Kodiak Sciences Inc. (KOD) Cash Flow Statement

The OCF/NI ratio has hovered between 0.48 and 0.92, with a recent dip to 0.70 in 2026Q2, suggesting that non-cash charges like SBC and D&A are not fully offsetting working capital swings. As net losses widen, the cash outflow per dollar of loss is increasing, which may signal that the company is consuming cash faster than its accounting losses suggest. Investors should monitor whether this trend persists as clinical programs advance.

The FCF deficit has widened each quarter, with the most recent quarter showing a burn of $46.6M, up from $39.6M two years prior. This acceleration aligns with the prior income statement analysis showing R&D spending growth of 87.6% over the same period. Without a revenue stream, the company's cash runway is likely shortening, and the trend suggests that the company may need to raise additional capital sooner than previously anticipated.

CapEx has ranged from $22K to $942K per quarter, with no clear upward trend, suggesting that the company's business model relies on outsourced manufacturing and partnerships rather than heavy infrastructure investment. This low capital intensity means that the primary cash drain is operating expenses, particularly R&D and SBC, rather than asset replacement. The lack of meaningful capex may indicate that the company is preserving cash for clinical milestones, but it also limits the potential for asset-backed financing.

The working capital adjustments have been erratic, with a notable negative swing of -$21.8M in 2024Q1 and a positive swing of $8.0M in 2025Q3, but these are minor relative to the quarterly net losses of $43M-$66M. This indicates that the company's cash flow is primarily a function of its income statement, not balance sheet changes. The lack of significant working capital movements is typical for a pre-revenue biotech, but investors should watch for any buildup in prepaid expenses or other assets that could signal future cash outflows.

The absence of capital returns is consistent with a company in a pre-revenue phase, where preserving cash for clinical development is paramount. However, the rising SBC, which reached $27.3M in 2025Q4, represents a non-cash expense that still dilutes shareholders, effectively serving as a form of equity-based compensation. This suggests that while the company is not returning cash to shareholders, it is issuing equity to fund operations, which may weigh on per-share metrics over time.

The cumulative gap between net income and operating cash flow is substantial, driven by SBC and D&A, which together averaged around $20M per quarter. This divergence suggests that the company's accounting losses overstate the immediate cash drain, but the cash burn is still accelerating. The gap may narrow if SBC declines, but given the recent spike in SBC, it is more likely to persist, meaning that cash burn will continue to be a key metric to monitor.