Liquidity is under severe pressure as evidenced by a deeply negative free cash flow trajectory, with quarterly outflows averaging approximately $20 million and an OCF/NI ratio of 2.21 in 2025Q3.
| Cash from Operations | -81M | -82.35M | -71.74M | -59.73M | -40.65M | -9.96M | -8.89M |
| Operating CF Margin % | - | - | - | - | - | - | - |
| Operating CF Growth % | 15.84% | -14.79% | -20.1% | -46.95% | -308.26% | -11.98% | - |
| Net Income | -88.35M | -95.49M | -86.08M | -71.46M | -67.88M | -12.04M | -10.74M |
| Depreciation & Amortization | 910K | 849K | 756K | 540K | 2K | 0 | 0 |
| Stock-Based Compensation | 6.29M | 6.53M | 8.06M | 7.04M | 1.79M | 64K | 131K |
| Deferred Taxes | 0 | 0 | 0 | 87K | -2K | 0 | 0 |
| Other Non-Cash Items | -1.07M | 3.59M | -331K | -130K | 26.22M | 1.87M | 828K |
| Working Capital Changes | 1.23M | 2.18M | 5.86M | 4.19M | -776K | 148K | 893K |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 331K | 782K | -126K | 77K | 3.41M | -475K | 103K |
| Cash from Investing | -69K | -44K | -323K | -690K | -153K | 0 | 0 |
| Capital Expenditures | -69K | -44K | -323K | -690K | -153K | 0 | 0 |
| CapEx % of Revenue | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 32.76M | 0 | 71.86M | 0 | 252.95M | 5.1M | 9.01M |
| Debt Issued (Net) | 26.18M | 0 | 0 | 0 | 0 | 0 | 9.01M |
| Equity Issued (Net) | 6.57M | 0 | 75.06M | 0 | 265.06M | 5.12M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -3.2M | 0 | -12.11M | -14K | 0 |
| Net Change in Cash | -49.52M | -83.16M | 603K | -68.94M | 208.39M | -4.44M | -125K |
| Free Cash Flow | -81.06M | -82.39M | -72.06M | -60.42M | -40.8M | -9.96M | -8.89M |
| FCF Margin % | - | - | - | - | - | - | - |
| FCF Growth % | 5.37% | -14.34% | -19.27% | -48.09% | -309.79% | -11.98% | - |
| FCF per Share | -1.21 | -1.25 | -1.66 | -2.10 | -1.42 | -0.86 | -50.17 |
| FCF Conversion (FCF/Net Income) | 0.92x | 0.86x | 0.83x | 0.84x | 0.60x | 0.83x | 0.83x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Binary clinical trial failure
As reported in financial statements, IOBT's operating cash flow consistently trails net income, with the 2025Q3 OCF/NI ratio reaching 2.21, highlighting the persistent disconnect between accounting losses and the actual cash required to fund the company's intensive clinical development and research-heavy operational requirements.
The divergence between net income and operating cash flow suggests that non-cash charges and working capital fluctuations are masking the true intensity of the company's cash burn. Investors should monitor this gap, as it indicates that the company's reliance on external financing will likely remain high until clinical milestones are achieved.
Based on IOBT's reported figures, free cash flow remains deeply negative, with quarterly outflows averaging approximately $20 million, a trend that underscores the company's status as a pre-revenue entity entirely dependent on capital markets to sustain its ongoing Phase 3 clinical trial activities.
The lack of positive free cash flow is expected for a clinical-stage biotech, yet the consistency of these outflows suggests a high degree of operational rigidity. This trajectory implies that the company has limited flexibility to reduce spending without jeopardizing the progress of its lead oncology candidates.
According to recent SEC filings, IOBT's working capital movements have been erratic, including a $2.7 million outflow in 2025Q3, which reflects the timing of clinical trial vendor payments and the inherent unpredictability of managing large-scale research expenditures in a pre-revenue environment.
These fluctuations in working capital suggest that the company's cash position is sensitive to the timing of CRO milestones and regulatory filing requirements. Analysts should interpret these swings as a reflection of operational timing rather than a fundamental shift in the company's underlying cash management efficiency.
As indicated by quarterly data, IOBT consistently utilizes stock-based compensation, with $1.5 million recorded in 2025Q3, which serves to mitigate the immediate cash impact of talent retention but effectively obscures the true economic cost of operations for shareholders during this pre-revenue phase.
While stock-based compensation is a standard tool in biotech, its persistence in the absence of revenue suggests that management is prioritizing equity-based incentives to preserve cash. Investors should consider the dilutive impact of these awards alongside the company's ongoing need for external capital to fund its pipeline.
Quick answers to the most common questions about buying IOBT stock.
IO Biotech, Inc. (IOBT) generated $-82.3M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
IO Biotech, Inc. (IOBT) reported negative free cash flow of $82.4M in 2024, indicating capital requirements exceeded cash from operations.
IO Biotech, Inc. (IOBT) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.