Pharvaris N.V. (PHVS) Cash Flow Statement

The OCF/NI ratio has fluctuated between 0.66 and 1.24 over the past ten quarters, indicating that the relationship between reported losses and actual cash usage is volatile. This volatility appears driven by the timing of large, non-cash stock-based compensation charges, which reached $6.6M in 2026Q2, and working capital swings. For a pre-revenue biotech, this pattern is typical but underscores that the net loss figure alone understates the true pace of cash depletion.

The quarterly FCF burn has expanded by approximately 55% over the last ten quarters, a trajectory that aligns with the reported acceleration in R&D expenses. This trend is expected to continue as the company progresses through late-stage trials, with no revenue to offset the investment. The trajectory implies that the company's cash runway is a critical variable, and any further acceleration in spending could necessitate earlier capital raises.

These large, unpredictable swings in working capital, likely related to the timing of payments to clinical research organizations and other vendors, create noise in the quarterly cash flow data. The positive $7.8M source in 2026Q2, for instance, partially offset the core operational loss, making the quarter's cash burn appear less severe than the underlying R&D and G&A spending would suggest. Investors should focus on the multi-quarter trend rather than any single period's working capital impact.

The cash flow statement confirms a singular focus on advancing the pipeline, with no capital returned to shareholders or deployed for strategic M&A. This is consistent with the company's pre-revenue status and single-asset focus. The absence of any debt service or acquisition activity simplifies the cash flow profile but also highlights the lack of alternative uses for capital, reinforcing the binary risk tied to PHA121's success.