Free cash flow remains deeply negative, with quarterly outflows ranging up to $24.2 million in 2024Q3, highlighting a structural inability to generate internal liquidity during the clinical development lifecycle.
| Cash from Operations | -77.13M | -81.64M | -82.37M | -69M | -59.27M | -22.6M | -1.65M | -885K |
| Operating CF Margin % | - | - | - | - | - | - | - | - |
| Operating CF Growth % | 13.75% | 0.89% | -19.38% | -16.42% | -162.25% | -1267.98% | -86.67% | - |
| Net Income | -77.22M | -89.66M | -89.98M | -78.63M | -69.1M | -27.28M | -1.89M | -1.35M |
| Depreciation & Amortization | 3.2M | 5.14M | 5.25M | 850K | 493K | 178K | 110K | 106K |
| Stock-Based Compensation | 4.8M | 10.61M | 11.46M | 7.05M | 4.76M | 1.53M | 119K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 5.46M | -1.51M | -3.85M | -220K | 76K | 196K | 0 | 59K |
| Working Capital Changes | -13.38M | -6.22M | -5.25M | 1.95M | 4.51M | 2.77M | 8K | 296K |
| Change in Receivables | 0 | 0 | 0 | 26K | 4.18M | -4.34M | -170K | -112K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -2.06M | -935K | 722K | -369K | -1.41M | 2.51M | 331K | 59K |
| Cash from Investing | -33.84M | -15.23M | -37.67M | -32M | -3.75M | -500K | -8K | -29K |
| Capital Expenditures | -139K | -264K | -497K | -2.6M | -3.75M | -500K | -8K | -29K |
| CapEx % of Revenue | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 109.5M | 107.98M | 88.75M | -189K | 112.19M | 147.66M | 7.95M | 2.79M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 109.49M | 107.98M | 86.78M | 0 | 114.27M | 149.04M | 7.96M | 2.79M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 7K | 0 | 1.97M | -189K | -2.07M | -1.39M | -3K | 0 |
| Net Change in Cash | -1.48M | 11.09M | -31.35M | -100.9M | 48.86M | 124.59M | 6.29M | 1.88M |
| Free Cash Flow | -77.27M | -81.9M | -82.87M | -71.6M | -63.02M | -23.1M | -1.66M | -914K |
| FCF Margin % | - | - | - | - | - | - | - | - |
| FCF Growth % | 7.28% | 1.17% | -15.75% | -13.61% | -172.83% | -1291.51% | -81.62% | - |
| FCF per Share | -1.83 | -1.94 | -2.62 | -3.01 | -4.03 | -1.03 | -0.07 | -0.04 |
| FCF Conversion (FCF/Net Income) | 1.00x | 0.91x | 0.92x | 0.88x | 0.86x | 0.83x | 0.87x | 0.66x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 71K | 2.7M | 0 | 0 | 0 | 0 |
Clinical binary outcome risk
According to the provided financial data, PepGen's operating cash flow consistently tracks net losses, with the OCF/NI ratio fluctuating between 0.58 and 1.25, suggesting that the company's cash burn is primarily driven by core research activities rather than significant non-cash accounting adjustments or working capital volatility.
The tight correlation between net income and operating cash flow indicates that the company lacks the non-cash accruals that might otherwise buffer its cash position. Investors should monitor this relationship, as the absence of meaningful divergence suggests that every dollar of loss translates directly into a reduction of the company's limited cash runway.
As reported in financial statements, PepGen's free cash flow remains deeply negative, with quarterly outflows ranging from $15.8 million to $24.2 million, highlighting a structural inability to generate internal liquidity while the company remains in the high-cost, pre-revenue phase of its clinical development lifecycle.
The consistent negative trajectory of free cash flow underscores the company's total reliance on external financing to fund its R&D pipeline. Without a shift toward milestone-based revenue or partnerships, the current burn rate appears to be the primary constraint on the company's ability to reach critical clinical data readouts.
Based on reported figures, working capital changes have been erratic, swinging from a $7.9 million inflow in 2024Q2 to a $6.3 million outflow in 2024Q1, which suggests that the company's cash position is susceptible to timing differences in clinical trial vendor payments and other operational liabilities.
This volatility in working capital may indicate that management is actively managing payment cycles to preserve cash, yet these fluctuations do not mask the underlying structural burn. Analysts should view these swings as temporary timing effects rather than a sustainable improvement in the company's cash-generating capacity.
As indicated by recent SEC filings, stock-based compensation has reached as high as $3.4 million in a single quarter, effectively obscuring the true cash-based operating expenses required to retain the specialized scientific talent necessary for the company's ongoing neuromuscular research and clinical trial execution.
While stock-based compensation is a non-cash expense, it represents a real economic cost to shareholders through dilution. The reliance on equity-based incentives suggests that the company's cash burn would be even more severe if it were forced to compensate its workforce entirely through cash-based salaries.
Quick answers to the most common questions about buying PEPG stock.
PepGen Inc. (PEPG) generated $-81.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
PepGen Inc. (PEPG) reported negative free cash flow of $81.9M in 2025, indicating capital requirements exceeded cash from operations.
PepGen Inc. (PEPG) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.