Structural cash burn is evident in the consistent negative free cash flow, with quarterly outflows frequently exceeding $5 million and an OCF/NI ratio of -5.73 in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Jun'98 | Jun'96 |
|---|
| Cash from Operations | -22.11M | -18.92M | -23.09M | -28.57M | 1.06M | -23.56M | -19.75M | -31.95M | -30.88M | -30.52M | -42.33M | -44.54M | -38.85M | -29.51M | -19.68M | -13.59M | -7.73M | -4.26M | -1.6M | -1.24M | -1.26M | -1.41M | -1.54M | -654.14K | -2.13M | -3.21M | -4.86M | -4.39M | -2.1M | -1.3M | -2.1M |
| Operating CF Margin % | - | -129.97% | -243.1% | -319.35% | 7.2% | -604.75% | -2555.37% | -2161.5% | -2180.93% | -1702.96% | -1879.48% | -1757.85% | -1996.24% | -1031.41% | -1162.5% | -312.16% | -210.12% | -221.28% | -106.68% | -118.53% | -108.62% | -156.57% | -223.23% | -117.56% | -550.14% | -2112.89% | -9252.9% | -423.6% | -700% | -1300% | -2100% |
| Operating CF Growth % | -11.69% | 18.07% | 19.16% | -2797.45% | 104.49% | -19.28% | 38.17% | -3.45% | -1.2% | 27.9% | 4.98% | -14.64% | -31.67% | -49.95% | -44.77% | -75.79% | -81.53% | -165.54% | -29.38% | 1.76% | 10.74% | 7.97% | -134.92% | 69.28% | 33.67% | 33.91% | -10.52% | -109.28% | -61.54% | 38.1% | -5% |
| Net Income | -64.21M | -63.53M | -18.61M | -21.49M | -26.35M | -43.27M | -20.68M | -11.83M | -46.78M | -23.29M | 18.62M | -58.13M | -43.78M | -52.91M | -25.31M | -16.52M | -11.18M | -5.14M | -3.78M | -1.44M | -1.86M | -2.07M | -3.09M | -1.74M | -2.84M | -3.66M | -4.93M | -5.48M | -2.1M | -3M | -2M |
| Depreciation & Amortization | 723K | 699K | 609K | 692K | 727K | 873K | 2.04M | 3M | 3.27M | 3.3M | 4.76M | 6.33M | 8.41M | 3.95M | 2.83M | 2.37M | 928.78K | 34.59K | 16.75K | -189.23K | 26.51K | 6.37K | 1.05M | 810.58K | 506.75K | 295.61K | 75.46K | 59.54K | 0 | 0 | 0 |
| Stock-Based Compensation | 2.34M | 4.75M | 5.08M | 4.64M | 4.29M | 3.52M | 2.23M | 3.58M | 5.4M | 3.93M | 7.95M | 11.05M | 4.46M | 3.22M | 1.28M | 1.22M | 638.71K | 488.56K | 134.52K | 151.06K | 0 | 89.18K | 0 | 0 | 191.92K | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -5.28M | -5.28M | 0 | -1.8M | 0 | -6M | -1.24M | -7.41M | -346K | -17.57M | -4.52M | -4.52M | -7.38M | -3.28M | 36.5K | 17.17M | 478.88K | 568.36K | 62.92K | -21.6K | 0 | -89.18K | 0 | 0 | -191.92K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 48.57M | 48.55M | -1.4M | 195K | 3.73M | 202K | -3.47M | -17.34M | 6.93M | 640K | -68.4M | -2.58M | 261.8K | 16.79M | 1.01M | -17.86M | 1.85M | 99.15K | 520.04K | 151.06K | 306.46K | 168.16K | 146.27K | 151.34K | 134.69K | 191.92K | 243.66K | 585.07K | -100K | 200K | 300K |
| Working Capital Changes | -4.45M | -4.11M | -8.77M | -10.8M | 18.67M | 21.11M | 1.37M | -1.96M | 638K | 2.48M | -741K | 3.31M | -827.05K | 2.73M | 468.01K | 26.12K | -447.76K | -306.1K | 1.44M | 106.96K | 269.44K | 485.57K | 353.54K | 126K | 74.34K | -38.53K | -251.13K | 440.37K | 100K | 1.5M | -400K |
| Change in Receivables | -586K | -316K | 106K | -446K | 50.31M | -857K | 287K | 467K | 46K | -172K | -39K | -248K | -73.78K | -180.93K | 36.32K | -120.68K | -77.91K | -349 | 754 | 3.67K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -72K | -308K | 2.88M | 122K | 1.3M | -75K | -75K | -87.33K | -123.38K | -4.14K | 31.09K | -11.09K | -38.38K | 172.05K | -12.03K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -200K |
| Change in Payables | 394K | 2.27M | -1.68M | -2.29M | -18.7M | 21.64M | 308K | -2.88M | 1.1M | 1.3M | 12K | 1.67M | -469.75K | 2.13M | 894.98K | 600.4K | 254.09K | -419.46K | 699.54K | 46.44K | 0 | 327.9K | -118.78K | -84.83K | -50.4K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -17.69M | -13.46M | -2.31M | 46.45M | -46.16M | 9.74M | 13.04M | 16.96M | 11.82M | -10.22M | -10.89M | -7.44M | -1.01M | -3.67M | -104.69K | -1.2M | 3.2M | -46.23K | -909.87K | -6.47K | -10.66K | 0 | 0 | 0 | -3.83K | -5.12K | -33.4K | -161.72K | 0 | -100K | 0 |
