Free cash flow has deteriorated significantly, with outflows reaching $46.0 million in 2026Q1, reflecting an accelerating burn rate that threatens the company's ability to fund long-term clinical trials.
| Cash from Operations | -148.72M | -146.72M | -104.35M | -83.73M | -82.06M | -50.69M | -19.87M | -3.08M | -2.18M |
| Operating CF Margin % | - | - | - | - | - | - | - | - | - |
| Operating CF Growth % | -86.64% | -40.6% | -24.63% | -2.03% | -61.9% | -155.16% | -544.79% | -41.59% | - |
| Net Income | -185.15M | -162.45M | -129.47M | -96.66M | -104.79M | -71.1M | -22.12M | -4.32M | -2.2M |
| Depreciation & Amortization | 481K | 490K | 393K | 377K | 1.66M | 1.66M | 11K | 9.03K | 8K |
| Stock-Based Compensation | 13.21M | 17.59M | 22.58M | 17.26M | 0 | 0 | 3.11M | 0 | 1K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 5.87M | -5.12M | -7.02M | -4.12M | 18.04M | 15.91M | 641K | -33 | 122K |
| Working Capital Changes | 16.86M | 2.77M | 9.16M | -589K | 3.02M | 2.83M | -1.5M | 1.23M | -110K |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 3.23M | 4.6M | 2.51M | 2.32M | 351K | -683K | -220K | 1.17M | -100K |
| Cash from Investing | -106.15M | -155.76M | -93.53M | -4.85M | 91.48M | -275.44M | -56K | 0 | 0 |
| Capital Expenditures | 0 | 0 | -159K | 0 | -363K | -1.57M | -56K | 0 | 0 |
| CapEx % of Revenue | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 14K | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 256.78M | 211.3M | 268.82M | 133.41M | 476K | 1.39M | 358.4M | 0 | 5.25M |
| Debt Issued (Net) | 0 | 3M | 0 | 0 | 0 | 0 | 3.09M | 0 | 323K |
| Equity Issued (Net) | 263.7M | 208.3M | 266.29M | 129.74M | 476K | 1.39M | 355.31M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -2.29M | 0 | 0 |
| Other Financing | -6.92M | 0 | 2.53M | 3.68M | 0 | 0 | 0 | 0 | 4.93M |
| Net Change in Cash | 1.91M | -91.18M | 70.94M | 44.84M | 9.89M | -324.74M | 338.48M | -3.08M | 3.08M |
| Free Cash Flow | -148.72M | -146.72M | -104.51M | -83.73M | -82.43M | -52.27M | -19.92M | -3.08M | -2.18M |
| FCF Margin % | - | - | - | - | - | - | - | - | - |
| FCF Growth % | -19.13% | -40.38% | -24.82% | -1.58% | -57.71% | -162.35% | -546.61% | -41.59% | - |
| FCF per Share | -1.45 | -1.69 | -1.78 | -1.85 | -2.06 | -1.32 | -0.51 | -0.08 | -0.15 |
| FCF Conversion (FCF/Net Income) | 0.80x | 0.90x | 0.81x | 0.87x | 0.78x | 0.71x | 0.90x | 0.71x | 0.99x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insufficient capital runway
As reported in financial statements, OLMA's operating cash flow consistently trails net losses, with the OCF/NI ratio fluctuating between 0.68 and 1.45, indicating that non-cash expenses like stock-based compensation are masking the true magnitude of the company's underlying cash burn during its clinical development phase.
The persistent gap between net income and operating cash flow suggests that the company's accounting losses are partially mitigated by non-cash charges, yet the actual cash outflow remains aggressive. Investors should monitor this divergence, as it implies that the company's reliance on equity-based incentives is a structural necessity to preserve cash for critical R&D milestones.
Based on quarterly data, OLMA's free cash flow has deteriorated from a $18.5 million outflow in 2023Q4 to a $46.0 million outflow in 2026Q1, signaling an intensifying cash burn rate that directly correlates with the advancement of its clinical trial programs for OP-1250.
The trajectory of free cash flow confirms that the company is entering a more capital-intensive phase of its lifecycle. This trend suggests that without a significant shift in clinical progress or a strategic partnership, the current rate of cash consumption may necessitate further dilutive financing to maintain operations.
According to recent SEC filings, working capital changes have been highly erratic, swinging from a $16.3 million outflow in 2025Q1 to a $10.5 million inflow in 2025Q2, which reflects the lumpy nature of clinical trial payments and the timing of vendor obligations.
This volatility in working capital suggests that the company's cash position is highly sensitive to the timing of payments to contract research organizations and other clinical service providers. Such fluctuations warrant further investigation, as they can create temporary liquidity crunches that may not be representative of the long-term operational burn rate.
Based on the provided financial data, the company's cash flow statement fails to capture the full extent of future contractual obligations to clinical sites, which may represent significant off-balance-sheet commitments that are not immediately visible in the reported quarterly cash burn figures.
The reliance on reported cash flow metrics may understate the true financial burden facing the company as it scales its Phase 3 trials. Analysts should interpret the current cash position with caution, as these hidden commitments could accelerate the depletion of liquid assets faster than the historical burn rate suggests.
Quick answers to the most common questions about buying OLMA stock.
Olema Pharmaceuticals, Inc. (OLMA) generated $-146.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Olema Pharmaceuticals, Inc. (OLMA) reported negative free cash flow of $146.7M in 2025, indicating capital requirements exceeded cash from operations.
Olema Pharmaceuticals, Inc. (OLMA) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.