Persistent negative free cash flow, with quarterly outflows frequently exceeding $4 million, indicates a structural inability to fund clinical development through internal operations.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Cash from Operations | -14.93M | -21.31M | -31.46M | -28.42M | -29.92M | -22.65M | 41.33M | -21.78M | 1.7M | 12.88M | -47.36M | -13.36M | -12.21M | -13.65M | -15.49M | -11.03M | -5.73M | -5.44M | -20.58M | -22.05M | -23.45M | -5.06M | -23.74M | -19.89M | -13.15M | -8.4M | -8.54M | -10.4M | -7.4M | -4.1M | -2.71M |
| Operating CF Margin % | - | - | -700.69% | -585.51% | -2037.7% | 12008.67% | 35025.65% | -36.12% | 2.54% | 28.8% | - | -103.14% | - | -131737.96% | -21003.18% | -747.58% | -40.41% | -47.95% | -179.2% | -153.07% | -118.73% | -28.2% | -1025.51% | -1566.25% | -4672.51% | -469.63% | -166.89% | -1733.33% | -7400% | -585.71% | -13550% |
| Operating CF Growth % | 132.08% | 32.28% | -10.71% | 5.03% | -32.12% | -154.8% | 289.72% | -1379.01% | -86.78% | 127.2% | -254.57% | -9.42% | 10.56% | 11.87% | -40.4% | -92.51% | -5.26% | 73.55% | 6.68% | 5.96% | -363.07% | 78.67% | -19.36% | -51.31% | -56.55% | 1.67% | 17.88% | -40.54% | -80.49% | -51.29% | - |
| Net Income | -6.25M | -17.31M | -29.74M | -27.54M | -36.2M | -33.6M | -22.43M | 35.77M | 24.7M | -13.33M | -51.71M | -17.67M | -13.93M | -20.86M | -17.25M | -12.82M | -1.79M | -4.8M | -14.38M | -27.75M | -28.96M | -14.36M | -26.32M | -20.57M | -16.14M | -10.6M | -8.18M | -12M | -9.9M | -5.3M | -3.9M |
| Depreciation & Amortization | 98.72K | 258.92K | 339.07K | 288.33K | 126.67K | 51.12K | 64.2K | 58.63K | 56.57K | 33.05K | 43.05K | 117.59K | 111.91K | 111.84K | 949.54K | 1.14M | 1.27M | 1.36M | 1.39M | 1.45M | 1.26M | 1.08M | 671.99K | 579.26K | 1.16M | 288.09K | 267.05K | 1.5M | 1.9M | 500K | 70K |
| Stock-Based Compensation | 815.06K | 1.38M | 1.87M | 1.41M | 2.51M | 3.17M | 3.14M | 3.48M | 3.52M | 1.76M | 1.84M | 1.17M | 821.34K | 625.03K | 892.3K | 756.6K | 968.56K | 1.48M | 2.27B | 1.73B | 1.17B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | -392.27K | 0 | 212.53K | 0 | 0 | -500K | 0 | 0 | 0 | 0 | 7.06M | 16.81M | 12.7M | 0 | 0 | -2.27B | -1.73B | -1.17B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -5.46M | -4.88M | -530.25K | 166.26K | 203.92K | 19.42M | 299K | 51.23K | 175.49K | 298.79K | 327.48K | 87.09K | 922.55K | -1.36K | -17.25M | -12.81M | -12M | -550.97K | 2.27M | 1.73M | 1.17M | 115.53K | 877.94K | -329K | 1.06M | 695.75K | 1.17M | -700K | 700K | -5.2M | -4.58M |
| Working Capital Changes | -4.14M | -758.79K | -3.41M | -2.35M | 3.44M | -11.9M | 60.25M | -61.15M | -26.25M | 24.12M | 2.14M | 2.94M | 787.39K | -587.25K | 366.68K | 2.33K | 5.83M | -2.93M | -9.85M | 2.46M | 3.08M | 8.1M | 1.03M | 423.39K | 777.43K | 1.22M | -1.79M | 800K | -100K | 5.9M | 5.7M |
| Change in Receivables | -1.9M | -29.47K | 2.92M | -1.14M | -199.58K | -1.58M | 60.27M | -60.27M | 15.12M | -15.12M | 0 | 0 | 0 | 27.63K | 103.52K | -128.27K | 505.65K | -502.78K | 602.09M | -538.25M | 5.37B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | -1.15M | 418.47K | 217.53K | -987.24K | 0 | 781.07K | -7.68M | 3.04M | 0 | 0 | 0 | 0 | 511.28K | -256.62K | 0 | 0 | -115.15M | 2.51B | 1.38M | -1.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -2.33M | 2.9M | -201.6K | 1.11M | 2.57M | -75.02K | 210.88K | -1.72M | 672.33K | 837.48K | -392.59K | 845.2K | -77.45K | 43.83K | -202.01K | 341.11K | -50.57K | -428.82K | -485.71M | -1.97B | -1.68B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100K |
