Free cash flow burn has moderated to $7.4M in 2026Q1, though persistent stock-based compensation of $653K continues to mask the true extent of cash depletion.
| Cash from Operations | -42.03M | -51.78M | -74.21M | -81.64M | -58.85M | -42.44M | -36.95M | -29.88M | -20.79M | -8.11M | -9.76M |
| Operating CF Margin % | - | - | - | -1166.36% | - | - | - | - | - | - | - |
| Operating CF Growth % | 154.27% | 30.23% | 9.1% | -38.74% | -38.67% | -14.85% | -23.67% | -43.69% | -156.41% | 16.92% | - |
| Net Income | -45.23M | -56.03M | -83.74M | -101.87M | -68.24M | -54.63M | -41.74M | -35.09M | -23.17M | -8.52M | -8.99M |
| Depreciation & Amortization | 561K | -1.1M | 1.04M | 1.07M | 1.02M | 1.51M | 1.54M | 1.3M | 690K | 175K | 154K |
| Stock-Based Compensation | 6.84M | 8.96M | 13.01M | 18.14M | 14.01M | 7.6M | 4.94M | 4.01M | 1.99M | 203K | 128K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 1.77M | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -1.93M | 1.8M | -3.23M | -3.68M | -1.18M | 91K | 317K | -979K | -370K | 472K | 979K |
| Working Capital Changes | -2.27M | -5.4M | -1.3M | 4.71M | -4.46M | 1.23M | -2.01M | 881K | 62K | 30K | -1.05M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -6.58M | -7.34M | -3.15M | 6.35M | 1.81M | 1.22M | 313K | 2.21M | 1.44M | 81K | -469K |
| Cash from Investing | 80.25M | 92.46M | 80.43M | 76.05M | -91.39M | -28.44M | -56.5M | 20.42M | -83.9M | -389K | -132K |
| Capital Expenditures | 0 | -8K | -29K | -1.81M | -1.58M | -316K | -194K | -607K | -1.12M | -389K | -132K |
| CapEx % of Revenue | - | - | - | 25.86% | - | - | - | - | - | - | - |
| Acquisitions | 121K | 121K | 0 | 0 | 89.81K | 28.13K | 56.3K | -21.03K | 10K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 1.53M | 0 | 0 | 5K | -89.81K | -28.13K | -56.3K | 21.03K | 10K | 0 | 0 |
| Cash from Financing | -9.01M | -10.59M | 103K | 638K | 127.86M | 112.58M | 99.64M | 272K | 77.91M | 49.76M | 36K |
| Debt Issued (Net) | -9.35M | -10.65M | 0 | 0 | 0 | 9.53M | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 65K | 65K | 103K | 638K | 126.54M | 100.97M | 99.19M | 272K | 77.91M | 49.76M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 267K | 0 | 0 | 0 | 1.32M | 2.08M | 456K | 0 | 0 | 0 | 36K |
| Net Change in Cash | 29.23M | 30.13M | 6.26M | -4.96M | -22.43M | 41.65M | 6.28M | -9.23M | -26.86M | 41.29M | -10.01M |
| Free Cash Flow | -42.03M | -51.78M | -74.24M | -83.45M | -60.42M | -42.75M | -37.14M | -30.48M | -21.91M | -8.5M | -9.89M |
| FCF Margin % | - | - | - | -1192.21% | - | - | - | - | - | - | - |
| FCF Growth % | 38.71% | 30.25% | 11.04% | -38.12% | -41.33% | -15.1% | -21.84% | -39.12% | -157.85% | 14.09% | - |
| FCF per Share | -5.72 | -7.08 | -1.02 | -1.15 | -0.90 | -0.81 | -0.84 | -1.60 | -1.15 | -0.65 | -0.76 |
| FCF Conversion (FCF/Net Income) | 0.93x | 0.92x | 0.89x | 0.80x | 0.86x | 0.78x | 0.89x | 0.85x | 0.90x | 0.95x | 1.09x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Clinical trial failure risk
According to recent SEC filings, Kezar's operating cash flow consistently tracks net losses, with the OCF/NI ratio fluctuating near parity, suggesting that the company's reported net income is largely a reflection of cash-based operational depletion rather than non-cash accounting accruals or significant deferred revenue adjustments.
The tight correlation between net income and operating cash flow indicates a lack of meaningful non-cash expenses that would otherwise bridge the gap between accounting losses and actual liquidity usage. Investors should monitor this relationship as it confirms that the company's financial position is driven entirely by the cash-intensive nature of its clinical development programs.
As reported in financial statements, Kezar's free cash flow burn has narrowed from a peak of $22.9M in 2024Q1 to $7.4M in 2026Q1, a trend that appears to be a direct consequence of trial discontinuations rather than an improvement in underlying operational efficiency or commercial viability.
The reduction in cash burn is a mechanical result of halting clinical activities, which warrants further investigation into whether the remaining cash runway is sufficient to support the company's pivot to secondary programs. This trajectory suggests a company in survival mode, where capital preservation has superseded the pursuit of clinical milestones.
Based on KZR's reported figures, working capital changes have been highly erratic, swinging from a $8.3M inflow in 2023Q4 to a $3.4M outflow in 2024Q1, which may indicate significant fluctuations in the timing of vendor payments and clinical trial-related accruals during periods of operational stress.
These swings suggest that management is actively managing liquidity by adjusting the timing of payables, likely in response to the uncertainty surrounding clinical trial outcomes. Such volatility may indicate that the company's cash position is sensitive to the timing of contract research organization settlements.
As indicated by the cash flow statement, Kezar continues to record stock-based compensation expenses, with $653K reported in 2026Q1, which effectively masks the true extent of the company's cash depletion by shifting a portion of compensation costs away from the core operating cash flow metric.
While stock-based compensation is a non-cash item, its persistence in a pre-revenue, distressed environment warrants further investigation into the alignment of management incentives. Investors should adjust the reported burn rate to account for these equity-based grants to better understand the actual cash requirements of the business.
Quick answers to the most common questions about buying KZR stock.
Kezar Life Sciences, Inc. (KZR) generated $-51.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Kezar Life Sciences, Inc. (KZR) reported negative free cash flow of $51.8M in 2025, indicating capital requirements exceeded cash from operations.
Kezar Life Sciences, Inc. (KZR) 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.