The firm consistently reports negative free cash flow, with quarterly outflows reaching $9.2 million in 2026Q2, indicating a lack of self-sustaining cash generation capabilities.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 |
|---|
| Cash from Operations | -20.61M | -12.51M | -15.85M | -16.18M | -12.85M | -6.87M | -3.89M | -2.21M | -3M | -2.7M | -643.93K | -1.29M | 390.6K | -4.8M | -6.71M | -2.97M | -1.75M | -1.8M | -2.16M | -371.63K | -79.83K |
| Operating CF Margin % | - | -14550% | -132041.67% | - | -1636.97% | -361.4% | -648.8% | -187.25% | -297.07% | -952.26% | -719.99% | - | - | -13624.34% | -10011.86% | - | -6628.41% | - | - | - | - |
| Operating CF Growth % | -213.08% | 21.03% | 2.06% | -25.88% | -87.15% | -76.5% | -76.03% | 26.32% | -11.31% | -318.53% | 50.03% | -429.88% | 108.13% | 28.46% | -126.17% | -69.81% | 3.12% | 16.3% | -480.03% | -365.54% | - |
| Net Income | -52.52M | -46.88M | -18.46M | -73.47M | -14.9M | -11.39M | -4.68M | -2.73M | -2.96M | -20.38M | -736.86K | -2.78M | -11.66M | -13.36M | -3.19M | -4.27M | 2.64M | 0 | 0 | 0 | -242.38K |
| Depreciation & Amortization | 182K | 246K | 103K | 132.45K | 0 | 0 | 0 | 0 | 57.48K | 18.05M | 15.61K | 18.09K | 38.52K | 31.79K | 42.06K | 39.03K | 53.52K | 0 | 0 | 0 | 462 |
| Stock-Based Compensation | 8.66M | 2.61M | 8.93M | 3.23M | 1.47M | 599.7K | 563.08K | 48.05K | 69.16K | 146.9K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 25.36M | 24.74M | 3.05M | 54.86M | 464.19K | 3.92M | 595.48K | 413.63K | -198.62K | -303.9K | 170.5K | 2.27M | 12.08M | 11.75M | 1.34M | 3M | -3.38M | -1.8M | -2.16M | -371.63K | 162.09K |
| Working Capital Changes | -2.28M | 6.78M | -9.47M | -942.2K | 115.71K | 5.77K | -371.57K | 57.6K | 35.31K | -208.49K | -93.17K | -797.83K | -67.59K | -3.22M | -4.91M | -1.74M | -1.06M | 0 | 0 | 0 | 0 |
| Change in Receivables | -405K | 5.58M | 0 | 0 | -92.65K | 215.21K | -314.16K | -43.86K | 39.27K | -51.77K | -43.92K | 16.57K | 1.49M | 320.17K | 26.41K | -197.25K | -69.79K | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 183.42K | -30.23K | 70.56K | -3.96K | -169.31K | -49.25K | 41.35K | -25.78K | 3.48K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 1.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -42.6K | -246.91K | 352.97K | -451.32K | 486.94K | 210.51K | 0 | 0 | 0 | 0 |
| Cash from Investing | 9K | -8K | -277K | -475.61K | 0 | 29.32K | 12.89K | -24.54K | -50.08K | 3.02M | -188.05K | 13.71K | -18.68K | -200.15K | -1.08M | -3.41M | -6.31K | -260.42K | -1.52M | -58.07K | -160.72K |
| Capital Expenditures | -9K | -8K | -277K | -475.61K | 0 | 0 | 0 | -24.54K | -47.84K | -49.36K | -9.51K | -3.81K | -18.68K | -198.82K | -1.11M | -2.03M | -6.31K | -260.42K | -62.64K | -31.18K | -643 |
| CapEx % of Revenue | 11.45% | 9.3% | 2308.33% | - | 0% | 0% | - | 2.08% | 4.74% | 17.44% | 10.64% | - | - | 564.01% | 1660.89% | - | 23.94% | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 29.32K | 12.57K | 0 | 0 | 3.07M | 0 | 17.52K | 0 | 14.2K | 30.56K | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 26K | 0 | 0 | 0 | 0 | 0 | 314 | 0 | -2.24K | -944 | -178.54K | 0 | 0 | -15.53K | 0 | 220.51K | 0 | 0 | 0 | -26.89K | -160.07K |
| Cash from Financing | 92.27M | 21.4M | 0 | 12.3M | 41.18M | 12.33M | 7.37M | 2.1M | 2.76M | 183.18K | 835.9K | 1.03M | -487.77K | 4.96M | 7.6M | 5.65M | 3.3M | 1.2M | 73.85K | 4.52M | 339.49K |
| Debt Issued (Net) | -8.05M | -1.31M | 0 | -54.51K | 0 | 0 | -64.73K | -135.56K | -201.03K | 172.58K | 855.86K | 0 | -487.77K | 554.51K | 0 | 160K | -39.44K | 700.53K | -35.59K | -5.32K | 0 |
| Equity Issued (Net) | 14.64M | 47.47M | 0 | 12.3M | 43.41M | 12.33M | 7.23M | 2.24M | 2.97M | 0 | -292 | 1.03M | 0 | 4.4M | 7.6M | 5.49M | 3.34M | 451.14K | 109.43K | 4.52M | 288.88K |
| Dividends Paid | 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 | -292 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 85.67M | -24.77M | 0 | 54.51K | -2.23M | -3.97K | 212.95K | -2.56K | -9.41K | 10.6K | -19.67K | 0 | 0 | 0 | 0 | 0 | 0 | 43.45K | 0 | 0 | 50.61K |
| Net Change in Cash | 72.35M | 9.18M | -16.26M | -5.59M | 28.37M | 5.8M | 3.49M | -177.47K | -283.39K | 504.28K | 54.97K | -313.88K | -103.51K | -104.83K | -231.78K | 329.99K | 533.45K | -869.55K | -3.61M | 4.09M | 0 |
