Operational cash flow remains deeply negative, evidenced by a $2.9 million burn in 2026Q1 and a persistent inability to convert reported net income into positive cash generation, such as the $4.6 million outflow seen in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | -26.06M | -31.99M | -29.38M | -27.93M | -78.91M | -108.23M | -90.69M | -92.72M | -54.12M | -34.1M | -27.35M | -15.09M | -15.36M | -10.84M |
| Operating CF Margin % | - | - | - | - | -2027.44% | -962.94% | -1425.56% | -1526.51% | - | - | - | -33531.11% | -3376.04% | -21684% |
| Operating CF Growth % | -46.02% | -8.88% | -5.21% | 64.61% | 27.1% | -19.34% | 2.19% | -71.32% | -58.72% | -24.68% | -81.24% | 1.77% | -41.68% | - |
| Net Income | -19.65M | -26.98M | -38.51M | -42.2M | -44.82M | -142.6M | -104.33M | -94.35M | -66.74M | -42.21M | -33.17M | -16.68M | -19.36M | -10.65M |
| Depreciation & Amortization | 249K | 317K | 259K | 303K | 537K | 975K | 912K | 843K | 955K | 287K | 297K | 330K | 298K | 201K |
| Stock-Based Compensation | 4.21M | 7M | 8.39M | 7.46M | 7.01M | 16.09M | 13.31M | 9.99M | 8.62M | 3.57M | 2.07M | 638K | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 5.42M | -5K | 0 | 390K | 1.84M | 1.67M | 151K | 0 | 0 |
| Other Non-Cash Items | -5.34M | -6.8M | 2.26M | -2.39M | -42.12M | 22.51M | 2.99M | 2.73M | 274K | 111K | 106K | 134K | 1.54M | -277K |
| Working Capital Changes | -5.53M | -5.52M | -1.78M | 8.89M | 491K | -10.62M | -3.57M | -11.94M | 2.38M | 2.3M | 1.68M | 340K | 2.17M | -113K |
| Change in Receivables | 0 | 0 | 0 | 78K | 15.14M | -5.76M | 1.96M | -11.56M | -157.85M | 0 | 0 | 36K | 341K | -341K |
| Change in Inventory | 0 | 0 | 0 | 7.54M | 1.71M | -6.26M | -2.37M | -4.27M | -3.87M | 0 | 0 | -571K | 0 | 0 |
| Change in Payables | 113K | 358K | -291K | -1.9M | -2.08M | 3.23M | -924K | -2.77M | 4.09M | 205K | -343K | 911K | -8K | 72K |
| Cash from Investing | -7.03M | -15K | -208K | -429K | 62.72M | 70.8M | -78.21M | -1.33M | -1.58M | -480K | -153K | -252K | -182K | -841K |
| Capital Expenditures | -16K | -15K | -208K | -610K | -313K | -886K | -1.94M | -1.33M | -1.58M | -480K | -153K | -252K | -225K | -789K |
| CapEx % of Revenue | - | - | - | - | 8.04% | 7.88% | 30.53% | 21.98% | - | - | - | 560% | 49.45% | 1578% |
| Acquisitions | 0 | 0 | 0 | 47K | 62.91M | -4.65M | 2.07M | 0 | 0 | 0 | 0 | 0 | 3K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -15K | 0 | 0 | 0 | 114K | 92K | -2.07M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -7.38M | -11.62M | 29.88M | 8.51M | -7.94M | 42.55M | 160.63M | 8.98M | 124.1M | 103.7M | 67.21M | 10.48M | 20.85M | 15.95M |
| Debt Issued (Net) | -22.54M | -22.5M | -5.04M | -10M | -40.04M | -263K | -32K | -30K | 52.81M | 8.89M | 0 | 5M | 21.12M | 16.04M |
| Equity Issued (Net) | 15.1M | 10.89M | 34.96M | 20.5M | 31.8M | 41.23M | 158.56M | 8.43M | 70.77M | 94M | 0 | 0 | -266K | -89K |
| Dividends Paid | 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 | 0 | 0 | 0 | 0 |
| Other Financing | 58K | 0 | -42K | -2M | 301K | 1.58M | 2.1M | 587K | 530K | 802K | 67.21M | 5.48M | 0 | 0 |
| Net Change in Cash | -40.46M | -43.62M | 286K | -19.85M | -24.13M | 5.12M | -8.28M | -85.07M | 68.41M | 69.12M | 39.71M | -4.86M | 0 | 0 |
| Free Cash Flow | -26.06M | -31.99M | -29.59M | -28.54M | -79.22M | -109.12M | -92.64M | -94.06M | -55.7M | -34.58M | -27.5M | -15.34M | -15.59M | -11.63M |
| FCF Margin % | - | - | - | - | -2035.48% | -970.83% | -1456.08% | -1548.49% | - | - | - | -34091.11% | -3425.49% | -23262% |
