Free cash flow remains persistently negative with quarterly outflows frequently exceeding $3 million, confirming a total reliance on external financing to sustain operations.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 |
|---|
| Cash from Operations | -12.25M | -11.39M | -11.25M | -8.06M | -9.61M | -8.72M | -3.14M | -2.75M | -3.71M | -1.65M | -43.2K | -871.91K | -2.7M | -2.54M | -1.89M | -710K | -160K |
| Operating CF Margin % | - | - | - | - | - | - | - | - | - | - | -864.06% | -768.71% | -1346.37% | -812.46% | -981.81% | -3550% | -114.29% |
| Operating CF Growth % | -25.16% | -1.25% | -39.46% | 16.05% | -10.18% | -177.34% | -14.29% | 25.83% | -124.09% | -3729.87% | 95.05% | 67.65% | -6.17% | -34.58% | -165.7% | -343.75% | - |
| Net Income | -14.11M | -13.56M | -11.85M | -11.12M | -27.42M | -11.43M | -14.41M | -3.36M | -3.77M | -1.86M | -337.18K | -2.98M | -4.53M | -3.07M | -2.44M | -940K | -160K |
| Depreciation & Amortization | 1.2K | 1.2K | 782 | 222 | 788.5K | 790.97K | 803.77K | 803.77K | 630.09K | 1.86K | 159 | 238.82K | 461.26K | 414.91K | 108.47K | 0 | 0 |
| Stock-Based Compensation | 602.26K | 857.55K | 629.51K | 1.06M | 8.83M | 3.41M | 2.73M | 510.48K | 74.06K | 0 | 6.69K | 96.93K | 231.52K | 216.08K | 457K | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -530.61K | -1M | -602.72K | -902.8K | 0 | 7.92K | 1.54M | 1.21M | -216.08K | -453.5K | 0 | 0 |
| Other Non-Cash Items | -64.08K | -224.5K | 87.18K | 1.39M | 7.66M | 220.61K | 8.88M | 75.91K | 67.07K | 38.7K | 967 | 83.3K | 153.62K | 216.08K | 457K | -2.24M | 0 |
| Working Capital Changes | 1.32M | 1.54M | -112.4K | 605.21K | 543.6K | -1.18M | -140.39K | -179.71K | 188.71K | 161.13K | 278.24K | 153.5K | -228.46K | -101.06K | -14.93K | 2.47M | 0 |
| Change in Receivables | 0 | 0 | 0 | 0 | 70.27K | 6.75K | -77.02K | 0 | 0 | 0 | 0 | 213.41K | -293.55K | 0 | 0 | -10K | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -6.75K | 77.02K | 0 | 0 | 0 | 0 | -7.07K | -77.47K | -97.37K | -48.75K | 0 | 0 |
| Change in Payables | 287.81K | 175.92K | 569.26K | -15.93K | 108.64K | -101.79K | 245.08K | -216.49K | 241.42K | 0 | -10.34K | 5.32K | 84.4K | 3.86K | 73.17K | 0 | 0 |
| Cash from Investing | -1.35M | -850K | -3.24K | -2.78K | 0 | 0 | 0 | 0 | -22.28K | 1M | 17K | 40.2K | -44.94K | -27.67K | -334.34K | -2.5M | 0 |
| Capital Expenditures | -1.35M | -850K | -3.24K | -2.78K | 0 | 0 | 0 | 0 | -22.28K | -20.62K | -23.77K | -1.4K | -48.3K | -27.67K | -334.34K | 0 | 0 |
| CapEx % of Revenue | - | - | - | - | - | - | - | - | - | - | 475.5% | 1.23% | 24.13% | 8.86% | 174% | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6.28K | 0 | 0 | 3.35K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.02M | 40.77K | 41.6K | 0 | 0 | 0 | -2.5M | 0 |
| Cash from Financing | 12.39M | 16.58M | 7.73M | 6.27M | -388.84K | 9.8M | 17.87M | 1.7M | 2.62M | 2.43M | 15K | 821.1K | 2.57M | 1.73M | 453.38K | 6M | 160K |
| Debt Issued (Net) | -1.31K | -6.6K | -5.2K | 0 | 0 | 0 | 862.46K | 805K | 0 | 2.58M | 15K | 733.1K | 1.7M | 383.1K | -1.37M | 2.5M | 0 |
| Equity Issued (Net) | 12.4M | 16.6M | 7.75M | 6.32M | -300K | 9.99M | 17.01M | 0 | 2.87M | 0 | 0 | 88K | 876.29K | 1.35M | 1.52M | 3.5M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 1.44K | 0 | -15.9K | 0 | -388.84K | -64.4K | -95.21K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.5M | 0 |
| Other Financing | -9.29K | -10.4K | -8.56K | -52.75K | -88.84K | -186.49K | 0 | 895.72K | -250.96K | -154.8K | 0 | 0 | 0 | 0 | 300K | -4K | 160K |
| Net Change in Cash | -1.21M | 4.35M | -3.51M | -1.8M | -9.99M | 1.08M | 14.72M | -1.05M | -1.11M | 1.78M | -11.2K | -10.6K | -165.63K | -834.61K | -1.77M | 2.79M | 0 |
| Free Cash Flow | -12.25M | -11.39M | -11.25M | -8.07M | -9.61M | -8.72M | -3.14M | -2.75M | -3.73M | -1.68M | -66.98K | -873.3K | -2.74M | -2.57M | -2.22M | -710K | -160K |
