Free cash flow remains deeply negative with quarterly outflows reaching as high as $29.4 million, further exacerbated by an OCF/NI ratio frequently exceeding 1.10.
| Cash from Operations | -87.4M | -86.1M | -100.41M | -118.11M | 193.61M | -50.25M | -31.29M | -46.34M | -22.65M |
| Operating CF Margin % | - | -278.56% | -444.24% | -345.79% | 1006.93% | -3809.7% | -7275.81% | - | - |
| Operating CF Growth % | 31.73% | 14.25% | 14.99% | -161% | 485.3% | -60.61% | 32.48% | -104.59% | - |
| Net Income | -75.32M | -74.28M | -86.62M | -98.43M | -108.88M | -101.32M | -68.8M | -51.13M | -26.34M |
| Depreciation & Amortization | 2.84M | 3.33M | 3.12M | 3.45M | 7.9M | 3.23M | 1.33M | 693K | 379K |
| Stock-Based Compensation | 7.36M | 10.4M | 11.89M | 16.19M | 0 | 8.38M | 2.96M | 1.69M | 732K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 1.41M | 84K | 0 | 30K |
| Other Non-Cash Items | 8.77M | 6.59M | 3.47M | 2.56M | 13.05M | 4.61M | 4.44M | 1.21M | 124K |
| Working Capital Changes | -31.04M | -32.14M | -32.27M | -41.88M | 281.55M | 33.44M | 28.7M | 1.2M | 2.42M |
| Change in Receivables | 0 | 0 | 0 | 0 | 300M | -300M | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -3.17M | 0 | 0 | 0 |
| Change in Payables | -793K | 481K | -2.48M | 846K | 1.61M | 135K | 474K | 1.21M | 1.28M |
| Cash from Investing | 64.92M | 112.04M | -29.9M | 144.45M | -244.32M | 36.17M | -108.91M | -964K | -1.54M |
| Capital Expenditures | -22K | -50K | -906K | -1.22M | -1.21M | -3.31M | -16.18M | -968K | -1.54M |
| CapEx % of Revenue | 0.08% | 0.16% | 4.01% | 3.58% | 6.29% | 251.18% | 3763.49% | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -39.49M | 250K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 39.49M | 250K | 4K | 0 |
| Cash from Financing | 50.66M | 1.02M | 105.43M | 1.78M | 1.76M | 22.42M | 217.47M | 23.97M | 51.77M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | -21.2M | 4.27M | 7.98M | 11.14M |
| Equity Issued (Net) | 50.66M | 1.02M | 103.4M | 0 | 1.76M | 42.2M | 211.98M | 15.29M | 40.44M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 2.03M | 1.78M | 0 | 1.42M | 1.22M | 691K | 190K |
| Net Change in Cash | 27.89M | 26.96M | -24.88M | 28.12M | -48.92M | 8.34M | 77.27M | -23.33M | 27.58M |
| Free Cash Flow | -87.42M | -86.15M | -101.31M | -119.33M | 192.4M | -53.56M | -47.47M | -47.3M | -24.19M |
| FCF Margin % | -309.73% | -278.72% | -448.24% | -349.38% | 1000.63% | -4060.88% | -11039.3% | - | - |
| FCF Growth % | 8.81% | 14.97% | 15.1% | -162.02% | 459.21% | -12.84% | -0.35% | -95.56% | - |
| FCF per Share | -1.26 | -1.37 | -1.85 | -2.84 | 4.63 | -1.44 | -1.29 | -1.28 | -1.23 |
| FCF Conversion (FCF/Net Income) | 1.16x | 1.16x | 1.16x | 1.20x | -1.78x | 0.50x | 0.45x | 0.91x | 0.86x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 420K | 0 |
| Taxes Paid | 5K | 0 | 860K | 3.55M | 0 | 0 | 0 | 0 | 0 |
Clinical milestone funding dependency
As reported in financial statements, FHTX consistently records operating cash outflows that exceed net losses, with OCF/NI ratios frequently above 1.10, indicating that non-cash expenses and working capital requirements are exacerbating the company's underlying cash burn rather than providing a buffer for its clinical development activities.
The consistent divergence between net income and operating cash flow suggests that the company's accounting losses are not merely paper-based but are reflective of actual cash depletion. Investors should monitor this trend, as the inability to align cash outflows with reported earnings implies a structural reliance on external financing to cover operational costs.
Based on recent SEC filings, FHTX's free cash flow remains deeply negative, with quarterly outflows consistently ranging between $18.9 million and $29.4 million, underscoring a business model that is currently incapable of self-funding its research-heavy pipeline through existing collaboration-based revenue streams.
The lack of a positive FCF trajectory highlights the company's status as a pre-commercial entity that is entirely dependent on milestone payments. This persistent cash drain suggests that the company may face significant liquidity pressure if clinical milestones are delayed or if partnership agreements are terminated.
According to the provided quarterly data, working capital changes have consistently acted as a net drain on cash, with outflows reaching as high as $9.7 million in a single quarter, which further complicates the company's already strained liquidity position during its intensive clinical trial phases.
The recurring negative impact of working capital changes suggests inefficiencies in managing the timing of milestone-related receivables or operational payables. This trend warrants further investigation, as it indicates that the company's cash position is being eroded by operational friction in addition to its core R&D spending.
As indicated by the company's financial disclosures, stock-based compensation (SBC) frequently accounts for millions in non-cash expenses, which masks the true economic cost of talent retention required to maintain the Gene Traffic Control platform and support the company's ongoing clinical development programs.
While SBC is a standard tool for biotech talent acquisition, its magnitude relative to the company's cash position suggests that the true cost of operations is higher than the headline cash burn figures might imply. Analysts should adjust for these non-cash charges to better understand the actual runway available to management.
Quick answers to the most common questions about buying FHTX stock.
Foghorn Therapeutics Inc. (FHTX) generated $-86.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Foghorn Therapeutics Inc. (FHTX) reported negative free cash flow of $86.1M in 2025, indicating capital requirements exceeded cash from operations.
Foghorn Therapeutics Inc. (FHTX) 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.