AnaptysBio, Inc. (ANAB) Cash Flow Statement

The single-quarter gap of roughly $210 million between net income and operating cash flow is too large to be an accruals timing issue and appears consistent with fair-value gains on equity interests or deferred revenue releases that do not carry cash into the quarter. Because OCF/NI was positive but sub-unity in most loss-making quarters (0.27-0.49 range) and turned negative exactly when reported income spiked, investors should not treat reported profitability as evidence that the royalty and milestone streams are self-funding the pipeline.

The only materially positive quarter, 2025Q4's $98.0 million of FCF on a 90.5% margin, was followed by negative FCF in 2026Q1 and 2026Q2 (-$25.9 million and -$26.6 million), a pattern that looks more like milestone receipt timing than an operating inflection. With reported cash around $238 million and no confirmed positive FCF trend, the runway to rosnilimab Phase 2b data appears to hinge on continued royalty inflow from Jemperli rather than on internal cash generation, a dependency investors should monitor quarter by quarter.

The divergence is driven overwhelmingly by a single quarter — 2026Q2's $183.9 million of net income against an operating loss — which means the cumulative earnings figure is being rescued by items the cash statement never validates. For analysts assessing whether the company can reach rosnilimab readouts without dilution, the more honest base is the cumulative operating cash burn of roughly $20 million per quarter, not the reported earnings trend.

The magnitude of these swings — negative WC in six of ten quarters, with occasional releases in 2024Q2, 2024Q4, 2025Q1 and 2025Q4 — indicates that milestone receivable build and deferred revenue amortization dominate the operating cash line more than any inventory or payables discipline, since AnaptysBio carries essentially no manufacturing working capital. Because WC changes contributed roughly $193 million of drag against cumulative operating cash flow of negative $168 million, any individual quarter's OCF is dominated by partnership timing, and investors should anchor to multi-quarter averages rather than single prints.

Repurchasing $51.1 million in 2025Q2 — the same quarter that saw the deepest recent operating outflow of negative $40.2 million — suggests management may have prioritized equity-mark support over pipeline funding, though it could equally reflect a deliberate return-of-capital stance given the royalty floor the GSK partnership appears to provide. The absence of dividends and of any reported acquisition outflows alongside ongoing buybacks points to a capital policy weighted toward opportunistic equity purchases rather than external growth, and whether that posture persists into rosnilimab's later development stages warrants monitoring.