Nurix Therapeutics, Inc. (NRIX) Cash Flow Statement

The historical pattern of OCF/NI below 1.0 (notably 0.66 in 2025Q3 and 0.82 in 2026Q1) reflects a pre-commercial cash structure where accounting losses understate true cash drain, likely due to payables timing and milestone accruals not yet disbursed. The 2026Q3 ratio of 1.12 on $615.6M of operating cash flow confirms that milestone-driven revenue converts to cash at near-parity or better, but this conversion dynamic may not be representative of future periods without comparable upfront payments. Investors should distinguish between structural conversion quality of recurring revenue versus one-time cash infusions.

The FCF margin trajectory shows persistent negative margins between -3.4% and -149.4% for every quarter before 2026Q3, reflecting the capital-intensive nature of late-stage clinical development. The anomalous 91.3% FCF margin in 2026Q3 should be treated as a discrete event rather than a new run-rate. Excluding this quarter, the company's average quarterly FCF burn of roughly -$64M over the trailing nine quarters represents a more sustainable baseline for evaluating future cash needs.

The $449K working capital movement in 2024Q4 represents near-stasis, while the -$32.5M drag in 2025Q2 likely reflects pre-commercial inventory build or receivables timing. Without disclosed receivables aging or inventory composition, the drivers remain opaque, but the magnitude of quarterly swings relative to a ~$60M average operating burn amplifies forecasting risk. The $16.5M release in 2025Q3 temporarily improved OCF relative to net income (OCF/NI of 0.66), demonstrating how working capital timing can either mask or accentuate underlying losses.

The near-absence of capital deployment activity outside of the 2024Q3 acquisition suggests management is prioritizing cash preservation for clinical development rather than returning capital to shareholders, a posture more consistent with late-stage biotech reinvestment needs than with a business transitioning to commercial scale. The $2.7M repurchase in 2026Q3, while modest, may signal early-stage confidence but is too small to materially offset dilution from ongoing SBC. Without disclosed guidance on capital allocation priorities, the market is unlikely to value this accumulated cash at face value absent a clearer deployment roadmap.