Liquidity remains a primary concern as the company reported a negative $1.9M in free cash flow for 2026Q1, further depleting the cash balance to $26.1M.
| 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 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | -20.26M | -27.59M | -22.53M | -58.79M | -146.91M | -203.35M | -184.82M | -124.58M | -191.81M | -170.3M | -134.1M | -78.53M | -60.28M | -40.76M | -17.01M | -7.72M | -5.48M | -11M | -24.27M | -17.28M | 9.18M | -7.53M | -7.74M | -6.53M | -5.13M | -6.49M | -3.12M | -600K | -1.5M | -200K | -6.1M |
| Operating CF Margin % | - | -17.81% | -15.61% | -46.27% | -136.44% | -235.51% | -208.51% | -85.35% | -247.57% | -553.52% | -10484.52% | - | - | - | -2632.97% | -1195.2% | -421.45% | -872.24% | -6578.59% | -4194.42% | 170.3% | -139.62% | -143.28% | -134.59% | -88.24% | -147.96% | -92.57% | -2.94% | -7.5% | -1.16% | -32.62% |
| Operating CF Growth % | -91.9% | -22.47% | 61.68% | 59.98% | 27.76% | -10.03% | -48.35% | 35.05% | -12.63% | -27% | -70.77% | -30.26% | -47.88% | -139.66% | -120.3% | -40.82% | 50.15% | 54.69% | -40.47% | -288.23% | 221.97% | 2.79% | -18.67% | -27.17% | 20.95% | -108.32% | -419.33% | 60% | -650% | 96.72% | 28.24% |
| Net Income | -30.94M | -20.2M | -13.58M | -110.56M | -182.02M | -220.68M | -227.28M | -204.75M | -178.84M | -197.48M | -173.14M | -97.59M | -76.37M | -55.28M | -24.43M | 379K | -7.2M | -10.1M | -22.93M | -20.16M | 5.27M | -8.21M | -9.22M | -4.36M | -3.78M | -2.51M | 8.55M | 2.4M | 1.9M | -700K | -9.4M |
| Depreciation & Amortization | 2.29M | 2.31M | 2.49M | 2.9M | 2.89M | 3.02M | 2.85M | 2.04M | 1.51M | 1.53M | 1.1M | 734K | 578K | 333K | 197K | 179K | 227K | 356K | 412K | 289K | -244K | 446K | 314K | 460K | 482K | 406.06K | -116.76K | 500K | 1.4M | 1.2M | 1.4M |
| Stock-Based Compensation | 10.8M | 10.34M | 12.96M | 32.85M | 42.98M | 46.85M | 50.22M | 51.41M | 33.37M | 30.54M | 25.96M | 14.36M | 8.07M | 10.89M | 5.73M | 1.89M | 1.75M | 1.14M | 1.11M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 1.63M | 972K | -3.57M | -3.31M | -239K | 283K | -29K | 922K | 0 | 0 | 103K | -150K | 17K | -200K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 12.02M | 11.83M | 3.2M | -773K | -251K | 904K | 1.43M | 1.05M | 890K | 773K | 689K | 624K | 573K | 533K | 389K | -11.81M | 154K | 36K | 304K | 501K | 665K | 296K | 348K | -2.25M | -1.03M | -3.18M | -10.93M | -800K | 200K | 400K | 1.6M |
| Working Capital Changes | -14.43M | -31.88M | -27.6M | 16.79M | -10.51M | -35.08M | -13.01M | 29.23M | -45.42M | -5.42M | 11.02M | 3.38M | 5.95M | 2.76M | 1.1M | 1.54M | -267K | -2.45M | -2.98M | 2.09M | 3.49M | -59K | 816K | -377K | -803K | -1.2M | -625.04K | -2.7M | -5M | -900K | 300K |
| Change in Receivables | -4.96M | -10.71M | -18.74M | -8.09M | -16.55M | 6.35M | -1.97M | 24.77M | -22.78M | -39.91M | -1.96M | 0 | 0 | 0 | 0 | 110K | 61K | -139K | 100K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -27.45M | -31.05M | -11.05M | 12.46M | -6.19M | -6.48M | -16.94M | 14.06M | -29.12M | -4.77M | -5.34M | 0 | 0 | 0 | 0 | 1.31M | -312K | -2.1M | -1.96M | 0 | 0 | 0 | 0 | 0 | -7K | 10.51K | -10.43K | -1.6M | -300K | -600K | 5.6M |
| Change in Payables | -3.36M | -2.71M | 8.47M | 15K | -578K | 3.28M | -2.23M | -14.11M | -1.91M | 11.96M | 3.51M | 751K | 1.28M | -426K | 984K | 467K | -3K | -182K | -1.09M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 12.8M | 16.01M | 18.71M | 18M | -3.32M | 32.73M | 208.96M | -21.78M | -278.55M | 7.74M | 14.88M | -56.96M | -1.44M | -1.69M | -972K | -513K | -78K | 612K | 678K | 11.2M | -7.72M | 5.09M | -1.26M | 3.26M | 4.72M | 3.55M | 8.97M | -400K | -2.8M | -1M | -700K |
