Climb Bio, Inc. (CLYM) Cash Flow Statement

In 2026Q2, operating cash outflow of $10.5M was less than the $13.5M net loss, implying non-cash items like stock-based compensation and depreciation cushioned the cash impact. However, the 2024Q2 acquisition-related net loss of $54.9M versus a modest $0.7M operating cash outflow shows that the reported loss overstates the cash burn in that quarter. Excluding that one-time event, the OCF/NI ratio hovers near 1.0, indicating that ongoing losses are largely cash-consuming, which is typical for a clinical-stage biotech funding trials directly.

FCF improved from -$54.9M in 2024Q2 to a range of -$10.8M to -$15.6M in recent quarters, reflecting the elimination of one-time acquisition costs and a normalized R&D spend. The quarterly burn appears to have plateaued around $12-15M, which aligns with the income statement's average net loss of $13.5M. This stabilization suggests management has contained costs after the strategic reset, but the absolute level remains high relative to the $35.7M cash balance, implying a runway of roughly two to three quarters without additional financing.

CapEx is immaterial, never exceeding $0.3M in any reported quarter, which is consistent with a company outsourcing manufacturing and relying on CROs for trial execution. This asset-light structure means free cash flow is almost entirely driven by operating burn rather than capital intensity, so the cash runway is a function of R&D spending, not depreciation replacement. Investors should note that as trials advance to Phase 3, CapEx may rise if the company invests in internal manufacturing, but current data shows no such trend.

The working capital adjustments are modest relative to the overall burn, but the alternating positive and negative swings suggest timing differences in payables and receivables, possibly due to CRO invoicing cycles. In 2026Q2, a positive $1.8M working capital change reduced cash outflow, while 2025Q2's -$3.0M increased it, pointing to lumpy trial-related payments. This volatility is not a sign of operational inefficiency but rather the irregular nature of clinical spending, which investors should incorporate into quarterly cash flow forecasts.

The company is not returning capital to shareholders, which is expected for a pre-revenue biotech, but the $4.6M acquisition outflow in 2024Q2 represents the sole strategic deployment, funding the budoprutug asset. Since then, no further acquisition or investment activity has occurred, indicating a focus on conserving cash for operations. The lack of buybacks or dividends means all cash is directed toward R&D, and any future capital raise would likely be dilutive given the current burn rate.

The divergence between net income and operating cash flow is substantial, but it is largely explained by the $52.7M one-time acquisition charge in 2024Q2 and recurring stock-based compensation averaging $1.5M per quarter. Excluding the acquisition, the cumulative gap narrows to roughly $14M, which aligns with SBC and depreciation. This suggests that the company's cash burn is more accurately reflected by operating cash flow than net income, and investors should focus on the $94.4M cumulative cash outflow when assessing funding needs.