Free cash flow remains deeply negative with quarterly outflows frequently exceeding $25 million, leaving the firm with a critically low cash buffer of $27.4 million as of 2026Q1.
| Cash from Operations | -87.29M | -88.7M | -99.7M | -86.16M | -57M | -67.93M | -43.51M | -18.37M | -5.18M |
| Operating CF Margin % | - | - | - | - | - | - | - | -15918.01% | -79.14% |
| Operating CF Growth % | 55.53% | 11.03% | -15.71% | -51.16% | 16.09% | -56.13% | -136.87% | -254.31% | - |
| Net Income | -99.93M | -104.08M | -108.79M | -117.5M | -113.84M | -86.08M | -91.36M | -21.08M | -274.5K |
| Depreciation & Amortization | 8.74M | 4.61M | 2.24M | 5.87M | 2.64M | 1.76M | 786K | 401K | 183.21K |
| Stock-Based Compensation | 5.72M | 8.56M | 16.73M | 17.2M | 16.86M | 14.46M | 6.75M | 947K | 182.51K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 3.24M | 738K | 0 | 0 |
| Other Non-Cash Items | 1.34M | 2.65M | 2.29M | -2.65M | 3.61M | 337K | 40.41M | -818K | 548.94K |
| Working Capital Changes | -3.15M | -435K | -12.16M | 10.93M | 33.74M | -1.64M | -828K | 2.18M | -5.28M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -463.26K | -14.82K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 2.27M | 2.46M | -4.47M | 4.22M | 2.76M | 2.79M | 2.82M | 2.64M | 689.71K |
| Cash from Investing | 61.9M | 100.32M | -129.56M | 79.02M | -184.69M | 32.53M | -210.08M | -18.3M | -757.88K |
| Capital Expenditures | -1.1M | -1.21M | -4.41M | -28.15M | -47.11M | -5.03M | -7.51M | -1.93M | -757.88K |
| CapEx % of Revenue | - | - | - | - | - | - | - | 1670.93% | 11.57% |
| Acquisitions | 0 | 0 | 0 | 0 | 137.58K | -37.56K | 202.57K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -137.58K | 37.56K | -202.57K | 0 | 0 |
| Cash from Financing | 147K | 141K | 226.08M | 691K | 219.01M | 1.2M | 329.82M | 49.58M | 87.49K |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 64.32M | 49.53M | 0 |
| Equity Issued (Net) | 147K | 141K | 225.07M | 691K | 217.17M | 1.2M | 329.42M | 43.55M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 1.01M | 0 | 1.84M | 0 | -63.92M | -43.5M | 87.49K |
| Net Change in Cash | -25.24M | 11.76M | -3.17M | -6.45M | -22.68M | -34.19M | 76.23M | 12.92M | -5.85M |
| Free Cash Flow | -88.39M | -89.91M | -104.11M | -114.31M | -104.11M | -72.95M | -51.02M | -20.3M | -5.94M |
| FCF Margin % | - | - | - | - | - | - | - | -17588.94% | -90.71% |
| FCF Growth % | 16.26% | 13.64% | 8.93% | -9.79% | -42.71% | -43% | -151.38% | -241.56% | - |
| FCF per Share | -1.19 | -1.22 | -1.53 | -2.33 | -2.39 | -2.22 | -1.60 | -2.26 | -0.12 |
| FCF Conversion (FCF/Net Income) | 0.88x | 0.85x | 0.92x | 0.73x | 0.50x | 0.79x | 0.48x | 0.87x | 18.88x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and clinical execution
As reported in financial statements, Nkarta consistently exhibits an OCF/NI ratio hovering near 0.90, indicating that the company's net losses are almost entirely realized as cash outflows, leaving little room for non-cash accounting adjustments to mitigate the impact of its ongoing research and development expenditures.
The tight correlation between net income and operating cash flow suggests that the company lacks significant non-cash expenses that would otherwise provide a buffer against its burn rate. Investors should monitor this high conversion of losses into cash outflows, as it confirms that the firm's operational survival is entirely dependent on external capital injections.
Based on the provided quarterly data, Nkarta's free cash flow remains deeply negative, with quarterly outflows frequently exceeding $25 million, a trend that underscores the structural inability of the current clinical-stage business model to generate self-sustaining liquidity without continuous reliance on equity markets.
The consistent negative trajectory of free cash flow highlights the high-cost nature of maintaining proprietary NK cell manufacturing capabilities. This persistent cash drain suggests that the company's valuation is highly sensitive to the timing of clinical milestones, which are necessary to justify further capital raises.
According to recent SEC filings, fluctuations in working capital have periodically exacerbated the company's cash burn, with quarterly changes in accounts payable and other accruals occasionally creating net cash outflows that further strain the firm's already limited liquidity position during critical trial phases.
The volatility in working capital suggests that the company has limited leverage in managing its vendor and supplier relationships, which is typical for a pre-revenue entity. This lack of working capital efficiency forces the firm to maintain higher cash balances than would otherwise be necessary to cover operational timing mismatches.
As evidenced by historical cash flow statements, stock-based compensation has historically accounted for a meaningful portion of the company's non-cash expenses, effectively masking the true magnitude of the cash burn required to retain the specialized talent necessary for its complex cell therapy engineering programs.
While stock-based compensation is a standard tool for talent retention in the biotech sector, its presence in the cash flow statement obscures the actual cost of operations. Analysts should adjust for these non-cash charges to understand the true economic cost of the company's R&D activities and the resulting pressure on shareholder equity.
Quick answers to the most common questions about buying NKTX stock.
Nkarta, Inc. (NKTX) generated $-88.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Nkarta, Inc. (NKTX) reported negative free cash flow of $89.9M in 2025, indicating capital requirements exceeded cash from operations.
Nkarta, Inc. (NKTX) spent $1.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.