Liquidity is tightening as cash and equivalents fell from $86.1 million in 2023Q4 to $33.2 million in 2026Q1, resulting in a quarterly free cash flow deficit of $42.8 million.
| Cash from Operations | -148.49M | -143.82M | -109.03M | -91.95M | -52.63M | -33.51M | -14.63M | -9.17M |
| Operating CF Margin % | - | - | - | - | - | - | - | - |
| Operating CF Growth % | -107.39% | -31.91% | -18.58% | -74.69% | -57.09% | -128.97% | -59.57% | - |
| Net Income | -176.01M | -167.79M | -133.81M | -100.16M | -67.64M | -42.81M | -17.12M | -9.71M |
| Depreciation & Amortization | 36K | 2.27M | 2.29M | 1.73M | 538K | 272K | 185K | 123K |
| Stock-Based Compensation | -9.06M | 0 | 24.71M | 17.56M | 10.92M | 4.4M | 354K | 77K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -2.29M | 0 | 0 |
| Other Non-Cash Items | -130.95M | 27.09M | -12.54M | -9.52M | -543K | 2.29M | 0 | 0 |
| Working Capital Changes | -306K | -5.37M | 10.33M | -1.56M | 4.09M | 4.63M | 1.95M | 334K |
| 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 | 992K | 272K | 1.74M | -92K | 47K | 2.65M | 521K | 275K |
| Cash from Investing | -74.25M | -32.79M | -184.66M | 102.89M | -70.58M | -242.23M | -24.38M | -180K |
| Capital Expenditures | -216K | -256K | -1.31M | -5.75M | -5.55M | -668K | -203K | -180K |
| CapEx % of Revenue | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 65.03K | 241.56K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 3.02M | 0 | 0 | 0 | -65.03K | -241.56K | 0 | 0 |
| Cash from Financing | 206.04M | 196.09M | 249.25M | 53.17M | 129.64M | 186.38M | 120.28M | 24.8M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 204.11M | 196.09M | 239.15M | 52.62M | 129.16M | 186.15M | 120.08M | 24.78M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.93M | 0 | 10.11M | 548K | 474K | 236K | 202K | 22K |
| Net Change in Cash | -16.71M | 19.48M | -44.43M | 64.1M | 6.43M | -89.35M | 81.26M | 15.45M |
| Free Cash Flow | -148.71M | -143.82M | -110.34M | -97.69M | -58.18M | -34.17M | -14.84M | -9.35M |
| FCF Margin % | - | - | - | - | - | - | - | - |
| FCF Growth % | -24.59% | -30.34% | -12.95% | -67.91% | -70.24% | -130.34% | -58.67% | - |
| FCF per Share | -1.39 | -1.40 | -1.19 | -1.53 | -1.09 | -0.69 | -0.30 | -0.19 |
| FCF Conversion (FCF/Net Income) | 0.84x | 0.86x | 0.81x | 0.92x | 0.78x | 0.78x | 0.86x | 0.97x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Clinical trial funding dependency
According to quarterly financial data, EWTX exhibits a consistent OCF/NI ratio, with the 2026Q1 figure of 0.87 indicating that cash outflows are closely tracking accounting losses, confirming that the company's current financial profile is defined by high-intensity R&D spending rather than non-cash accrual distortions.
The tight correlation between net income and operating cash flow suggests that the company's reported losses are primarily driven by tangible cash expenditures rather than accounting adjustments. Investors should interpret this as a sign of operational transparency, where the cash burn is a direct reflection of the clinical trial costs required to advance the pipeline.
As reported in recent financial statements, EWTX's free cash flow has remained deeply negative, reaching a quarterly low of -$42.8 million in 2026Q1, which underscores the company's ongoing reliance on external financing to sustain its clinical development activities in the absence of any commercial revenue streams.
The trajectory of free cash flow reflects a company in the midst of aggressive capital deployment for late-stage clinical trials. This persistent deficit warrants close monitoring, as the widening gap between cash inflows and outflows necessitates periodic equity raises to maintain the current research momentum.
Based on reported figures, working capital changes have fluctuated significantly, ranging from a $6.9 million inflow in 2024Q4 to a $4.8 million outflow in 2025Q1, suggesting that the company's cash position is sensitive to the timing of clinical trial vendor payments and operational accruals.
The lack of a stable working capital trend implies that management's cash management is heavily influenced by the episodic nature of clinical trial milestones. This volatility suggests that investors should focus on the broader cash burn rate rather than quarterly fluctuations in working capital, which appear to be secondary to R&D intensity.
As indicated by the provided cash flow statements, stock-based compensation has acted as a significant non-cash add-back, notably reaching -$24.9 million in 2025Q4, which complicates the assessment of the company's true economic cost of talent acquisition and retention during this critical development phase.
The use of stock-based compensation as a primary tool for talent management effectively shifts the burden of compensation from cash to equity dilution. While this preserves immediate cash, it creates a long-term structural impact on shareholder value that investors must reconcile with the company's ongoing cash burn.
Quick answers to the most common questions about buying EWTX stock.
Edgewise Therapeutics, Inc. (EWTX) generated $-143.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Edgewise Therapeutics, Inc. (EWTX) reported negative free cash flow of $143.8M in 2025, indicating capital requirements exceeded cash from operations.
Edgewise Therapeutics, Inc. (EWTX) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.