Persistent negative free cash flow, averaging approximately $20 million per quarter, highlights a total dependence on external financing to sustain operations.
| Cash from Operations | -86.85M | -84.31M | -55.17M | -78.09M | -90.73M | -78.21M | -36.31M | -11.18M | -3.19M |
| Operating CF Margin % | - | -18528.57% | -552.12% | - | - | - | - | - | - |
| Operating CF Growth % | -34.81% | -52.8% | 29.35% | 13.93% | -16.01% | -115.41% | -224.69% | -249.98% | - |
| Net Income | -18.14M | -105.62M | -119.76M | -82.51M | -105.58M | -93.96M | -45.51M | -16.52M | -4.28M |
| Depreciation & Amortization | 405K | 425K | 354K | 443K | 415K | 380K | 23K | 0 | 0 |
| Stock-Based Compensation | 11.84M | 13.47M | 7.36M | 9.6M | 11.18M | 0 | 6.17M | 272K | 32K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -78.61M | 4.91M | 58.32M | 3.21M | -404K | 10.22M | -218K | 3M | 486K |
| Working Capital Changes | -2.33M | 2.52M | -1.44M | -8.84M | 3.67M | 5.15M | 3.23M | 2.06M | 569K |
| 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 | 1.89M | 2.69M | -2.79M | -4.93M | 8.82M | -8.04M | 5.75M | 2.3M | 499K |
| Cash from Investing | 0 | 0 | 13.87M | 13.17M | 12.43M | -19.47M | -20.01M | 0 | 0 |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 0% | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -75K | 113.81M | 74.54M | 27.69M | 74.72M | 136.29M | 56.41M | 26.65M | 6.47M |
| Debt Issued (Net) | 0 | -311K | -1.86M | -3.27M | -4.72M | -2.15M | 0 | 5.56M | 0 |
| Equity Issued (Net) | -1K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -2.5M | 0 | 0 |
| Other Financing | -74K | 9.37M | 11.89M | 3.15M | 5.01M | 2.73M | -2.27M | -72K | 0 |
| Net Change in Cash | -86.92M | 29.5M | 33.24M | -37.23M | -3.58M | 38.62M | 102K | 15.47M | 3.27M |
| Free Cash Flow | -86.85M | -84.31M | -55.17M | -78.09M | -90.73M | -78.21M | -36.31M | -11.18M | -3.19M |
| FCF Margin % | -8684.7% | -18528.57% | -552.12% | - | - | - | - | - | - |
| FCF Growth % | -6.12% | -52.8% | 29.35% | 13.93% | -16.01% | -115.41% | -224.69% | -249.98% | - |
| FCF per Share | -0.60 | -0.60 | -0.65 | -2.06 | -3.54 | -3.56 | -2.83 | -1.22 | -0.35 |
| FCF Conversion (FCF/Net Income) | 4.79x | 0.80x | 0.46x | 0.95x | 0.86x | 0.83x | 0.80x | 0.68x | 0.75x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Regulatory binary outcome risk
As evidenced by the quarterly data, the relationship between net income and operating cash flow is highly distorted, with the 2024Q4 period showing a $44.0 million net profit alongside a $19.5 million cash outflow, highlighting the irrelevance of GAAP earnings for this pre-commercial entity.
The wide divergence between reported net income and operating cash flow suggests that non-cash accounting adjustments, likely related to warrant revaluations or other financial instruments, are creating significant noise. Investors should focus exclusively on the persistent negative operating cash flow, which serves as the only reliable indicator of the company's actual resource consumption.
Based on the provided financial statements, Applied Therapeutics has maintained a consistent negative free cash flow trajectory, with quarterly outflows averaging approximately $20 million, underscoring the company's total dependence on external capital to fund its ongoing clinical development and regulatory activities.
The lack of any positive free cash flow generation confirms that the company remains in a deep-stage clinical burn phase. Without a commercial product to generate offsetting inflows, this trajectory appears likely to continue until a successful regulatory milestone or product launch fundamentally alters the cash flow profile.
According to the cash flow statements, working capital changes have been erratic, swinging from a $5.5 million source in 2024Q4 to a $5.2 million use in 2025Q1, which suggests that the company's cash position is highly sensitive to the timing of clinical trial vendor payments.
These fluctuations in working capital appear to be driven by the lumpy nature of clinical trial expenses rather than operational efficiency. Analysts should monitor these swings as they may indicate periods of accelerated clinical activity or potential delays in vendor invoicing that could temporarily mask the underlying burn rate.
As reported in the cash flow data, stock-based compensation has remained a consistent non-cash expense, peaking at $7.1 million in 2024Q4, which effectively subsidizes the company's operational costs while simultaneously diluting existing shareholders to preserve limited cash reserves for critical R&D programs.
The reliance on equity-based compensation is a standard but significant feature of the company's cost structure, effectively shifting the burden of clinical development costs onto shareholders. This practice warrants close monitoring, as it may indicate management's strategy to extend the cash runway at the expense of long-term equity value.
Quick answers to the most common questions about buying APLT stock.
Applied Therapeutics, Inc. (APLT) generated $-84.3M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Applied Therapeutics, Inc. (APLT) reported negative free cash flow of $84.3M in 2024, indicating capital requirements exceeded cash from operations.
Applied Therapeutics, Inc. (APLT) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.