MediWound Ltd. (MDWD) Cash Flow Statement

Because net income is negative in nearly all periods, the OCF/NI ratio is mathematically less meaningful than it would be for a profitable company, since a ratio above 1 here reflects a smaller cash loss against a larger accounting loss rather than cash generation. The consistently negative operating cash flow, including -$9.0M in 2026Q2, suggests that non-cash items such as the modest D&A and stock-based compensation do not account for the gap, pointing to genuine operating shortfalls. Investors should monitor whether the cash burn narrows as the company's cost structure is reshaped, rather than relying on the favorable-looking ratio in individual quarters.

The FCF margin figures are heavily distorted by the very small revenue base, so the extreme readings such as -128.2% in 2025Q1 should be read as directional rather than precise. The fact that FCF remained negative even in quarters where the free cash flow margin appeared less extreme indicates the deficit is structural rather than a one-time timing effect. This pattern warrants further investigation into how the company intends to fund ongoing operations, since the reported data alone does not reveal the financing sources available to close the gap.

Capex exceeding revenue in several quarters suggests the company is investing ahead of commercial scale, which is consistent with a manufacturing-oriented biotech model but leaves little margin for error. D&A of roughly $0.36M to $1.0M per quarter is well below capex in most periods, implying the asset base is expanding rather than being replaced, which may indicate growth-oriented rather than maintenance spending. The distinction between maintenance and growth capex cannot be determined from the supplied data, so investors should monitor whether elevated capex is tied to commercial capacity that will translate into revenue.

The absence of dividends is expected for a loss-making company, but the single buyback in 2025Q4 during a period of negative FCF is an observation worth noting, as it represents cash diverted from a business that was burning capital. No acquisition outflows are recorded, so capital deployment appears concentrated in operating and capital spending rather than inorganic growth. The reported data does not disclose the specific financing arrangements, so any conclusion about how deficits were funded would be speculative and should be verified against the balance sheet and filings.