Despite reporting net income of $51.0 million, the firm experienced a $63.1 million free cash flow deficit in 2026Q1, largely driven by a $112.6 million working capital outflow and $44.4 million in capital expenditures.
| Cash from Operations | 79.12M | -15.55M | -9.68M | -7.72M | -2.27M | -2.15M |
| Operating CF Margin % | - | - | - | - | - | - |
| Operating CF Growth % | 4909.97% | -60.66% | -25.33% | -240.91% | -5.35% | - |
| Net Income | 16.56M | -39.22M | -17.8M | -535K | -4.89M | -3.66M |
| Depreciation & Amortization | 132.1M | 2.42M | 457K | 0 | 0 | 0 |
| Stock-Based Compensation | 31.4M | 2.18M | 1.63M | 199K | 0 | 0 |
| Deferred Taxes | 5.03M | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -219.38M | 14.33M | 6.17M | -4.87M | 2.02M | 149K |
| Working Capital Changes | -106.64M | 4.73M | -142K | -2.52M | 596K | 1.36M |
| Change in Receivables | -37.91M | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -21.88M | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -18.28M | 434K | 1.23M | 215K | 0 | 0 |
| Cash from Investing | -83.6M | -808K | -43K | 725K | -183K | 0 |
| Capital Expenditures | -148.36M | -405K | -51K | 0 | 0 | 0 |
| CapEx % of Revenue | 21.3% | - | - | - | - | - |
| Acquisitions | -174K | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 64.94M | -403K | 0 | 228K | -331K | 0 |
| Cash from Financing | -101.75M | 17.42M | 6.07M | 10.93M | 2.45M | 1.9M |
| Debt Issued (Net) | 1.36M | -2.17M | 2.45M | 2.29M | 1.11M | 688K |
| Equity Issued (Net) | -14.15M | 19.59M | 3.33M | 150K | 1.34M | 1.21M |
| Dividends Paid | -3.95M | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -30.49M | -106K | 0 | 0 | 0 | 0 |
| Other Financing | -85.01M | 0 | 289K | 8.64M | 0 | 0 |
| Net Change in Cash | -106.09M | 955K | -3.67M | 4.23M | -48.55K | -252K |
| Free Cash Flow | -5.96M | -17.96M | -9.73M | -7.72M | -2.27M | -2.15M |
| FCF Margin % | -0.86% | - | - | - | - | - |
| FCF Growth % | 81.47% | -84.51% | -25.99% | -240.91% | -5.35% | - |
| FCF per Share | -151.16 | -539.28 | -33674.47 | -34134.15 | -9336.15 | -37332.41 |
| FCF Conversion (FCF/Net Income) | -0.36x | 0.40x | 0.54x | 14.44x | 0.46x | 0.59x |
| Interest Paid | 0 | 0 | 80K | 124K | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Binary clinical asset failure
As reported in recent financial filings, CDT's 2026Q1 net income of $51.0 million was accompanied by a negative operating cash flow of $18.7 million, highlighting a significant divergence between accounting profitability and actual cash generation during the company's initial transition into a revenue-generating phase.
The negative OCF/NI ratio of -0.37 suggests that the reported net income is heavily influenced by non-cash items or accruals rather than immediate cash inflows. Investors should monitor whether this disconnect persists as the company scales, as it may indicate that earnings quality remains tethered to accounting adjustments rather than operational cash velocity.
Based on the provided quarterly data, CDT's free cash flow trajectory remains highly erratic, swinging from a peak of $65.3 million in 2025Q3 to a deficit of $63.1 million in 2026Q1, reflecting the lumpy nature of clinical-stage asset development and commercialization milestones.
The sharp reversal in FCF margins suggests that the company's cash flow profile is currently dictated by episodic capital expenditures rather than consistent operational performance. This volatility warrants further investigation into whether the recent cash burn is a temporary byproduct of scaling or a structural feature of the facilitation model.
According to historical data, CDT's capital expenditure reached $44.4 million in 2026Q1, representing a capital intensity of 6.4% relative to revenue, which underscores the significant investment required to maintain and advance the company's portfolio of clinical-stage biotechnology assets.
The substantial increase in CapEx relative to earlier periods suggests that the company is aggressively deploying capital to secure or advance its pipeline. This level of spending implies that the firm's ability to generate future cash is contingent upon the successful conversion of these capital-intensive projects into commercialized outcomes.
As indicated by the 2026Q1 financial statements, CDT experienced a significant working capital outflow of $112.6 million, which served as a primary driver for the company's negative operating cash flow despite the emergence of top-line revenue during the same period.
This substantial working capital drain suggests that the company is currently absorbing significant costs related to the timing of clinical trial payments or inventory-like asset accumulation. Analysts should monitor whether this trend stabilizes, as persistent working capital volatility could continue to mask the underlying cash-generating potential of the business.
Based on reported figures, CDT utilized $30.4 million for share repurchases in 2026Q1, a move that appears aggressive given the company's simultaneous negative operating cash flow and the ongoing capital requirements of its clinical-stage biotechnology portfolio.
The decision to prioritize share repurchases while burning cash suggests a management focus on supporting equity valuation, though it may raise questions regarding the optimal use of capital. Investors should monitor if this deployment strategy remains sustainable if clinical milestones do not translate into consistent, positive free cash flow.
Quick answers to the most common questions about buying CDT stock.
CDT Equity Inc. (CDT) generated $-15.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
CDT Equity Inc. (CDT) reported negative free cash flow of $18.0M in 2025, indicating capital requirements exceeded cash from operations.
CDT Equity Inc. (CDT) spent $0.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, CDT Equity Inc. (CDT) spent $0.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.