Free cash flow remains consistently negative, with margins reaching -177.5% in 2024Q2, confirming a heavy reliance on external funding rather than internal cash generation.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 |
|---|
| Cash from Operations | -7.84M | -19.27M | -78.76M | -103.15M | -84.78M | -70M | 7.09M | 71.42M | 29.22M | 52.65M | 35.81M | 76.67M | 20.18M | 10.65M | 22.62M | 24.02M |
| Operating CF Margin % | - | -29.5% | -116.45% | -130.24% | -98.4% | -72.11% | 5.79% | 34.8% | 14.14% | 51.21% | 40.57% | 47.66% | 42.27% | 33.24% | 54.24% | 57.35% |
| Operating CF Growth % | 333.4% | 75.53% | 23.64% | -21.67% | -21.12% | -1087.53% | -90.08% | 144.41% | -44.5% | 47.04% | -53.3% | 279.96% | 89.42% | -52.91% | -5.81% | - |
| Net Income | -61.98M | -81.89M | -116.05M | -133.82M | -121.75M | -79M | -36.17M | 46.38M | 71.96M | 17.71M | 21.67M | 78.99M | 34.44M | 9.63M | 21.4M | 23.31M |
| Depreciation & Amortization | 4.95M | 5.09M | 2.34M | 2.37M | 2.97M | 3.33M | 3.64M | 3.26M | 2.52M | 2.14M | 1.66M | 639K | 352K | 221K | 172K | 499K |
| Stock-Based Compensation | 12.02M | 18.57M | 26.8M | 28.22M | 26.97M | 20.99M | 19.57M | 19.23M | 15.85M | 13.07M | 9.35M | 5.84M | 2.68M | 1.06M | 424K | 225K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 345K | 10.61M | -3.14M | 1.86M | -1.65M | -2.29M | 11.03M | -15.21M | 781K | 0 | -360K |
| Other Non-Cash Items | 2.42M | -946K | 1.02M | -7.95M | 242K | -1.98M | -3.47M | -5.8M | -1.17M | -581K | -749K | -2.99M | 176K | -1.78M | 535K | 2.75M |
| Working Capital Changes | 34.76M | 39.91M | 7.13M | 8.02M | 6.79M | -13.69M | 12.9M | 11.49M | -61.79M | 21.97M | 6.17M | -16.83M | -2.26M | 741K | 93K | -2.4M |
| Change in Receivables | 32.8M | 31.76M | 973K | 9.42M | 11.79M | -24.3M | 27.82M | 15.89M | -56.59M | 2.23M | 2.45M | -13.56M | -916K | 241K | -788K | -251K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6.48M | -6.42M | 18.63M | 1.88M | -3.37M | -1.73M | 370K | 96K | -1.39M |
| Change in Payables | 399K | -1.31M | -414K | -1.15M | -4.63M | 3.77M | -883K | 1.79M | 1.32M | 633K | 1.45M | -543K | 399K | 115K | 763K | 58K |
| Cash from Investing | -59.54M | 40.35M | 58.23M | -53.58M | 54.9M | 36.99M | 19.83M | -86.66M | -35.4M | -4.57M | -43.66M | -88.19M | 497K | -69.22M | -18.04M | -17.68M |
| Capital Expenditures | -1.77M | -12.9M | -17.95M | -9.06M | -2.13M | -750K | -1.45M | -5.42M | -2.98M | -2.51M | -4.74M | -2.34M | -1.03M | -606K | -252K | -445K |
| CapEx % of Revenue | 2.56% | 19.74% | 26.54% | 11.44% | 2.47% | 0.77% | 1.18% | 2.64% | 1.44% | 2.44% | 5.37% | 1.45% | 2.15% | 1.89% | 0.6% | 1.06% |
| Acquisitions | 0 | 0 | 0 | 44.52M | -54.9M | -37.74M | 0 | 86.66M | 0 | 0 | 0 | 9K | 0 | 0 | 66K | 9K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | -44.52M | 54.9M | 37.74M | 0 | 0 | -32.42M | -2.07M | -38.92M | -172K | 3K | -68.61M | 1.14M | -436K |
| Cash from Financing | 42.1M | -26.62M | -27.63M | 198.13M | 20.03M | 3.08M | 8.98M | 2.57M | 4.41M | 1.02M | 2.71M | 2.54M | 1.16M | 56.91M | -909K | 34K |
| Debt Issued (Net) | -32.34M | -26.49M | -27.48M | 199.68M | 0 | 0 | 0 | -86K | -79K | -73K | -68K | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 70.09M | 145K | 147K | 2.21M | 21.26M | 3.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 59.89M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 4.34M | -277K | -294K | -3.76M | -1.23M | -534K | 8.98M | 2.66M | 4.49M | 1.09M | 2.77M | 2.54M | 1.16M | -2.98M | -909K | 34K |
| Net Change in Cash | -25.29M | -5.54M | -48.16M | 41.39M | -9.85M | -29.93M | 35.9M | -12.67M | -1.77M | 49.1M | -5.15M | -8.97M | 21.84M | -1.65M | 3.67M | 6.37M |
| Free Cash Flow | -9.61M | -32.17M | -96.71M | -112.21M | -86.91M | -70.75M | 5.64M | 66M | 26.24M | 50.15M | 31.07M | 74.34M | 19.15M | 10.05M | 22.37M | 23.57M |
