Operational liquidity remains under pressure as evidenced by a consistent history of negative free cash flow, which reached a trough of -$4.2 million in 2025Q2 and necessitates ongoing reliance on external funding.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Feb'16 | Feb'15 | Feb'14 | Feb'13 | Feb'12 | Feb'11 | Feb'10 | Feb'09 |
|---|
| Cash from Operations | -8.87M | -14.9M | -12.33M | -15.91M | -17.23M | -17.99M | -32.44M | -24.79M | -9.69M | -5.2M | -4.85M | -5.75M | -6.12M | -2.49M | -5.65M | -1.91M | -1.9M | -124.49K |
| Operating CF Margin % | - | - | - | - | - | -5815.44% | - | - | - | - | -12376.63% | -1914.47% | -1358.53% | -351.96% | -53914.15% | -6592.6% | - | - |
| Operating CF Growth % | 40.49% | -20.85% | 22.5% | 7.67% | 4.19% | 44.55% | -30.89% | -155.69% | -86.41% | -7.2% | 15.67% | 5.93% | -145.63% | 55.91% | -194.99% | -0.66% | -1427.85% | - |
| Net Income | -7.79M | -9.57M | -12.85M | -42.43M | -9.82M | -24.72M | -36.06M | -39.37M | -16.65M | -7.91M | -4.66M | -1.32M | -10.44M | -6.73M | -6.54M | -3.08M | -1.51M | -922.1K |
| Depreciation & Amortization | 7K | 7K | 11K | 124K | 0 | 1.16M | 3.28M | 2.33M | 2.07M | 1.93M | 1.77M | 1.87M | 1.59M | 649.6K | 671.76K | 685.26K | 8.62K | 2.81K |
| Stock-Based Compensation | 798K | 730K | 913K | 1.81M | 1.34M | 1.47M | 2.76M | 777K | 719.37K | 0 | 228.03K | 1.24M | 3.09M | 1.87M | 1.33M | 185.15K | 0 | 0 |
| Deferred Taxes | -1.7M | -3.2M | -1.83M | -9.54M | -648K | 0 | 0 | 0 | 0 | -98.28K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -900K | -3.22M | 2.71M | 33.94M | -5.32M | 11.57M | 2.13M | 5.28M | 1.39M | 278.38K | -2.15M | -8.58M | 646.2K | -72.97K | -24.84K | -110.49K | 0 | 212.15K |
| Working Capital Changes | 719K | 342K | -1.28M | 181K | -2.79M | -7.47M | -4.55M | 6.19M | 2.77M | 603.38K | -30.25K | 1.04M | -1.01M | 1.79M | -1.08M | 401.48K | -402.31K | 582.66K |
| Change in Receivables | 106K | 596K | 80K | -302K | -18K | 72.86K | 821.29K | -620K | -428.21K | 147.04K | 336.5K | 235.78K | -282.47K | 241.06K | -640.35K | 25.08K | -222.87K | -233.17K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 64.94K | 139.07K | -35.33K | 368.58K | -602.93K | 0 | 0 | 0 |
| Change in Payables | 543K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 291.02K | 36.94K | -69.52K | 416.97K | -282.08K | 0 | 0 | 0 | 828.46K |
| Cash from Investing | 0 | 0 | 104K | 13.15M | -3.52M | -12.38M | 11.5M | -9.44M | -318.26K | 5.13M | 6.07M | 6.1M | -17.48M | 1.85M | -3.01M | -2.57M | 1.9M | -1.85M |
| Capital Expenditures | 0 | 0 | -22K | -17K | 0 | -86.68K | -450.93K | -534K | -352.33K | -1.93M | -203.67K | -27.97K | -22.47K | -100.68K | 0 | -21.57K | -15.36K | -22.81K |
| CapEx % of Revenue | - | - | - | - | - | 28.02% | - | - | - | - | 519.61% | 9.31% | 4.99% | 14.23% | - | 74.29% | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 111K | 0 | 0 | 0 | 0 | 0 | 54.2K | 0 | 16.23K | -7.99K | -22.9K | 1.74K | 8.17K | 12.04K | 0 | 0 |
| Cash from Financing | 3.71M | 14.03M | 7.36M | 304K | 0 | 74.73M | 18.64M | 45.69M | 8.83M | 5.24M | -2.21K | 36.77K | 22.44M | 221.53K | 9.94M | 4.4M | 77.4K | 2.28M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | -2.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 3.71M | 15M | 7.5M | 304K | 0 | 74.54M | 9.87M | 44.89M | 8.54M | 5.24M | 0 | 0 | 21.59M | 0 | 1.99M | 4.4M | 77.4K | 2.27M |
| Dividends Paid | 0 | 0 | 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 | -30.97K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | -967K | -141K | 0 | 0 | 198.49K | 10.97M | 798K | 295.03K | 0 | -2.21K | 36.77K | 846.8K | 221.53K | 7.95M | -1.43K | 0 | 8.37K |
| Net Change in Cash | -5.16M | -872K | -4.87M | -2.46M | -20.6M | 46.11M | -3.72M | 10.45M | -1.2M | -2.23M | 1.27M | 507.52K | -468.32K | -384.12K | 1.27M | -92.68K | 80.18K | 258.93K |