| FCF Growth % | 4.95% | -8.11% | -3.69% | 63.98% | 27.4% | -17.8% | 1.51% | -68.86% | -61.08% | -25.73% | -79.26% | 1.57% | -34% | - |
| FCF per Share | -3.20 | -3.93 | -5.36 | -11.73 | -52.10 | -83.68 | -88.43 | -137.47 | -104.10 | -81.26 | -79.56 | -44.38 | -32.22 | -24.05 |
| FCF Conversion (FCF/Net Income) | 1.33x | 1.19x | 0.76x | 0.66x | 1.76x | 0.76x | 0.87x | 0.98x | 0.81x | 0.81x | 0.82x | 0.90x | 0.79x | 1.02x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and dilution
As reported in financial statements, KALA's operating cash flow consistently trails net income, with the OCF/NI ratio frequently deviating from unity, most notably in 2025Q4 where the company reported a $686,000 profit while simultaneously burning $4.6 million in cash from core operating activities.
The persistent disconnect between GAAP net income and operating cash flow suggests that reported earnings are heavily influenced by non-cash items or non-recurring gains. Investors should monitor this divergence as it indicates that the company's accounting profitability does not translate into actual liquidity, leaving the firm reliant on external financing.
Based on KALA's reported figures, the company has maintained a negative free cash flow trajectory throughout the last ten quarters, with quarterly cash outflows reaching as high as $10.9 million in 2025Q3, underscoring the firm's total dependence on external capital to fund its clinical development pipeline.
The absence of positive free cash flow margins highlights the structural challenge of a pre-revenue biotech firm. This trend suggests that the company's cash runway is being depleted at an unsustainable rate, necessitating a potential shift in strategy or immediate capital infusion to avoid operational insolvency.
According to recent SEC filings, KALA's working capital changes have been highly erratic, with a significant $2.6 million outflow in 2026Q1 following a $2.3 million outflow in 2025Q3, reflecting the unpredictable nature of managing liabilities in a clinical-stage environment without steady commercial revenue streams.
The volatility in working capital suggests that the company lacks the operational scale to smooth out its cash requirements. This instability may indicate that management is struggling to align payment cycles with the irregular timing of clinical trial expenses, further straining the firm's limited cash reserves.
As indicated by the provided data, stock-based compensation (SBC) has consistently acted as a non-cash add-back to operating cash flow, with figures reaching $2.4 million in 2023Q4, which effectively masks the true economic cost of talent retention during this period of intense clinical development.
While SBC is a standard practice in biotechnology, the reliance on equity-based incentives during a period of cash scarcity warrants further investigation. It suggests that the company is preserving cash by diluting shareholders, a trend that may continue as the firm approaches critical data readouts.
Quick answers to the most common questions about buying KALA stock.
KALA BIO, Inc. (KALA) generated $-32.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
KALA BIO, Inc. (KALA) reported negative free cash flow of $32.0M in 2025, indicating capital requirements exceeded cash from operations.
KALA BIO, Inc. (KALA) 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.