Free cash flow remains under pressure with a -36.5% margin in 2026Q1, exacerbated by a $75.5 million outflow in working capital that highlights the volatility of the J&J collaboration model.
| Cash from Operations | -175.24M | -100.47M | -144.03M | -393.28M | -201.28M | -198.47M | -223M | -83.06M | 307.68M | -2.38M |
| Operating CF Margin % | - | -9.76% | -22.96% | -137.92% | -172.03% | -288.36% | -297.34% | -134.41% | 626.22% | -10.07% |
| Operating CF Growth % | -562.94% | 30.25% | 63.38% | -95.39% | -1.42% | 11% | -168.47% | -127% | 13049.58% | - |
| Net Income | -250.18M | -297.58M | -158.13M | -520.12M | -445.72M | -407.2M | -308.29M | -130.37M | -1.62M | 9.37M |
| Depreciation & Amortization | 39.4M | 28.98M | 23.36M | 20.45M | 18.39M | 13.92M | 9.93M | 5.26M | 1.68M | 217K |
| Stock-Based Compensation | 33.71M | 0 | 68.94M | 47.68M | 34.34M | 20.16M | 4.76M | 1.27M | 704K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -7.35M | -5.66M | 0 |
| Other Non-Cash Items | 67.25M | 261.49M | -98.24M | 130.06M | 10.68M | 12.82M | 93.83M | -4.36M | -6.13M | 228.87M |
| Working Capital Changes | -66.31M | -93.35M | 20.04M | -71.34M | 181.03M | 161.83M | -23.24M | 52.48M | 318.71M | -16.5M |
| Change in Receivables | -127.35M | -132.85M | 93.75M | -98.98M | 50.32M | 24.59M | -45M | -3.77M | 207.61M | -228.06M |
| Change in Inventory | -576.53K | -4.51M | -17.21M | -12.71M | -13.89M | 51K | -643K | -22K | -1.12M | -6K |
| Change in Payables | 16.76M | 44.52M | 14.06M | -50.2M | 72.45M | 1.8M | -4.35M | 2.01M | 3.24M | 4.17M |
| Cash from Investing | 286.2M | 711.48M | -850.54M | 92.79M | -77.09M | -194.98M | -24.17M | -58.65M | -102.26M | -827K |
| Capital Expenditures | -61.12M | -67.58M | -14.11M | -20.08M | -20.93M | -42.2M | -26.25M | -39.17M | -21.02M | -887K |
| CapEx % of Revenue | 5.37% | 6.57% | 2.25% | 7.04% | 17.89% | 61.31% | 35.01% | 63.38% | 42.78% | 3.76% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -460K | 20K | 60K |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -14.98M | 0 | -54.34M | -100.52M | -16.05M | -4.91M | -23.52M | 50.52M | -75.23M | 55K |
| Cash from Financing | -2.17M | -300.79K | 5.7M | 791.49M | 377.98M | 626.66M | 618.88M | 14.67M | 2.5M | 3.32M |
| Debt Issued (Net) | -1.86M | 0 | -4.02M | -3.75M | -2.6M | -1.42M | -2.6M | -5.06M | -219K | -32K |
| Equity Issued (Net) | 414.12K | 3.31M | 0 | 0 | 377.64M | 623.44M | 622.53M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -721.18K | -3.61M | 9.72M | 795.25M | 2.93M | 4.64M | -1.05M | 19.72M | 2.72M | 3.35M |
| Net Change in Cash | 204.65M | 615.09M | -990.96M | 491.68M | 97.09M | 233.25M | 372.32M | -126.8M | 208.05M | 128K |
| Free Cash Flow | -236.36M | -168.04M | -158.14M | -416M | -223.56M | -243.87M | -253.29M | -122.23M | 286.66M | -3.26M |
| FCF Margin % | -20.75% | -16.33% | -25.21% | -145.89% | -191.07% | -354.33% | -337.72% | -197.79% | 583.44% | -13.83% |
| FCF Growth % | 13.47% | -6.26% | 61.99% | -86.08% | 8.33% | 3.72% | -107.21% | -142.64% | 8885.2% | - |
| FCF per Share | -1.28 | -0.91 | -0.86 | -2.36 | -1.41 | -1.73 | -2.14 | -0.93 | 2.86 | -0.02 |
| FCF Conversion (FCF/Net Income) | 0.94x | 0.34x | 0.81x | 0.76x | 0.45x | 0.49x | 0.84x | 0.82x | -110.52x | -0.25x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Concentrated Single Asset Dependency
As reported in recent financial filings, the persistent gap between net income and operating cash flow, highlighted by an OCF/NI ratio of 1.57 in 2026Q1, suggests that reported earnings are significantly impacted by non-cash accruals and timing differences inherent in the J&J collaboration revenue recognition model.
The divergence between accounting profitability and cash generation indicates that investors should exercise caution when relying on net income as a proxy for operational health. This volatility appears driven by the lumpy nature of milestone payments, which often fail to align with the underlying cash burn required to sustain manufacturing operations.
Based on the latest quarterly data, the company's free cash flow margin of -36.5% in 2026Q1 underscores a continued reliance on external capital to fund commercial expansion, as the firm struggles to bridge the gap between high-value treatment events and the substantial costs of autologous cell therapy production.
The trajectory of free cash flow remains deeply negative, suggesting that the company has yet to achieve the scale necessary to offset its heavy R&D and manufacturing infrastructure investments. This trend warrants further investigation into whether the current commercial strategy can reach cash flow break-even before liquidity constraints emerge.
According to reported figures, the company maintained a capital expenditure to revenue ratio of 8.5% in 2026Q1, reflecting the ongoing necessity of investing in specialized manufacturing facilities to support the complex vein-to-vein supply chain required for its lead BCMA-directed CAR-T therapy.
The consistent level of capital intensity suggests that the firm is still in a heavy investment phase, prioritizing capacity expansion over immediate cash preservation. Investors should monitor whether these capital outlays successfully reduce per-patient manufacturing costs or if they merely represent the baseline cost of maintaining competitive market access.
As indicated by the quarterly cash flow statements, working capital fluctuations, including a significant $75.5M outflow in 2026Q1, appear to be a primary driver of short-term cash volatility, likely stemming from the timing of inventory build-ups and the settlement of receivables within the J&J partnership structure.
The erratic nature of working capital changes suggests that the company's cash position is highly sensitive to the operational cadence of its collaboration. This volatility may indicate underlying inefficiencies in inventory management or delays in the conversion of milestone-related receivables into actual cash inflows.
Quick answers to the most common questions about buying LEGN stock.
Legend Biotech Corporation (LEGN) generated $-100.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Legend Biotech Corporation (LEGN) reported negative free cash flow of $168.0M in 2025, indicating capital requirements exceeded cash from operations.
Legend Biotech Corporation (LEGN) spent $67.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.