Arcturus Therapeutics Holdings Inc. (ARCT) Cash Flow Statement

The OCF/NI ratio being consistently above 1.0 (and often significantly so) highlights that the company's operating losses are not the primary driver of cash consumption. Instead, cash is being consumed by working capital fluctuations and potentially other non-cash adjustments, as the core business is pre-profitability and generates no operating cash.

The negative FCF trajectory is a direct result of the company's cost structure remaining fixed while its milestone-dependent revenue stream has evaporated. The widening gap between net income and FCF suggests that even as reported losses may fluctuate, the underlying cash consumption to sustain operations is accelerating, demanding continued external financing.

These large swings, particularly the major uses of cash in 2024Q2, Q3, and 2025Q1, suggest aggressive inventory builds or receivable collection issues, which are unusual for a company with minimal revenue. The lack of a stable pattern indicates poor visibility and control over its cash conversion cycle, adding a layer of unpredictability to an already uncertain financial profile.