Free cash flow remains deeply negative, with a $17.7 million outflow in 2026Q1, highlighting a persistent inability to fund operations through internal liquidity.
| 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 |
|---|
| Cash from Operations | -59.69M | -51.46M | -49.06M | -30.68M | -26.75M | -70.89M | -40.54M | -19.13M | -3.13M | 12.52M | -14.57M | -10.16M | -15.52M | -11.49M | -9.29M |
| Operating CF Margin % | - | -87216.95% | -11123.81% | -1594.59% | -148.2% | -1313.3% | -605.15% | -283.46% | -17.07% | 45.01% | -1263.93% | - | - | - | -11223.07% |
| Operating CF Growth % | -93.68% | -4.9% | -59.9% | -14.69% | 62.27% | -74.87% | -111.87% | -511.69% | -124.99% | 185.91% | -43.39% | 34.51% | -35.12% | -23.65% | - |
| Net Income | -84.74M | -78.26M | -35.13M | -31.54M | -41.66M | -84.38M | -63.5M | -16.07M | -40.05M | 11.87M | -16.47M | -10.49M | -16.06M | -13.05M | -10.49M |
| Depreciation & Amortization | 226K | 344K | 169K | 158K | 166K | 1.66M | 1.84M | 3.88M | 4.55M | 425.48K | 26.86K | 23.51K | 28.94K | 20.03K | 15K |
| Stock-Based Compensation | 11.24M | 13.62M | 5.85M | 3.48M | 7.55M | 8.17M | 6.79M | 2.53M | 2.43M | 1.16M | 1.69M | 394.75K | 1.09M | 748.65K | 588.13K |
| Deferred Taxes | 169K | 165K | 114K | 14K | 28K | 22K | 197K | 16.74K | -16.75K | -832.63K | -72.63K | -1.31M | -1.18M | 0 | 0 |
| Other Non-Cash Items | 11.85M | 8.83M | -15.35M | 6.46M | 7.22M | 794K | 18.57M | -7.47M | 21.22M | 366.23K | 162.27K | 293.75K | 989.26K | 146.93K | 1.19M |
| Working Capital Changes | 1.56M | 3.84M | -4.71M | -9.24M | -60K | 2.84M | -4.44M | -2.03M | 8.73M | -466.75K | 87.07K | 927.77K | -383.29K | 644.26K | 0 |
| Change in Receivables | 0 | 0 | -475K | 1.78M | 2.88M | 1.12M | -2.79M | 6.78M | -222.53K | -247.19K | -132.47K | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 20K | 18K | -35K | 18K | 532.95K | -311.2K | -202.62K | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -325K | -146K | -163K | -2.44M | -487K | 796K | 99K | 1.02M | 82.45K | 96.06K | 332.1K | -268.71K | -708.37K | 818.39K | 0 |
| Cash from Investing | -56.22M | -81.72M | 356K | -133K | -95K | -113K | 11.13M | -443K | 865.46K | -18.91M | -34.88K | -19.98K | -19.5K | -29.27K | -12.43K |
| Capital Expenditures | 0 | 0 | 0 | -158K | -95K | -113K | -63K | -262.01K | -564.41K | -23.32K | -34.88K | -19.98K | -19.5K | -29.27K | -12.43K |
| CapEx % of Revenue | 0% | - | - | 8.21% | 0.53% | 2.09% | 0.94% | 3.88% | 3.08% | 0.08% | 3.03% | - | - | - | 15.02% |
| Acquisitions | 0 | 0 | 356K | 0 | 0 | 0 | 11.2M | 0 | 1.43M | -18.89M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 10.8M | 690K | 0 | 25K | 0 | 0 | 0 | -180.99K | -1K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 15.99M | 14.59M | 175.85M | 25.04M | -14.7M | 106.76M | 44.78M | 12.56M | 10.4M | 3.74M | -1.43M | 19.6M | 23.86M | 5.42M | 17.71M |
| Debt Issued (Net) | 0 | 0 | 0 | -21.24M | -14.81M | 32.9M | 0 | -256.14K | 0 | -2.37M | -3.31M | -1.81M | 9.64M | 0 | 0 |
| Equity Issued (Net) | 17.27M | 15.1M | 115.63M | 46.22M | 107K | 71.93M | 44.45M | 12.68M | 3.86M | 6.34M | 2M | 23.68M | 14.58M | 6.12M | 0 |
| Dividends Paid | 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 |
| Other Financing | -1.29M | -510K | 60.22M | 67K | 0 | 1.93M | 332K | 131.07K | 6.55M | -232.38K | -114.94K | -2.27M | -365.25K | -698.85K | 17.71M |
| Net Change in Cash | -100M | -118.59M | 127.15M | -5.77M | -41.45M | 35.76M | 15.38M | -7.02M | 8.14M | -2.66M | -16.03M | 9.42M | 8.32M | -6.1M | 8.41M |
| Free Cash Flow | -59.69M | -51.46M | -49.06M | -30.84M | -26.85M | -71M | -40.6M | -19.4M | -3.69M | 12.5M | -14.61M | -10.18M | -15.54M | -11.51M | -9.3M |
