The firm continues to burn cash to fund clinical operations, evidenced by a 2026Q2 operating cash flow of -$10.4 million and a highly erratic OCF/NI ratio that has fluctuated between 0.04 and 1.75 over the last ten quarters.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 |
|---|
| Cash from Operations | -29.25M | -11.45M | -12.61M | -20.04M | -12.34M | -17.33M | -9.43M | -13.95M | -6.25M | -5.87M | -7.42M | -10.87M | -13.79M | -7.95M | -6.85M | -4.56M | -4.71M | -6.99M | -9.41M | -9.2M | -11.66M | -11.37M | -5.31M | -3.58M | -3.77M |
| Operating CF Margin % | - | -210.54% | -313.63% | -511.6% | -240.8% | -399.35% | - | -12857.08% | -3104.37% | -4429.95% | -5200.25% | -6147.34% | -3790.52% | -5270.37% | -3667.5% | -2919.53% | -2190.12% | -1633.42% | -1912.93% | -1814.01% | -1528.99% | -430.39% | -230.37% | -197.67% | -474.32% |
| Operating CF Growth % | -19.95% | 9.16% | 37.08% | -62.4% | 28.81% | -83.75% | 32.42% | -123.45% | -6.48% | 20.94% | 31.76% | 21.16% | -73.42% | -16.15% | -50.18% | 3.2% | 32.67% | 25.69% | -2.32% | 21.1% | -2.51% | -113.97% | -48.46% | 4.99% | - |
| Net Income | -34.2M | -12.15M | -19.12M | -13.81M | -12.85M | -15.31M | -10.06M | -12.34M | -8.27M | -7.54M | -7.73M | -5.89M | -13.33M | -7.79M | -5.24M | -6.43M | -4.91M | -7.52M | -13.59M | -11.14M | -11.73M | -24.91M | -9.83M | -4.57M | -5.45M |
| Depreciation & Amortization | 221K | 139.72K | 147.53K | 102.26K | 54.21K | 75.37K | 112.43K | 29.7K | 21.8K | 21.33K | 22.81K | 31.59K | 22.38K | 23.13K | 19.62K | 31.58K | 35.29K | 34.19K | 25.4K | 58.57K | 118.27K | 1.16M | 1.19M | 1.18M | 1.16M |
| Stock-Based Compensation | 1.55M | 979.92K | 881.95K | 966.57K | 1.51M | 1.88M | -12.02K | 89.14K | 764.54K | 24.46K | -16.5K | 468.83K | 1.27M | 893.48K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 2.99M | -1.06M | 2.33M | -250.96K | -493.02K | -486.42K | 631.56K | -934.22K | -4.95M | -1.27M | -110.97K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -3.15M | 190.62K | -261.15K | -6.35M | 455.57K | -2.1M | -12.02K | 89.14K | 764.54K | 24.46K | -16.5K | -86.32K | 365.99K | 197.9K | 239.06K | 302.89K | 732.5K | 517.54K | 4.99M | 1.75M | 588.79K | 12.14M | 1.16M | 181.7K | 144.31K |
| Working Capital Changes | 1.31M | -613.68K | 5.75M | -3.94M | -447.68K | -4.22M | 791.13K | -1.33M | 956.09K | 975.19K | 1.26M | -446.85K | -2.12M | -1.17M | -1.87M | 1.54M | -569.8K | -23.11K | -841.16K | 137.12K | -638.93K | 233.24K | 2.16M | -372.88K | 377.87K |
| Change in Receivables | -804.95K | 104.07K | 4.62M | -3.94M | -447.68K | -4.22M | 4.77M | -1.68M | -116.84K | 1.75M | 1.73M | 764.25K | -3.76M | -1.97M | -1.55M | -2.55K | -299 | 120.11K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 2.45M | -2.21M | 191.13K | 648.57K | -662.93K | 18.99K | -4.07K | -127.72K | -63.98K | 0 | -61.07K | 72.74K | 1.39M | -1.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -961.1K | 0 | 1.1M | -1.56M | 2.6M | 432.9K | -648.57K | 662.93K | 1.16M | -856.13K | -403.45K | -1.21M | 0 | 817.04K | -435.78K | 155.17K | 640.27K | -244.97K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -138.34K | -7.5M | -5.72K | -36.46K | -89.15K | -10.47K | -16.74K | -7.02K | -18.42K | -27.92K | -833 | -182.83K | -23.05K | -28.15K | -26.76K | -16.36K | -22.67K | -36.19K | -81.95K | -4.26K | -55.28K | -50.26K | -133.54K | -87.67K | -84.28K |
