Despite a $169.4M net income in 2026Q2, operating cash flow was negative $48.3M, highlighting a severe disconnect where reported profits fail to convert to cash due to milestone accounting and working capital swings.
Arvinas, Inc. (ARVN) cash flow statement — 10-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Cash from Operations | -207M | -273.8M | -259.3M | -347.8M | -273.5M | 559.4M | -89.76M | -40.63M | -16.12M | 5.11M | -19.4M |
| Operating CF Margin % | - | -104.27% | -98.44% | -443.06% | -208.14% | 1043.66% | -346.55% | -94.53% | -112.52% | 67.47% | -290.94% |
| Operating CF Growth % | 189.21% | -5.59% | 25.45% | -27.17% | -148.89% | 723.24% | -120.93% | -152.06% | -415.22% | 126.35% | - |
| Net Income | 9.3M | -80.8M | -198.9M | -367.3M | -282.5M | -191M | -119.33M | -70.29M | -41.48M | -24.05M | -14.35M |
| Depreciation & Amortization | 8M | 5.2M | 6.6M | 6.7M | 8.2M | 6M | 4.02M | 2.25M | 706K | 347.39K | 436.33K |
| Stock-Based Compensation | 25.8M | 44M | 88.2M | 71.6M | 75.5M | 57.1M | 30.2M | 20.07M | 11.63M | 245.05K | 525.59K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | -395.07K | 0 | 193.78K | -5.87K | -1.01M |
| Other Non-Cash Items | -19.3M | -8.5M | -14.6M | -14.4M | 7.9M | 9M | 1.69M | 169.17K | 266.03K | 362.07K | 556.42K |
| Working Capital Changes | -230.8M | -233.7M | -140.6M | -44.4M | -82.6M | 678.3M | -5.94M | 7.17M | 12.57M | 28.21M | -5.56M |
| Change in Receivables | -44.6M | 7.3M | -5.7M | 800K | 14M | -30.2M | -1M | 2.78M | 22.22M | -25M | -578.93K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 6.34M | -2.07M | -3.26M | 2.26M | 0 |
| Change in Payables | 5.8M | -1.7M | -21.2M | 17.3M | 20.2M | 27.9M | 2.04M | 1.61M | 2M | -969.48K | 1.2M |
| Cash from Investing | 277.9M | 407.6M | 34.7M | 203.5M | 242.8M | -1.31B | 164.25M | -93.1M | -179.67M | 20.87M | -20.11M |
| Capital Expenditures | -1.8M | -1.9M | -1.8M | -2.9M | -6.8M | -4.7M | -6.45M | -6.24M | -2.83M | -1.01M | -306.67K |
| CapEx % of Revenue | 0.57% | 0.72% | 0.68% | 3.69% | 5.17% | 8.77% | 24.89% | 14.53% | 19.76% | 13.36% | 4.6% |
| Acquisitions | 0 | 0 | 100K | 0 | 400K | 0 | -395.07M | 86.8M | 0 | 0 | 50K |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -400K | 0 | 395.07M | -86.8M | -176.83M | 21.88M | -50K |
| Cash from Financing | -91.5M | -91.4M | 7.9M | 374.7M | 4.7M | 278.6M | 504.67M | 139.74M | 168.06M | -161.36K | -149.74K |
| Debt Issued (Net) | -300K | -200K | -400K | 0 | 0 | 0 | 0 | -169.61K | 1.83M | -161.36K | -149.74K |
| Equity Issued (Net) | -91.2M | -91.2M | 8.3M | 374.7M | 4.7M | 264.6M | 525.6M | 139.91M | 169.58M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -91.9M | -91.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 14M | -20.93M | 0 | -3.35M | 0 | 0 |
| Net Change in Cash | -20.6M | 42.4M | -216.7M | 230.4M | -26M | -475.6M | 579.16M | 6.02M | -27.72M | 25.82M | -39.67M |
| Free Cash Flow | -208.8M | -275.7M | -261.1M | -350.7M | -280.3M | 554.7M | -96.2M | -46.87M | -18.95M | 4.1M | -19.71M |
| FCF Margin % | -65.93% | -104.99% | -99.13% | -446.75% | -213.32% | 1034.89% | -371.45% | -109.06% | -132.28% | 54.11% | -295.54% |
| FCF Growth % | 47.67% | -5.59% | 25.55% | -25.12% | -150.53% | 676.58% | -105.26% | -147.36% | -562.08% | 120.81% | - |
| FCF per Share | -3.18 | -4.25 | -3.63 | -6.32 | -5.27 | 11.09 | -2.43 | -1.42 | -0.60 | 0.20 | -10.39 |
| FCF Conversion (FCF/Net Income) | -22.45x | 3.39x | 1.30x | 0.95x | 0.97x | -2.93x | 0.75x | 0.58x | 0.39x | -0.21x | 1.35x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 100K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 2.3M | 11.1M | 11.1M | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying ARVN stock.