| Free Cash Flow | -8.87M | -14.9M | -12.36M | -15.93M | -17.23M | -18.07M | -32.89M | -25.32M | -10.05M | -7.13M | -5.12M | -5.82M | -6.25M | -2.59M | -5.65M | -1.94M | -1.92M | -147.3K |
| FCF Margin % | - | - | - | - | - | -5843.46% | - | - | - | - | -13069.45% | -1937.34% | -1388.2% | -366.19% | -53914.15% | -6666.89% | - | - |
| FCF Growth % | 40.49% | -20.63% | 22.44% | 7.57% | 4.65% | 45.05% | -29.91% | -152.04% | -40.99% | -39.09% | 12.01% | 6.84% | -141.24% | 54.13% | -191.7% | -0.98% | -1201.66% | - |
| FCF per Share | -0.54 | -1.23 | -1.30 | -2.14 | -2.81 | -7.31 | -18.67 | -22.39 | -27.58 | -30.83 | -23.07 | -26.32 | -35.55 | -17.09 | -40.32 | -18.11 | -42.59 | -1.10 |
| FCF Conversion (FCF/Net Income) | 1.14x | 1.09x | 0.71x | 0.28x | 1.40x | 0.58x | 0.64x | 0.63x | 0.58x | 0.66x | 1.04x | 4.35x | 0.59x | 0.37x | 0.86x | 0.62x | 1.26x | 0.14x |
| Interest Paid | 0 | 0 | 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 | 0 | 0 |
Binary clinical trial outcome
According to recent financial filings, the relationship between net income and operating cash flow is highly erratic, evidenced by a 2025Q4 OCF/NI ratio of -3.26, which highlights that reported earnings are fundamentally disconnected from the company's actual cash-based operational reality during this pre-revenue development phase.
The wide variance between net income and operating cash flow suggests that non-cash items and accounting adjustments are significantly distorting the firm's financial picture. Investors should monitor this divergence, as it indicates that net income is an unreliable proxy for the company's true liquidity position.
As reported in quarterly statements, GRCE has consistently burned cash, with free cash flow remaining negative across all ten observed periods, reaching a trough of -$4.2 million in 2025Q2, which underscores the company's total reliance on external financing to sustain its ongoing clinical development activities.
The lack of any positive free cash flow trajectory suggests that the company remains in a high-risk phase where capital consumption is decoupled from commercial output. This trend implies that the firm's survival is entirely contingent upon its ability to secure further dilutive funding or strategic partnerships.
Based on the provided cash flow data, working capital changes have been highly inconsistent, swinging from a $901,000 inflow in 2025Q1 to a $983,500 outflow in 2026Q2, reflecting the unpredictable nature of managing clinical trial-related payables and accruals in a pre-revenue biotechnology business model.
These fluctuations suggest that the company's cash position is sensitive to the timing of vendor payments and clinical milestone accruals. Such volatility may indicate that management is actively managing liquidity by delaying or accelerating payments to align with available cash reserves.
As indicated by the cash flow statements, the company's reliance on stock-based compensation, which reached $326,000 in 2024Q3, serves to obscure the true cash cost of operations by shifting expenses away from the cash flow statement and into non-cash equity-based accounting adjustments.
This practice warrants further investigation, as it may mask the actual burn rate required to retain talent during critical clinical trial phases. Analysts should adjust for these non-cash expenses to better understand the true operational cash requirements of the business.
Quick answers to the most common questions about buying GRCE stock.
Grace Therapeutics, Inc. (GRCE) generated $-8.9M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Grace Therapeutics, Inc. (GRCE) reported negative free cash flow of $8.9M in 2026, indicating capital requirements exceeded cash from operations.
Grace Therapeutics, Inc. (GRCE) spent $0.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.