Free cash flow remains deeply negative at $33.6 million for 2026Q1, highlighting a critical reliance on external financing to fund ongoing clinical and pre-commercial operations.
| Cash from Operations | -86.7M | -69.17M | -59.39M | -60.38M | -87.98M | -52.85M | -8.72M | -19K |
| Operating CF Margin % | - | -362.37% | - | - | -586.53% | - | - | - |
| Operating CF Growth % | -327.06% | -16.47% | 1.64% | 31.37% | -66.46% | -506.03% | -45800% | - |
| Net Income | -109M | -82.13M | -49.77M | -69.97M | -101.05M | -70.76M | -68.37M | -109K |
| Depreciation & Amortization | -3.05M | -3.12M | 58K | 15K | 8.35M | 734K | 121K | 0 |
| Stock-Based Compensation | 9.99M | 12.55M | 6.37M | 1.34M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 5.75M | 279K | -2.95M | -1.18M | 11.93M | 19.67M | 57.82M | 80K |
| Working Capital Changes | 9.6M | 3.25M | -13.09M | 9.41M | -7.21M | -2.5M | 1.71M | 10K |
| Change in Receivables | -14K | -329K | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -4.21M | -4.28M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 7.44M | -90K | -4.28M | 856K | 194K | 1.82M | 594K | -12K |
| Cash from Investing | -61.4M | -75.67M | -154.48M | -29.62M | -241.86M | -5.74M | -1.54M | 0 |
| Capital Expenditures | -735K | -827K | -468K | -30K | -6.59M | -5.74M | -1.54M | 0 |
| CapEx % of Revenue | 3.5% | 4.33% | - | - | 43.96% | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 149.72M | 149.75M | 199M | 80.7M | 597K | 417.47M | 30.08M | 0 |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 149.29M | 149.75M | 79.51M | 82.98M | 597K | 417.16M | 30.08M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -79K | 0 | 0 | 0 |
| Other Financing | 421K | 0 | 119.49M | -2.28M | 0 | 306K | 0 | 0 |
| Net Change in Cash | 1.62M | 4.91M | -14.87M | -9.3M | -329.25M | 357.16M | 19.81M | 6K |
| Free Cash Flow | -87.44M | -70M | -59.86M | -60.41M | -94.57M | -58.59M | -10.27M | -19K |
| FCF Margin % | -416.59% | -366.71% | - | - | -630.49% | - | - | - |
| FCF Growth % | -67.89% | -16.94% | 0.91% | 36.12% | -61.41% | -470.74% | -53931.58% | - |
| FCF per Share | -2.79 | -2.43 | -2.81 | -7.42 | -12.06 | -7.07 | -1.24 | -0.00 |
| FCF Conversion (FCF/Net Income) | 0.80x | 0.84x | 1.19x | 0.86x | 8.14x | 0.75x | 0.13x | 0.17x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Binary Clinical Regulatory Outcome
According to quarterly financial data, LENZ's operating cash flow consistently trails net income, with the 2026Q1 cash burn of $33.6 million highlighting a persistent disconnect between accounting losses and actual cash outflows as the company accelerates its late-stage clinical development and pre-commercial infrastructure build-out.
The recurring gap between net income and operating cash flow suggests that non-cash expenses, such as stock-based compensation, are masking the true magnitude of the company's cash consumption. Investors should interpret this divergence as a signal that the firm's operational requirements are intensifying, necessitating a closer look at the sustainability of its current burn rate.
As reported in recent filings, LENZ's free cash flow remains deeply negative, reaching a quarterly low of $33.6 million in 2026Q1, which underscores the company's total reliance on external financing to fund its ongoing Phase III clinical trials and potential commercialization efforts for its lead candidates.
The lack of positive free cash flow is expected for a development-stage biotech, yet the trend of deepening deficits warrants caution regarding the company's runway. This trajectory implies that the firm is currently in a high-risk phase where capital preservation is secondary to achieving critical regulatory milestones.
Based on the provided cash flow statements, working capital fluctuations have been erratic, with a $3.4 million inflow in 2026Q1 following a $503,000 outflow in 2025Q4, suggesting that the company's cash position is sensitive to the timing of clinical trial payments and vendor settlement cycles.
These swings in working capital appear to be driven by the irregular nature of clinical trial expenditures rather than core operational efficiency. Analysts should monitor these movements to determine if they represent genuine improvements in cash management or merely timing differences in the payment of research-related liabilities.
Data from recent financial statements indicates that stock-based compensation has become a significant non-cash add-back, reaching $3.7 million in 2025Q4, which effectively obscures the true economic cost of talent acquisition and retention during this critical pre-commercial phase of the company's development cycle.
By relying on stock-based compensation to preserve cash, the company is effectively diluting existing shareholders to fund its operations. This practice warrants further investigation to determine if the current level of dilution is commensurate with the progress made toward FDA approval and long-term commercial viability.
Quick answers to the most common questions about buying LENZ stock.
LENZ Therapeutics, Inc. (LENZ) generated $-69.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
LENZ Therapeutics, Inc. (LENZ) reported negative free cash flow of $70.0M in 2025, indicating capital requirements exceeded cash from operations.
LENZ Therapeutics, Inc. (LENZ) spent $0.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.