Arvinas, Inc. (ARVN) generated $-273.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Arvinas, Inc. (ARVN) reported negative free cash flow of $275.7M in 2025, indicating capital requirements exceeded cash from operations.
Arvinas, Inc. (ARVN) spent $1.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Arvinas, Inc. (ARVN) spent $91.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Persistent Cash Burn Despite Milestones
Metrics are mathematically derived from official filings.
Milestone Revenue Fails to Convert to Cash
Despite a $169.4M net income in 2026Q2, operating cash flow was negative $48.3M, a stark disconnect that suggests the reported profit is largely non-cash and driven by milestone accounting rather than operational cash generation.
The negative OCF/NI ratio of -0.29 in the latest quarter is the most extreme example of a persistent pattern where net income and operating cash flow move in opposite directions. This indicates that the high-margin milestone revenue, while boosting the income statement, is not translating into immediate cash inflows, likely due to receivable timing or deferred recognition. Investors should monitor the working capital dynamics to understand the lag between revenue recognition and cash collection.
Free Cash Flow Deepens Negative Trend
Arvinas's free cash flow has been consistently negative for nine of the last ten quarters, with the 2026Q2 deficit of $48.5M occurring despite a large net income, highlighting a structural cash consumption profile.
The FCF margin has been deeply negative, often exceeding -100%, which is typical for a pre-commercial biotech but underscores the significant cash required to fund operations. The trajectory shows no sustained improvement, with the 2026Q2 result being a modest improvement from the -$89.3M in 2025Q1 but still firmly in negative territory. This persistent burn rate necessitates continuous access to capital markets or partnership funding.
Erratic Working Capital Swings Mask Core Operations
Working capital changes have been wildly volatile, from a $226.5M use of cash in 2026Q2 to a $66.6M source in 2024Q2, suggesting that milestone payment timing and receivable collections are the primary drivers of quarterly cash flow volatility.
The massive $226.5M working capital outflow in 2026Q2, coinciding with the large net income quarter, strongly suggests that the milestone revenue recognized on the income statement has not yet been collected in cash, creating a large receivable. This pattern indicates that the company's cash flow is highly dependent on the timing of large, lumpy payments from partners, making quarterly cash flow a poor indicator of underlying operational efficiency.
Cash Flow Obscures True R&D Intensity
The cash flow statement shows minimal capital expenditures, but the substantial stock-based compensation, averaging over $15M per quarter, represents a significant non-cash expense that dilutes shareholders and is not reflected in the operating cash flow line.
While SBC is added back to calculate operating cash flow, it is a real economic cost to shareholders through dilution. The consistent SBC expense, which peaked at $24.7M in 2024Q3, indicates that a meaningful portion of the company's compensation for its research-intensive workforce is equity-based. This masks the true cash cost of maintaining the R&D pipeline and suggests that the reported operating cash flow overstates the cash available for other purposes.