Free cash flow remains structurally negative, with quarterly outflows frequently surpassing $17 million, necessitating a reliance on stock-based compensation of $2.7 million in 2026Q1 to manage liquidity.
| Cash from Operations | -70.18M | -78.56M | -60.07M | -67.28M | -53.65M | -32.09M | -45.19M | 34.22M | -17.02M | -14.61M |
| Operating CF Margin % | - | -1229.05% | -2645.27% | - | - | -228.13% | -122.18% | 118.2% | - | - |
| Operating CF Growth % | -140.42% | -30.77% | 10.71% | -25.42% | -67.15% | 28.98% | -232.07% | 300.98% | -16.49% | - |
| Net Income | -113.5M | -117.26M | -83.58M | -81.17M | -58.03M | -21.96M | -10.23M | -18.75M | -19.17M | -20.24M |
| Depreciation & Amortization | 3.75M | 3.79M | 3.56M | 3.63M | 2.51M | 1.59M | 1.58M | 813K | 654K | 531K |
| Stock-Based Compensation | 4.8M | 7.66M | 4.46M | 2.38M | 1.14M | 807K | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | -145K | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 35.32M | 31.68M | 1.89M | 3.6M | 1.51M | -13.44M | -6.3M | 3.5M | 1.98M | 5.88M |
| Working Capital Changes | -557K | -4.43M | 13.59M | 4.28M | -633K | 904K | -30.24M | 48.65M | 819K | 276K |
| Change in Receivables | 1.92M | 727K | -1.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -2.56M | -2.31M | -1.34M | 3.1M | 1.75M | 56K | 4.29M | -644K | 0 | 0 |
| Cash from Investing | -21.03M | 43.99M | -123.35M | 11.16M | 11.06M | -39.5M | 10.4M | -18.26M | 3.34M | -1.86M |
| Capital Expenditures | -420K | -518K | -17.9M | -7.84M | -5.21M | -4.45M | -6.67M | -1.06M | -436K | -1.86M |
| CapEx % of Revenue | 10.93% | 8.1% | 788.29% | - | - | 31.61% | 18.04% | 3.68% | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.77M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 13K | 0 | 0 | 0 | 0 |
| Cash from Financing | 88.72M | 685K | 69.36M | 187.76M | 18K | 115.94M | 56.69M | 142.01M | 37.94M | 27.98M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 15M | 0 | 5M | 0 |
| Equity Issued (Net) | 513K | 685K | 67.39M | 162.71M | 62K | 115.95M | 41.69M | 142.01M | 32.94M | 27.98M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 88.21M | 0 | 1.97M | 25.05M | -44K | -2K | 0 | 0 | 0 | 0 |
| Net Change in Cash | -1.45M | -33.82M | -114.07M | 131.64M | -42.57M | 44.35M | 20.18M | 157.97M | 24.25M | 11.5M |
| Free Cash Flow | -70.6M | -79.08M | -77.98M | -75.12M | -58.86M | -36.54M | -51.86M | 33.15M | -17.46M | -16.48M |
| FCF Margin % | -1837.66% | -1237.16% | -3433.55% | - | - | -259.75% | -140.22% | 114.52% | - | - |
| FCF Growth % | 5.92% | -1.41% | -3.8% | -27.63% | -61.07% | 29.54% | -256.43% | 289.87% | -5.97% | - |
| FCF per Share | -6.09 | -8.42 | -8.74 | -49.12 | -230.65 | -8.22 | -80.39 | 53.74 | -27.84 | -26.28 |
| FCF Conversion (FCF/Net Income) | 0.62x | 0.67x | 0.72x | 0.83x | 0.92x | 0.38x | 1.70x | -1.83x | 0.89x | 0.72x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 141K | 27K | 11K | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and dilution
As reported in quarterly filings, the OCF/NI ratio has fluctuated significantly, reaching 0.82 in 2026Q1, which suggests that net income figures are heavily influenced by non-cash accounting adjustments rather than reflecting the underlying cash-generative capacity of the company's current research-heavy operational model.
The persistent gap between net losses and operating cash outflows indicates that non-cash expenses, such as stock-based compensation, are providing a temporary buffer to the reported bottom line. Investors should interpret this as a sign that the company's accounting earnings are not a reliable proxy for the actual cash resources being consumed by clinical development.
Based on the provided financial data, KRRO's free cash flow has remained consistently negative, with quarterly outflows often exceeding $17 million, underscoring a structural inability to self-fund operations through current collaboration-based revenue streams while maintaining its aggressive clinical trial development timeline.
The lack of positive free cash flow margins suggests that the company is entirely dependent on external capital to sustain its research activities. This trajectory appears unsustainable without a significant shift in the timing or magnitude of milestone payments from strategic partners.
According to recent cash flow statements, working capital changes have been highly erratic, swinging from a $11.2 million inflow in 2024Q4 to a $3.9 million outflow in 2025Q1, which indicates that cash management is heavily impacted by the timing of milestone-related receivables.
This volatility suggests that the company's liquidity position is sensitive to the administrative and contractual timing of partner payments. Such fluctuations may obscure the underlying operational burn rate, making it difficult for investors to forecast the exact timing of future capital requirements.
Financial statements reveal that stock-based compensation has consistently added back millions to the cash flow statement, with $2.7 million recorded in 2026Q1, effectively masking the true economic cost of talent acquisition required to maintain the OPERA platform's competitive edge.
By relying on non-cash compensation to manage operating expenses, the company may be understating the true cost of its human capital. Analysts should monitor these adjustments closely, as they represent a form of dilution that is not immediately apparent in the headline cash flow figures.
Quick answers to the most common questions about buying KRRO stock.
Korro Bio, Inc. (KRRO) generated $-78.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Korro Bio, Inc. (KRRO) reported negative free cash flow of $79.1M in 2025, indicating capital requirements exceeded cash from operations.
Korro Bio, Inc. (KRRO) spent $0.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.