The firm exhibits a concerning cash burn trajectory, with free cash flow remaining negative at -$2.5 million in 2025Q2 and a current ratio of only 0.56 indicating limited liquidity.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | -8.2M | -9.37M | -35.82M | -29.18M | -65.05M | -48.58M | -40.75M | -34.46M | -44.77M | -28.26M | -17.83M | -12.23M | -8.44M | -6.79M | -4.69M |
| Operating CF Margin % | - | -116.49% | -548.55% | -47.22% | -75.85% | -75.48% | -647.73% | -412.22% | -1117.27% | -27978.22% | -594200% | -174.35% | -70300% | -42468.75% | -20395.65% |
| Operating CF Growth % | 202.54% | 73.84% | -22.73% | 55.13% | -33.9% | -19.22% | -18.24% | 23.02% | -58.43% | -58.52% | -45.77% | -44.96% | -24.15% | -44.85% | - |
| Net Income | -9.31M | -8.27M | 23.92M | -71.67M | -97.74M | -76.17M | -42.3M | -38.82M | -45.54M | -29.37M | -21.09M | -10.71M | -10.63M | -10.33M | -15.5M |
| Depreciation & Amortization | 369K | 619K | 1.99M | 8.15M | 18.15M | 8.74M | 1.21M | 90K | 81K | 44K | 36K | 27K | 24K | 24K | 15K |
| Stock-Based Compensation | 733K | 665K | 1.65M | 5.67M | 10.21M | 4.2M | 3.03M | 2.68M | 2.23M | 1.68M | 1.36M | 1.75M | 1.25M | 1.65M | 2.86M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 123K | 195K | 0 | 136K | -5.08M | -1.26M | -638K | 8K | -64K | -73K | -602K |
| Other Non-Cash Items | -602K | -4.44M | -47.79M | 20.65M | 5.37M | 6.03M | -347K | 35K | -123K | 94K | -69K | 50K | -70K | 1.47M | 8.11M |
| Working Capital Changes | 614K | 2.05M | -15.58M | 8.01M | -1.15M | 8.42M | -2.34M | 1.42M | 3.66M | 553K | 2.57M | -3.36M | 1.05M | 459K | 430K |
| Change in Receivables | -4.38M | 52K | 33.43M | -2.85M | -3.02M | -27.44M | -258K | 570K | -1.43M | 713.24K | 701.73K | 0 | 0 | 0 | 0 |
| Change in Inventory | 635K | 738K | 2.38M | 3.8M | -8.29M | -4.64M | -1.11M | -116K | -653K | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | -2.11M | -949.55K | -7.43M | 111K | 7.37M | 860K | -1.48M | 4.75M | -158K | 1.87M | -770K | 1.34M | 568K | 0 |
| Cash from Investing | -12K | -9K | 3.99K | 8.3M | -8.14M | -35.65M | 5.16M | 5.35M | -18.58M | 24.47M | -21.19M | -17.86M | 1.13M | 2.98M | -4.77M |
| Capital Expenditures | -12K | -9K | -10.97K | -198K | -115K | -53.77M | -203K | -58K | -1.18M | -120K | -1.63M | -1.1M | -224K | -108K | -181K |
| CapEx % of Revenue | 0.13% | 0.11% | 0.17% | 0.32% | 0.13% | 83.55% | 3.23% | 0.69% | 29.47% | 118.81% | 54466.67% | 15.75% | 1866.67% | 675% | 786.96% |
| Acquisitions | 0 | 0 | 0 | 0 | 8.03M | 0 | 35K | 35K | 11.96M | -36.87M | 17.94M | 15.96M | 0 | 100K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -8.03M | 0 | -35K | -35K | -11.96M | 36.87M | -17.94M | -15.96M | 1.14M | -100K | 0 |
| Cash from Financing | 3.78M | 8.42M | 21.38M | 11.45M | 73.46M | 84.37M | 35.51M | 41.76M | 25.65M | 36.02M | 54.79M | 24.37M | 2.28M | 6.55M | 13.84M |
| Debt Issued (Net) | 0 | -636K | -1.18M | -1.48M | -1.68M | 76.45M | -796K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 8.26M | 13.92M | 23.81M | 78.54M | 23.87M | 36.3M | 41.9M | 22.22M | 35.75M | 54.68M | 19.36M | 100K | 6.25M | 12.66M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 3.78M | 790K | 8.64M | -10.88M | -3.39M | -15.95M | 5K | -139K | 3.44M | 263K | 108K | 5M | 2.18M | 302K | 1.18M |
