards for biosimilar production.
The high capital intensity suggests that the company is still in a phase of heavy asset investment rather than maintenance, which may continue to pressure cash flows in the near term. Investors should monitor whether these investments successfully translate into higher production yields or if they represent a permanent, high-cost hurdle for the business.
Quick answers to the most common questions about buying ALVO stock.
Alvotech (ALVO) generated $-50.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Alvotech (ALVO) reported negative free cash flow of $114.7M in 2025, indicating capital requirements exceeded cash from operations.
Alvotech (ALVO) spent $64.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.