Celcuity Inc. (CELC) Cash Flow Statement

The OCF/NI ratio has been volatile, dipping to 0.70 in 2026Q2, suggesting that a larger portion of reported losses is not yet reflected in cash outflows. This may indicate growing non-cash charges, such as stock-based compensation, which reached $6.9M in the quarter. Investors should monitor whether this divergence persists as the company scales commercial operations, as it could signal a deterioration in earnings quality.

The quarterly FCF deficit has expanded consistently, with the most recent quarter showing a $55.5M outflow, up from $36.3M a year earlier. This trajectory suggests that the company is intentionally increasing spending to support clinical trials and build commercial infrastructure, but it also implies a finite cash runway. With $165.7M in cash, the current burn rate suggests approximately three quarters of funding, though the recent FDA approval may open new financing avenues.

CapEx has been consistently tiny, never exceeding $0.3M in a quarter, indicating that the company does not require significant fixed asset investment. This is typical for a biotech that outsources manufacturing and relies on contract research organizations. The low capital intensity means that the primary cash drain is operating expenses, particularly R&D and SG&A, rather than capital investments.

The working capital adjustments are relatively small compared to the overall burn, but they can cause meaningful swings in OCF. For instance, a positive $8.3M adjustment in 2026Q2 reduced the cash outflow, while a negative $8.3M in the prior quarter increased it. This suggests that the company is managing payables and accruals actively, but the volatility may obscure the underlying cash burn trend. Investors should focus on the average burn over multiple quarters rather than any single quarter.

The absence of dividends and buybacks is expected for a pre-revenue biotech, but it underscores that the company is entirely dependent on external capital. The $165.7M cash position, likely raised through equity offerings, is being deployed solely to fund R&D and SG&A. With a debt/equity ratio of 1.94, the company may face constraints on additional debt, making equity dilution a likely path for future funding.

The cumulative gap between net income and operating cash flow indicates that a significant portion of reported losses are non-cash, primarily stock-based compensation. This suggests that the economic cash burn is lower than the accounting loss, but the trend is still negative. As the company scales, the gap may narrow if SBC as a percentage of expenses declines, but for now, investors should recognize that the cash runway is longer than the net loss trajectory implies.