Operating cash burn remains severe, with a 2026Q1 free cash flow outflow of $86.1 million and an OCF/NI ratio of 0.93, indicating minimal non-cash mitigation of losses.
| Cash from Operations | -282.72M | -249.07M | -131.76M | -111.14M | -185.04M | -124.55M | -52.62M | -32.79M | -20.72M |
| Operating CF Margin % | - | - | -1540.48% | -4541.72% | - | - | - | - | - |
| Operating CF Growth % | -336.77% | -89.04% | -18.55% | 39.94% | -48.56% | -136.69% | -60.5% | -58.23% | - |
| Net Income | -326.53M | -303.27M | -182.82M | -123.28M | -214.03M | -167.06M | -61.82M | -35.51M | -26.54M |
| Depreciation & Amortization | -855K | -3.45M | 358K | 432K | 419K | 182K | 50K | 679K | 1K |
| Stock-Based Compensation | 15.22M | 33.94M | 41.36M | 24.86M | 28.59M | 22.69M | 5.21M | 0 | 579K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 2.09M | 0 | 0 | 3.65M |
| Other Non-Cash Items | 26M | 1.03M | -1.58M | -121K | 1.75M | 1.41M | 696K | 668K | 127K |
| Working Capital Changes | 3.45M | 22.68M | 10.92M | -13.03M | -1.78M | 16.13M | 3.24M | 1.38M | 1.46M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 8.25M | 12.1M | 6.71M | -8.86M | 3.89M | 7.27M | 960K | -837K | 1.67M |
| Cash from Investing | -604.36M | -311.15M | -248.49M | 38.95M | 96.89M | -140.52M | 0 | -103K | -63K |
| Capital Expenditures | -182K | -56K | 0 | -50K | -444K | -1.05M | 0 | -103K | -63K |
| CapEx % of Revenue | - | - | - | 2.04% | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | -97.33M | 139.47M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 64K | 0 | 0 | 0 | 97.33M | -139.47M | 0 | 0 | 0 |
| Cash from Financing | 1.26B | 702.17M | 514.32M | 91.87M | 10.46M | 107.59M | 304.42M | 59.76M | 37.8M |
| Debt Issued (Net) | 202K | 0 | 0 | 0 | 0 | -763K | 0 | -633K | 1M |
| Equity Issued (Net) | 1.27B | 704.26M | 512M | 91.59M | 9.56M | 105.71M | 304.42M | 60.39M | 36.8M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -30M | 0 | 0 |
| Other Financing | -13.51M | -2.09M | 2.33M | 279K | 904K | 2.63M | 88K | 0 | 0 |
| Net Change in Cash | 370.77M | 141.96M | 134.07M | 19.68M | -77.69M | -157.49M | 251.79M | 26.86M | 17.02M |
| Free Cash Flow | -282.9M | -249.12M | -131.76M | -111.19M | -185.49M | -125.6M | -52.62M | -32.89M | -20.78M |
| FCF Margin % | - | - | -1540.48% | -4543.77% | - | - | - | - | - |
| FCF Growth % | -72.92% | -89.08% | -18.5% | 40.06% | -47.68% | -138.69% | -60% | -58.25% | - |
| FCF per Share | -9.79 | -11.07 | -7.36 | -16.86 | -60.36 | -44.38 | -88.19 | -322.53 | -240.25 |
| FCF Conversion (FCF/Net Income) | 0.87x | 0.82x | 0.72x | 0.90x | 0.86x | 0.75x | 0.85x | 0.92x | 0.78x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Binary Clinical Trial Outcomes
As reported in recent financial statements, Praxis exhibits a consistent OCF/NI ratio, with the 2026Q1 figure of 0.93 indicating that nearly all of the company's net loss is being realized as an actual cash outflow, leaving little room for non-cash accounting adjustments to mitigate the burn.
The tight correlation between net income and operating cash flow suggests that the company's losses are almost entirely driven by cash-intensive R&D activities rather than non-cash charges. This high conversion of losses into cash burn implies that the firm lacks the cushion of significant non-cash expenses, making the reported net loss a direct proxy for the depletion of liquidity.
Based on the provided quarterly data, Praxis has maintained a consistently negative free cash flow trajectory, with the 2026Q1 outflow reaching $86.1 million, reflecting the company's total dependence on external financing to sustain its clinical development pipeline in the absence of any meaningful commercial revenue generation.
The trajectory of free cash flow shows no signs of stabilization, as the quarterly burn has trended upward from the $20 million range in early 2024 to over $80 million in recent periods. This trend suggests that the company is accelerating its clinical trial spending, which warrants close monitoring by investors to assess the remaining runway before a potential capital raise.
According to the company's cash flow statements, working capital changes have been highly erratic, including a significant $10.2 million outflow in 2026Q1, which further exacerbates the firm's cash burn and highlights the unpredictable nature of managing clinical-stage operational expenses and vendor payment cycles.
The frequent swings between positive and negative working capital adjustments suggest that the company's cash position is sensitive to the timing of clinical trial payments and vendor settlements. Investors should interpret these fluctuations as a sign of operational complexity, where the timing of large-scale trial costs can create temporary but meaningful liquidity pressure.
As indicated by historical filings, stock-based compensation has been a recurring feature of the company's expense structure, peaking at $14.5 million in 2024Q1, which effectively serves as a non-cash mechanism to preserve cash while simultaneously diluting existing shareholders to fund ongoing operations.
While stock-based compensation provides a necessary buffer for cash preservation, it obscures the true economic cost of talent acquisition and retention in a competitive biotech environment. Analysts should view this as a trade-off where the company avoids immediate cash outflows at the expense of long-term equity dilution, which may impact future earnings per share.
Quick answers to the most common questions about buying PRAX stock.
Praxis Precision Medicines, Inc. (PRAX) generated $-249.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Praxis Precision Medicines, Inc. (PRAX) reported negative free cash flow of $249.1M in 2025, indicating capital requirements exceeded cash from operations.
Praxis Precision Medicines, Inc. (PRAX) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.