Kymera Therapeutics, Inc. (KYMR) Cash Flow Statement

The ratio of operating cash flow to net income has ranged from 0.33 to 1.28, indicating that non-cash charges like SBC and D&A are offset by working capital movements. In 2026Q2, a large negative working capital change of -$46.4M drove operating cash outflow to $54.1M despite a net loss of $61.2M, suggesting that cash burn is not solely driven by operating losses but also by timing of receivables and payables. Investors should monitor whether these swings reflect collaboration milestone timing or structural inefficiencies.

The trajectory shows no sustained improvement in FCF, with cumulative FCF over the last five quarters at -$318.3M. The 2026Q2 revenue spike to $65.0M did not translate into positive FCF, as operating expenses and working capital outflows absorbed the cash. This suggests that the company's business model remains heavily cash-consuming, and the recent revenue event may be a one-time collaboration payment rather than a recurring source of cash.

CapEx/Revenue peaked at 72.0% in 2024Q1 but fell to 0.7% in 2026Q2, reflecting the volatility of revenue recognition rather than a change in capital intensity. The low absolute CapEx suggests that the company's cash burn is almost entirely operational, primarily R&D and SG&A, rather than investment in physical assets. This implies that future cash flow improvement will depend on revenue growth and cost control, not on reducing capital spending.

The large negative working capital change in 2026Q2 suggests a build-up of receivables or prepaid expenses, possibly related to the $65.0M revenue recognized that quarter. Conversely, the positive change in 2025Q3 may reflect a drawdown of payables or deferred revenue. This pattern implies that cash flow is heavily influenced by the timing of partnership milestones, which can obscure the underlying operational burn. Investors should adjust for these swings to assess the true cash runway.

With zero capital returns, the company is preserving cash to fund its research pipeline. The absence of dividends or buybacks is typical for a clinical-stage biotech, but it also means that shareholders rely entirely on future value creation from drug development. The cash burn, averaging over $60M per quarter, suggests that the company will need to raise additional capital or secure partnership funding to sustain operations beyond the near term.

The divergence between net income and operating cash flow is positive, meaning cash burn is less than accounting losses, which is typical for companies with significant non-cash expenses. However, the gap is not large enough to offset the overall burn, and the company still consumed over half a billion dollars in cash. This suggests that while SBC and D&A provide some cushion, the underlying cash needs remain substantial and will require external financing or revenue growth to bridge.