Korro Bio, Inc. (KRRO) Cash Flow Statement

Operating cash flow has been negative in every reported quarter, so the company is consuming cash rather than converting earnings into cash. The ratio of operating cash flow to net income is not a meaningful earnings-quality signal here because both figures are negative; the more relevant observation is that the 2026Q2 outflow of -$33.1M exceeded the net loss of -$18.9M, suggesting working capital or non-cash timing effects worsened the burn in that quarter. Investors should monitor whether the gap between net loss and operating cash outflow narrows, as it may indicate the cash burn is becoming more closely tied to operating spending.

Because revenue is minimal and several quarters report none, free cash flow margins are not meaningful, and the focus shifts to absolute burn rate. The latest acceleration in outflows, combined with a non-trivial stock-based compensation add-back of $5.4M in 2026Q2, suggests reported cash burn may be partly offset in the income statement by non-cash charges rather than reflecting the full economic cost of operations. Continued quarterly burn at this pace would warrant closer scrutiny of the runway implied by the company's cash position, which is not provided in the supplied data.

The bulk of the cash burn is driven by operating expenses rather than physical investment, so capex is not a meaningful driver of the free cash flow profile in recent periods. The elevated capex in 2024 quarters appears to have reflected a temporary investment phase, after which spending dropped sharply. Depreciation and amortization of roughly $0.4M to $1.3M per quarter is consistent with this light asset base, though the data does not allow a determination of maintenance versus growth capex.

The large 2024Q4 working capital inflow of $11.2M coincided with an operating cash flow of only -$7.5M, suggesting that reported quarterly cash results can be materially shaped by payables and accrual timing. Such swings make the underlying run-rate of operating burn harder to read from any single quarter. Investors should treat the trailing average burn as a more reliable baseline than individual quarterly figures.

The absence of dividends and buybacks is consistent with a company in a cash-consumption phase, where capital allocation is oriented toward funding research and operations rather than returning capital. Because the company is burning cash on every reported quarter, its capacity to sustain this pace depends on external financing or existing reserves, neither of which is detailed in the supplied data. The data does not show the source of funding that covered these outflows, so the implications for future dilution cannot be assessed from this dataset alone.