Persistent negative free cash flow, frequently exceeding $25 million per quarter, highlights a structural inability to self-fund operations despite the use of stock-based compensation to mask underlying cash burn.
Fate Therapeutics, Inc. (FATE) cash flow statement — 15-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | -101.94M | -106.08M | -122.87M | -132.26M | -248.21M | -162.87M | -39.23M | -83.17M | -38.65M | -36.91M | -29.82M | -18.4M | -22.42M | -15.37M | -13.27M | -12.14M |
| Operating CF Margin % | - | -1596.21% | -901.43% | -208.18% | -257.74% | -291.64% | -124.8% | -778.79% | -815.4% | -898.81% | -677.49% | -756.77% | - | -1583.21% | -497.15% | -1038.03% |
| Operating CF Growth % | 46.81% | 13.66% | 7.1% | 46.71% | -52.4% | -315.18% | 52.84% | -115.2% | -4.73% | -23.75% | -62.11% | 17.94% | -45.83% | -15.81% | -9.3% | - |
| Net Income | -126M | -136.31M | -186.26M | -160.93M | -281.72M | -212.15M | -173.39M | -98.15M | -66.6M | -42.95M | -33.46M | -29.99M | -25.88M | -20.89M | -14.24M | -13.43M |
| Depreciation & Amortization | 11.22M | 9.29M | 18.96M | 18.28M | 13.76M | 5.85M | 3.09M | 2.19M | 1.2M | 971K | 881K | 687K | 496K | 571K | 590K | 672K |
| Stock-Based Compensation | 17.84M | 24.92M | 41.5M | 43.46M | 78.73M | 54.36M | 30.75M | 17.41M | 6.29M | 3.61M | 3.18M | 2.4M | 2.43M | 1.55M | 155K | 172K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -478K | -335K | 5K | 171K | 0 | 3K | 26K | 0 | 121K |
| Other Non-Cash Items | -531K | -247K | 4.89M | -52.26M | -24.27M | -13.03M | 113.09M | -7.79M | 19.04M | -613K | -1.61M | 8.14M | 517K | 3.09M | 220K | 95K |
| Working Capital Changes | -4.47M | -3.74M | -1.96M | 19.18M | -34.71M | 2.1M | -12.77M | 3.64M | 1.74M | 2.08M | 1.18M | 370K | 17K | 307K | 0 | 343K |
| Change in Receivables | 693K | 2.62M | -1.11M | 36.65M | -29.8M | -3.16M | -5.51M | 500K | -500K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.28M | -4.25M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -4.52M | -9.03M | -1.66M | -28.94M | 14.25M | 0 | -1.55M | 4.28M | 4.25M | 2.51M | 1.56M | 477K | 0 | 0 | 0 | 0 |
| Cash from Investing | 87.05M | 111.17M | 12.22M | 112.67M | 166.75M | -324.02M | -161.08M | -157.45M | -463K | -10.2M | -4.11M | -1.5M | -882K | -238K | -709K | 200K |
| Capital Expenditures | -3.71M | -5.95M | -730K | -6.15M | -35.57M | -50.7M | -4.93M | -7.39M | -2.3M | -1.73M | -457K | -1.5M | -882K | -244K | -709K | -2K |
| CapEx % of Revenue | 57.22% | 89.57% | 5.36% | 9.68% | 36.93% | 90.79% | 15.69% | 69.24% | 48.59% | 42.01% | 10.38% | 61.62% | - | 25.13% | 26.55% | 0.17% |
| Acquisitions | -122K | 362K | 0 | 0 | 0 | 0 | 0 | 150.06M | 0 | 0 | 18K | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 362K | 0 | 0 | 0 | 0 | 0 | 0 | -150.06M | 1.84M | -8.47M | 18K | 0 | 0 | 6K | 0 | 202K |
| Cash from Financing | 5.9M | 5.49M | 99.89M | 85K | 9.21M | 453.13M | 282.84M | 149.93M | 140.78M | 47.44M | 57.74M | 35.6M | 18.37M | 60.56M | 16.68M | 7.11M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -15M | 0 | 4.15M | -7.69M | -1.55M | 18.25M | 20.06M | -250K | 3.6M |
| Equity Issued (Net) | 412K | 0 | 94.82M | 85K | 9.21M | 411.74M | 282.35M | 162.41M | 134.58M | 43.01M | 65.24M | 36.73M | 0 | 0 | 16.93M | 7K |
| 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 | -7K |
| Other Financing | 5.49M | 5.49M | 5.07M | 0 | 0 | 41.39M | 490K | 2.52M | 6.2M | 283K | 186K | 420K | 116K | 40.5M | 0 | 3.5M |
| Net Change in Cash | -9M | 10.57M | -5.81M | -19.46M | -72.25M | -33.76M | 67.53M | -90.7M | 101.67M | 343K | 23.8M | 15.71M | -4.93M | 44.95M | 2.7M | -4.84M |
| Free Cash Flow | -105.66M | -112.04M | -123.6M | -138.42M | -283.77M | -213.57M | -44.16M | -90.57M | -40.95M | -38.63M | -30.28M | -19.89M | -23.3M | -15.62M | -13.98M | -12.15M |
| FCF Margin % | -1627.76% | -1685.78% | -906.79% | -217.86% | -294.68% | -382.43% | -140.49% | -848.03% | -863.99% | -940.82% | -687.87% | -818.39% | - | -1608.34% | -523.71% | -1038.21% |
