Despite revenue growth, free cash flow was -$41.5M in 2026Q2, driven by a $100.5M working capital outflow and capital expenditures of $20.6M, indicating the business is not yet generating cash.
Legend Biotech Corporation (LEGN) cash flow statement — 9-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Cash from Operations | -183.1M | -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 % | 66.76% | 30.25% | 63.38% | -95.39% | -1.42% | 11% | -168.47% | -127% | 13049.58% | - |
| Net Income | -91.6M | -297.58M | -158.13M | -520.12M | -445.72M | -407.2M | -308.29M | -130.37M | -1.62M | 9.37M |
| Depreciation & Amortization | 33.55M | 28.98M | 23.36M | 20.45M | 18.39M | 13.92M | 9.93M | 5.26M | 1.68M | 217K |
| Stock-Based Compensation | 32.31M | 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 | -27.41M | 261.49M | -98.24M | 130.06M | 10.68M | 12.82M | 93.83M | -4.36M | -6.13M | 228.87M |
| Working Capital Changes | -130.27M | -93.35M | 20.04M | -71.34M | 181.03M | 161.83M | -23.24M | 52.48M | 318.71M | -16.5M |
| Change in Receivables | -99.55M | -132.85M | 93.75M | -98.98M | 50.32M | 24.59M | -45M | -3.77M | 207.61M | -228.06M |
| Change in Inventory | -3.8M | -4.51M | -17.21M | -12.71M | -13.89M | 51K | -643K | -22K | -1.12M | -6K |
| Change in Payables | 3.15M | 44.52M | 14.06M | -50.2M | 72.45M | 1.8M | -4.35M | 2.01M | 3.24M | 4.17M |
| Cash from Investing | 331.72M | 711.48M | -850.54M | 92.79M | -77.09M | -194.98M | -24.17M | -58.65M | -102.26M | -827K |
| Capital Expenditures | -51.9M | -67.58M | -14.11M | -20.08M | -20.93M | -42.2M | -26.25M | -39.17M | -21.02M | -887K |
| CapEx % of Revenue | 4.08% | 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 | -128.68M | 0 | -54.34M | -100.52M | -16.05M | -4.91M | -23.52M | 50.52M | -75.23M | 55K |
| Cash from Financing | 166.52M | -300.79K | 5.7M | 791.49M | 377.98M | 626.66M | 618.88M | 14.67M | 2.5M | 3.32M |
| Debt Issued (Net) | -602K | 0 | -4.02M | -3.75M | -2.6M | -1.42M | -2.6M | -5.06M | -219K | -32K |
| Equity Issued (Net) | 213.46M | 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 | -46.34M | -3.61M | 9.72M | 795.25M | 2.93M | 4.64M | -1.05M | 19.72M | 2.72M | 3.35M |
| Net Change in Cash | 406.26M | 615.09M | -990.96M | 491.68M | 97.09M | 233.25M | 372.32M | -126.8M | 208.05M | 128K |
| Free Cash Flow | -255.58M | -168.04M | -158.14M | -416M | -223.56M | -243.87M | -253.29M | -122.23M | 286.66M | -3.26M |
| FCF Margin % | -20.1% | -16.33% | -25.21% | -145.89% | -191.07% | -354.33% | -337.72% | -197.79% | 583.44% | -13.83% |
| FCF Growth % | 11.98% | -6.26% | 61.99% | -86.08% | 8.33% | 3.72% | -107.21% | -142.64% | 8885.2% | - |
| FCF per Share | -1.32 | -0.91 | -0.86 | -2.36 | -1.41 | -1.73 | -2.14 | -0.93 | 2.86 | -0.02 |
| FCF Conversion (FCF/Net Income) | 2.79x | 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 |
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.
Key Metrics
Top Statement Risk
Geopolitical & single-asset dependency
Earnings Quality Masked by Working Capital Swings
The relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio swinging from -0.63 to 3.43 over the past ten quarters, indicating that reported earnings are a poor proxy for cash generation due to massive working capital volatility.
The most recent quarter (2026Q2) shows a positive net income of $33.2M but a negative operating cash flow of -$20.9M, a divergence primarily driven by a $100.5M working capital outflow. This suggests that while the company is recognizing revenue and profit on an accrual basis, the cash conversion cycle is lengthening, potentially due to the timing of large milestone payments or inventory build-up for manufacturing. Investors should monitor whether this working capital drag is a temporary scaling issue or a structural feature of the complex CAR-T supply chain.
FCF Deeply Negative Despite Revenue Surge
Free cash flow has been consistently negative, with the most recent quarter showing a -$41.5M FCF on a -10.7% margin, indicating that the company's accelerating revenue growth is not yet translating into positive cash generation as capital expenditures and working capital needs consume all operating cash.
The FCF trajectory shows no clear path to positivity, with the last ten quarters all negative except for two brief periods. The recent ramp in CapEx to over $20M per quarter (5.3% of revenue in 2026Q2) is a significant new cash drain, likely related to manufacturing capacity expansion. This suggests the company is in a heavy investment phase to support the commercial launch, and the path to FCF breakeven is contingent on achieving significant operating leverage and managing the working capital cycle more efficiently.
Working Capital as the Primary Cash Burn Driver
Working capital changes have been the dominant factor in operating cash flow, with a massive $100.5M outflow in 2026Q2 alone, suggesting that the scaling of the CAR-T business is creating significant cash drag from inventory, receivables, or payables dynamics.
The volatility in working capital is extreme, swinging from a $94.0M inflow in 2024Q1 to a $100.5M outflow in 2026Q2. This pattern indicates that the company's cash flow is highly sensitive to the timing of large, lumpy transactions inherent in its collaboration and product sales model. The recent large outflows may reflect a build-up of manufacturing inventory or raw materials to support increased treatment volumes, but they also highlight a key operational risk: if commercial uptake slows, the company could be left with excess, high-cost inventory.
CapEx Inflection Signals Manufacturing Scale-Up
Capital expenditures have surged from minimal levels to over $20M per quarter in 2026, representing a 5.3% of revenue in the latest period, which appears to mark a strategic shift from a lean R&D model to building out dedicated manufacturing capacity.
The CapEx trajectory is a critical signal of management's confidence in the long-term demand for Carvykti. The jump from sub-$5M quarterly spend to over $20M suggests the company is investing in its own facilities, potentially to reduce reliance on partner manufacturing or to capture more of the value chain. This increased capital intensity will pressure FCF for several quarters but is likely a necessary step to achieve the manufacturing efficiencies and control needed for long-term margin expansion.
Cash Flow Obscures True Economic Cost of SBC
Stock-based compensation, which totaled $17.3M in 2026Q2, is a significant non-cash expense that inflates operating cash flow relative to true economic earnings, and its treatment in the cash flow statement may understate the true dilutive cost of the company's growth.
While SBC is added back to calculate operating cash flow, it represents a real cost to shareholders through dilution. The company's reliance on SBC to compensate employees, especially in a competitive biotech talent market, means that the reported operating cash flow figure is not a clean measure of cash available for debt service or reinvestment. Furthermore, the accounting for the GenScript relationship and the 50/50 profit-sharing with Janssen may involve other non-cash adjustments that further obscure the underlying cash economics of the business.