| Capital Expenditures | -192K | -522K | -565K | -674K | -413K | -354K | -64K | -440K | -3.29M | -1.33M | -2.53M | -5.33M | -483.1K | -2.28M | -400.81K | -961.78K | -435.77K | -61.28K | -859.87K | -6.47K | -10.66K | 0 | 0 | 0 | -3.83K | -5.12K | -33.4K | -161.72K | 0 | -100K | 0 |
| CapEx % of Revenue | 1.3% | 3.59% | 5.95% | 7.53% | 2.81% | 9.09% | 8.28% | 29.77% | 232.13% | 74% | 112.17% | 210.5% | 24.82% | 79.59% | 23.68% | 22.09% | 11.84% | 3.18% | 57.18% | 0.62% | 0.92% | - | - | - | 0.99% | 3.37% | 63.63% | 15.59% | - | 100% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 45.75M | 10.09M | 13.06M | 17.33M | 15.11M | -8.9M | -8.38M | 0 | 0 | 0 | 292.39K | -240.94K | 3.88M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -288K | 0 | 0 | 0 | -45.75M | 14K | 41K | 65K | -8K | 188K | 13K | -859K | -524.71K | -1.39M | 3.74K | 10 | -242.69K | 15.05K | -50K | -6.47K | 0 | 0 | 0 | 0 | -5.12K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 27.47M | 26.95M | 35.86M | 6.42M | 1.63M | 36.93M | 29.86M | 617K | 5.77M | 55.39M | 32.78M | 64.78M | 63.62M | 34.26M | 1.91M | 3.86M | 25.77M | 16.48M | 2.52M | 694.94K | 126 | 1.88M | 2.19M | 86.9K | 1.76M | 3.55M | 915.96K | 7.42M | 400K | 6.7M | 1.1M |
| Debt Issued (Net) | -59K | -59K | -54K | -54K | -32K | -20K | -26K | -100K | -349K | 172K | 1.61M | 196K | 445K | 0 | 0 | 0 | 0 | 2.05M | 2.41M | 694.94K | 0 | 0 | 2.33M | 0 | 0 | 3.35M | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 25.95M | 27.02M | 35.85M | 6.51M | 131K | 30.81M | 5.1M | -110K | 4.76M | 58.79M | 30.85M | 49.11M | 63.27M | 35.04M | 1.38M | 3.21M | 2.3M | 12M | 108K | 0 | 126 | 1.41M | -144.15K | 86.9K | 2.08M | 199.36K | 915.96K | 7.42M | 400K | 900K | 6.7M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -182K | -34.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -23K | -37K | -17K | -54K | -27K | -110K | -241K | -888K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -379.98K | -162.45K | 0 | 0 | 0 | -36.18K | -128.02K | 0 | 0 | -200K |
| Other Financing | 1.58M | -16K | 58K | -37K | 1.53M | 6.14M | 24.79M | 1.01M | 35.77M | -3.57M | 324K | 15.47M | -96K | -772.39K | 532.1K | 648.91K | 23.47M | 2.44M | 0 | 0 | 0 | 470K | 0 | 0 | -310.45K | 0 | 0 | 0 | 0 | 5.8M | -5.6M |
| Net Change in Cash | -11.87M | -5.03M | 10.36M | 24.06M | -44.34M | 23.09M | 23.09M | -14.3M | -13.29M | 14.75M | -20.14M | 12.74M | 23.99M | 1.15M | -17.86M | -11.11M | 21.14M | 12.18M | 2.78K | -551.52K | -1.27M | 463.01K | 653.58K | -567.25K | -368.32K | 334.41K | -3.97M | 2.86M | -1.7M | 5.4M | -1M |
| Free Cash Flow | -22.3M | -19.44M | -23.66M | -29.24M | 646K | -23.91M | -19.82M | -32.39M | -34.17M | -31.84M | -44.85M | -49.88M | -39.34M | -31.79M | -20.08M | -14.56M | -8.17M | -4.32M | -2.46M | -1.25M | -1.27M | -1.41M | -1.54M | -654.14K | -2.13M | -3.21M | -4.89M | -4.56M | -2.1M | -1.4M | -2.1M |
| FCF Margin % | -150.91% | -133.56% | -249.05% | -326.89% | 4.39% | -613.83% | -2563.65% | -2191.27% | -2413.07% | -1776.95% | -1991.65% | -1968.35% | -2021.06% | -1111% | -1186.17% | -334.25% | -221.96% | -224.46% | -163.86% | -119.15% | -109.54% | -156.57% | -223.23% | -117.56% | -551.13% | -2116.25% | -9316.53% | -439.19% | -700% | -1400% | -2100% |
| FCF Growth % | 1.4% | 17.82% | 19.09% | -4626.32% | 102.7% | -20.68% | 38.81% | 5.22% | -7.3% | 29% | 10.08% | -26.8% | -23.76% | -58.29% | -37.96% | -78.19% | -89.04% | -75.37% | -97.69% | 2.08% | 9.99% | 7.97% | -134.92% | 69.33% | 33.65% | 34.26% | -7.33% | -116.98% | -50% | 33.33% | 0% |
