Free cash flow remains consistently negative, with quarterly outflows reaching $35.3M in 2025Q1, reflecting the high capital intensity required to sustain the LUNAR delivery platform development.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | -58.57M | -74.27M | -59.75M | -18.1M | 31.99M | -135.04M | -42.86M | -6.45M | -20.76M | -460K | -19.24M | -18.15M | -28.33M | -7.35M | -1.58M | -2.36M |
| Operating CF Margin % | - | -110.49% | -43.17% | -11.47% | 15.55% | -1092.67% | -449.32% | -31% | -131.78% | -3.54% | -94.4% | -295.67% | - | - | - | - |
| Operating CF Growth % | -5460.33% | -24.31% | -230.11% | -156.57% | 123.69% | -215.07% | -565.03% | 68.95% | -4413.04% | 97.61% | -6.02% | 35.93% | -285.23% | -363.91% | 32.87% | - |
| Net Income | -78.67M | -65.78M | -80.94M | -29.73M | 9.35M | -203.67M | -72.15M | -25.99M | -21.79M | -10.9M | -24.6M | -19.45M | -32.83M | -10.55M | -1.58M | -3.93M |
| Depreciation & Amortization | 2.88M | 3.02M | 3.54M | 2.96M | 1.53M | 1.19M | 882K | 684K | 582K | 410K | 61K | 51K | 31K | 8K | 7K | 6K |
| Stock-Based Compensation | 23.07M | 25.41M | 37.99M | 34.65M | 30.61M | 28.91M | 6.76M | 1.98M | 1.26M | 2.17M | 2.5M | 2.37M | 4.09M | 1.54M | 26K | 1.55M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 25K | 302K | 0 | 0 | -2.37M | -4.09M | 1K | 0 | 0 |
| Other Non-Cash Items | -9.2M | 2.28M | 471K | -33.36M | 3.06M | 5.9M | 425K | 873K | 38K | 498K | 123K | 2.37M | 4.09M | 203K | 62K | 0 |
| Working Capital Changes | 3.34M | -39.2M | -20.81M | 7.38M | -12.56M | 32.63M | 21.22M | 15.98M | -1.16M | 7.36M | 2.68M | -1.11M | 388K | 1.44M | -101K | 9K |
| Change in Receivables | 13.31M | -1.59M | 28.09M | -29.3M | 603K | -1.24M | 54K | 2.3M | -4M | 3.15M | -1.56M | -1.08M | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.55M | 2.11M | -306K | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -1.59M | -2.96M | 1.92M | -2.24M | -3.11M | -769K | 4.81M | 3.15M | 578K | -1.54M | 471K | -248K | 258K | 24K | -113K | 95K |
| Cash from Investing | -59.66K | -230K | -648K | -2.9M | -7.73M | -3.41M | -1.74M | -818K | 22.13M | 10.36M | 4.88M | -33.84M | 8.41M | -28.05M | 1.03M | -1.04M |
| Capital Expenditures | -318.66K | -230K | -648K | -2.9M | -7.73M | -3.41M | -1.74M | -818K | -1.48M | -251K | -74K | -181K | -79K | -39K | 0 | -24K |
| CapEx % of Revenue | 0.7% | 0.34% | 0.47% | 1.84% | 3.75% | 27.56% | 18.26% | 3.93% | 9.38% | 1.93% | 0.36% | 2.95% | - | - | - | - |
| Acquisitions | 34K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 29K | -20.02M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 225K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 23.61M | 29K | 20.02M | -161K | 8.49M | -28.01M | 507K | -500K |
| Cash from Financing | -1.8M | 13.38M | 5.42M | -24.09M | -2.86M | 48.02M | 436.14M | 41.91M | 10.2M | 7M | 6K | 66.47M | 0 | 57.4M | 601K | 2.62M |
| Debt Issued (Net) | 0 | 0 | 0 | -27.36M | -5M | 46.6M | 0 | 4.95M | 9.87M | 5.65M | 0 | 1.89M | 0 | 115K | 600K | 450K |
| Equity Issued (Net) | 12.44M | 13.38M | 682K | 609K | 411K | 515K | 423.82M | 21.28M | 0 | 0 | 0 | 66.47M | 0 | 57.25M | 1K | 2.17M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -14.23M | 0 | 4.74M | 2.67M | 1.73M | 902K | 12.33M | 15.68M | 332K | 1.35M | 6K | -66.45M | 0 | 29K | 0 | 0 |
| Net Change in Cash | -60.43M | -61.12M | -54.98M | -45.09M | 21.41M | -90.43M | 391.54M | 34.64M | 11.58M | 16.89M | -14.35M | 14.48M | -19.92M | 22M | 42K | -782K |
| Free Cash Flow | -58.89M | -74.27M | -60.4M | -21M | 24.27M | -138.45M | -44.6M | -7.26M | -22.24M | -711K | -19.32M | -18.33M | -28.41M | -7.39M | -1.58M | -2.38M |
