The firm exhibits a persistent cash burn, with negative free cash flow reaching $2.3 million in 2026Q1, highlighting the lack of self-sustaining operational liquidity.
| Cash from Operations | -7.22M | -7.02M | -15.84M | -20.41M | -20.98M | -23.49M | -8.1M | 2.74M | 1.36M | 549K | 23K | -4.18M |
| Operating CF Margin % | - | - | -2720.96% | -30011.76% | - | - | - | 13.85% | 5.85% | 2.58% | 0.1% | -17.05% |
| Operating CF Growth % | 125.66% | 55.69% | 22.4% | 2.71% | 10.69% | -189.94% | -395.23% | 101.03% | 148.63% | 2286.96% | 100.55% | - |
| Net Income | -11.39M | -14.08M | -44.54M | -21.67M | -24.58M | -122.55M | -26.53M | -2.05M | -259K | -1.08M | -2.92M | -7.23M |
| Depreciation & Amortization | 280K | 263K | 1.64M | 1.12M | 497K | 459K | 98K | 3.17M | 2.76M | 2.32M | 2.89M | 3.1M |
| Stock-Based Compensation | 994K | 1.5M | 1.52M | 1.24M | 2.94M | 5.24M | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 2.77M | 5.36M | 27.52M | 1.01M | -3.54M | 95.65M | 19.33M | 1.66M | 6.92M | 10.05M | 6.66M | 6.94M |
| Working Capital Changes | 130K | -51K | -1.98M | -2.12M | 3.71M | -2.29M | -999K | -37K | -2.27M | -1.73M | -571K | -1.67M |
| Change in Receivables | 60K | -408K | -12K | 527K | -262K | -659K | 0 | -248K | -507K | 142K | -83K | 1.25M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 52K | 337K | 431K | -3.93M | -217K | 0 |
| Change in Payables | 572K | 60K | 183K | -2.9M | 2.03M | -485K | -1.73M | 669K | -186K | -586K | 47K | -372K |
| Cash from Investing | -39K | -37K | -365K | -19K | -47K | -22.74M | -39K | -1.06M | -1.58M | -1.45M | -840K | -1.62M |
| Capital Expenditures | -39K | -37K | -369K | -19K | -297K | -154K | -39K | -1.09M | -1.61M | -1.45M | -840K | -1.63M |
| CapEx % of Revenue | - | - | 63.4% | 27.94% | - | - | - | 5.52% | 6.91% | 6.83% | 3.76% | 6.66% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -22.71M | 0 | 29K | 33K | 0 | 0 | 9K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 4K | 0 | 250K | 119K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 14.51M | 7.21M | 6.26M | 16.56M | 19.58M | 61.59M | 4.67M | -1.1M | -303K | -1.47M | 3.26M | 1.98M |
| Debt Issued (Net) | 0 | 2.25M | 5.29M | 16.5M | -2K | -942K | 310K | 0 | -1.65M | -3.23M | 583K | 0 |
| Equity Issued (Net) | 14.49M | 4.96M | 1.14M | 320K | 19.71M | 62.52M | 4.36M | 0 | 1.38M | 1.77M | 2.69M | 0 |
| Dividends Paid | 0 | 0 | 0 | -16K | -16K | -8K | 0 | -16K | -16K | -16K | -16K | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 26K | 0 | -169K | -251K | -109K | 10K | 0 | -1.08M | -17K | 0 | -3K | 1.98M |
| Net Change in Cash | 7.26M | 155K | -9.94M | -3.87M | -1.44M | 15.36M | -1.63M | 673K | -792K | -2.31M | 2.44M | -3.82M |
| Free Cash Flow | -7.25M | -7.05M | -16.2M | -20.43M | -21.27M | -23.64M | -8.14M | 1.65M | -247K | -903K | -817K | -5.81M |
| FCF Margin % | - | - | -2784.36% | -30039.71% | - | - | - | 8.33% | -1.06% | -4.24% | -3.66% | -23.7% |
| FCF Growth % | 49.69% | 56.47% | 20.67% | 3.98% | 10.02% | -190.44% | -593.33% | 768.02% | 72.65% | -10.53% | 85.94% | - |
| FCF per Share | -9.16 | -27.96 | -14.27 | -96.10 | -174.31 | -273.00 | -117.44 | 573.91 | -91.89 | -369.78 | -429.32 | -3162.13 |
| FCF Conversion (FCF/Net Income) | 0.64x | 0.50x | 0.36x | 0.94x | 0.85x | 0.19x | -0.68x | -1.34x | -5.27x | -0.51x | -0.01x | 0.58x |
| Interest Paid | 1K | 0 | 48K | 20K | 30K | 225K | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 2K | 4K | 15K | 1K | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and insolvency
According to reported financial statements, the OCF/NI ratio has fluctuated significantly, reaching 0.41 in 2026Q1, which highlights a persistent disconnect between accounting losses and the actual cash required to sustain the company's preclinical research operations.
The wide variance between net income and operating cash flow suggests that non-cash charges, such as stock-based compensation, are significantly distorting the perceived profitability of the firm. Investors should monitor this gap, as it indicates that the company's reported losses do not fully capture the underlying cash-based operational requirements.
As reported in recent filings, Ernexa's free cash flow remains consistently negative, with the company burning through $2.3 million in 2026Q1 alone, underscoring the lack of self-sustaining operational cash flow to support its long-term R&D pipeline.
The persistent negative free cash flow trajectory suggests that the company is entirely dependent on external capital markets to fund its research activities. Without a clear path to revenue, this trend implies that the firm will continue to face significant pressure on its cash reserves until clinical milestones are achieved.
Based on the provided cash flow data, working capital changes have been highly erratic, swinging from a $707,000 inflow in 2026Q1 to a $1.4 million outflow in 2024Q4, reflecting the instability inherent in a pre-revenue biotech entity's cash management.
These fluctuations suggest that the company's cash position is highly sensitive to the timing of vendor payments and licensing obligations. Such volatility warrants further investigation, as it may indicate an inability to effectively manage liquidity during periods of constrained capital access.
As indicated by the financial data, stock-based compensation has consistently added back to the cash flow statement, with $333,000 recorded in 2025Q4, effectively masking the true economic cost of talent acquisition in a cash-starved environment.
The reliance on equity-based incentives appears to be a strategic necessity to preserve limited cash, yet it dilutes existing shareholders without providing a tangible cash benefit. Analysts should interpret these adjustments as a sign of the company's inability to fund operations through traditional revenue-generating activities.
Quick answers to the most common questions about buying ERNA stock.
Ernexa Therapeutics Inc. (ERNA) generated $-7.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ernexa Therapeutics Inc. (ERNA) reported negative free cash flow of $7.1M in 2025, indicating capital requirements exceeded cash from operations.
Ernexa Therapeutics Inc. (ERNA) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.