BridgeBio Pharma, Inc. (BBIO) Cash Flow Statement

The relationship between net income and operating cash flow is highly volatile, with working capital changes often dominating the gap. In 2024Q2, a $246.4M working capital inflow flipped OCF positive despite a net loss, but this reversed in subsequent quarters. The 2026Q2 OCF/NI of 0.47 indicates that cash burn is less severe than net losses, partly due to non-cash charges like SBC, yet the underlying trend remains negative.

The FCF trajectory shows no improvement despite the Attruby launch; FCF margins have oscillated between -33.8% and -172.2% over the past ten quarters. The latest quarter's -34.3% margin is an improvement from prior quarters but still reflects heavy cash consumption. This suggests that while revenue is growing, operating expenses and working capital needs are absorbing the cash inflows, delaying any path to positive FCF.

CapEx is negligible, never exceeding $2.9M in a quarter, which is typical for a biotech relying on outsourced manufacturing and partnerships. This means the cash burn is almost entirely operational, tied to R&D and SG&A. The low capital intensity suggests that future cash flow positivity will depend on revenue scaling and expense discipline rather than asset efficiency.

The working capital swings are large relative to the company's size, often exceeding $100M in a quarter. These swings likely reflect milestone payments from partners and timing of payables, not operational efficiency. Investors should focus on the underlying cash burn, which remains substantial, as evidenced by the cumulative negative OCF over the period.

The buyback activity is notable given the company's cash burn, indicating a deliberate capital allocation choice. This may be aimed at offsetting dilution from SBC, which totaled $44.1M in 2026Q2. However, with no dividends and minimal acquisition activity, the primary cash outflows remain operational, and the buybacks add to the cash consumption, potentially straining liquidity if losses persist.

The cumulative divergence between net income and operating cash flow is significant, with OCF being less negative than net income by roughly $400M. This suggests that a portion of the losses are non-cash, such as stock-based compensation and depreciation. However, the cash burn remains substantial, and the company's ability to reach cash flow positivity will depend on whether revenue growth can outpace the still-heavy operating expenses.