| FCF Margin % | -101172.88% | -87216.95% | -11123.81% | -1602.81% | -148.72% | -1315.39% | -606.09% | -287.34% | -20.15% | 44.93% | -1266.96% | - | - | - | -11238.09% |
| FCF Growth % | -14.11% | -4.9% | -59.08% | -14.87% | 62.19% | -74.88% | -109.33% | -425.29% | -129.55% | 185.54% | -43.45% | 34.46% | -34.94% | -23.8% | - |
| FCF per Share | -2.97 | -3.84 | -4.55 | -111.04 | -684.81 | -1961.95 | -1591.55 | -977.20 | -305.82 | 1918.91 | -4764.35 | -13175.11 | -40.27 | -38.06 | -177.12 |
| FCF Conversion (FCF/Net Income) | 0.70x | 0.66x | 1.40x | 0.97x | 0.64x | 0.84x | 0.64x | 1.19x | 0.08x | 1.05x | 0.88x | 0.97x | 0.97x | 0.88x | 0.89x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.05M | 525K | 72.53K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 474K | 1.8M | 354K | 540K | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and dilution
According to recent financial filings, the company's operating cash flow consistently trails net income, with an OCF/NI ratio of 0.90 in 2026Q1, suggesting that reported losses are being exacerbated by cash-intensive clinical activities that are not fully captured by standard accrual-based accounting metrics.
The persistent gap between net income and operating cash flow highlights the company's reliance on non-cash adjustments to manage its bottom line. Investors should monitor this divergence, as it indicates that the firm's operational reality is defined by cash outflows rather than the accounting profitability suggested in certain periods.
As reported in quarterly statements, Avalo's free cash flow remains deeply negative, with a 2026Q1 outflow of $17.7 million, confirming that the firm is currently consuming capital at a rate that far outpaces its ability to generate internal liquidity through its core immunology pipeline.
The trajectory of free cash flow reflects a business model entirely dependent on external financing to sustain its clinical development. This trend suggests that without a significant milestone or partnership, the company will continue to face structural cash flow deficits that threaten its long-term operational viability.
Based on the provided cash flow data, working capital changes have fluctuated significantly, including a $1.1 million outflow in 2026Q1, which indicates that the company's liquidity is sensitive to the timing of clinical trial payments and vendor obligations rather than operational efficiency.
The erratic nature of working capital movements suggests that management is managing cash on a project-by-project basis. This volatility warrants further investigation into the company's ability to manage its payables effectively as it approaches critical Phase III trial milestones.
Data from recent filings reveals that stock-based compensation, which reached $3.6 million in 2026Q1, serves as a significant non-cash add-back that obscures the true magnitude of the company's cash burn and the dilutive impact on existing shareholders over the long term.
By relying on equity-based incentives to preserve cash, the company effectively shifts the burden of its operational losses onto its shareholders. This practice suggests that the reported cash flow figures may understate the true economic cost of maintaining the current clinical-stage workforce.
Quick answers to the most common questions about buying AVTX stock.
Avalo Therapeutics, Inc. (AVTX) generated $-51.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Avalo Therapeutics, Inc. (AVTX) reported negative free cash flow of $51.5M in 2025, indicating capital requirements exceeded cash from operations.
Avalo Therapeutics, Inc. (AVTX) 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.