Operational liquidity is under severe pressure, as demonstrated by a consistent negative free cash flow trajectory and a cash position that has declined to $2.4M as of 2026Q1, despite the use of stock-based compensation to mask underlying cash burn.
| Cash from Operations | -1.08M | -1.83M | -9.03M | -9.45M | -7.6M | -3.75M | -4.61M | -26.26M | -18.22M | -6.8M | -1.63M | -895K |
| Operating CF Margin % | - | -130.56% | - | - | - | - | - | - | - | - | - | - |
| Operating CF Growth % | 256.73% | 79.69% | 4.5% | -24.42% | -102.56% | 18.71% | 82.43% | -44.15% | -167.8% | -316.79% | -82.35% | - |
| Net Income | -1.75M | -2.91M | -11.7M | -10.38M | -3.6M | -3.73M | -5.15M | -25.91M | -21.55M | -12.26M | -3.18M | -5.23M |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 174K | 0 | 0 |
| Stock-Based Compensation | 541K | 665K | 1.24M | 906K | 649K | 442K | 710K | 1.84M | 1.54M | 604K | 28K | 56 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 277K | 0 | 0 |
| Other Non-Cash Items | 833K | 111K | 1.25M | 310K | -5.05M | 0 | 0 | 61K | 412K | 2.32M | 435K | 3.16M |
| Working Capital Changes | -675K | 300K | 179K | -290K | 408K | -461K | -172K | -2.25M | 1.79M | 2.08M | 1.08M | 1.17M |
| Change in Receivables | 0 | 0 | 0 | 0 | 90K | -90K | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -437K | 298K | 0 | -360K | 0 | 0 | -229K | -3.23M | 1.13M | 2.23M | 15K | 0 |
| Cash from Investing | 0 | 0 | 0 | -3M | 0 | 0 | -1M | 0 | 10M | -10M | 0 | -3M |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | -1M | 0 | 0 | 0 | 0 | -3M |
| CapEx % of Revenue | 0% | - | - | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | -3M | 0 | 0 | 0 | 0 | -10M | -10K | 0 | -3.27K |
| Cash from Financing | 0 | 2.09M | 9.84M | 7.53M | 10.54M | 4.38M | 0 | 32.33M | -895K | 28.39M | 1.81M | 3.91M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3M | 1.87M | 3.91M |
| Equity Issued (Net) | 0 | 2.09M | 1.62M | 7.53M | 10.39M | 5.04M | 0 | 35M | 0 | 37.95M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -1.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 8.21M | 1K | 148K | -663K | 0 | -2.67M | -895K | -6.56M | -58K | 0 |
| Net Change in Cash | -1.08M | 261K | 811K | -4.92M | 2.94M | 631K | -5.61M | 6.07M | -9.11M | 11.59M | 183K | 14K |
| Free Cash Flow | -1.08M | -1.83M | -9.03M | -12.45M | -7.6M | -3.75M | -5.61M | -26.26M | -18.22M | -6.8M | -1.63M | -3.9M |
| FCF Margin % | -77.28% | -130.56% | - | - | - | - | - | - | - | - | - | - |
| FCF Growth % | 84.7% | 79.69% | 27.51% | -63.92% | -102.56% | 33.19% | 78.62% | -44.15% | -167.8% | -316.79% | 58.1% | - |
| FCF per Share | -0.33 | -0.59 | -0.70 | -88.17 | -260.72 | -3.31 | -5.10 | -25.06 | -26.69 | -15.38 | -2.77 | -7.00 |
| FCF Conversion (FCF/Net Income) | 0.62x | 0.63x | 0.77x | 0.91x | 2.14x | 1.01x | 0.90x | 1.01x | 0.85x | 0.55x | 0.51x | 0.17x |
| Interest Paid | 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 |
Binary Regulatory Approval Failure
According to historical financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios fluctuating wildly from 0.31 to -3.63, suggesting that reported earnings provide little insight into the actual cash-consuming nature of the company's pre-commercial clinical development activities.
The lack of correlation between net income and operating cash flow highlights the absence of a stable commercial business model. Investors should interpret these swings as evidence of non-recurring accounting adjustments rather than operational efficiency, as the firm remains entirely dependent on external financing to bridge its persistent cash deficits.
As reported in quarterly filings, the company's free cash flow trajectory remains consistently negative, with the firm burning through significant capital each period to fund R&D, a trend that underscores the precarious nature of its reliance on milestone-based revenue to offset ongoing operational cash outflows.
The absence of positive free cash flow suggests that the company is currently in a state of capital depletion rather than value creation. This trajectory warrants further investigation into how long the current cash reserves can sustain operations before additional dilutive financing becomes an absolute necessity for survival.
Based on the provided cash flow data, working capital changes have been highly inconsistent, including a notable $675,000 outflow in 2025Q2, which indicates that the company's cash position is susceptible to timing differences in payables and receivables typical of a firm lacking a predictable, recurring revenue stream.
These fluctuations in working capital appear to be a byproduct of the company's project-based revenue model rather than operational scaling. Analysts should monitor these shifts closely, as they may indicate underlying pressures in managing vendor relationships or regulatory consulting obligations during periods of limited liquidity.
As disclosed in recent financial statements, stock-based compensation (SBC) has consistently added back to the cash flow statement, with figures reaching as high as $522,000 in 2024Q4, which effectively masks the true extent of the company's cash burn by reducing the reported impact of operational losses.
The reliance on equity-based incentives to preserve cash suggests that management is attempting to conserve limited liquidity at the expense of shareholder dilution. This practice warrants caution, as it obscures the actual cost of talent and operational overhead required to maintain the company's clinical programs.
Quick answers to the most common questions about buying ATXI stock.
Avenue Therapeutics, Inc. (ATXI) generated $-1.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Avenue Therapeutics, Inc. (ATXI) reported negative free cash flow of $1.8M in 2025, indicating capital requirements exceeded cash from operations.
Avenue Therapeutics, Inc. (ATXI) 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.