| Capital Expenditures | 278 | 0 | -5.72K | -7.31K | -89.15K | -10.47K | -16.74K | -7.02K | -62.41K | -27.92K | -2.31K | -28.76K | -23.05K | -22K | -26.76K | -13.69K | -22.67K | -36.19K | -46.71K | -4.56K | -55.66K | -50.26K | -133.54K | -87.67K | -84.28K |
| CapEx % of Revenue | 0% | 0% | 0.14% | 0.19% | 1.74% | 0.24% | - | 6.47% | 31.02% | 21.09% | 1.62% | 16.26% | 6.34% | 14.58% | 14.34% | 8.77% | 10.54% | 8.45% | 9.49% | 0.9% | 7.3% | 1.9% | 5.79% | 4.84% | 10.61% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -1K | 0 | 0 | -29.15K | 0 | 0 | 0 | 0 | 43.99K | 0 | 1.47K | -154.08K | 0 | -6.15K | 0 | -2.67K | 0 | 0 | -35.24K | 299 | 375 | 0 | 0 | 0 | 0 |
| Cash from Financing | 52.63M | 39.67M | 9.22M | 124.34K | 16.3M | 36.69M | 3.98M | 12.72M | -107.68K | -159.56K | 152.6K | 6.84M | 35.21M | 15.58M | 3.62M | 8.34M | 5.66M | 100.81K | 13.75M | 7.37M | -2.02K | 4.69M | 31.59M | 3.56M | 580.65K |
| Debt Issued (Net) | -205.72K | -127.1K | -10.37K | -59.92K | -34.51K | -58.29K | -89.24K | 0 | 0 | 0 | 0 | 0 | -810.16K | 337K | 0 | 347K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 46.58M | 42.57M | 10.14M | 316.68K | 17.18M | 39.24M | 4.36M | 13.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14.33M | 7.78M | 0 | 4.73M | 34.41M | 3.7M | 580.65K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 6.25M | -2.77M | -918.02K | -132.41K | -836.97K | -2.49M | -292.77K | -362.32K | -107.68K | -159.56K | 152.6K | 6.84M | 35.77M | 15.25M | 3.62M | 7.99M | 5.66M | 100.81K | -611.07K | -408.68K | -2.02K | -48.38K | -2.82M | -143.57K | 0 |
| Net Change in Cash | 27.37M | 20.52M | -3.13M | -19.03M | 6.69M | 18.92M | -5.2M | -835.65K | -6.65M | -6.71M | -6.32M | 742.56K | 20.82M | 7.71M | -3.2M | 3.61M | 922.32K | -6.91M | 3.82M | -2.6M | -11.45M | -8.09M | 25.96M | -120.87K | -3.27M |
| Free Cash Flow | -18.83M | -11.45M | -12.61M | -20.04M | -12.43M | -17.34M | -9.45M | -13.96M | -6.31M | -5.89M | -7.42M | -10.9M | -13.81M | -7.97M | -6.87M | -4.57M | -4.73M | -7.03M | -9.46M | -9.2M | -11.71M | -11.42M | -5.45M | -3.67M | -3.85M |
| FCF Margin % | -249.1% | -210.54% | -313.78% | -511.78% | -242.54% | -399.59% | - | -12863.55% | -3135.39% | -4451.04% | -5201.87% | -6163.6% | -3796.86% | -5284.96% | -3681.84% | -2928.3% | -2200.67% | -1641.87% | -1922.42% | -1814.91% | -1536.28% | -432.3% | -236.16% | -202.51% | -484.93% |
| FCF Growth % | -13.56% | 9.2% | 37.08% | -61.29% | 28.34% | -83.54% | 32.33% | -121.35% | -7.04% | 20.59% | 31.92% | 21.08% | -73.23% | -16.01% | -50.32% | 3.37% | 32.7% | 25.67% | -2.78% | 21.44% | -2.55% | -109.65% | -48.56% | 4.79% | - |
| FCF per Share | -1.11 | -1.07 | -2.07 | -4.95 | -3.10 | -6.13 | -6.33 | -13.60 | -7.09 | -6.62 | -8.34 | -13.01 | -19.36 | -14.12 | -14.33 | -11.08 | -12.48 | -20.85 | -32.48 | -39.23 | -54.89 | -55.83 | -44.49 | -38.33 | -42.28 |
| FCF Conversion (FCF/Net Income) | 0.55x | 0.94x | 0.66x | 1.45x | 0.96x | 1.13x | 0.94x | 1.17x | 0.76x | 0.78x | 0.96x | 1.85x | 1.03x | 1.02x | 1.31x | 0.71x | 0.96x | 0.93x | 0.69x | 0.83x | 0.99x | 0.46x | 0.54x | 0.78x | 0.69x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Clinical trial binary outcome
