Operational sustainability remains elusive, with consistent negative free cash flow reaching as high as $22.2M in 2024Q2, necessitating ongoing reliance on external financing.
| Cash from Operations | -27.4M | -33.54M | -67.72M | -18.68M | -10.96M | -109.75M | -94.33M | -91.36M | -42.56M | 6.48M | -8.48M |
| Operating CF Margin % | - | -62.42% | - | 280.81% | -164.74% | -323.07% | -3491.19% | -5483.67% | -799.74% | - | - |
| Operating CF Growth % | 225.49% | 50.46% | -262.56% | -70.46% | 90.02% | -16.35% | -3.26% | -114.65% | -756.95% | 176.36% | - |
| Net Income | 33.24M | 29.82M | -47.73M | -53.74M | -42.81M | -95.76M | -128.69M | -103.92M | -55.58M | -29.99M | -8.05M |
| Depreciation & Amortization | 215K | 391K | 487K | 499K | 370K | 9.54M | 8.9M | 6.32M | 1.29M | 684.21K | 239.8K |
| Stock-Based Compensation | 3.99M | 5.25M | 4.39M | 1.43M | 1.24M | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 2.42M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -4.74M | -64.97M | -15.22M | 6.82M | 876K | 18.27M | 13.94M | 5.78M | -644K | 715.96K | -1.64M |
| Working Capital Changes | -2.38M | -4.04M | -9.64M | 26.32M | 26.94M | -41.8M | 11.52M | 463K | 10.56M | 34.72M | 928.48K |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -2.06M | -2.11M | -1.04M | 2.03M | -1.24M | -2.49M | 2.46M | -4.45M | 4.38M | 1.72M | 517.97K |
| Cash from Investing | 7M | 7M | 19.93M | -5K | -2.47M | -50.79M | 204.9M | -51.8M | -121.79M | -81.53M | -2.27M |
| Capital Expenditures | 0 | 0 | -75K | -5K | -2.48M | -2.4M | -3.73M | -21.83M | -24.94M | -1.96M | -1.99M |
| CapEx % of Revenue | 0% | - | - | -0.08% | 37.36% | 7.05% | 138.16% | 1310.5% | 468.6% | - | - |
| Acquisitions | 7M | 0 | 0 | 0 | 130M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 7M | 0 | 0 | -37.98M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 5.67M | -3.13M | 95.14M | 406K | 30.07M | 52.17M | 53.09M | 158.21M | 150.99M | 115.23M | 378.31K |
| Debt Issued (Net) | -4.69M | -3.13M | 7M | 300K | 30M | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 10.36M | 0 | 42M | 106K | 69K | 52.17M | 53.09M | 158.21M | 150.99M | 115.23M | 378.31K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -17.47K | 0 |
| Other Financing | 0 | 0 | 46.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -14.73M | -29.67M | 47.35M | -8.37M | 16.65M | -109.05M | 163.66M | 15.55M | -13.35M | 40.18M | -10.37M |
| Free Cash Flow | -27.4M | -33.54M | -67.79M | -18.68M | -13.44M | -112.15M | -98.06M | -113.19M | -67.5M | 4.52M | -10.47M |
| FCF Margin % | -51% | -62.42% | - | 280.89% | -202.1% | -330.13% | -3629.35% | -6794.18% | -1268.34% | - | - |
| FCF Growth % | 58.3% | 50.52% | -262.86% | -38.98% | 88.01% | -14.36% | 13.36% | -67.69% | -1593.1% | 143.17% | - |
| FCF per Share | -1.94 | -2.72 | -5.56 | -5.80 | -4.22 | -36.51 | -38.45 | -48.37 | -42.55 | 2.17 | -5.04 |
| FCF Conversion (FCF/Net Income) | -0.82x | -1.12x | 1.42x | 0.35x | 0.26x | 1.15x | 0.73x | 0.88x | 0.77x | -0.22x | 1.05x |
| Interest Paid | 259K | 0 | 856K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Clinical milestone funding dependency
As reported in financial statements, QTTB's operating cash flow consistently trails net income, with the 2025Q4 period showing a $57.7M net profit alongside a $6.2M cash outflow, illustrating that accounting-based milestone recognition provides no meaningful insight into the company's actual underlying cash-generating capacity.
The persistent divergence between net income and operating cash flow suggests that the company's reported profitability is largely a function of non-cash accounting adjustments rather than operational efficiency. Investors should monitor this gap as it indicates that the firm remains entirely dependent on external capital to fund its ongoing clinical development activities.
Based on QTTB's reported figures, the company has maintained a consistent pattern of negative free cash flow, with quarterly outflows ranging from $4.2M to $22.2M, confirming that the business is currently in a capital-intensive phase without any self-sustaining commercial revenue streams to offset R&D costs.
The lack of positive free cash flow trajectory suggests that the company's current business model is designed for asset development rather than immediate profitability. This trend warrants investigation into how long the current cash reserves can support the existing clinical trial pipeline before further dilutive financing becomes necessary.
According to recent SEC filings, QTTB's working capital movements are highly erratic, with a significant $14.3M inflow in 2023Q4 followed by subsequent periods of cash-consuming outflows, reflecting the lumpy nature of milestone-driven payments and the timing of clinical trial-related liabilities within the company's operational cycle.
The volatility in working capital suggests that the company's cash position is highly sensitive to the timing of partnership-related cash receipts. This unpredictability complicates cash flow forecasting and highlights the operational risks inherent in relying on milestone-based funding to manage day-to-day clinical trial expenses.
As indicated by the company's financial history, stock-based compensation consistently adds back to the cash flow statement, with quarterly amounts reaching $1.5M, which effectively masks the true magnitude of the company's operational cash burn by reducing the reported impact of personnel-related expenses on the bottom line.
The reliance on stock-based compensation as a non-cash expense suggests that management is attempting to preserve cash by aligning employee incentives with equity performance. However, this practice may lead to significant shareholder dilution over time, which investors should carefully weigh against the company's limited cash runway.
Quick answers to the most common questions about buying QTTB stock.
Q32 Bio Inc. (QTTB) generated $-33.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Q32 Bio Inc. (QTTB) reported negative free cash flow of $33.5M in 2025, indicating capital requirements exceeded cash from operations.
Q32 Bio Inc. (QTTB) 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.