Operational cash flow is heavily distorted by milestone timing, with the OCF/NI ratio fluctuating significantly from 0.15 to 1.16, while stock-based compensation of up to $9.2M per quarter masks the true cash burn.
| Cash from Operations | -57.2M | 107.5M | -160.87M | -124.51M | -70.06M | -62.15M | -36.89M | -16M | 7.04M |
| Operating CF Margin % | - | 44.05% | -4531.52% | -82455.63% | - | -309.19% | - | -159.98% | 70.42% |
| Operating CF Growth % | 74.72% | 166.83% | -29.2% | -77.71% | -12.73% | -68.45% | -130.62% | -327.18% | - |
| Net Income | -85.14M | 87.01M | -187.35M | -152.99M | -104.68M | -58.74M | -45.36M | -12.34M | -1.33M |
| Depreciation & Amortization | 1.57M | 1.51M | 1.23M | 815K | 674K | 378K | 278K | 438K | 153K |
| Stock-Based Compensation | 19.83M | 28.7M | 34.87M | 28.76M | 18.68M | 11.72M | 4.1M | 0 | 81K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 46K | 0 | 0 | 0 |
| Other Non-Cash Items | 8.65M | 2.4M | 1.82M | 1.56M | 953K | 520K | 1.82M | 2.62M | 194K |
| Working Capital Changes | -2.1M | -12.11M | -11.44M | -2.65M | 14.31M | -16.07M | 2.27M | -6.72M | 7.95M |
| Change in Receivables | 14.64M | -825K | -2.6M | -143K | 18M | -18M | 922K | -552K | -370K |
| Change in Inventory | 0 | 0 | 0 | -4.5M | 0 | 1.04M | -922K | 0 | 0 |
| Change in Payables | -5.13M | -3M | -249K | 1.61M | -408K | 1.49M | 61K | 1.31M | -2K |
| Cash from Investing | -1.06M | -1.55M | -1.93M | -2.46M | -1.24M | -1.02M | -294K | -271K | -217K |
| Capital Expenditures | -1.06M | -1.55M | -1.93M | -2.46M | -1.24M | -1.02M | -294K | -271K | -217K |
| CapEx % of Revenue | 3.19% | 0.64% | 54.39% | 1631.79% | - | 5.09% | - | 2.71% | 2.17% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -380.79M | -378.47M | 391.82M | 178.96M | 120.31M | 28.55M | 296.04M | 14K | 11.46M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 289K | -378.47M | 380.13M | 175.82M | 119.58M | 28.17M | 299.2M | 14K | 11.5M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | -375M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -381.08M | 0 | 11.69M | 3.13M | 731K | 379K | -3.16M | 0 | -37K |
| Net Change in Cash | -439.04M | -272.52M | 229.02M | 51.98M | 49.01M | -34.62M | 258.86M | -16.24M | 18.29M |
| Free Cash Flow | -58.25M | 105.95M | -162.8M | -126.97M | -71.3M | -63.17M | -37.19M | -16.27M | 6.83M |
| FCF Margin % | -175.56% | 43.41% | -4585.92% | -84087.42% | - | -314.29% | - | -162.69% | 68.25% |
| FCF Growth % | -234.5% | 165.08% | -28.22% | -78.07% | -12.87% | -69.87% | -128.58% | -338.37% | - |
| FCF per Share | -1.54 | 2.80 | -4.35 | -4.31 | -2.82 | -2.71 | -2.40 | -1.83 | 0.77 |
| FCF Conversion (FCF/Net Income) | 0.68x | 1.24x | 0.86x | 0.81x | 0.67x | 1.06x | 0.81x | 1.30x | -5.27x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 5.64M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Clinical trial execution risk
As reported in financial statements, the relationship between net income and operating cash flow is highly volatile, with the OCF/NI ratio fluctuating from 0.15 to 1.16, suggesting that reported earnings are frequently decoupled from actual cash generation due to the timing of non-recurring milestone revenue recognition.
The wide variance in the OCF/NI ratio indicates that net income is an unreliable proxy for the company's underlying cash-generating capability. Investors should monitor the persistent gap between accounting profits and operational cash, as the latter remains consistently negative in most periods, highlighting the firm's reliance on external capital to fund its R&D pipeline.
Based on Keros Therapeutics' reported figures, free cash flow trajectory remains deeply negative in most quarters, with the exception of 2025Q1, where a $160.6M inflow occurred, illustrating that the company's cash position is driven by episodic partnership events rather than sustainable, recurring operational cash flow.
The extreme swings in FCF margins, ranging from -1084% to 76%, underscore the speculative nature of the company's current financial model. This trajectory suggests that the firm is effectively burning through its cash reserves to advance clinical assets, with long-term viability contingent upon either further milestone payments or future commercial success.
According to recent SEC filings, working capital changes have been a significant driver of quarterly cash flow, with fluctuations as large as $12.9M in 2026Q1, indicating that the timing of payables and receivables related to clinical trial management creates meaningful, albeit temporary, noise in the cash flow statement.
These working capital movements appear to be largely driven by the timing of payments to CROs and other clinical service providers. Analysts should interpret these shifts as operational timing differences rather than fundamental changes in the company's ability to manage its short-term liabilities.
Based on the provided data, stock-based compensation consistently averages between $7M and $9M per quarter, which effectively masks the true cash cost of talent retention and suggests that the actual operational burn rate is higher than the headline operating cash flow figures might otherwise imply.
The consistent issuance of equity-based compensation serves as a non-cash expense that artificially improves the reported operating cash flow. Investors should adjust for this recurring dilution to better understand the true cash requirements needed to sustain the company's current research and development activities.
Quick answers to the most common questions about buying KROS stock.
Keros Therapeutics, Inc. (KROS) generated $107.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Keros Therapeutics, Inc. (KROS) generated $106.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Keros Therapeutics, Inc. (KROS) spent $1.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Keros Therapeutics, Inc. (KROS) spent $375.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.