Persistent cash burn is highlighted by a $665K free cash flow outflow in 2023Q3, further complicated by erratic capital allocation strategies like the $243.1M share buyback in 2022Q4.
| Cash from Operations | -1.05M | -8.14M | -3.73M | -2.95M | -2.15K | -1.07M |
| Operating CF Margin % | - | - | - | - | - | - |
| Operating CF Growth % | -329.65% | -118.06% | -26.78% | -136702.93% | 99.8% | - |
| Net Income | -25.73M | -6.94M | 1.01M | -51.16M | -24.49K | -1.86M |
| Depreciation & Amortization | 0 | 5.27K | 4.27K | 240 | 0 | 0 |
| Stock-Based Compensation | 159 | 155.34K | 0 | 317.88K | 221.29K | 332.07K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -908.06K | -151.16K | -4.36M | 49.07M | -144.51K | 326.91K |
| Working Capital Changes | 622.63K | -1.22M | -386.2K | -1.17M | -54.44K | 129.74K |
| Change in Receivables | 767.9K | -225.42K | -95.6K | 107.62K | 0 | 100.05K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 246.83M | -4.51M | -16.23K | -5.73K | 0 | -32.04K |
| Capital Expenditures | -8 | -500.23K | -9.88K | -5.73K | 0 | 0 |
| CapEx % of Revenue | - | - | - | - | - | - |
| Acquisitions | 0 | -4M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 4 | -11.23K | -6.35K | 0 | 0 | 254.97M |
| Cash from Financing | -245.81M | 13.96M | 9.15M | 2.35M | 1.59K | -1.63M |
| Debt Issued (Net) | 0 | 13.96M | 7.41M | 2.35M | 0 | 0 |
| Equity Issued (Net) | -247.42M | 0 | 1.74M | 0 | 0 | 256.49M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -247.42M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.61M | 0 | 0 | 0 | 1.59K | -258.12M |
| Net Change in Cash | -40.43K | 1.31M | 5.4M | -601.09K | -565 | -3.06M |
| Free Cash Flow | -1.05M | -8.64M | -3.74M | -2.95M | -519.6K | -839.17K |
| FCF Margin % | - | - | - | - | - | - |
| FCF Growth % | -102.8% | -130.85% | -26.87% | -467.95% | 38.08% | - |
| FCF per Share | -0.08 | - | -6.59 | -0.45 | -0.02 | -0.03 |
| FCF Conversion (FCF/Net Income) | 0.04x | 1.17x | -3.69x | 0.06x | -0.00x | -0.13x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Clinical trial funding exhaustion
As reported in financial statements, PBM exhibits a profound disconnect between net income and operating cash flow, with the OCF/NI ratio fluctuating wildly, including a 4.00 reading in 2023Q1, which suggests that accounting losses do not accurately reflect the actual cash depletion occurring within the business.
The lack of correlation between net income and cash flow is typical for a pre-revenue entity where non-cash items and accounting adjustments dominate the bottom line. Investors should interpret these figures as evidence that the company's reported earnings are essentially noise, while the persistent negative operating cash flow remains the only reliable indicator of the firm's true financial health.
Based on the company's historical data, free cash flow has remained consistently negative across all reported quarters, with the 2023Q3 outflow of $665K highlighting the ongoing capital intensity required to sustain clinical development in the absence of any meaningful revenue generation or self-sustaining operational margins.
The trajectory of free cash flow confirms that the company is in a pure cash-consumption phase, with no evidence of margin improvement or operational leverage. This trend suggests that the firm will remain entirely dependent on external financing until a clinical milestone is reached that could potentially trigger a licensing or partnership event.
According to recent SEC filings, working capital changes have been highly volatile, swinging from a $989.2K inflow in 2022Q4 to a $672.0K outflow in 2023Q1, which suggests that the timing of clinical trial payments and tax credit receipts creates significant, unpredictable fluctuations in the company's liquidity profile.
These working capital swings appear to be driven by the timing of R&D tax incentives and vendor payments rather than operational efficiency. Analysts should monitor these movements closely, as they may temporarily mask the underlying burn rate and provide a false sense of stability in the company's cash position.
As indicated by the $243.1M share buyback in 2022Q4, the company's capital deployment strategy appears erratic and potentially misaligned with its clinical-stage status, raising questions about the efficacy of management's resource allocation when the firm is simultaneously burning cash to fund its core Phase IIb trial.
The significant buyback activity in 2022Q4 warrants further investigation, as it appears counterintuitive for a pre-revenue biotech firm to return capital to shareholders while needing to preserve cash for clinical development. This suggests that capital allocation decisions may be driven by corporate structure requirements rather than a focus on maximizing long-term clinical value.
Quick answers to the most common questions about buying PBM stock.
Psyence Biomedical Ltd. (PBM) generated $-8.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Psyence Biomedical Ltd. (PBM) reported negative free cash flow of $8.6M in 2025, indicating capital requirements exceeded cash from operations.
Psyence Biomedical Ltd. (PBM) spent $0.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.