| Capital Expenditures | -599K | -317K | -1.71M | -1.54M | -1.82M | -3.02M | -6.81M | -7.15M | -9.17M | -2.55M | -3.13M | -1.09M | -1.44M | -1.69M | -972K | -513K | -78K | -2K | -298K | -481K | -187K | -316K | -193K | -251K | -430K | -276.69K | -178.97K | -300K | -2.7M | -2.8M | -700K |
| CapEx % of Revenue | 0.4% | 0.2% | 1.18% | 1.22% | 1.7% | 3.5% | 7.69% | 4.9% | 11.84% | 8.3% | 245.11% | - | - | - | 150.46% | 79.41% | 6% | 0.16% | 80.76% | 116.75% | 3.47% | 5.86% | 3.57% | 5.18% | 7.39% | 6.31% | 5.32% | 1.47% | 13.5% | 16.28% | 3.74% |
| Acquisitions | 93K | 0 | 27K | 13K | 227K | 32K | 0 | 0 | 25K | 78K | 0 | 241K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -37K | 98K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.14M | 216K | 3.6M | 25M | -100K | 0 | 1.8M | 0 |
| Cash from Financing | 14.31M | 14.43M | 940K | 54.11M | 75.06M | 156.03M | 9.11M | 186.43M | 357.61M | 293.73M | 57.45M | 137.99M | 62.11M | 61.23M | 53.51M | 24.1M | 77K | 8.01M | 54K | 37.26M | 79K | 119K | 12.01M | 83K | 75K | 65.8K | -3.07M | 600K | -300K | 4.3M | 7.1M |
| Debt Issued (Net) | 9.39M | 145.11M | 0 | 24.35M | 0 | 148.96M | 26K | 0 | -25M | -25M | 50M | 0 | 0 | 0 | 3M | 1.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.3M | 200K | -2.5M | -1.5M | -100K |
| Equity Issued (Net) | 19.2M | 19.32M | 940K | 29.76M | 75.06M | 7.07M | 9.08M | 186.43M | 382.61M | 318.73M | 7.46M | 137.99M | 62.11M | 61.23M | 50.51M | 22.79M | 77K | 8.01M | 54K | 37.26M | 79K | 119K | 12.01M | 83K | 75K | 66K | 232K | 400K | 2.3M | 5.8M | 7.2M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -14.29M | -150M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -100K | 0 | 0 |
| Net Change in Cash | 6.85M | 2.85M | -2.88M | 13.31M | -75.18M | -14.6M | 33.24M | 40.06M | -112.75M | 131.17M | -61.77M | 2.5M | 388K | 18.78M | 35.53M | 15.87M | -5.48M | -2.37M | -23.54M | 31.18M | 1.54M | 790K | 0 | -3.19M | -336K | -2.88M | 2.79M | -400K | -4.6M | 3.1M | 300K |
| Free Cash Flow | -20.86M | -27.91M | -24.23M | -60.33M | -148.74M | -206.38M | -191.63M | -131.73M | -200.98M | -172.85M | -137.23M | -79.61M | -61.72M | -42.45M | -17.98M | -8.23M | -5.56M | -11M | -24.57M | -17.76M | 8.99M | -7.84M | -7.94M | -6.78M | -5.56M | -6.77M | -3.29M | -900K | -4.2M | -3M | -6.8M |
| FCF Margin % | -13.84% | -18.02% | -16.8% | -47.49% | -138.14% | -239.01% | -216.2% | -90.25% | -259.41% | -561.81% | -10729.63% | - | - | - | -2783.44% | -1274.61% | -427.44% | -872.4% | -6659.35% | -4311.16% | 166.83% | -145.48% | -146.85% | -139.77% | -95.63% | -154.27% | -97.89% | -4.41% | -21% | -17.44% | -36.36% |
| FCF Growth % | 11.98% | -15.16% | 59.83% | 59.44% | 27.93% | -7.69% | -45.47% | 34.45% | -16.27% | -25.96% | -72.38% | -28.99% | -45.4% | -136.07% | -118.38% | -48.07% | 49.45% | 55.23% | -38.35% | -297.49% | 214.68% | 1.17% | -17.12% | -21.85% | 17.83% | -105.4% | -266.11% | 78.57% | -40% | 55.88% | 27.66% |
| FCF per Share | -0.11 | -0.17 | -0.16 | -0.44 | -1.36 | -2.10 | -2.11 | -1.61 | -2.75 | -3.20 | -3.62 | -2.41 | -2.32 | -2.63 | -1.47 | -0.82 | -2.80 | -6.74 | -15.95 | -18.35 | 28.29 | -24.98 | -27.71 | -26.37 | -21.80 | -26.70 | -13.05 | -3.56 | -16.49 | -12.33 | -29.63 |
