Free cash flow has deteriorated to a quarterly outflow of $42.6 million in 2026Q1, with the current ratio falling to 2.95, indicating a rapid contraction in liquidity buffers.
| Cash from Operations | -142.84M | -131.08M | -88.22M | -53.55M | -46.38M | -34.11M | -26.77M | -16.05M | -4.66M | 0 |
| Operating CF Margin % | - | - | - | - | - | - | - | - | - | - |
| Operating CF Growth % | -207.19% | -48.58% | -64.75% | -15.46% | -35.98% | -27.41% | -66.84% | -244.24% | - | - |
| Net Income | -175.43M | -167.86M | -115.86M | -67.67M | -52.98M | -46.29M | -33.34M | -16.94M | -12.2M | -333.33K |
| Depreciation & Amortization | 1.5M | 1.65M | 1.71M | 1.43M | 1.18M | 733K | 354K | 104K | 0 | 0 |
| Stock-Based Compensation | 15.78M | 20.94M | 19.46M | 11.34M | 6.9M | 5.8M | 4.39M | 2.3M | 606K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.26M | 0 | 0 |
| Other Non-Cash Items | 22.02M | 14.57M | 4.86M | 1.26M | 2.82M | 62K | 119K | 2.26M | 7.4M | 252K |
| Working Capital Changes | -6.7M | -379K | 1.61M | 101K | -4.3M | 5.58M | 1.71M | -1.51M | -464K | 81.33K |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -310K | 1.55M | 1.01M | 1.68M | -28K | 975K | 555K | 246K | 234K | 0 |
| Cash from Investing | 1.48M | -50.27M | 47.29M | -22.45M | -27.22M | 6M | -7.98M | -693K | 0 | 0 |
| Capital Expenditures | -444K | -1.23M | -2.21M | -687K | -2.45M | -1.17M | -635K | -693K | 0 | 0 |
| CapEx % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 24.76K | 0 | 7.35K | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -24.76K | 0 | -7.35K | 0 | 0 | 0 |
| Cash from Financing | 126.17M | 100.35M | 11.68M | 187.63M | 32.98M | 48.9M | -24K | 119.92M | 37.68M | 1.33K |
| Debt Issued (Net) | -3.72M | -6.26M | -897K | 0 | 0 | 0 | 0 | 0 | 12.54M | 0 |
| Equity Issued (Net) | 135.94M | 106.61M | 10.88M | 185.2M | 32.85M | 48.25M | -192K | 121.21M | 25.31M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -10.09M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -192K | 0 | -169K | 0 |
| Other Financing | -6.05M | 0 | 1.7M | 2.43M | 127K | 650K | 168K | 8.8M | -169K | 1.33K |
| Net Change in Cash | -15.2M | -80.98M | -29.28M | 111.63M | -40.62M | 20.79M | -34.77M | 103.19M | 33.02M | 1.33K |
| Free Cash Flow | -143.28M | -132.31M | -90.43M | -54.24M | -48.83M | -35.27M | -27.41M | -16.74M | -4.66M | 0 |
| FCF Margin % | - | - | - | - | - | - | - | - | - | - |
| FCF Growth % | -47.38% | -46.31% | -66.74% | -11.06% | -38.44% | -28.72% | -63.73% | -259.11% | - | - |
| FCF per Share | -1.28 | -1.29 | -1.83 | -1.32 | -1.66 | -1.37 | -1.18 | -3.06 | -0.32 | - |
| FCF Conversion (FCF/Net Income) | 0.82x | 0.78x | 0.76x | 0.79x | 0.88x | 0.74x | 0.80x | 0.95x | 0.38x | - |
| Interest Paid | -208K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Clinical trial funding shortfall
As reported in quarterly financial statements, the gap between net loss and operating cash flow remains significant, with the OCF/NI ratio fluctuating between 0.66 and 0.98, indicating that non-cash expenses like stock-based compensation are consistently masking the true magnitude of the company's underlying cash-based operational burn.
The persistent divergence between net income and operating cash flow suggests that the company relies heavily on non-cash accounting adjustments to soften the appearance of its quarterly losses. Investors should interpret this as a signal that the actual cash required to sustain clinical operations is higher than the headline net loss figures imply.
Based on the provided cash flow data, the company's free cash flow has deteriorated from a quarterly outflow of $16.6 million in 2023Q4 to $42.6 million in 2026Q1, reflecting an intensifying cash burn rate as the firm scales its clinical trial activities and research infrastructure.
The consistent downward trend in free cash flow highlights the lack of self-sustaining operational momentum. This trajectory suggests that the company is increasingly dependent on external capital markets to fund its ongoing research and development programs.
According to recent SEC filings, working capital changes have been highly erratic, swinging from a $9.4 million outflow in 2026Q1 to a $4.1 million inflow in 2025Q2, which complicates the predictability of the company's short-term liquidity needs and operational cash requirements.
This volatility in working capital suggests that the company's cash management is highly sensitive to the timing of clinical trial expenditures and vendor payments. Such fluctuations may indicate a lack of standardized procurement or payment cycles, which warrants further investigation by analysts monitoring the firm's liquidity.
As detailed in the financial statements, stock-based compensation has consistently provided a multi-million dollar add-back to operating cash flow, with quarterly charges often exceeding $5 million, effectively obscuring the true cash cost of talent acquisition and retention in a competitive biotech labor market.
By relying on stock-based compensation to manage cash outflows, the company is effectively diluting shareholders to preserve its limited cash runway. This practice suggests that the true cost of operations is significantly higher than the cash flow statement might suggest to a casual observer.
Quick answers to the most common questions about buying CABA stock.
Cabaletta Bio, Inc. (CABA) generated $-131.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Cabaletta Bio, Inc. (CABA) reported negative free cash flow of $132.3M in 2025, indicating capital requirements exceeded cash from operations.
Cabaletta Bio, Inc. (CABA) spent $1.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.