Free cash flow margins have deteriorated to -165.9% in 2026Q1, reflecting a persistent cash burn trajectory that is exacerbated by capital expenditures consuming 20.6% of quarterly revenue.
| Cash from Operations | -79.46M | -74.95M | -45.15M | -56.26M | -70.23M | -70.83M | -42.65M | -18.07M | 5.57M | 290K |
| Operating CF Margin % | - | - | -53.36% | -76.56% | -107.97% | -82.85% | -54.23% | -27.71% | 14.75% | 3.09% |
| Operating CF Growth % | -482.7% | -65.99% | 19.74% | 19.9% | 0.84% | -66.06% | -136.06% | -424.28% | 1821.38% | - |
| Net Income | -95.55M | -81.27M | -81.28M | -108.3M | -113.31M | -65.23M | -41.28M | -25.08M | -19.89M | -23.6M |
| Depreciation & Amortization | 9.83M | 10.05M | 10.94M | 11.3M | 8.43M | 6.01M | 5.76M | 4.75M | 3.07M | 1.22M |
| Stock-Based Compensation | 7.21M | 9.43M | 10.69M | 14.05M | 19.43M | 14.38M | 8.24M | 4.86M | 1.32M | 753K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 2.03M | 391K | 3.11M | 4.47M | 226K |
| Other Non-Cash Items | -285K | -2.96M | 17.1M | 13.21M | 4.61M | 3.12M | 1.47M | 1.56M | 1.18M | 934K |
| Working Capital Changes | -666K | -10.19M | -2.59M | 13.48M | 10.61M | -31.14M | -17.23M | -7.26M | 15.42M | 20.76M |
| Change in Receivables | -2.05M | -8.06M | 9.59M | -1.09M | 1.82M | -12.12M | -3.05M | 1.07M | -2.52M | -1.2M |
| Change in Inventory | -513K | -204K | 4.42M | -1.93M | -2.98M | 29K | -1.08M | -1.17M | -2.07M | -539K |
| Change in Payables | 1.73M | 4.55M | -8.92M | 5.18M | 3.09M | -1.46M | 751K | 1.4M | 2.16M | 2.63M |
| Cash from Investing | -46.04M | -22.57M | -35.07M | 13.1M | 52.54M | -60.07M | -65.14M | -81.58M | -7.85M | -5.16M |
| Capital Expenditures | -5.18M | -4.5M | -1.6M | -10.91M | -49.9M | -11.08M | -3.25M | -8.38M | -7.85M | -5.16M |
| CapEx % of Revenue | 8.04% | - | 1.89% | 14.85% | 76.71% | 12.96% | 4.13% | 12.85% | 20.79% | 54.91% |
| Acquisitions | 120K | 0 | 0 | -24.01M | 0 | 48.99M | 65.14M | 73.2M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 242K | 24.01M | 0 | -48.99M | -65.14M | -73.2M | 0 | 0 |
| Cash from Financing | 128.08M | 130.34M | 114.67M | 11.03M | 1.37M | 169.7M | 121.27M | 134.95M | -591K | 16.4M |
| Debt Issued (Net) | -5.1M | 585K | -1.13M | 174K | -1.1M | 3.31M | 0 | -5M | -645K | 16.4M |
| Equity Issued (Net) | 132.59M | 129.94M | 97.82M | 3.51M | 0 | 162.26M | 117.5M | 144.03M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 589K | -189K | 17.98M | 7.34M | 2.46M | 4.13M | 3.77M | -4.08M | 54K | 2K |
| Net Change in Cash | 2.59M | 32.83M | 34.43M | -32.14M | -16.46M | 38.85M | 13.48M | 35.3M | -2.87M | 11.54M |
| Free Cash Flow | -84.65M | -79.45M | -46.75M | -67.17M | -120.13M | -81.91M | -45.9M | -26.45M | -2.28M | -4.87M |
| FCF Margin % | -131.21% | - | -55.25% | -91.41% | -184.68% | -95.81% | -58.36% | -40.56% | -6.04% | -51.83% |
| FCF Growth % | -81.23% | -69.94% | 30.39% | 44.09% | -46.66% | -78.46% | -73.52% | -1060.13% | 53.16% | - |
| FCF per Share | -0.81 | -0.89 | -0.79 | -1.39 | -2.63 | -1.87 | -1.34 | -1.47 | -0.10 | -0.22 |
| FCF Conversion (FCF/Net Income) | 0.89x | 0.92x | 0.56x | 0.52x | 0.62x | 1.09x | 1.03x | 0.72x | -0.28x | -0.01x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.26M | 698K | 321K |
| Taxes Paid | 0 | 23K | 38K | 64K | 47K | 39K | 35K | 6K | -7K | -5K |
Persistent cash burn trajectory
As evidenced by the provided financial data, the relationship between net income and operating cash flow remains consistently disconnected, with the company reporting an OCF/NI ratio of 0.75 in 2026Q1, suggesting that accounting losses are not being mitigated by meaningful cash-generative operational efficiency or working capital improvements.
The persistent gap between net income and operating cash flow indicates that the company's reported losses are fundamentally tied to cash outflows rather than non-cash accounting charges. Investors should monitor this trend, as the inability to bridge the gap between accrual-based losses and cash burn suggests a structural reliance on external financing to sustain operations.
Based on reported quarterly figures, the free cash flow margin reached a concerning -165.9% in 2026Q1, reflecting a significant deterioration from previous periods and highlighting the company's ongoing struggle to achieve a self-sustaining cash flow profile while navigating a period of substantial top-line revenue contraction.
The trajectory of free cash flow indicates that the company is consuming capital at an accelerating rate relative to its revenue base. This trend warrants further investigation into whether the current cash burn is a temporary byproduct of strategic investment or a sign of deeper operational inefficiencies that may require further capital raises.
According to the cash flow statements, working capital changes have fluctuated significantly, swinging from a $6.0 million outflow in 2025Q1 to a $3.6 million inflow in 2026Q1, which suggests that the company's cash position is highly sensitive to the timing of collections and payables management.
The inconsistency in working capital movements implies that the company lacks a stable cash conversion cycle, likely due to the lumpy nature of its government and biopharma contracts. This volatility makes it difficult to forecast the true underlying cash burn rate, as periodic inflows may temporarily mask the structural cash requirements of the business.
As reported in financial statements, capital expenditures reached 20.6% of revenue in 2026Q1, a high level of capital intensity that appears to be driven by the ongoing need to maintain sophisticated laboratory infrastructure and sequencing equipment necessary to support the company's high-sensitivity MRD diagnostic platform.
The elevated capex-to-revenue ratio suggests that the company is locked into a high-fixed-cost model that requires continuous reinvestment to remain competitive. This capital intensity limits the company's ability to reach cash flow break-even, as a significant portion of available liquidity must be diverted to maintain the core sequencing pipeline.
Quick answers to the most common questions about buying PSNL stock.
Personalis, Inc. (PSNL) generated $-74.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Personalis, Inc. (PSNL) reported negative free cash flow of $79.5M in 2025, indicating capital requirements exceeded cash from operations.
Personalis, Inc. (PSNL) 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.