Persistent negative free cash flow, which reached an outflow of $20.3 million in 2025Q2, underscores a structural reliance on external financing to sustain the ARCUS platform development.
| Cash from Operations | -58.73M | -65.84M | -58.45M | -84.11M | -45.75M | -10.85M | -87.39M | -73.64M | -51.72M | -24.17M | 92.27M |
| Operating CF Margin % | - | -192.16% | -85.08% | -172.62% | -182.3% | -9.39% | -359.84% | -331.13% | -475.26% | -372.75% | 1315.38% |
| Operating CF Growth % | -117.49% | -12.66% | 30.52% | -83.84% | -321.57% | 87.58% | -18.67% | -42.37% | -114.01% | -126.19% | - |
| Net Income | -44.48M | -45.72M | 7.17M | -61.32M | -111.64M | -30.6M | -109.01M | -92.88M | -46.04M | -21.1M | -8.25M |
| Depreciation & Amortization | 2.69M | 2.75M | 4.58M | 8.26M | 9M | 10.2M | 9.81M | 5.32M | 2.35M | 1.44M | 640K |
| Stock-Based Compensation | 8.91M | 10.19M | 12.6M | 14.04M | 19.2M | 16.51M | 13.79M | 0 | 2.45M | 419K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -3.78M | -8.35M | -28.79M | -3.6M | 13.57M | -26.55M | 35K | 16.28M | 14K | 174K | 1.37M |
| Working Capital Changes | -22.95M | -24.71M | -54M | -41.49M | 24.11M | 19.58M | -2.01M | -2.36M | -10.51M | -5.09M | 99.72M |
| Change in Receivables | -5.46M | 229K | 10.42M | -181K | -232K | 9.51M | -9.04M | -441K | -523K | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.95M | 0 | 0 |
| Change in Payables | 17K | -737K | -2.1M | 1.51M | 153K | 867K | -1.46M | 667K | -673K | 864K | 82K |
| Cash from Investing | -434K | -634K | -215K | 5.83M | -3.32M | -5.8M | -5.03M | -24.67M | -15.66M | -5.51M | -2.08M |
| Capital Expenditures | -69K | -85K | -250K | -2.28M | -3.32M | -5.05M | -5.03M | -24.67M | -15.68M | -5.57M | -2.08M |
| CapEx % of Revenue | 0.15% | 0.25% | 0.36% | 4.67% | 13.22% | 4.37% | 20.72% | 110.92% | 144.06% | 85.83% | 29.58% |
| Acquisitions | 27K | 0 | 60K | 8M | 0 | 0 | 0 | 0 | 15K | 50K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -392K | -549K | -25K | 107K | 0 | -750K | 0 | 0 | 15K | 50K | 0 |
| Cash from Financing | 85.22M | 95.16M | 50.45M | 5.39M | 94.98M | 70.52M | 1.33M | 176M | 107.78M | -937K | -12.38M |
| Debt Issued (Net) | 0 | 0 | -37K | 0 | 19.8M | 2.47M | 0 | 39.55M | 0 | 0 | 0 |
| Equity Issued (Net) | 84.47M | 95.16M | 50.24M | 4.99M | 74.34M | 60.48M | 0 | 136.45M | 109.74M | -952K | 49K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -952K | 0 |
| Other Financing | 745K | 0 | 249K | 401K | 835K | 7.57M | 1.33M | 0 | -1.97M | 15K | -12.43M |
| Net Change in Cash | 22.28M | 28.68M | -8.21M | -72.9M | 45.91M | 53.87M | -91.09M | 77.69M | 40.39M | -30.62M | 77.82M |
| Free Cash Flow | -58.78M | -65.93M | -58.7M | -86.39M | -49.07M | -16.66M | -92.42M | -98.3M | -67.4M | -29.73M | 90.2M |
| FCF Margin % | -130.42% | -192.41% | -85.44% | -177.3% | -195.52% | -14.42% | -380.55% | -442.05% | -619.32% | -458.57% | 1285.8% |
| FCF Growth % | 0.4% | -12.32% | 32.06% | -76.05% | -194.62% | 81.98% | 5.99% | -45.85% | -126.68% | -132.96% | - |
| FCF per Share | -2.39 | -5.14 | -8.53 | -22.49 | -16.75 | -8.51 | -53.28 | -70.22 | -41.24 | -26.51 | 5.39 |
| FCF Conversion (FCF/Net Income) | 1.32x | 1.41x | -8.15x | 1.37x | 0.41x | 0.35x | 0.80x | 0.79x | 1.12x | 1.15x | -11.18x |
| Interest Paid | 0 | 0 | 0 | 0 | 824K | 68K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Milestone-dependent liquidity constraints
According to quarterly cash flow statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios fluctuating from -2.21 to 1.05, indicating that reported earnings are frequently decoupled from the actual cash-generating capacity of the underlying ARCUS platform research operations.
The wide variance in the OCF/NI ratio suggests that net income is heavily influenced by non-cash accounting adjustments and the timing of milestone revenue recognition. Investors should interpret these figures with caution, as the lack of a consistent conversion ratio highlights the difficulty in assessing operational efficiency through traditional profitability metrics.
As reported in financial statements, DTIL consistently records negative free cash flow, with quarterly outflows reaching as high as $20.3 million in 2025Q2, underscoring a structural reliance on external capital to fund the ongoing development of its in vivo gene editing pipeline.
The trajectory of free cash flow remains deeply negative, reflecting the high burn rate inherent in clinical-stage biotechnology. The absence of a clear path to positive cash flow suggests that the company remains vulnerable to capital market volatility until a commercial-ready asset is established.
Based on the provided data, working capital changes have been a significant source of cash flow volatility, notably with a $44.5 million outflow in 2024Q2, which suggests that the timing of partner-funded research and milestone payments creates unpredictable swings in the company's immediate liquidity position.
These fluctuations in working capital appear to be driven by the lumpy nature of collaboration agreements rather than operational inefficiencies in inventory or receivables management. Analysts should monitor these swings closely, as they directly impact the company's ability to maintain its cash runway without resorting to dilutive financing.
As indicated by recent SEC filings, stock-based compensation consistently adds back between $1.5 million and $3.6 million per quarter to the cash flow statement, effectively masking the true economic cost of talent retention required to maintain the ARCUS platform's competitive edge in gene editing.
While SBC is a standard non-cash expense, its consistent magnitude relative to the company's cash burn warrants further investigation into the total cost of human capital. This adjustment suggests that the underlying operational cash burn is likely higher than the headline operating cash flow figures might otherwise imply.
Quick answers to the most common questions about buying DTIL stock.
Precision BioSciences, Inc. (DTIL) generated $-65.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Precision BioSciences, Inc. (DTIL) reported negative free cash flow of $65.9M in 2025, indicating capital requirements exceeded cash from operations.
Precision BioSciences, Inc. (DTIL) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.