Free cash flow has deteriorated significantly, with a $30.6 million outflow in 2026Q2 compared to a $7.2 million outflow in 2024Q3, highlighting an accelerating cash burn trajectory.
| Cash from Operations | -110M | -99.24M | -48.28M | -24.74M | -17.59M | -15.98M |
| Operating CF Margin % | - | - | - | - | - | - |
| Operating CF Growth % | -329.92% | -105.54% | -95.13% | -40.65% | -10.06% | - |
| Net Income | -66.4M | -117.3M | -55.14M | -99.92M | -24.46M | -23.44M |
| Depreciation & Amortization | 670K | 509K | 323K | 175K | 238K | 272K |
| Stock-Based Compensation | 12.13M | 9.65M | 5.32M | 3.45M | 116K | 435K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -7K | -1.83M | 1.12M | 72.07M | 4.34M | 7.79M |
| Working Capital Changes | 4.05M | 9.74M | 95K | -517K | 2.17M | -1.04M |
| Change in Receivables | -291K | -595K | 2.01M | -1.01M | 143K | 295K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -105K | 4.94M | 474K | 373K | -197K | 110K |
| Cash from Investing | -60.78M | -25.14M | -125.95M | -318K | -153K | -247K |
| Capital Expenditures | -1.39M | -1.49M | -925K | -318K | -153K | -248K |
| CapEx % of Revenue | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 1K |
| Cash from Financing | 143.06M | 1.52M | 265.72M | 86.15M | 27.97M | 22.52M |
| Debt Issued (Net) | 703K | -699K | 13.05M | 33.27M | 28.39M | 7.07M |
| Equity Issued (Net) | 142.35M | 2.22M | 260.15M | 56.89M | 12K | 15.6M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -7.49M | -4.01M | -423K | -144K |
| Net Change in Cash | -27.72M | -122.85M | 91.48M | 61.09M | 9.42M | 6.39M |
| Free Cash Flow | -111.39M | -100.72M | -49.21M | -25.06M | -17.75M | -16.23M |
| FCF Margin % | - | - | - | - | - | - |
| FCF Growth % | -46.61% | -104.7% | -96.34% | -41.23% | -9.32% | - |
| FCF per Share | -1.60 | -1.97 | -1.10 | -1.06 | -1.12 | -1.03 |
| FCF Conversion (FCF/Net Income) | 1.68x | 0.85x | 0.88x | 0.25x | 0.72x | 0.68x |
| Interest Paid | 1.79M | 2.29M | 1.93M | 1.4M | 615K | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Clinical trial funding shortfall
According to recent financial filings, enGene's operating cash flow consistently trails net income, with the 2026Q2 period showing a net income of $30.2 million against a cash outflow of $30.5 million, highlighting a significant disconnect between accounting profits and the actual cash burn of the business.
The divergence between reported net income and operating cash flow suggests that non-cash items, likely related to SPAC-related revaluations, are creating significant accounting noise. Investors should monitor this gap closely, as the company's core operational reality remains defined by persistent cash consumption rather than the profitability implied by headline net income figures.
As reported in quarterly statements, the company's free cash flow has deteriorated from a $7.2 million outflow in 2024Q3 to a $30.6 million outflow by 2026Q2, reflecting the intensifying capital requirements necessary to support the ongoing LEGEND clinical trial and associated research and development infrastructure.
This negative FCF trajectory indicates that the company is in a high-intensity phase of clinical development where cash consumption is scaling rapidly. The lack of revenue generation means that every dollar of FCF deficit directly reduces the available runway, necessitating a disciplined assessment of how much longer current reserves can sustain operations.
Based on the provided quarterly data, working capital changes have been highly erratic, swinging from a $10.1 million inflow in 2025Q4 to a $4.6 million outflow in 2026Q2, which suggests significant variability in the timing of clinical trial site payments and vendor obligations.
The inconsistency in working capital movements may indicate that the company is managing its cash outflows by timing payments to clinical sites or suppliers. This volatility warrants further investigation, as it may mask the underlying structural burn rate and complicate the predictability of the company's remaining cash runway.
Financial statements indicate that stock-based compensation has remained a consistent add-back to operating cash flow, reaching $4.1 million in 2026Q2, which effectively subsidizes the company's cash-based operational expenses while simultaneously diluting existing shareholders to preserve liquid capital for clinical trial execution.
While SBC is a non-cash expense, it represents a real economic cost to shareholders that is often overlooked when focusing solely on cash burn. The reliance on equity-based compensation suggests management is attempting to conserve cash, yet this strategy creates a persistent overhang of dilution that investors must weigh against the company's clinical progress.
Quick answers to the most common questions about buying ENGN stock.
enGene Holdings Inc. (ENGN) generated $-99.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
enGene Holdings Inc. (ENGN) reported negative free cash flow of $100.7M in 2025, indicating capital requirements exceeded cash from operations.
enGene Holdings Inc. (ENGN) spent $1.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.