Free cash flow has been consistently negative, with the FCF margin at -35.6% in Q2 2026, and the cash position has dwindled from $182.5M in Q4 2024 to $47.5M, signaling a rapidly narrowing liquidity runway.
Prime Medicine, Inc. (PRME) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Cash from Operations | -156.05M | -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 % | -351.1% | -32.31% | 25.72% | -25.48% | -286.79% | -514.75% | -315.59% | - |
| Net Income | -187.89M | -201.14M | -195.88M | -198.13M | -121.82M | -165.37M | -3.41M | -2.53M |
| Depreciation & Amortization | 7.4M | 5.38M | 6.13M | 4.65M | 2.22M | 568K | 43K | 6.52M |
| Stock-Based Compensation | 26.77M | 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 | 6.55M | 9.27M | 9.74M | 11.79M | 17.68M | 98.42M | -4.6M | -5.81M |
| Working Capital Changes | -8.88M | -5.34M | 31.08M | 2.65M | -35.4M | 31.18M | 164K | 492K |
| Change in Receivables | 120K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -509K | 996K | -5.26M | 9.14M | 2.46M | 1.19M | 250K | 0 |
| Cash from Investing | 3.63M | -108.76M | 68.46M | 18.71M | -47.1M | -73.63M | -1.06M | 0 |
| Capital Expenditures | -797K | -4.53M | -7.29M | -8.72M | -16.09M | -4.15M | -639K | 0 |
| CapEx % of Revenue | 19.57% | 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 | 146.07M | 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) | 557K | 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 | -6.35M | -119.81M | 141.47M | -146.05M | 2.57M | 161.57M | 28.33M | 0 |
| Free Cash Flow | -156.85M | -167.09M | -130.16M | -174.14M | -147.92M | -38.23M | -6.18M | -1.33M |
| FCF Margin % | -3850.92% | -3607.4% | -4363.36% | - | - | - | -118.68% | - |
| FCF Growth % | -46.59% | -28.38% | 25.25% | -17.72% | -286.91% | -518.34% | -363.49% | - |
| FCF per Share | -0.89 | -1.12 | -1.10 | -1.91 | -1.52 | -0.40 | -0.06 | -0.01 |
| FCF Conversion (FCF/Net Income) | 0.83x | 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 |
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.
Key Metrics
Top Statement Risk
Cash burn and R&D dependency
Metrics are mathematically derived from official filings.
Persistent Negative Conversion Reflects R&D Intensity
Operating cash flow consistently trails net income, with the OCF/NI ratio averaging 0.87 over the last ten quarters, indicating that non-cash charges like stock-based compensation are not fully offsetting the cash consumed by the company's heavy R&D investment.
The persistent gap where operating cash flow is more negative than net income suggests that the company's core operations are consuming cash at a rate exceeding its reported accounting losses. This pattern is typical for pre-commercial biotechs where significant cash is spent on R&D activities that are capitalized or expensed, but the cash outflow precedes any revenue recognition. The negative conversion underscores that the company's financial health is entirely dependent on its ability to secure external financing to fund its operations.
Deepening Free Cash Flow Deficits
Prime Medicine's free cash flow has been consistently negative, with the FCF margin deteriorating from -118.5% in 2024Q1 to -35.6% in 2026Q2, indicating a sustained and significant cash burn that far outpaces its minimal revenue generation.
The FCF trajectory shows no signs of stabilization, with the company burning between $35M and $70M in cash each quarter. The improvement in FCF margin from the extreme lows of early 2024 is primarily a function of revenue volatility rather than operational improvement, as the absolute cash burn remains substantial. This trajectory implies a continuous need for capital raises, which will dilute existing shareholders and increase the company's dependence on favorable capital markets.
Volatile Working Capital Swings
Working capital changes have been highly erratic, with a massive $48.9M inflow in 2024Q4 followed by an $8.1M outflow in 2026Q2, suggesting unpredictable cash flows from operations that may be tied to milestone payments or grant receipts rather than a stable operating cycle.
The lack of a consistent pattern in working capital changes indicates that Prime Medicine's cash flow from operations is not driven by a predictable business cycle of receivables, inventory, and payables. The large positive swing in 2024Q4 appears to be a one-time event, possibly from a collaboration advance or grant, which temporarily masked the underlying cash burn. This volatility makes cash flow forecasting difficult and highlights the company's reliance on non-operational cash inflows.
Minimal Capital Deployment Amidst Burn
Capital deployment has been negligible, with zero dividends or buybacks and minimal capital expenditures, as evidenced by CapEx/Rev ratios often below 10%, indicating that all available cash is being consumed by core R&D and operating expenses.
The absence of any shareholder returns or strategic acquisitions is a direct consequence of the company's pre-revenue status and negative cash flow. The minimal capital expenditures suggest that the company's asset base is not expanding significantly, which is consistent with a focus on intangible R&D assets. This deployment profile confirms that the company is in a pure investment phase, with no capacity to return capital or pursue inorganic growth without external funding.
Cash Flow Statement Obscures True Burn
The cash flow statement may understate the true economic cost of operations, as stock-based compensation averaging $6.5M per quarter is added back to net income, while the actual cash burn from R&D and SG&A remains severe.
A significant portion of the company's net loss is driven by non-cash stock-based compensation, which inflates the operating cash flow figure relative to the net loss. However, this adjustment does not change the fundamental reality that the company is consuming tens of millions in cash each quarter to fund its operations. Investors should focus on the absolute level of cash burn rather than the OCF/NI ratio, as the latter can be misleadingly improved by large non-cash charges that dilute shareholders over time.