Free cash flow remains consistently negative, with nine of the last ten quarters showing cash outflows, necessitating a reliance on external financing to cover ongoing operating expenses.
| Cash from Operations | -5.86M | -6.73M | -2.6M | -7.63M | -12.8M | -11.86M | -15.31M | 2.53M | 8.02M |
| Operating CF Margin % | - | - | -50.92% | -130.99% | -213.57% | -151.86% | -160.11% | 16.26% | 57.08% |
| Operating CF Growth % | -271.86% | -158.72% | 65.87% | 40.41% | -7.88% | 22.5% | -704.36% | -68.43% | - |
| Net Income | 3.19M | 2.47M | -14.32M | -8.16M | -20.04M | -8.99M | -20.59M | -32.51M | -32.47M |
| Depreciation & Amortization | 0 | 0 | 2.94M | 3.42M | 5.72M | 6.88M | 6.66M | 5.29M | 8.06M |
| Stock-Based Compensation | 269.78K | 304.63K | 197.22K | 417.23K | 1.2M | 1.31M | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -9.48M | -1.43M | -645.87K | -6.94K |
| Other Non-Cash Items | -8.86M | -8.85M | 4.05M | -3.92M | 3.63M | 186.82K | 5.65M | 17.3M | 42.55M |
| Working Capital Changes | 49.36K | -663.6K | 4.53M | 624.91K | -3.3M | -1.76M | -5.6M | 13.09M | 4.93M |
| Change in Receivables | 0 | 0 | 1.82M | -144.13K | 515.96K | 2.55M | -2.75M | 932.89K | 1.95M |
| Change in Inventory | 0 | 0 | 307.59K | 273.61K | -835.32K | 412.74K | 728.29K | 2.56M | 96.58K |
| Change in Payables | 129.47K | -680.45K | 615.68K | -93.15K | -2.75M | -1.05M | 2.22M | 2.02M | -965.04K |
| Cash from Investing | 0 | 0 | -24.59K | 0 | 0 | 0 | -4.63K | -71.54K | -1.88M |
| Capital Expenditures | 0 | 0 | -24.59K | 0 | 0 | 0 | -4.63K | -71.54K | -1.88M |
| CapEx % of Revenue | - | - | 0.48% | - | - | - | 0.05% | 0.46% | 13.35% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -545.54K | 8.16M | -7M | 11.54M | -1.62M | 18.57M | 30.3M | -3.11M | -2.55M |
| Debt Issued (Net) | 0 | 0 | -765.28K | -1.46M | -1.62M | -7.19M | 8.78M | -3.11M | -2.55M |
| Equity Issued (Net) | -428.23K | 7.82M | -6.23M | -2M | 0 | 21.75M | 0 | 0 | 0 |
| Dividends Paid | -232.82K | 0 | -1.29B | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | -341.56K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 115.51K | 341.56K | 1.29B | 15M | 0 | 4.01M | 21.52M | 0 | 0 |
| Net Change in Cash | -6.4M | 1.43M | -9.63M | 3.91M | -14.42M | 6.71M | 14.99M | -648.31K | 3.6M |
| Free Cash Flow | -5.86M | -6.73M | -2.63M | -7.63M | -12.8M | -11.86M | -15.31M | 2.46M | 6.15M |
| FCF Margin % | - | - | -51.4% | -130.99% | -213.57% | -151.86% | -160.15% | 15.8% | 43.73% |
| FCF Growth % | -85.83% | -156.3% | 65.55% | 40.41% | -7.88% | 22.52% | -722.12% | -59.95% | - |
| FCF per Share | -0.13 | -0.02 | -0.33 | -3.50 | -6.18 | -10.89 | -28.67 | 10.00 | 61.45 |
| FCF Conversion (FCF/Net Income) | -1.84x | -3.52x | 0.18x | 0.93x | 0.64x | 1.32x | 0.74x | -0.08x | -0.25x |
| Interest Paid | 0 | 0 | 0 | 536.14K | 596.02K | 0 | 1.19M | 2.04M | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Binary Regulatory Failure Risk
As reported in recent financial statements, PTPI exhibits a highly erratic relationship between net income and operating cash flow, with the OCF/NI ratio fluctuating wildly from -7.10 to 2.77, suggesting that accruals and non-cash adjustments are currently the primary drivers of the company's reported bottom-line figures.
The extreme volatility in the OCF/NI ratio indicates that net income is currently a poor proxy for the company's actual cash-generating capacity. Investors should interpret these swings as evidence of a business model that is no longer tied to operational performance but rather to the accounting treatment of regulatory-related expenses.
Based on the provided quarterly data, Petros Pharmaceuticals has consistently burned cash, with free cash flow remaining negative in nine of the last ten quarters, underscoring the company's total reliance on external financing to sustain its ongoing regulatory transition efforts without any offsetting commercial revenue streams.
The lack of positive free cash flow suggests that the company is currently in a capital-intensive phase where cash is being consumed to fund the 'Actual Use' studies. This trajectory implies that the firm remains entirely dependent on capital markets to survive until a potential OTC approval.
According to the company's cash flow statements, working capital changes have been highly inconsistent, swinging from a $2.2 million inflow in 2024Q4 to a $670.5K outflow in 2025Q4, which suggests significant instability in the management of payables and potential shifts in vendor payment terms.
These erratic working capital movements may indicate that the company is managing its cash position by delaying or accelerating payments to regulatory consultants and clinical trial partners. Such behavior often precedes liquidity stress in firms that lack a recurring revenue base to support their operational obligations.
As indicated by the historical cash flow data, the company's reliance on stock-based compensation, which reached $212.7K in 2023Q4, serves to artificially preserve cash while diluting shareholders, effectively obscuring the true cost of talent required to navigate the complex FDA nonprescription drug product pathway.
The use of equity to compensate staff suggests that management is attempting to conserve cash for critical clinical studies, yet this practice masks the true economic cost of the regulatory pivot. Analysts should monitor whether this reliance on non-cash compensation increases as the company's cash reserves are depleted.
Quick answers to the most common questions about buying PTPI stock.
Petros Pharmaceuticals, Inc. (PTPI) generated $-6.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Petros Pharmaceuticals, Inc. (PTPI) reported negative free cash flow of $6.7M in 2025, indicating capital requirements exceeded cash from operations.
Petros Pharmaceuticals, Inc. (PTPI) 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.
In 2025, Petros Pharmaceuticals, Inc. (PTPI) spent $0.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.