| FCF Conversion (FCF/Net Income) | 0.67x | 1.37x | 1.66x | 0.53x | 0.81x | 0.92x | 0.81x | 0.61x | 1.07x | 0.86x | 0.77x | 0.80x | 0.79x | 0.74x | 0.73x | 0.65x | 0.75x | 1.10x | 1.05x | 0.86x | 1.74x | 0.92x | 0.84x | 1.50x | 1.36x | 2.58x | -0.36x | 0.29x | 0.56x | 0.11x | 0.65x |
| Interest Paid | 1.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and commercial execution
According to the provided cash flow data, the relationship between net income and operating cash flow is frequently decoupled, as evidenced by the 2025Q4 period where the company reported a $3.0M net loss alongside a significantly larger $9.2M outflow from operations.
The wide variance between net income and operating cash flow suggests that non-cash items and working capital swings are masking the true underlying cash burn. Investors should monitor this divergence, as it indicates that reported earnings are not currently serving as a reliable proxy for the company's actual ability to generate liquidity from its core commercial activities.
As reported in financial statements, Heron Therapeutics has struggled to maintain positive free cash flow, with the company recording a negative $1.9M in 2026Q1, a trend that highlights the persistent difficulty in scaling revenue to cover the high fixed costs of its commercial infrastructure.
The inability to sustain positive free cash flow suggests that the company remains in a capital-intensive growth phase that has yet to reach an inflection point. This trajectory warrants further investigation into whether the current commercial strategy can ever achieve self-funding status without significant changes to the cost structure or product pricing.
Based on the quarterly cash flow data, working capital changes have been a primary driver of cash flow instability, with a significant $14.5M outflow in 2025Q1 followed by a $3.0M inflow in 2026Q1, reflecting the lumpy nature of hospital procurement and inventory management.
These erratic working capital movements suggest that the company's cash position is highly sensitive to the timing of customer payments and inventory stocking levels. Such volatility complicates cash flow forecasting and may indicate that the company lacks the leverage to optimize its cash conversion cycle effectively within the current hospital procurement environment.
Analysis of the cash flow statement reveals that stock-based compensation, which totaled $3.0M in 2026Q1, consistently acts as a significant non-cash add-back that masks the true extent of the company's operational cash requirements and dilutive impact on existing shareholders.
By relying on equity-based incentives to manage its cost base, the company effectively shifts the burden of its operational losses onto shareholders. This practice warrants further investigation, as it may be artificially inflating the reported operating cash flow figures while failing to address the underlying structural deficit in the business model.
Quick answers to the most common questions about buying HRTX stock.
Heron Therapeutics, Inc. (HRTX) generated $-27.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Heron Therapeutics, Inc. (HRTX) reported negative free cash flow of $27.9M in 2025, indicating capital requirements exceeded cash from operations.
Heron Therapeutics, Inc. (HRTX) 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.