Persistent negative free cash flow remains a critical concern, with outflows reaching $5.4 million in 2025Q4, further exacerbated by erratic working capital fluctuations.
| Cash from Operations | -16.94M | -15.21B | -13.92M | -13.43M | -13.69M | -3.17M | -38.69K |
| Operating CF Margin % | - | - | - | - | - | -21073.28% | - |
| Operating CF Growth % | -165.98% | -109150.96% | -3.71% | 1.94% | -331.35% | -8104.03% | - |
| Net Income | -19.73M | -20.43B | -13.9M | -15.51M | -11.73M | -2.17M | -40.98K |
| Depreciation & Amortization | -7.55M | 32.42M | 649.03K | 648.45K | 5.09K | 1.38K | 0 |
| Stock-Based Compensation | -67.71M | 297.47M | 773.69K | 592.27K | 835.06K | 471.25K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -2.33M | 0 |
| Other Non-Cash Items | 2.91B | 4.89B | 77.81K | -732.57K | -3.65M | 750K | 0 |
| Working Capital Changes | -1.26M | -318.58K | -1.52M | 1.57M | 845.35K | 111.23K | 2.29K |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 440.68K | 0 |
| Cash from Investing | 11K | 11M | 0 | 399.01K | -2.93M | -21.5K | 0 |
| Capital Expenditures | 0 | 0 | 0 | -34.3K | -107.1K | -21.5K | 0 |
| CapEx % of Revenue | - | - | - | - | - | 142.76% | - |
| Acquisitions | 11K | 0 | 0 | 0 | -2.19M | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 0 | 11M | 0 | 433.31K | -626.9K | 0 | 0 |
| Cash from Financing | 62.05M | 63.52B | 4.52M | -3.73M | -3.21M | 55.93M | 282.34K |
| Debt Issued (Net) | 179.31K | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 62.31M | 63.97M | 4.52M | -3.73M | 0 | 50.24M | 282.34K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -3.73M | 0 | 0 | 0 |
| Other Financing | -448.28K | 63.45B | 0 | 0 | -3.21M | 5.69M | 0 |
| Net Change in Cash | 45.16M | 48.34B | -9.41M | -16.76M | -19.88M | 52.72M | 243.65K |
| Free Cash Flow | -16.94M | -15.21B | -13.92M | -13.46M | -13.8M | -3.2M | -38.69K |
| FCF Margin % | - | - | - | - | - | -21216.05% | - |
| FCF Growth % | -33.85% | -109150.95% | -3.45% | 2.45% | -331.79% | -8159.4% | - |
| FCF per Share | -2.41 | -2163.49 | -12.70 | -10.97 | -10.93 | -2.78 | -0.06 |
| FCF Conversion (FCF/Net Income) | 0.86x | 744.65x | 1.00x | 0.84x | 0.98x | 1.46x | 0.63x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Binary clinical trial failure
As reported in financial statements, KTTA's operating cash flow consistently trails net income, with the 2026Q1 period showing a net loss of $2.9M against an operating cash outflow of $4.8M, highlighting the persistent disconnect between accounting losses and the actual cash required to sustain operations.
The consistent OCF/NI ratio exceeding 1.0 in most quarters suggests that the company's cash burn is more aggressive than GAAP net losses imply. This divergence warrants further investigation into whether non-cash adjustments are failing to capture the full extent of the firm's operational cash requirements.
Based on the provided quarterly data, KTTA exhibits a persistent negative free cash flow trajectory, with outflows reaching $5.4M in 2025Q4, underscoring the company's total reliance on its existing cash reserves to fund ongoing research and development activities without any offsetting revenue streams.
The absence of positive FCF is expected for a pre-revenue biotech, yet the volatility in quarterly burn rates suggests that clinical trial milestones are driving significant, non-linear cash demands. Investors should monitor whether the current cash runway remains sufficient to reach critical data readouts for PAS-004.
According to recent SEC filings, working capital changes have been highly erratic, swinging from a $1.5M inflow in 2023Q4 to a $942.3K outflow in 2024Q1, which indicates that the company's short-term liquidity is subject to significant fluctuations based on the timing of vendor payments and clinical service obligations.
These swings in working capital appear to reflect the irregular nature of clinical trial expenses and potential timing differences in settling research-related liabilities. Such volatility complicates the predictability of the company's cash runway and suggests that management's control over short-term cash outflows remains highly sensitive to external operational demands.
As indicated by the 2025Q4 financial data, the company recorded a $67.8M adjustment related to stock-based compensation, which significantly distorts the relationship between net income and cash flow, potentially obscuring the true economic cost of the firm's equity-based incentive structures for management and scientific personnel.
The presence of such large, non-recurring adjustments suggests that GAAP net income is a poor proxy for the company's underlying cash burn. Analysts should focus exclusively on the cash flow statement to assess the true rate of capital depletion, as accounting entries appear to create significant noise in the reported bottom line.
Quick answers to the most common questions about buying KTTA stock.
Pasithea Therapeutics Corp. (KTTA) generated $-15211.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Pasithea Therapeutics Corp. (KTTA) reported negative free cash flow of $15.21B in 2025, indicating capital requirements exceeded cash from operations.
Pasithea Therapeutics Corp. (KTTA) 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.