Free cash flow remains consistently negative, with quarterly outflows reaching as high as $19.5 million, highlighting a total dependence on external capital to fund ongoing clinical development.
| Cash from Operations | -30.65M | -31.51M | -47.96M | -78.26M | -118.21M | -126.88M | -80.52M | -39.9M | -18.57M |
| Operating CF Margin % | - | - | - | - | - | - | - | - | - |
| Operating CF Growth % | 116.13% | 34.3% | 38.73% | 33.79% | 6.83% | -57.57% | -101.82% | -114.88% | - |
| Net Income | -37.68M | -45.52M | -64.77M | -102.06M | -136.13M | -185.39M | -112.23M | -45.63M | -12.77M |
| Depreciation & Amortization | 675K | 857K | 3.08M | 3.72M | 3.68M | 1.54M | 800K | 134K | 0 |
| Stock-Based Compensation | 1.53M | 3M | 5.82M | 10.92M | 18.95M | 32.69M | 14.58M | 1.45M | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 2.78M | 633K | 0 | 0 |
| Other Non-Cash Items | 22K | 6.16M | 3.71M | 3.82M | 3.77M | 10.07M | 1.26M | 10.09M | 2.73M |
| Working Capital Changes | 4.8M | 4M | 4.2M | 5.34M | -8.49M | 11.42M | 14.44M | -5.94M | -8.52M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 398K | 212K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 1.36M | 1.88M | -556K | -2.79M | -5.41M | 2.2M | 4.59M | 398K | 212K |
| Cash from Investing | 605K | 40.22M | 54.95M | 65.24M | 25.2M | -45.81M | -172.11M | -1.69M | -2.54M |
| Capital Expenditures | 0 | 0 | -34K | -146K | -5.27M | -25.64M | -1.65M | -1.19M | -2.54M |
| CapEx % of Revenue | - | - | - | - | - | - | - | - | - |
| Acquisitions | 605K | 1.17M | 0 | 0 | 0 | 8M | 500K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | -8M | -500K | -500K | -2.52K |
| Cash from Financing | 23K | 23K | 8.87M | 135K | -1.35M | 166.66M | 228.75M | 175.6M | 45.97M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 23K | 23K | 8.74M | 135K | 433K | 166.69M | 228.47M | 176.19M | 45.97M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 14K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 132K | 0 | -1.79M | -37K | 284K | -587K | 0 |
| Net Change in Cash | -30.02M | 8.73M | 15.86M | -12.89M | -94.36M | -6.04M | -23.87M | 134.01M | 24.86M |
| Free Cash Flow | -30.65M | -31.51M | -47.99M | -78.41M | -123.48M | -152.52M | -82.17M | -41.59M | -21.11M |
| FCF Margin % | - | - | - | - | - | - | - | - | - |
| FCF Growth % | 28.57% | 34.34% | 38.8% | 36.5% | 19.04% | -85.63% | -97.57% | -97.01% | - |
| FCF per Share | -9.56 | -9.93 | -15.89 | -28.65 | -45.37 | -57.18 | -36.03 | -34.71 | -17.62 |
| FCF Conversion (FCF/Net Income) | 0.81x | 0.69x | 0.74x | 0.77x | 0.87x | 0.68x | 0.72x | 0.87x | 1.45x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Capital exhaustion and insolvency
As reported in financial statements, the relationship between net income and operating cash flow remains highly volatile, with OCF/NI ratios fluctuating between 0.39 and 1.72, suggesting that GAAP net income is a poor proxy for the actual rate of cash depletion in this pre-revenue environment.
The significant variance in the OCF/NI ratio indicates that non-cash items and working capital swings frequently decouple accounting losses from actual cash outflows. Investors should interpret these fluctuations as evidence of the company's reliance on clinical trial accruals and timing-sensitive payments rather than a stable operational cash profile.
Based on the company's reported figures, free cash flow remains consistently negative, with quarterly outflows reaching as high as $19.5 million, underscoring the company's total dependence on external financing to sustain its clinical development pipeline in the absence of any recurring revenue streams.
The lack of a positive FCF trajectory highlights the structural challenge of funding high-cost gene therapy development without commercial products. This persistent cash burn necessitates a constant evaluation of the company's runway, as there is no internal mechanism to offset the heavy R&D and manufacturing expenditures.
According to recent SEC filings, working capital changes have been highly erratic, swinging from a $5.5 million outflow in 2026Q1 to a $6.2 million inflow in 2025Q4, which suggests that the company's cash position is heavily influenced by the timing of clinical trial vendor payments.
These swings in working capital appear to be a function of the company's reliance on third-party manufacturing and clinical service providers. Such volatility makes it difficult to forecast the exact timing of cash outflows, potentially creating liquidity crunches that management must navigate through careful cash management.
As indicated by the provided cash flow data, the company's reported operating cash flow often masks the underlying intensity of clinical trial costs, as stock-based compensation and depreciation adjustments provide only a partial view of the true economic cost of maintaining the UPenn GTP partnership.
The cash flow statement obscures the long-term liability of milestone and royalty obligations inherent in the UPenn collaboration, which are not fully captured in current cash outflows. Analysts should remain cautious, as these off-balance-sheet commitments represent a significant future claim on any potential commercial success.
Quick answers to the most common questions about buying PASG stock.
Passage Bio, Inc. (PASG) generated $-31.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Passage Bio, Inc. (PASG) reported negative free cash flow of $31.5M in 2025, indicating capital requirements exceeded cash from operations.
Passage Bio, Inc. (PASG) 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.