| Cash from Investing | 578.7K | 3.13M | 12.45M | -3.43M | -261.37K | -5.72K | -62.88K | -36.14K | 227.55K | 991.6K | -1.4M | 0 | 5.24M | -5.3M | 479.38K | 3.45M | 38.01K | 663.62K | -1.26M | -862.47K | -819.95K | -918K | 1.22M | -4.1M | -2.81M | 1.53M | -2.05M | -500K | -1.5M | -300K | -30K |
| Capital Expenditures | -51.3K | 0 | -42.53K | -433.93K | -261.37K | -5.72K | -62.88K | -36.14K | -22.45K | -133.4K | -17.7K | 0 | -6.24K | -59.61K | -15K | 0 | -7K | -36.38K | -263.94K | -862.47K | -819.95K | -968K | -197.54K | -1.13M | -1.63M | -629.9K | -354.02K | -100K | -1.5M | -300K | -30K |
| CapEx % of Revenue | 0.4% | - | 0.95% | 8.94% | 17.8% | -3.03% | 53.29% | 0.06% | 0.03% | 0.3% | - | - | - | 575.3% | 20.34% | - | 0.05% | 0.32% | 2.3% | 5.99% | 4.15% | 5.39% | 8.53% | 89.29% | 580.94% | 35.23% | 6.92% | 16.67% | 1500% | 42.86% | 150% |
| Acquisitions | 0 | 0 | 9.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 630K | 3.13M | 0 | 0 | 0 | 0 | 0 | 0 | 250K | 1.13M | -1.39M | 0 | 5.25M | 4.62K | -3.3B | 5.3K | -22.49M | 1B | 1B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 21.99M | 11.21M | 20.55M | 9.9M | 18.36K | -93.64K | -1.92M | 27.33M | -4.13M | 18.32M | 29.47M | 28.47M | -18.79K | 34.29M | -34.92K | 21.05M | 6.72M | -263.13K | -183.97K | 26.03M | 36.88M | 3.75M | 26.17M | 30.35M | 12.44M | 15.11M | 11.48M | 8.7M | 600K | 10.4M | 9.05M |
| Debt Issued (Net) | 0 | -46.01K | -106.39K | -100.92K | -56.46K | 0 | -832.85K | -6.5M | -8.01M | -5.69M | 9.97M | 9.99M | -19.91K | -22.28K | -34.92K | -22.96K | -87.67K | -263.13K | -294.2K | -173.76K | -40.27K | -33.49K | -200.75K | -153.47K | 0 | 0 | 0 | 1.1M | -1M | -1.2M | 0 |
| Equity Issued (Net) | 22.01M | 7.96M | 14.67M | 10.14M | -221.31K | -93.64K | 1.58M | 33.14M | 1.26M | 23.86M | 19.83M | 18.56M | 0 | 34.4M | 0 | 21.1M | 6.97M | 0 | 110.23K | 26.2M | 36.92M | 3.79M | 26.37M | 30.5M | 12.44M | 15.11M | 11.48M | 7.5M | 1.6M | 11.6M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -221.31K | -93.64K | 0 | 0 | 0 | 0 | 0 | 0 | -36.38K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9.14M |
| Other Financing | -19.51K | 3.3M | 5.99M | -145.98K | 296.13K | 0 | -2.67M | 693.17K | 2.63M | 161.65K | -336.48K | -71.03K | 1.12K | -87.41K | 0 | -26.2K | -165.86K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100K | 0 | 0 | 9.05M |
| Net Change in Cash | 7.64M | -6.96M | 1.54M | -21.95M | -30.17M | -22.75M | 39.34M | 5.51M | -2.2M | 32.2M | -19.3M | 15.11M | -6.98M | 15.34M | -15.04M | 13.46M | 1.03M | -5.04M | -22.03M | 3.11M | 12.61M | -2.23M | 3.65M | 6.35M | -3.51M | 8.24M | 885.79K | -2M | -8.3M | 6M | 6.32M |
| Free Cash Flow | -14.98M | -21.31M | -31.5M | -28.85M | -30.18M | -22.65M | 41.26M | -21.82M | 1.68M | 12.75M | -47.38M | -13.36M | -12.21M | -13.71M | -15.5M | -11.03M | -5.74M | -5.48M | -20.84M | -22.91M | -24.27M | -6.03M | -23.94M | -21.03M | -14.78M | -9.03M | -8.89M | -10.5M | -8.9M | -4.4M | -2.74M |
| FCF Margin % | -116.29% | - | -701.63% | -594.45% | -2055.5% | 12011.7% | 34972.36% | -36.18% | 2.5% | 28.5% | - | -103.14% | - | -132313.26% | -21023.52% | -747.58% | -40.45% | -48.27% | -181.5% | -159.06% | -122.88% | -33.59% | -1034.04% | -1655.54% | -5253.45% | -504.85% | -173.81% | -1750% | -8900% | -628.57% | -13700% |
| FCF Growth % | 36.76% | 32.37% | -9.19% | 4.41% | -33.24% | -154.9% | 289.12% | -1398.24% | -86.82% | 126.91% | -254.7% | -9.37% | 10.91% | 11.57% | -40.54% | -92.27% | -4.69% | 73.71% | 9.04% | 5.58% | -302.35% | 74.81% | -13.86% | -42.25% | -63.74% | -1.5% | 15.29% | -17.98% | -102.27% | -60.58% | - |