According to recent financial disclosures, the relationship between net income and operating cash flow remains highly volatile, with the OCF/NI ratio fluctuating between 0.04 and 1.75 over the last ten quarters, suggesting that accounting accruals provide little insight into the firm's actual cash depletion rate.
The significant variance between net income and operating cash flow indicates that non-cash items and working capital adjustments are the primary drivers of reported figures rather than operational performance. Investors should interpret this lack of correlation as a sign that traditional earnings-based valuation metrics are largely inapplicable to the company's current clinical-stage status.
As reported in quarterly filings, Alterity's free cash flow trajectory remains consistently negative, with the firm burning through millions in cash each period to fund research, a trend that underscores the company's total dependence on external capital to sustain its ongoing clinical development programs.
The absence of positive free cash flow is an expected outcome for a pre-revenue biotech, yet the magnitude of the burn warrants close monitoring as it directly dictates the timeline for future dilutive equity raises. The lack of a clear path to self-funding suggests that the company's survival remains tethered to its ability to maintain investor confidence through clinical milestones.
Based on the provided cash flow statements, working capital changes have been highly erratic, swinging from a $3.5 million inflow in 2022Q4 to a $3.3 million outflow in 2026Q2, which complicates the predictability of the company's short-term liquidity and cash runway projections.
These fluctuations appear to be driven by the timing of R&D tax credit receipts and the settlement of clinical trial payables rather than operational efficiency. Analysts should view these swings as noise that obscures the underlying linear progression of the company's research-related cash outflows.
As indicated by the historical data, the cash flow statement obscures the true cost of operations by netting out R&D tax incentives, which effectively masks the gross cash burn required to maintain the company's specialized laboratory and clinical trial infrastructure.
The reliance on these tax-based inflows suggests that the company's cash position is artificially supported by government policy, which may not be sustainable if clinical spending patterns shift. Investors should be wary of treating these inflows as a substitute for commercial revenue, as they are inherently tied to the continuation of high-cost research activities.
Quick answers to the most common questions about buying ATHE stock.
Alterity Therapeutics Limited (ATHE) generated $-11.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Alterity Therapeutics Limited (ATHE) reported negative free cash flow of $11.5M in 2025, indicating capital requirements exceeded cash from operations.
Alterity Therapeutics Limited (ATHE) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.