Persistent negative free cash flow, ranging between $20 million and $33 million per quarter, underscores a heavy reliance on external funding as the OCF/NI ratio dropped to 0.15 in 2026Q1.
| Cash from Operations | -91.28M | -95.45M | -109.42M | -101.22M | -103.26M | -79.6M | -32.69M | -10.38M |
| Operating CF Margin % | - | - | - | - | - | - | - | - |
| Operating CF Growth % | 57.88% | 12.76% | -8.1% | 1.98% | -29.73% | -143.53% | -214.95% | - |
| Net Income | -277.02M | -124.55M | -161.65M | -125.04M | -242.81M | -122.76M | -101.66M | -12.04M |
| Depreciation & Amortization | 3.01M | 3.11M | 3.81M | 3.73M | 2.64M | 829K | 540K | 310K |
| Stock-Based Compensation | 18.19M | 24.9M | 26.97M | 26.23M | 20.11M | 8.33M | 797K | 122K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -1.51M | 0 | 0 |
| Other Non-Cash Items | 164.07M | 4.41M | 19.72M | -6.95M | 101.01M | 27.81M | 64.35M | -483K |
| Working Capital Changes | 477K | -3.33M | 1.74M | 813K | 15.79M | 7.71M | 3.29M | 1.71M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -99K | 513K | -1.53M | -886K | 676K | 1.34M | -380K | 1.17M |
| Cash from Investing | -177.67M | 100.42M | -156.62M | -91.22M | -71.08M | -64.59M | -71.2M | -20.89M |
| Capital Expenditures | -81K | -128K | -60K | -1.77M | -16.55M | -18.89M | -947K | -597K |
| CapEx % of Revenue | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 4M | 7.68M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -159.5M | -9.5M | -22.5M | -20M | -4M | -7.68M | -37.74M | 0 |
| Cash from Financing | 245.73M | 1.1M | 240.7M | 1.29M | 98.08M | 439.4M | 139.99M | 16.86M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 245.73M | 1.1M | 239.06M | 1.29M | 95.25M | 436.39M | 136.97M | 16.86M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 1.64M | 0 | 2.82M | 3M | 3.02M | 0 |
| Net Change in Cash | -23.23M | 6.07M | -25.34M | -191.14M | -76.27M | 295.21M | 36.1M | -14.4M |
| Free Cash Flow | -91.36M | -95.58M | -131.98M | -102.99M | -119.81M | -98.48M | -71.38M | -10.97M |
| FCF Margin % | - | - | - | - | - | - | - | - |
| FCF Growth % | 15.26% | 27.58% | -28.14% | 14.04% | -21.66% | -37.98% | -550.37% | - |
| FCF per Share | -0.30 | -0.34 | -0.56 | -0.69 | -0.98 | -0.83 | -0.60 | -0.09 |
| FCF Conversion (FCF/Net Income) | 0.33x | 0.77x | 0.68x | 0.81x | 0.43x | 0.65x | 0.32x | 0.86x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 69K | 13K |
Imminent liquidity and dilution
As reported in quarterly financial statements, Erasca's operating cash flow consistently trails net income, with the OCF/NI ratio fluctuating significantly, reaching a low of 0.15 in 2026Q1, which highlights the disconnect between accounting losses and the actual cash required to sustain clinical development activities.
The persistent gap between net income and operating cash flow suggests that non-cash charges, primarily stock-based compensation, are obscuring the true magnitude of the company's cash-based operational requirements. Investors should monitor this ratio closely, as the volatility in cash conversion indicates that clinical trial milestones and associated accruals create significant quarterly noise that may mask underlying burn trends.
Based on historical cash flow data, Erasca has maintained a consistently negative free cash flow trajectory, with quarterly outflows ranging between $20 million and $33 million, indicating that the firm remains entirely dependent on external financing to fund its ongoing research and development pipeline.
The lack of positive free cash flow is expected for a clinical-stage biotech, yet the stability of these outflows suggests a high fixed-cost base that offers little flexibility during periods of market volatility. Without a clear path to commercialization, this trajectory implies that the company will continue to consume its remaining cash reserves at an accelerated pace.
According to recent financial disclosures, Erasca's working capital movements have been erratic, with quarterly changes swinging from a $6.1 million outflow in 2025Q1 to a $3.8 million inflow in 2024Q3, reflecting the lumpy nature of clinical trial payments and vendor management in a pre-revenue environment.
These fluctuations in working capital suggest that the timing of clinical trial site payments and research service accruals significantly impacts the company's short-term liquidity position. Analysts should interpret these swings as a reflection of operational complexity rather than efficiency, as the company lacks the scale to optimize its cash conversion cycle effectively.
As indicated by the provided financial data, Erasca consistently records significant stock-based compensation, which averaged over $6 million per quarter, effectively acting as a non-cash buffer that prevents the reported net loss from fully reflecting the total economic cost of talent acquisition and retention.
While stock-based compensation is a standard industry practice, its magnitude relative to the company's cash burn warrants further investigation into the dilution risk for existing shareholders. The reliance on equity-based incentives suggests that the company is prioritizing cash preservation at the expense of long-term ownership stakes, which may become a critical concern if clinical timelines extend.
Quick answers to the most common questions about buying ERAS stock.
Erasca, Inc. (ERAS) generated $-95.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Erasca, Inc. (ERAS) reported negative free cash flow of $95.6M in 2025, indicating capital requirements exceeded cash from operations.
Erasca, Inc. (ERAS) 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.