Operational sustainability remains under pressure as the company burned $13.3 million in free cash flow during 2026Q1, highlighting the capital-intensive nature of its current commercialization strategy.
| Cash from Operations | -35.08M | -22.59M | -5.79M | -981.03K | -1.57M |
| Operating CF Margin % | - | -134.5% | - | - | - |
| Operating CF Growth % | -11201% | -289.99% | -490.45% | 37.4% | - |
| Net Income | -51.59M | -43.32M | -7.96M | -7.38M | -2.46M |
| Depreciation & Amortization | 3.93M | 2.36M | 0 | 0 | 0 |
| Stock-Based Compensation | 413.49K | 0 | 1.8M | 1.73M | 110.15K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 21.42M | 24.44M | 328.93K | 2.62M | 140.43K |
| Working Capital Changes | -9.26M | -6.07M | 34.63K | 2.05M | 640.86K |
| Change in Receivables | -11.65M | -8.81M | -45.79K | 0 | 0 |
| Change in Inventory | 549K | 1.78M | 0 | 0 | 0 |
| Change in Payables | 3.81M | 1.36M | 1.18M | 1.63M | 413.6K |
| Cash from Investing | -5.43M | -5.24M | 0 | 0 | 0 |
| Capital Expenditures | -293K | -99K | 0 | 0 | 0 |
| CapEx % of Revenue | 1.06% | 0.59% | - | - | - |
| Acquisitions | -5.14M | -5.14M | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 72.61M | 45.34M | 6.21M | 1.02M | 1.62M |
| Debt Issued (Net) | 45.02M | 17.75M | 321.43K | 766.94K | 400K |
| Equity Issued (Net) | 27.59M | 27.59M | 5.89M | 255.41K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -166.51K | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 1.22M |
| Net Change in Cash | 32.02M | 17.51M | 417.05K | 41.32K | 55.07K |
| Free Cash Flow | -35.38M | -22.69M | -5.79M | -981.03K | -1.57M |
| FCF Margin % | -127.71% | -135.09% | - | - | - |
| FCF Growth % | -698.09% | -291.7% | -490.45% | 37.4% | - |
| FCF per Share | -10.68 | -12.07 | -9.86 | -1.70 | -2.72 |
| FCF Conversion (FCF/Net Income) | 0.69x | 0.52x | 0.73x | 0.13x | 0.64x |
| Interest Paid | 7.5K | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Insufficient liquidity for commercialization
According to recent financial disclosures, the relationship between net income and operating cash flow for PTHS remains erratic, with the OCF/NI ratio fluctuating significantly from 0.09 to 1.67 over the last ten quarters, suggesting that accruals and non-cash adjustments currently dominate the reported bottom-line figures.
The lack of a consistent conversion ratio indicates that reported net losses are not yet reflective of a stable cash-burn profile. Investors should monitor whether the recent convergence toward a 1.28 ratio in 2026Q1 represents a stabilization of operational cash requirements or merely a temporary timing difference in expense recognition.
As reported in quarterly filings, PTHS continues to experience deep free cash flow deficits, with the company burning $13.3 million in 2026Q1 alone, a trend that underscores the heavy capital intensity required to support the ongoing commercial launch of its primary therapeutic asset.
The persistent negative FCF trajectory suggests that the company is far from achieving self-sustaining operations. Without a meaningful inflection in revenue volume, the current rate of cash consumption appears likely to necessitate further external financing to bridge the gap to potential profitability.
Based on the company's reported cash flow statements, working capital changes have been highly inconsistent, swinging from a $5.0 million outflow in 2025Q3 to a $2.4 million outflow in 2026Q1, which complicates the assessment of underlying operational efficiency during this critical commercialization phase.
These volatile swings in working capital may reflect the initial stocking of distribution channels or the timing of payments to contract manufacturers. Analysts should investigate whether these fluctuations are indicative of structural inefficiencies in inventory management or simply the byproduct of a nascent, scaling supply chain.
As indicated by the provided financial data, PTHS has directed its limited resources toward operational scaling rather than shareholder returns, with no dividends or buybacks reported, reflecting a management strategy focused entirely on establishing a market foothold for its proprietary nitric oxide delivery platform.
The absence of capital return programs is appropriate given the company's current stage of development and negative cash flow status. The primary deployment of capital appears to be the aggressive funding of SG&A, which warrants close scrutiny to ensure that these expenditures are translating into tangible prescription growth.
Quick answers to the most common questions about buying PTHS stock.
Pelthos Therapeutics Inc. (PTHS) generated $-22.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Pelthos Therapeutics Inc. (PTHS) reported negative free cash flow of $22.7M in 2025, indicating capital requirements exceeded cash from operations.
Pelthos Therapeutics Inc. (PTHS) 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.