Persistent negative free cash flow, which peaked at -$25.1M in 2025Q2, highlights the company's reliance on external financing to sustain its clinical trial execution.
| Cash from Operations | -80.3M | -87.47M | -64.83M | -27.18M | -3.24M |
| Operating CF Margin % | - | - | - | - | - |
| Operating CF Growth % | -95.24% | -34.93% | -138.5% | -738.4% | - |
| Net Income | -107.28M | -111.48M | -78.31M | -34.79M | -10.65M |
| Depreciation & Amortization | 508K | 0 | 839K | 112K | 16.36K |
| Stock-Based Compensation | 9.12M | 0 | 10.23M | 3.52M | 609.82K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -2.84M | 24.01M | 4.82M | 1.32M | 5.3M |
| Working Capital Changes | 328K | 0 | -2.42M | 2.65M | 1.49M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 852K | 0 | -346K | 856K | 0 |
| Cash from Investing | -170.56M | -187.47M | -170.14M | -78.86M | -5.28M |
| Capital Expenditures | -156K | 0 | -2.4M | -1.64M | -284K |
| CapEx % of Revenue | 0.78% | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -136.29M | -187.47M | 3.21M | 0 | -5M |
| Cash from Financing | 271.31M | 270.79M | 221.63M | 145.14M | 39.69M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 7.9M |
| Equity Issued (Net) | 270.47M | 0 | 221.62M | 145.27M | 31.79M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -4K | 0 |
| Other Financing | 842K | 270.79M | 7K | -134K | 0 |
| Net Change in Cash | 20.45M | -4.16M | -13.34M | 39.09M | 31.16M |
| Free Cash Flow | -80.54M | -88.09M | -67.23M | -28.82M | -3.53M |
| FCF Margin % | -402.7% | - | - | - | - |
| FCF Growth % | -16.6% | -31.02% | -133.31% | -717.27% | - |
| FCF per Share | -1.71 | -1.88 | -3.24 | -1.59 | -0.18 |
| FCF Conversion (FCF/Net Income) | 0.75x | 0.78x | 0.83x | 0.78x | 0.30x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Clinical trial execution dependency
As reported in recent financial filings, Rapport Therapeutics consistently records operating cash outflows that track closely with net losses, with the OCF/NI ratio fluctuating between 0.65 and 0.94, suggesting that non-cash expenses like stock-based compensation provide only a modest buffer against the company's underlying cash burn.
The tight correlation between net income and operating cash flow indicates that the company's losses are primarily driven by actual cash expenditures rather than accounting accruals. Investors should monitor whether this relationship holds as clinical trial intensity increases, as any divergence could signal a shift in how the firm manages its R&D-related liabilities.
Based on the provided quarterly data, Rapport Therapeutics exhibits a persistent negative free cash flow trajectory, with outflows reaching as high as $25.1M in 2025Q2, reflecting the heavy capital requirements inherent in advancing its proprietary RAP-219 clinical program through the necessary regulatory and human trial milestones.
The absence of positive free cash flow is expected for a clinical-stage biotechnology firm, yet the magnitude of these outflows underscores the company's reliance on external financing. The lack of a clear path to self-sustaining cash generation suggests that the firm remains highly sensitive to capital market conditions for its ongoing operations.
According to historical financial statements, Rapport Therapeutics maintains a lean asset profile with quarterly capital expenditures consistently below $1.4M, indicating that the firm prioritizes outsourced clinical execution over the ownership of heavy physical infrastructure or manufacturing facilities, which helps preserve liquidity for core research activities.
The low capital intensity suggests that the company's cash burn is almost entirely concentrated in R&D and clinical trial operations rather than property, plant, or equipment. This structure provides management with flexibility, though it also means the firm lacks tangible assets that could be leveraged to secure non-dilutive financing.
As disclosed in recent SEC filings, Rapport Therapeutics has increasingly utilized stock-based compensation, which reached $4.7M in 2025Q3, effectively obscuring the true cash cost of talent acquisition and retention while simultaneously diluting shareholders to fund the company's ongoing clinical development and platform discovery efforts.
While stock-based compensation is a standard tool in the biotechnology sector, its rising prominence in the expense structure warrants careful investigation by analysts. This non-cash expense may mask the true economic cost of operations, potentially leading to an underestimation of the capital required to reach future value-inflection points.
Quick answers to the most common questions about buying RAPP stock.
Rapport Therapeutics, Inc. Common Stock (RAPP) generated $-87.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Rapport Therapeutics, Inc. Common Stock (RAPP) reported negative free cash flow of $88.1M in 2025, indicating capital requirements exceeded cash from operations.
Rapport Therapeutics, Inc. Common Stock (RAPP) 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.