ImmunityBio, Inc. (IBRX) Cash Flow Statement

The gap between net income and operating cash flow is substantial, with non-cash items like stock-based compensation ($16.7M) and depreciation ($8.8M) partially explaining the difference. However, the large swing in 2026Q1 (net loss of $632.8M vs. OCF of -$75.4M) indicates one-time non-cash charges, possibly impairments or fair value adjustments, that obscure the underlying cash burn. Investors should focus on operating cash flow as the more reliable indicator of ongoing cash consumption.

Despite record quarterly revenue of $50.7M, FCF has not improved proportionally, with cumulative FCF over the last four quarters exceeding -$370M. The FCF margin, while improving from -174.5% in 2026Q1, remains deeply negative, indicating that operating expenses and working capital needs are outpacing revenue. This suggests the company is still in a heavy investment phase, and the path to positive FCF is distant.

The low CapEx relative to revenue (10.3% in 2026Q2) suggests that either the manufacturing build-out is largely complete or that significant costs are being capitalized elsewhere, possibly in R&D or inventory. This may indicate that the company is not investing enough in capacity to support future growth, or that the heavy capital spending occurred in prior periods. The sustainability of the current asset base to support commercial expansion warrants monitoring.

The negative working capital changes across most quarters suggest that as revenue grows, the company is absorbing cash into inventory and receivables, which is typical for a commercial launch but strains liquidity. The small magnitude relative to operating losses implies that working capital is not the primary driver of cash burn, but it does add to the pressure. Efficient management of collections and inventory will be critical as the company scales.

The absence of capital returns is expected for a company in this stage, but it underscores the reliance on external financing. With cash and equivalents of only $88.3M against a quarterly operating burn of over $140M, the company will likely need to raise capital soon, which could be dilutive. The lack of any debt paydown or acquisition activity suggests a singular focus on commercializing Anktiva.

The cumulative gap between net income and operating cash flow is substantial, with non-cash items such as stock-based compensation, depreciation, and possibly impairments accounting for the difference. This suggests that the economic reality of cash consumption is less severe than the accounting losses imply, but the cash burn is still substantial. Investors should monitor the sustainability of these non-cash adjustments and the eventual cash requirements to fund operations.