Pulse Biosciences, Inc. (PLSE) Cash Flow Statement

The gap between net income and operating cash flow is primarily attributable to stock-based compensation, which averaged $4.5M per quarter over the last year, and depreciation. This suggests that reported losses overstate the actual cash outflow, but the underlying cash burn remains substantial. Investors should monitor whether SBC growth aligns with operational progress, as it may indicate dilution without corresponding cash generation.

Despite the first revenue appearing in 2025Q3, FCF losses have widened significantly, with the most recent quarter showing a 77% negative FCF margin. This suggests that the company is investing heavily in R&D and commercialization ahead of meaningful revenue, and the trajectory implies continued external funding needs. The acceleration in burn, from -$9.8M to -$33.4M over nine quarters, underscores the urgency of achieving scale.

The company's capital intensity is extremely low, with cumulative CapEx over the last ten quarters totaling less than $0.6M, which is consistent with a development-stage medical device company outsourcing manufacturing. This suggests that the primary cash drain is operating expenses, particularly R&D and SG&A, rather than fixed asset investment. The low CapEx also implies that future growth may not require significant capital expenditure, but the current burn is driven by operational scale-up.

The working capital adjustments are immaterial relative to the operating cash flow losses, indicating that the company is not yet experiencing significant inventory build-up or collection issues, likely due to low revenue. The slight positive contributions in some quarters may reflect timing of payables, but they do not offset the core cash burn. As revenue scales, investors should watch for working capital absorption, but currently it is not a material factor.

The absence of capital returns is typical for a development-stage company, but it underscores that shareholder value depends entirely on successful commercialization. The company's cash is being consumed by operating losses, which have grown from $10M to $25M per quarter, and there is no indication of near-term capital return capacity. This suggests that any future returns will require a significant reduction in burn or external financing.

The cumulative divergence between net income and operating cash flow is primarily due to stock-based compensation and depreciation, which are non-cash items. This suggests that the company's cash runway is somewhat longer than net loss trends imply, but the absolute burn remains high. Investors should note that the gap may narrow if SBC growth slows, but the core cash consumption is still substantial and requires monitoring.