| FCF Margin % | -129.86% | -110.49% | -43.64% | -13.31% | 11.79% | -1120.23% | -467.59% | -34.94% | -141.17% | -5.47% | -94.77% | -298.62% | - | - | - | - |
| FCF Growth % | 34.47% | -22.98% | -187.6% | -186.54% | 117.53% | -210.4% | -514.11% | 67.34% | -3027.71% | 96.32% | -5.38% | 35.47% | -284.27% | -366.37% | 33.54% | - |
| FCF per Share | -2.07 | -2.71 | -2.24 | -0.79 | 0.90 | -5.26 | -2.20 | -0.60 | -2.21 | -0.23 | -4.91 | -5.93 | -14.54 | -5.08 | -1.00 | -1.50 |
| FCF Conversion (FCF/Net Income) | 0.75x | 1.13x | 0.74x | 0.61x | 3.42x | 0.66x | 0.59x | 0.25x | 0.95x | 0.04x | 0.78x | 0.93x | 0.86x | 0.70x | 1.00x | 0.60x |
| Interest Paid | 0 | 0 | 0 | 2.13M | 813K | 684K | 751K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 1.41M | 0 | 0 | 0 | 0 | 0 | 0 | 35K | 12K | 1K | 0 | 0 | 0 | 0 |
Clinical Milestone Revenue Volatility
As reported in financial statements, ARCT's operating cash flow frequently diverges from net income, with OCF/NI ratios fluctuating wildly between 0.01 and 3.44, suggesting that non-cash items and working capital swings significantly distort the company's underlying cash-generating ability during this pre-commercial phase.
The extreme volatility in the OCF/NI ratio indicates that net income is a poor proxy for the company's actual cash burn. Investors should monitor how milestone-driven revenue recognition creates timing mismatches that mask the underlying cash requirements of the R&D-heavy business model.
Based on the provided cash flow data, ARCT's free cash flow remains consistently negative, with quarterly outflows reaching as high as $35.3M, underscoring the company's reliance on external capital to fund its clinical pipeline in the absence of recurring product-based cash inflows.
The persistent FCF burn highlights the structural challenge of funding long-term R&D through episodic milestone payments. Without a transition to commercialized product revenue, the current trajectory suggests a continued dependence on capital markets to sustain operations.
According to recent SEC filings, ARCT's working capital changes are highly erratic, swinging from a $28.5M outflow in 2025Q1 to a $20.1M inflow in 2024Q4, which reflects the lumpy nature of milestone-related receivables and deferred revenue adjustments inherent in the company's partnership-based business model.
These swings in working capital suggest that liquidity is highly sensitive to the timing of partner payments rather than operational efficiency. This volatility complicates cash flow forecasting and necessitates a larger cash buffer to manage periods where milestone receipts are delayed.
Based on reported figures, ARCT consistently utilizes stock-based compensation, averaging over $7M per quarter, which effectively subsidizes the company's operating expenses and obscures the true cash-based burn rate required to maintain its proprietary LUNAR delivery platform and ongoing clinical research initiatives.
While SBC is a non-cash expense, it represents a significant economic cost to shareholders through dilution. Analysts should adjust the reported cash burn to account for this persistent reliance on equity-based compensation as a primary tool for talent retention and operational funding.
Quick answers to the most common questions about buying ARCT stock.
Arcturus Therapeutics Holdings Inc. (ARCT) generated $-74.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Arcturus Therapeutics Holdings Inc. (ARCT) reported negative free cash flow of $74.3M in 2025, indicating capital requirements exceeded cash from operations.
Arcturus Therapeutics Holdings Inc. (ARCT) spent $0.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.