PepGen Inc. (PEPG) Cash Flow Statement

Because net income is negative in every period, the OCF/NI ratio is best read as the proportion of loss that is cash-settled, and values near 1.0 indicate that non-cash charges such as stock-based compensation of $2.0M to $3.4M and D&A of roughly $1.3M did little to narrow the gap. The 2024Q2 ratio of 0.58 reflects a working capital inflow of $7.9M that masked part of the loss, a pattern that flatters a single quarter rather than the trend. The absence of any accrual cushion suggests the reported losses reflect real cash consumption rather than accounting noise, which warrants close monitoring of quarterly burn rates.

The FCF margin cannot be computed because reported revenue is absent, so the analysis rests on absolute outflows rather than on conversion of sales into cash. Quarterly burn peaked near $24M in 2024Q3 and moderated to about $16M in 2026Q2, a trajectory that may reflect R&D reduction rather than improved operating economics. Investors should monitor whether the recent narrowing of burn proves durable, since the figures alone do not establish the duration of available funding.

CapEx is effectively immaterial relative to the roughly $16M to $24M of quarterly operating outflow, so capital intensity does not explain the burn. The low maintenance requirement is consistent with a research-stage business that outsources or avoids heavy physical infrastructure. This profile suggests that the funding question turns on operating spend and external financing rather than on asset replacement needs.

The absence of dividends and buybacks is unsurprising for a loss-making company, but it also means no capital return offsets the dilution risk that typically accompanies a cash-consuming biotech. Acquisition outflows are not reported in the supplied data, so no conclusion can be drawn about inorganic deployment. The implication is that the balance sheet, rather than management capital allocation choices, is the primary determinant of how long operations can be sustained.