| FCF per Share | -0.09 | -0.08 | -0.12 | -0.17 | 0.00 | -0.15 | -0.13 | -0.22 | -0.27 | -0.28 | -0.45 | -0.63 | -0.59 | -0.59 | -0.41 | -0.31 | -0.20 | -0.15 | -0.10 | -0.05 | -0.06 | -0.08 | -0.09 | -0.05 | -0.17 | -0.28 | -0.44 | -0.43 | -0.21 | -0.16 | -0.25 |
| FCF Conversion (FCF/Net Income) | 0.35x | 0.30x | 1.24x | 1.33x | -0.04x | 0.55x | 0.96x | 2.73x | 0.67x | 1.53x | -1.26x | 0.95x | 1.07x | 0.67x | 0.92x | 0.82x | 0.69x | 0.83x | 0.42x | 0.86x | 0.68x | 0.68x | 0.50x | 0.38x | 0.75x | 0.88x | 0.99x | 0.80x | 1.00x | 0.43x | 1.05x |
| Interest Paid | -41K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Clinical milestone funding dependence
According to recent SEC filings, LCTX exhibits a significant divergence between net income and operating cash flow, with the OCF/NI ratio reaching extreme levels like -5.73 in 2025Q4, suggesting that GAAP earnings provide little insight into the company's actual liquidity requirements or operational cash consumption.
The wide gap between net income and operating cash flow indicates that non-cash items and accounting adjustments for milestone recognition heavily distort the bottom line. Investors should monitor this disconnect, as it implies that the company's reported earnings are not a reliable proxy for the actual cash runway available to support ongoing clinical trials.
As reported in financial statements, LCTX consistently generates negative free cash flow, with quarterly outflows frequently exceeding $5 million, highlighting a structural inability to self-fund operations through current milestone-based revenue streams while maintaining its specialized cell therapy manufacturing infrastructure and clinical development programs.
The trajectory of free cash flow remains firmly in negative territory, reflecting the high fixed costs of maintaining cGMP-compliant facilities. This trend suggests that the company will likely remain dependent on external financing or further partnership milestones to sustain its current research and development trajectory.
Based on LCTX's reported figures, working capital changes are highly erratic, with fluctuations such as the $2.1 million outflow in 2026Q1, indicating that the timing of milestone payments and operational payables creates significant, unpredictable swings in the company's short-term cash position and overall liquidity profile.
The volatility in working capital suggests that the company's cash management is highly sensitive to the timing of contractual receipts from partners. This instability warrants further investigation into how management balances these lumpy inflows against the steady, high-burn requirements of its clinical-stage manufacturing and research operations.
As indicated by the provided data, stock-based compensation consistently adds over $1 million per quarter to the company's expenses, which effectively masks the true cash cost of talent acquisition and retention required to maintain the specialized expertise necessary for its proprietary directed differentiation platform.
While stock-based compensation is a non-cash expense, it represents a real economic cost to shareholders through dilution. The reliance on this form of compensation suggests that the company is managing its cash burn by shifting the burden of talent costs onto equity holders, which may impact future valuation.
Quick answers to the most common questions about buying LCTX stock.
Lineage Cell Therapeutics, Inc. (LCTX) generated $-18.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Lineage Cell Therapeutics, Inc. (LCTX) reported negative free cash flow of $19.4M in 2025, indicating capital requirements exceeded cash from operations.
Lineage Cell Therapeutics, Inc. (LCTX) 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.