| FCF Margin % | - | - | - | - | - | - | - | - | - | - | -1339.56% | -769.94% | -1370.5% | -821.31% | -1155.81% | -3550% | -114.29% |
| FCF Growth % | -2.66% | -1.22% | -39.45% | 16.02% | -10.18% | -177.34% | -14.29% | 26.24% | -122.56% | -2401.18% | 92.33% | 68.17% | -6.91% | -15.56% | -212.79% | -343.75% | - |
| FCF per Share | -4.67 | -8.70 | -91.90 | -153.75 | -298.12 | -284.52 | -209.56 | -248.86 | -349.63 | -179.88 | -55.95 | -0.08 | -0.25 | - | -5524.47 | -6339.29 | -500.00 |
| FCF Conversion (FCF/Net Income) | 0.87x | 0.84x | 0.95x | 0.73x | 0.35x | 0.76x | 0.17x | 0.82x | 0.98x | 0.89x | 0.13x | 0.26x | 0.60x | 0.83x | 0.77x | 0.76x | 1.00x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 194.45K | 0 | 178.32K | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 132 | 0 | 100 | 0 | 0 |
Critical liquidity and funding
According to the provided financial statements, PCSA consistently reports an OCF/NI ratio hovering near 1.0, which, as reported in recent filings, confirms that the company's net losses are almost entirely mirrored by actual cash outflows, leaving no room for non-cash accounting adjustments to mask the burn.
The tight correlation between net income and operating cash flow suggests that the company's losses are fundamentally cash-based rather than driven by non-cash accounting charges. Investors should monitor this lack of divergence, as it indicates that the company's clinical development costs are immediate and unavoidable.
Based on the ten-quarter data series, PCSA's free cash flow remains consistently negative, with quarterly outflows frequently exceeding $3 million, a trend that underscores the company's total reliance on external financing to sustain its ongoing clinical trial programs and general corporate operations.
The absence of positive free cash flow is expected for a pre-revenue biotech, yet the consistency of these outflows suggests that the company has not yet achieved any meaningful operational efficiency. This trajectory implies that the cash runway is entirely dependent on the timing and size of future capital raises.
As indicated by the quarterly cash flow data, working capital changes for PCSA have been highly erratic, swinging from a $1.4 million inflow in 2025Q2 to a $394,300 outflow in 2024Q3, which suggests significant variability in the timing of vendor payments and clinical trial site obligations.
This volatility in working capital appears to be a byproduct of the company's project-based clinical spending rather than a deliberate strategy to manage liquidity. Such fluctuations warrant further investigation, as they may indicate periodic delays in trial-related payments that could impact future clinical enrollment velocity.
Financial records show that stock-based compensation has reached as high as $431,000 in a single quarter, which, as reported in recent filings, serves as a non-cash expense that effectively masks the true magnitude of the company's operational cash requirements for talent retention.
While SBC is a standard practice in the biotech sector, its presence in PCSA's cash flow statement suggests that the company is utilizing equity to preserve its limited cash reserves. Investors should interpret this as a form of hidden dilution that is necessary to keep the company operational without further depleting its $5.5 million cash balance.
Quick answers to the most common questions about buying PCSA stock.
Processa Pharmaceuticals, Inc. (PCSA) generated $-11.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Processa Pharmaceuticals, Inc. (PCSA) reported negative free cash flow of $11.4M in 2025, indicating capital requirements exceeded cash from operations.
Processa Pharmaceuticals, Inc. (PCSA) spent $0.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.