Liquidity is under pressure as the cash balance dropped to $64.1 million in 2026Q1 from a peak of $182.5 million in 2024Q4, driven by persistent negative free cash flow.
| Cash from Operations | -156.42M | -162.56M | -122.86M | -165.41M | -131.83M | -34.08M | -5.54M | -1.33M |
| Operating CF Margin % | - | -3509.59% | -4118.84% | - | - | - | -106.41% | - |
| Operating CF Growth % | -343.01% | -32.31% | 25.72% | -25.48% | -286.79% | -514.75% | -315.59% | - |
| Net Income | -198.37M | -201.14M | -195.88M | -198.13M | -121.82M | -165.37M | -3.41M | -2.53M |
| Depreciation & Amortization | 5.7M | 5.38M | 6.13M | 4.65M | 2.22M | 568K | 43K | 0 |
| Stock-Based Compensation | 23.59M | 29.27M | 26.07M | 13.91M | 6.46M | 1.75M | 391K | 0 |
| Deferred Taxes | 0 | 0 | 0 | -279K | -964K | -624K | 1.87M | 0 |
| Other Non-Cash Items | 12.85M | 9.27M | 9.74M | 11.79M | 17.68M | 98.42M | -4.6M | 703K |
| Working Capital Changes | -187K | -5.34M | 31.08M | 2.65M | -35.4M | 31.18M | 164K | 492K |
| Change in Receivables | 17K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 2.66M | 996K | -5.26M | 9.14M | 2.46M | 1.19M | 250K | 0 |
| Cash from Investing | -17.63M | -108.76M | 68.46M | 18.71M | -47.1M | -73.63M | -1.06M | 0 |
| Capital Expenditures | -2.32M | -4.53M | -7.29M | -8.72M | -16.09M | -4.15M | -639K | 0 |
| CapEx % of Revenue | 57.59% | 97.82% | 244.52% | - | - | - | 12.26% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 1M | -170K | -665K | -496K | -423K | 0 |
| Cash from Financing | 145.91M | 151.51M | 195.88M | 655K | 181.49M | 269.28M | 34.93M | 9.98M |
| Debt Issued (Net) | -6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 393K | 139.51M | 170.14M | 655K | 185.32M | 270.36M | 34.95M | 9.98M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 151.51M | 12M | 25.74M | 0 | -3.82M | -1.09M | -20K | 0 |
| Net Change in Cash | -28.14M | -119.81M | 141.47M | -146.05M | 2.57M | 161.57M | 28.33M | 0 |
| Free Cash Flow | -158.74M | -167.09M | -130.16M | -174.14M | -147.92M | -38.23M | -6.18M | -1.33M |
| FCF Margin % | -3935.05% | -3607.4% | -4363.36% | - | - | - | -118.68% | - |
| FCF Growth % | -42.49% | -28.38% | 25.25% | -17.72% | -286.91% | -518.34% | -363.49% | - |
| FCF per Share | -0.90 | -1.12 | -1.10 | -1.91 | -1.52 | -0.40 | -0.06 | -0.01 |
| FCF Conversion (FCF/Net Income) | 0.80x | 0.81x | 0.63x | 0.83x | 1.08x | 0.21x | 1.63x | 0.53x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 141K | 0 | 0 | 0 |
Insufficient Cash Runway
As reported in recent financial statements, Prime Medicine's operating cash flow consistently tracks net losses, with OCF/NI ratios fluctuating between 0.69 and 1.48, suggesting that the company's cash burn is primarily driven by core operational deficits rather than significant non-cash accounting adjustments or accrual-based distortions.
The persistent gap between net income and operating cash flow indicates that the company is consuming cash at a rate largely commensurate with its reported losses. Investors should note that the lack of meaningful positive accruals suggests the business model has yet to generate the working capital efficiencies typical of a mature commercial enterprise.
Based on the provided cash flow data, Prime Medicine's free cash flow remains deeply negative, with quarterly outflows frequently exceeding $40 million, highlighting a trajectory that is entirely dependent on external financing to sustain its research-heavy platform development and clinical trial preparation efforts.
The absence of a clear path to positive free cash flow underscores the speculative nature of the current valuation. Without a shift toward milestone-heavy revenue recognition or reduced R&D intensity, the company appears to be on a trajectory of continued capital depletion.
According to quarterly filings, working capital changes have been highly erratic, swinging from a $48.9 million inflow in 2024Q4 to a $30.1 million outflow in 2024Q1, which reflects the lumpy nature of collaboration-based revenue and the timing of performance obligations rather than stable operational efficiency.
This volatility suggests that the company's cash position is highly sensitive to the timing of partner payments. Such fluctuations warrant caution, as they may obscure the underlying burn rate and complicate short-term liquidity forecasting for investors.
Data from recent filings indicates that stock-based compensation has reached as high as $12.7 million in a single quarter, effectively acting as a non-cash expense that preserves immediate liquidity while simultaneously creating significant future dilution for existing shareholders as the company attempts to retain specialized scientific talent.
While SBC is a standard tool for biotech talent retention, its magnitude relative to the company's total cash burn suggests that the true cost of operations is higher than the cash flow statement alone implies. Investors should monitor this as a hidden cost that will eventually impact the per-share value of the firm.
Quick answers to the most common questions about buying PRME stock.
Prime Medicine, Inc. (PRME) generated $-162.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Prime Medicine, Inc. (PRME) reported negative free cash flow of $167.1M in 2025, indicating capital requirements exceeded cash from operations.
Prime Medicine, Inc. (PRME) spent $4.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.