Free cash flow has deteriorated from a $17.8 million outflow in 2023Q4 to a $62.2 million outflow by 2026Q1, highlighting a rapid acceleration in cash consumption as clinical programs move into more resource-intensive phases.
| Cash from Operations | -201.25M | -180.39M | -93.93M | -73.46M | -42.25M | -27.53M | -32.71M |
| Operating CF Margin % | - | - | - | - | - | - | - |
| Operating CF Growth % | -494.07% | -92.06% | -27.86% | -73.87% | -53.45% | 15.82% | - |
| Net Income | -241.6M | -212.18M | -109.36M | -76.43M | -46.83M | -35.97M | -40.84M |
| Depreciation & Amortization | 350K | 281K | 156K | 100K | 89K | 32K | 322K |
| Stock-Based Compensation | 17.93M | 34.34M | 16.82M | 5.53M | 2.09M | 507K | 983K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 17.08M | -6.36M | -4.77M | 290K | 272K | 6.61M | 6.49M |
| Working Capital Changes | 4.99M | 3.53M | 3.23M | -2.95M | 2.13M | 1.29M | 337K |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 5.09M | 1.07M | -4.68M | -3.74M | 526K | 1.31M | -2.41M |
| Cash from Investing | -63.36M | -394.3M | -292.33M | -89K | -151K | -68K | -22K |
| Capital Expenditures | -82K | -933K | -505K | -89K | -151K | -68K | -22K |
| CapEx % of Revenue | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 230.85M | 473.41M | 218.31M | 239.38M | 148.98M | 89.93M | 34.25M |
| Debt Issued (Net) | 0 | 0 | 28.99M | 0 | 0 | -4.58M | 14M |
| Equity Issued (Net) | 229.59M | 472.83M | 187.3M | 199.08M | 53.5M | 89.86M | 20.08M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.26M | 578K | 2.02M | 40.3M | 95.48M | 4.65M | 163K |
| Net Change in Cash | -33.76M | -101.28M | -167.94M | 165.83M | 106.58M | 62.33M | 1.52M |
| Free Cash Flow | -201.34M | -181.33M | -94.43M | -73.55M | -42.4M | -27.6M | -32.73M |
| FCF Margin % | - | - | - | - | - | - | - |
| FCF Growth % | -95.49% | -92.02% | -28.39% | -73.46% | -53.62% | 15.67% | - |
| FCF per Share | -5.23 | -5.14 | -3.42 | -3.30 | -40.79 | -34.44 | -21.65 |
| FCF Conversion (FCF/Net Income) | 0.83x | 0.85x | 0.86x | 0.96x | 0.90x | 0.77x | 0.80x |
| Interest Paid | 0 | 0 | 198K | 0 | 0 | 307K | 345K |
| Taxes Paid | 0 | 0 | 299K | 112K | 0 | 0 | 0 |
Clinical trial endpoint failure
According to quarterly financial statements, the company's operating cash flow consistently tracks net losses, with OCF/NI ratios fluctuating between 0.58 and 1.25, indicating that non-cash adjustments and working capital volatility are the primary drivers of the reported cash burn rather than operational efficiency.
The lack of a stable relationship between net income and operating cash flow suggests that the company's cash burn is highly sensitive to the timing of clinical trial payments and accruals. Investors should monitor this volatility, as it implies that reported net losses may not fully capture the immediate liquidity requirements of the firm's R&D-heavy business model.
As reported in recent filings, the company's free cash flow has deteriorated from a $17.8 million outflow in 2023Q4 to a $62.2 million outflow by 2026Q1, reflecting a rapid acceleration in cash consumption as clinical development programs move into more resource-intensive phases.
The widening FCF deficit suggests that the company is currently in a high-intensity capital consumption phase with no near-term prospect of self-funding. This trajectory warrants further investigation into the company's ability to sustain operations without recurring dilutive financing events given the absence of revenue.
Based on the provided cash flow data, working capital changes have swung from a $10.9 million outflow in 2024Q1 to an $8.4 million inflow in 2025Q4, highlighting the significant impact of timing differences in clinical trial vendor payments on the company's quarterly liquidity position.
The erratic nature of these working capital swings suggests that the company's cash position is susceptible to the payment cycles of its clinical research partners. Analysts should interpret these fluctuations as a sign of operational complexity rather than a fundamental improvement in cash management efficiency.
Data from financial disclosures reveals that stock-based compensation has grown to $9.5 million per quarter by 2025Q3, effectively masking the true economic cost of operations and creating a persistent dilution risk for shareholders that is not captured in standard operating cash flow metrics.
While stock-based compensation is a non-cash expense, its increasing scale suggests that the company is utilizing equity to preserve cash, which may lead to significant long-term dilution. Investors should consider this as a hidden cost of capital that effectively lowers the quality of the company's cash flow profile.
Quick answers to the most common questions about buying IRON stock.
Disc Medicine, Inc. (IRON) generated $-180.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Disc Medicine, Inc. (IRON) reported negative free cash flow of $181.3M in 2025, indicating capital requirements exceeded cash from operations.
Disc Medicine, Inc. (IRON) spent $0.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.