IDEAYA Biosciences, Inc. (IDYA) Cash Flow Statement

The OCF/NI ratio of 1.45 in 2026Q2 indicates that operating cash outflows exceeded net losses by $50.9M, driven largely by a $31.2M stock-based compensation add-back and a $16.4M working capital source. However, the 2025Q3 positive OCF of $142.2M was tied to a collaboration milestone, not recurring operations, as subsequent quarters show negative OCF. This suggests that cash conversion quality is poor when excluding non-recurring items, and investors should focus on the underlying cash burn trajectory rather than headline swings.

The FCF trajectory shows a clear V-shape: after the milestone-driven positive quarter, FCF turned sharply negative, with 2026Q2 FCF of -$165.2M representing the largest quarterly burn in the dataset. This burn rate is roughly 1.5x the net loss, suggesting that working capital and non-cash adjustments are amplifying cash outflows. Given the reported cash balance of $112.8M, the current quarterly burn implies a runway of less than one year without additional financing or milestones, which warrants close monitoring.

CapEx is negligible relative to the scale of operating losses, indicating that IDEAYA's business model relies on contracted research rather than physical infrastructure. The 20.7% CapEx/Revenue ratio in 2026Q2 is an artifact of collapsed revenue ($8.9M) rather than a meaningful investment trend. This suggests that the company's cash burn is almost entirely operational, with no significant asset replacement needs, but also implies that future commercialization would require substantial capital for manufacturing and sales infrastructure.

The working capital line items are highly erratic, with positive contributions in most quarters but a notable negative in 2025Q4. This volatility likely stems from the timing of milestone receipts and expense accruals related to the GSK and Pfizer collaborations. The $16.4M source in 2026Q2 helped offset some of the operating loss, but it is not a sustainable driver of cash flow. Investors should treat working capital as a source of quarter-to-quarter noise rather than a structural efficiency improvement.

The absence of any capital returns is consistent with a clinical-stage biotech prioritizing pipeline advancement. The company's minimal debt (0.03% debt/equity) indicates that it has not relied on leverage, but the negative ROE of -10.9% suggests that equity capital is being consumed without generating returns. The $112.8M cash balance, combined with the current burn rate, implies that management may need to raise capital or secure additional milestones within the next 12-18 months, which could dilute existing shareholders.

The cumulative gap between net income and operating cash flow is relatively small, indicating that accruals are not significantly distorting the cash picture. However, the $31.2M SBC in 2026Q2 alone represents 28% of the net loss, highlighting that a meaningful portion of reported losses is non-cash. This divergence suggests that the true cash burn is slightly lower than net losses would imply, but the trend is still deeply negative. The 2025Q3 milestone created a temporary positive divergence, but the underlying pattern is one of sustained cash consumption.