| Free Cash Flow | -17.04M | -12.52M | -16.12M | -16.65M | -12.85M | -6.91M | -3.89M | -2.19M | -2.91M | -2.75M | -668.59K | -1.29M | 371.92K | -5M | -7.83M | -4.99M | -1.75M | -1.67M | -2.22M | -372.59K | -80.47K |
| FCF Margin % | -21678.79% | -14559.3% | -134350% | - | -1636.97% | -363.41% | -648.8% | -185.85% | -288.52% | -970.03% | -747.56% | - | - | -14188.35% | -11672.75% | - | -6652.34% | - | - | - | - |
| FCF Growth % | 6.87% | 22.34% | 3.19% | -29.58% | -86.11% | -77.48% | -77.35% | 24.7% | -6.13% | -310.62% | 48.26% | -447.47% | 107.44% | 36.1% | -56.71% | -184.7% | -5.1% | 24.75% | -495.35% | -363.02% | - |
| FCF per Share | -1.46 | -10.90 | -2.99 | -3.25 | -1.29 | -0.85 | -0.68 | -0.59 | -1.53 | -2.58 | -1.28 | -3.20 | 1.09 | -1.24 | -2.91 | -25.46 | -12.03 | -30.27 | -49.48 | -15.13 | -5.02 |
| FCF Conversion (FCF/Net Income) | 0.32x | 0.27x | 0.86x | 0.22x | 0.86x | 0.60x | 0.84x | 0.81x | 1.02x | 0.13x | 0.89x | 0.50x | -0.03x | 0.36x | 2.10x | 0.64x | -0.69x | 0.46x | 1.96x | 0.38x | 0.33x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 64.76K | 0 | 439 | 100 | 0 | 0 | 66.56K | 0 | 0 | 0 | 9.75K | 12.21K | 2.12K | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent capital dilution risk
As reported in financial statements, the relationship between net income and operating cash flow is highly volatile, with OCF/NI ratios fluctuating from 0.06 to 1.54, suggesting that traditional earnings metrics provide little insight into the actual cash requirements of the firm's ongoing clinical development programs.
The wide variance in the conversion ratio reflects the impact of non-cash items like share-based compensation and significant working capital swings rather than operational efficiency. Investors should monitor this divergence, as it indicates that net income is a poor proxy for the actual cash burn required to sustain the current R&D pipeline.
Based on historical cash flow data, Incannex consistently reports negative free cash flow, with quarterly outflows reaching as high as $9.2 million in 2026Q2, confirming that the company remains in a capital-intensive phase with no self-sustaining cash generation capabilities to support its clinical trial ambitions.
The trajectory of free cash flow remains deeply negative, which is typical for a pre-commercial biotech entity but highlights the company's total dependence on external financing. The lack of a clear path to positive FCF suggests that the current burn rate will necessitate further capital market engagement in the near term.
According to recent SEC filings, working capital changes have been erratic, swinging from a $4.0 million inflow in 2025Q4 to a $4.0 million outflow in 2026Q2, which indicates significant instability in the timing of payments and receipts associated with clinical trial management and regulatory compliance activities.
These fluctuations in working capital appear to be driven by the timing of R&D tax incentive receipts and the settlement of clinical research organization liabilities. Such volatility complicates cash flow forecasting and suggests that the company's liquidity position is highly sensitive to the timing of government rebates and vendor payment cycles.
As indicated by the provided financial data, share-based compensation has been a recurring feature of the cash flow statement, with $3.2 million recorded in 2026Q2 alone, effectively masking the true economic cost of talent acquisition and clinical partnership incentives that are not captured in standard operating cash flow.
The reliance on equity-based compensation suggests that management is attempting to preserve cash, yet this practice results in significant dilution for existing shareholders. Analysts should treat these SBC figures as a hidden cost of operations that, if paid in cash, would further accelerate the depletion of the company's limited cash reserves.
Quick answers to the most common questions about buying IXHL stock.
Incannex Healthcare Limited (IXHL) generated $-12.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Incannex Healthcare Limited (IXHL) reported negative free cash flow of $12.5M in 2025, indicating capital requirements exceeded cash from operations.
Incannex Healthcare Limited (IXHL) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.