Cash conversion remains disconnected from earnings, highlighted by the 2025Q4 period where a $5.6M net profit resulted in a $2.4M cash outflow.
Biofrontera Inc. (BFRI) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Cash from Operations | -7.93M | -13.36M | -10.27M | -24.89M | -16.2M | -26.71M | -12.37M | -37.68M |
| Operating CF Margin % | - | -32.04% | -27.53% | -73.07% | -56.49% | -110.85% | -65.62% | -143.91% |
| Operating CF Growth % | -206.25% | -30.1% | 58.75% | -53.68% | 39.36% | -115.98% | 67.17% | - |
| Net Income | -6.37M | -10.54M | -17.76M | -20.13M | -640K | -37.71M | -10.99M | -10.98M |
| Depreciation & Amortization | 810K | 868K | 1.15M | 1.06M | 1.17M | 540K | 562K | 667K |
| Stock-Based Compensation | 1.13M | 951K | 1.02M | 1.04M | 1.85M | 129K | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -160K | -1.16M | -891K | -2.48M | -21.37M | 11.83M | 883K | -3.42M |
| Working Capital Changes | -3.34M | -3.48M | 6.21M | -4.39M | 2.79M | -1.5M | -2.83M | -23.94M |
| Change in Receivables | -1.62M | -1.91M | -313K | 4.93M | 4.92M | -12M | 1.17M | -757K |
| Change in Inventory | -787K | 1.45M | 4.23M | -3.75M | -2.81M | 2.59M | -273K | -3.54M |
| Change in Payables | 691K | -535K | -1.81M | 6.42M | 0 | -773K | -3.4M | 1.44M |
| Cash from Investing | 3M | 3M | -3K | 619K | -5.16M | -11K | 0 | 25.39M |
| Capital Expenditures | -3K | -2K | -10K | -5K | -38K | -11K | 0 | -538K |
| CapEx % of Revenue | 0.01% | 0% | 0.03% | 0.01% | 0.13% | 0.05% | - | 2.05% |
| Acquisitions | 3M | 3M | 0 | 0 | 0 | 0 | 0 | 25.93M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | -50K | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 2.35M | 10.85M | 14.84M | 8.41M | 14.02M | 43.19M | 13.19M | 16.4M |
| Debt Issued (Net) | 10.85M | 10.85M | -265K | 3.9M | 0 | 0 | 8.79M | 13.5M |
| Equity Issued (Net) | 0 | 10.85M | 7.66M | 4.51M | 9.39M | 29.94M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -8.5M | -10.85M | 7.44M | 0 | 4.63M | 13.25M | 4.4M | 2.9M |
| Net Change in Cash | -2.58M | 487K | 4.56M | -15.87M | -7.33M | 16.46M | 825K | 4.12M |
| Free Cash Flow | -7.93M | -13.36M | -10.33M | -24.9M | -16.24M | -26.73M | -12.37M | -38.22M |
| FCF Margin % | -17.17% | -32.04% | -27.69% | -73.08% | -56.63% | -110.9% | -65.62% | -145.96% |
| FCF Growth % | 15.57% | -29.36% | 58.51% | -53.35% | 39.25% | -116.07% | 67.63% | - |
| FCF per Share | -0.61 | -1.15 | -1.87 | -16.10 | -15.36 | -31.25 | -21.33 | -62.96 |
| FCF Conversion (FCF/Net Income) | 1.25x | 1.27x | 0.58x | 1.24x | 25.31x | 0.71x | 1.13x | 3.43x |
| Interest Paid | 0 | 0 | 1.73M | 147K | 1K | 2K | 3.07M | 1.71M |
| Taxes Paid | 21K | 0 | 24K | 15K | 32K | 56K | 64K | 50K |
Quick answers to the most common questions about buying BFRI stock.
Biofrontera Inc. (BFRI) generated $-13.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Biofrontera Inc. (BFRI) reported negative free cash flow of $13.4M in 2025, indicating capital requirements exceeded cash from operations.
Biofrontera Inc. (BFRI) 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.
Key Metrics
Top Statement Risk
Insufficient liquidity and burn
Metrics are mathematically derived from official filings.
Earnings Quality Remains Highly Disconnected
As reported in recent financial filings, the persistent gap between net income and operating cash flow, exemplified by the 2025Q4 period where a $5.6M net profit resulted in a $2.4M cash outflow, suggests that reported earnings are not currently translating into tangible liquidity for the firm.
The frequent divergence between accounting profitability and cash generation indicates that non-cash items and working capital swings are heavily distorting the bottom line. Investors should monitor whether this disconnect is driven by aggressive revenue recognition or timing differences in receivables, as the current cash burn persists despite occasional positive net income prints.
Free Cash Flow Remains Deeply Negative
Based on the provided quarterly data, Biofrontera's free cash flow trajectory remains consistently negative, with the company burning through millions in cash each quarter, most notably reaching an $8.9M outflow in 2023Q4, which highlights the structural inability of the current business model to self-fund operations.
The lack of positive free cash flow suggests that the company is in a perpetual state of capital consumption to support its commercialization efforts. Without a clear path to positive cash flow margins, the company appears reliant on external financing to sustain its current operating scale.
Working Capital Volatility Obscures Cash
According to historical cash flow statements, working capital changes have been highly erratic, swinging from a $7.5M cash drain in 2025Q4 to a $3.8M inflow in 2026Q1, indicating that the company's cash position is highly sensitive to fluctuations in inventory and accounts receivable management.
This volatility suggests that the company may be struggling to manage its cash conversion cycle effectively, potentially due to the complexities of the drug-device distribution model. The reliance on these swings to manage liquidity warrants further investigation into the underlying health of the company's accounts receivable and inventory turnover.
Capital Deployment Limited by Burn
As indicated by the financial statements, Biofrontera has not engaged in dividends or share repurchases, instead focusing its limited resources on operational survival, with the $3.0M acquisition in 2025Q4 representing a rare instance of capital deployment outside of core operating expenses.
The absence of shareholder-friendly capital allocation is consistent with a company in a high-burn, growth-oriented phase. The focus on acquisitions suggests management is attempting to bolster its product portfolio, though the impact of such spending on an already strained cash position remains a significant concern for investors.