Free cash flow remains structurally negative, with quarterly outflows peaking at $62.2M in 2023Q2, while stock-based compensation of $1.2M in 2025Q3 continues to mask the underlying cash burn.
| Cash from Operations | -74.37M | -82.34M | -168.88M | -49.36M | -139.99M | -74.7M | -67.74M | -55.22M | -42.68M | 31.59M | -9.64M |
| Operating CF Margin % | - | -203.32% | -458.23% | -185.71% | -325553.49% | -9021.26% | -160.82% | -521.2% | -243.25% | 125.49% | -93.02% |
| Operating CF Growth % | 109.34% | 51.24% | -242.12% | 64.74% | -87.41% | -10.26% | -22.69% | -29.38% | -235.11% | 427.81% | - |
| Net Income | -70.08M | -69.19M | -171.67M | -204.21M | -170.06M | -88.05M | -28.21M | -64.26M | -38.71M | -13.7M | -16.43M |
| Depreciation & Amortization | 1.09M | 1.63M | 1.52M | 927K | 855K | 1.01M | 1.25M | 1.26M | 928K | 655K | 297K |
| Stock-Based Compensation | 9.26M | 16.46M | 21.14M | 21.52M | 18.41M | 7.17M | 4.87M | 3.88M | 1.42M | 668K | 349K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | -222K | -386K | -134K | -102K | -349K |
| Other Non-Cash Items | 3.83M | -496K | -1.1M | -699K | 723K | 62K | 103K | 110K | -159K | 102K | 349K |
| Working Capital Changes | -18.47M | -30.74M | -18.76M | 133.1M | 10.09M | 5.11M | -45.53M | 4.18M | -6.03M | 43.97M | 6.15M |
| Change in Receivables | 1.1M | 0 | 30M | -30M | 0 | 0 | 459K | 325K | 267K | -411K | 1.2M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -1.5M | 2.61M | 2.42M | 1.42M | 304K |
| Change in Payables | 360K | -2.86M | -6.08M | 947K | 483K | 942K | -3.11M | 7.38M | 1.33M | -325K | 926K |
| Cash from Investing | 77.77M | 11.44M | 119.88M | -152.72M | -648K | 37.03M | -27.29M | 87.19M | -99.62M | -1.08M | -783K |
| Capital Expenditures | 0 | -132K | -2.17M | -2.2M | -648K | -473K | -605K | -1.37M | -1.14M | -1.08M | -619K |
| CapEx % of Revenue | 0% | 0.33% | 5.88% | 8.27% | 1506.98% | 57.13% | 1.44% | 12.93% | 6.51% | 4.31% | 5.98% |
| Acquisitions | 395K | 0 | 0 | 150.52M | 0 | 0 | 26.69M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 372K | 0 | 0 | -150.52M | 0 | 0 | -26.69M | 88.56M | -98.48M | 0 | -164K |
| Cash from Financing | -25.87M | 4.09M | 94.67M | 153.02M | 63.65M | 230.41M | 97.7M | 1.06M | 68.6M | 58.26M | 9.96M |
| Debt Issued (Net) | -26.13M | -2.23M | -262K | -272K | 18.34M | -313K | 4.88M | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 257K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 0 | 1000K | 1000K | 1000K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 146K | 0 | 0 | 0 |
| Other Financing | 0 | 542K | 1.4M | 2.4M | 2.22M | 3.7M | 664K | 1.06M | 452K | 105K | 0 |
| Net Change in Cash | -22.48M | -66.81M | 45.68M | -49.06M | -76.99M | 192.74M | 2.67M | 33.04M | -73.71M | 88.76M | -459K |
| Free Cash Flow | -74.37M | -82.47M | -171.05M | -51.56M | -140.64M | -75.17M | -68.35M | -56.59M | -43.82M | 30.5M | -10.26M |
| FCF Margin % | -224.14% | -203.65% | -464.12% | -193.97% | -327060.47% | -9078.38% | -162.26% | -534.13% | -249.77% | 121.19% | -99% |
| FCF Growth % | 22.18% | 51.78% | -231.75% | 63.34% | -87.09% | -9.98% | -20.79% | -29.13% | -243.66% | 397.45% | - |
| FCF per Share | -14.91 | -16.83 | -36.83 | -13.76 | -49.81 | -30.56 | -39.29 | -61.42 | -48.63 | 43.59 | -14.66 |
| FCF Conversion (FCF/Net Income) | 1.06x | 1.19x | 0.98x | 0.24x | 0.82x | 0.85x | 2.40x | 0.86x | 1.10x | -2.31x | 0.59x |
| Interest Paid | 1.02M | 3.47M | 0 | 0 | 0 | 234K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 418K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Clinical trial funding dependency
According to the provided cash flow data, Mersana's operating cash flow consistently tracks below net income, with OCF/NI ratios frequently exceeding 1.0, suggesting that non-cash expenses and working capital fluctuations are the primary drivers of the reported cash burn rather than operational efficiency improvements.
The persistent gap between net income and operating cash flow indicates that the company's accounting losses are being compounded by actual cash outflows required to sustain clinical operations. Investors should monitor this divergence, as it suggests that the company's reported earnings do not fully capture the intensity of the cash consumption required to maintain its R&D pipeline.
As reported in financial statements, Mersana's free cash flow remains deeply negative, with quarterly outflows reaching as high as $62.2M in 2023Q2, underscoring a structural inability to self-fund operations through its current collaboration-heavy, non-recurring revenue model in the absence of a commercialized product.
The trajectory of free cash flow reflects a company in a high-burn phase where every dollar of revenue is dwarfed by the capital requirements of clinical trial execution. This trend suggests that the firm remains entirely reliant on external financing or milestone-driven liquidity to avoid a total depletion of its cash reserves.
Based on Mersana's reported figures, working capital changes have been highly erratic, swinging from a $1.9M inflow in 2025Q3 to an $18.1M outflow in 2024Q1, which highlights the unpredictable nature of milestone-based cash receipts and the timing of clinical trial-related vendor payments.
These fluctuations suggest that the company's cash position is highly sensitive to the timing of contractual payments from partners, which can mask the underlying burn rate of its core R&D programs. Analysts should interpret these swings as evidence of a lack of operational control over cash inflows, rather than a deliberate strategy to optimize working capital efficiency.
Data indicates that stock-based compensation remains a significant non-cash add-back, with quarterly figures peaking at $6.6M in 2023Q2, which effectively masks the true economic cost of talent retention and inflates the reported operating cash flow relative to the company's actual cash-based operational requirements.
By adding back substantial stock-based compensation, the company presents a cash flow profile that appears slightly less dire than the underlying operational reality. Investors should adjust for these non-cash expenses to understand the true magnitude of the capital required to sustain the firm's current headcount and research activities.
Quick answers to the most common questions about buying MRSN stock.
Mersana Therapeutics, Inc. (MRSN) generated $-82.3M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Mersana Therapeutics, Inc. (MRSN) reported negative free cash flow of $82.5M in 2024, indicating capital requirements exceeded cash from operations.
Mersana Therapeutics, Inc. (MRSN) spent $0.1M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.