| FCF Growth % | 11.04% | 9.36% | 10.7% | 51.22% | -32.87% | -383.63% | 51.24% | -121.16% | -6.01% | -27.58% | -52.2% | 14.62% | -49.2% | -11.69% | -15.11% | - |
| FCF per Share | -0.88 | -0.94 | -1.09 | -1.41 | -2.93 | -2.25 | -0.54 | -1.33 | -0.73 | -0.92 | -0.95 | -0.78 | -1.14 | -0.79 | -1.58 | -1.37 |
| FCF Conversion (FCF/Net Income) | 0.84x | 0.78x | 0.66x | 0.82x | 0.88x | 0.77x | 0.23x | 0.85x | 0.58x | 0.86x | 0.89x | 0.61x | 0.87x | 0.74x | 0.93x | 0.90x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying FATE stock.
Fate Therapeutics, Inc. (FATE) generated $-106.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Fate Therapeutics, Inc. (FATE) reported negative free cash flow of $112.0M in 2025, indicating capital requirements exceeded cash from operations.
Fate Therapeutics, Inc. (FATE) spent $6.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Imminent liquidity and dilution
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Burn
According to quarterly financial data, Fate Therapeutics consistently reports an OCF/NI ratio ranging from 0.53 to 0.99, which suggests that the company's net losses are partially mitigated by non-cash expenses rather than reflecting any underlying operational cash generation or sustainable business model efficiency.
The persistent gap between net income and operating cash flow indicates that non-cash charges, such as stock-based compensation, are significant components of the reported loss structure. Investors should interpret this as a signal that the company's cash burn is the primary metric for survival, as GAAP earnings are heavily distorted by accounting adjustments that do not represent actual liquidity.
Persistent Negative Free Cash Flow
As reported in recent financial statements, Fate Therapeutics maintains a consistently negative free cash flow trajectory, with quarterly outflows frequently exceeding $25 million, underscoring the company's inability to self-fund its clinical development pipeline through its current, highly volatile and limited collaboration-based revenue streams.
The lack of a positive FCF margin trend suggests that the company remains entirely dependent on external capital markets to sustain its operations. This trajectory warrants close monitoring, as the absence of a clear path to cash flow breakeven increases the likelihood of further equity dilution for existing shareholders.
Capital Intensity Amidst Clinical Pivot
Based on reported figures, Fate's capital expenditure as a percentage of revenue has shown extreme volatility, reaching as high as 126.5% in 2025Q3, which reflects the heavy burden of maintaining specialized manufacturing infrastructure despite the absence of meaningful commercial product sales or recurring revenue.
The high capital intensity relative to revenue suggests that the company is forced to invest in fixed assets to support its iPSC platform even while its commercial prospects remain uncertain. This capital-heavy requirement, combined with low revenue, creates a structural drag on cash reserves that limits management's flexibility during periods of clinical trial delays.
SBC Obscures True Cash Burn
Data from recent filings indicates that stock-based compensation, which reached as high as $11.8 million in a single quarter, serves as a significant non-cash add-back that effectively masks the true economic cost of talent retention required to maintain the company's complex iPSC platform.
While SBC is a standard tool for biotech talent acquisition, its magnitude relative to the company's total cash burn suggests that the true cost of operations is higher than the headline operating cash flow figures imply. Investors should consider the dilutive impact of this compensation strategy alongside the company's urgent need for additional financing.