| FCF per Share | -13.64 | -39.58 | -2.14 | -2.65 | -3.16 | -2.39 | 4.40 | -2.51 | 0.20 | 1.73 | -7.57 | -2.76 | -2.86 | -3.51 | -11.10 | -13.73 | -14.54 | -15.86 | -61.14 | -75.17 | -100.52 | -28.00 | -125.50 | -185.33 | -260.32 | -222.76 | -298.82 | -442.20 | -693.04 | -376.20 | -0.11 |
| FCF Conversion (FCF/Net Income) | 2.40x | 1.23x | 1.06x | 1.18x | 0.83x | 0.67x | -1.84x | -0.61x | 0.07x | -0.97x | 0.92x | 0.76x | 0.88x | 0.65x | 0.90x | 0.86x | 3.20x | 1.13x | 1.43x | 0.79x | 0.81x | 0.35x | 0.90x | 0.97x | 0.81x | 0.79x | 1.04x | 0.87x | 0.75x | 0.77x | 0.79x |
| Interest Paid | 3.49K | 15.03K | 0 | 0 | 0 | 0 | 19.22K | 0 | 1.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 500K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and dilution
According to quarterly financial data, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios fluctuating wildly from -0.35 to 3.08, suggesting that reported earnings provide little insight into the company's actual cash-generating capacity or underlying operational health.
The extreme volatility in the OCF/NI ratio indicates that non-cash items and working capital swings are the primary drivers of the reported bottom line rather than core operational performance. Investors should interpret these figures as a sign that the company's accounting earnings are disconnected from the reality of its ongoing cash consumption.
As reported in financial statements, Palatin has consistently generated negative free cash flow across all observed periods, with quarterly outflows frequently exceeding $4 million, highlighting a structural inability to fund its clinical development pipeline through internal commercial operations or recurring revenue streams.
The persistent FCF deficit suggests that the company remains entirely dependent on external capital markets to sustain its R&D activities. Without a fundamental shift in the commercial trajectory of its assets, this burn rate appears to be the primary constraint on the company's long-term viability.
Based on reported figures, working capital changes have been highly inconsistent, swinging from a $6.5 million outflow in 2026Q1 to a $2.1 million inflow in 2026Q2, which suggests significant instability in the timing of payments and the collection of receivables from potential partners.
These erratic swings in working capital likely reflect the lumpy nature of milestone-based revenue rather than efficient operational management. Such unpredictability complicates cash flow forecasting and underscores the company's reliance on irregular, non-recurring cash inflows to manage its immediate liquidity needs.
As disclosed in recent filings, the company continues to utilize stock-based compensation, with quarterly amounts reaching as high as $550,000, which effectively serves as a non-cash expense that masks the true economic cost of maintaining the current workforce during periods of significant operational losses.
While SBC preserves cash in the short term, it represents a significant dilution risk that is not fully captured in the headline operating cash flow figures. Analysts should consider this as a hidden cost that effectively subsidizes the company's burn rate at the expense of long-term shareholder equity.
Quick answers to the most common questions about buying PTN stock.
Palatin Technologies, Inc. (PTN) generated $-21.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Palatin Technologies, Inc. (PTN) reported negative free cash flow of $21.3M in 2025, indicating capital requirements exceeded cash from operations.
Palatin Technologies, Inc. (PTN) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.