| FCF Margin % | -13.88% | -49.24% | -142.99% | -141.67% | -100.87% | -72.88% | 4.61% | 32.16% | 12.7% | 48.77% | 35.2% | 46.21% | 40.11% | 31.34% | 53.64% | 56.29% |
| FCF Growth % | 88.32% | 66.74% | 13.81% | -29.12% | -22.84% | -1353.69% | -91.45% | 151.54% | -47.68% | 61.39% | -58.2% | 288.16% | 90.61% | -55.09% | -5.1% | - |
| FCF per Share | -0.33 | -1.51 | -4.57 | -5.35 | -4.22 | -3.51 | 0.28 | 3.15 | 1.27 | 2.58 | 1.62 | 3.85 | 1.00 | 1.03 | 2.39 | 1.84 |
| FCF Conversion (FCF/Net Income) | 0.16x | 0.24x | 0.68x | 0.77x | 0.70x | 0.89x | -0.20x | 1.54x | 0.41x | 2.97x | 1.65x | 0.97x | 0.59x | 1.11x | 1.06x | 1.03x |
| Interest Paid | 3.31M | 8.79M | 11.71M | 1.99M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 109K | 241K | 4.9M | 0 | 32K | 105K | 12.67M | 26.09M | 1.59M | 12.62M | 40.07M | 148K | 0 | 0 | 0 |
Liquidity and financing risk
As reported in financial statements, Enanta's operating cash flow frequently diverges from net income, with the OCF/NI ratio fluctuating wildly between 0.35 and 0.98, suggesting that non-cash charges and working capital volatility significantly obscure the underlying cash-generative capacity of the firm's royalty-based business model.
The persistent gap between net losses and operating cash flow indicates that accounting earnings are not a reliable proxy for the company's actual liquidity position. Investors should monitor whether the reliance on non-cash adjustments, such as stock-based compensation, is masking a more severe deterioration in core operational efficiency.
Based on Enanta's reported figures, free cash flow remains consistently negative, with margins reaching as low as -177.5% in 2024Q2, confirming that the company's current R&D-heavy strategy is fundamentally reliant on external capital rather than internal cash generation to sustain its clinical pipeline development.
The lack of a positive FCF trajectory suggests that the company is currently in a high-intensity investment phase that may not be sustainable without significant dilution. The volatility in FCF margins appears to be driven by the lumpy nature of royalty receipts and the aggressive scaling of clinical trial expenditures.
According to recent SEC filings, working capital changes have been highly erratic, swinging from a $32.3 million inflow in 2025Q3 to a $2.9 million outflow in 2026Q1, which complicates the predictability of the company's short-term cash position and highlights the sensitivity of its liquidity to timing.
This volatility suggests that the company's cash management is heavily influenced by the timing of milestone payments and royalty settlements rather than steady operational cycles. Such fluctuations warrant further investigation into whether these shifts represent sustainable improvements in collection efficiency or merely temporary timing anomalies.
Based on the provided data, stock-based compensation has consistently added back millions to the cash flow statement, reaching $8.1 million in 2024Q1, which effectively hides the true economic cost of talent retention and inflates the reported operating cash flow figures relative to actual cash burn.
By treating SBC as a non-cash add-back, the company's cash flow statement may present a more favorable liquidity picture than is economically accurate. Analysts should adjust for these expenses to better understand the true cash cost of maintaining the company's research-focused human capital.
Quick answers to the most common questions about buying ENTA stock.
Enanta Pharmaceuticals, Inc. (ENTA) generated $-19.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Enanta Pharmaceuticals, Inc. (ENTA) reported negative free cash flow of $32.2M in 2025, indicating capital requirements exceeded cash from operations.
Enanta Pharmaceuticals, Inc. (ENTA) spent $12.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.