| Net Change in Cash | -7.28M | -952K | -14.4M | -9.51M | 179K | 272K | 18K | 12.55M | -37.33M | 32.27M | 15.62M | -5.96M | -4.96M | 2.74M | 5.02M |
| Free Cash Flow | -8.21M | -9.38M | -35.83M | -29.38M | -65.16M | -102.35M | -40.95M | -34.52M | -45.95M | -28.38M | -19.46M | -13.33M | -8.66M | -6.9M | -4.87M |
| FCF Margin % | -85.98% | -116.6% | -548.71% | -47.55% | -75.98% | -159.03% | -650.96% | -412.92% | -1146.74% | -28097.03% | -648666.67% | -190.11% | -72166.67% | -43143.75% | -21182.61% |
| FCF Growth % | 66.12% | 73.83% | -21.94% | 54.91% | 36.34% | -149.93% | -18.63% | 24.87% | -61.92% | -45.83% | -45.94% | -53.97% | -25.45% | -41.69% | - |
| FCF per Share | -4.55 | -3.81 | -69.14 | -237.23 | -700.26 | -1404.91 | -689.61 | -746.54 | -1301.18 | -1101.63 | -871.01 | -764.39 | -694.19 | -656.24 | -506.60 |
| FCF Conversion (FCF/Net Income) | 0.88x | 1.13x | -1.50x | 0.41x | 0.67x | 0.64x | 0.96x | 0.89x | 0.98x | 0.96x | 0.85x | 1.14x | 0.79x | 0.66x | 0.30x |
| Interest Paid | 37K | 55K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and solvency
As reported in recent financial filings, RedHill's operating cash flow consistently fails to align with net income, with the OCF/NI ratio exhibiting extreme volatility, including a 1.21 reading in 2025Q2, which suggests that accounting losses are not capturing the full extent of the company's cash burn.
The frequent divergence between net income and operating cash flow suggests that non-cash items and working capital adjustments are masking the underlying severity of the cash drain. Investors should monitor this gap, as it indicates that the company's reported profitability metrics are disconnected from the actual cash required to sustain operations.
Based on the company's quarterly data, free cash flow remains deeply negative, with recent periods showing a consistent burn rate of approximately $1.6 million to $3.1 million, underscoring a trajectory that appears unsustainable without immediate external capital infusions to support the current commercial infrastructure.
The persistent negative FCF margins indicate that the company has yet to achieve the necessary scale to cover its fixed operating costs. This trend suggests that the business model is currently reliant on continuous financing rather than internal cash generation to fund its ongoing commercial and clinical activities.
According to recent SEC filings, working capital changes have been highly erratic, swinging from a $3.7 million outflow in 2023Q4 to a $1.6 million inflow in 2024Q2, which complicates the assessment of the company's ability to efficiently manage its inventory and accounts receivable cycles.
Such significant fluctuations in working capital suggest that the company's cash position is highly sensitive to the timing of wholesaler orders and potential channel management. This volatility warrants further investigation into whether these shifts represent genuine operational efficiency or merely the timing of payments and receipts.
Data from the cash flow statement reveals that stock-based compensation and depreciation adjustments, as noted in recent filings, frequently obscure the true cash cost of operations, with SBC expenses reaching as high as $399,000 per quarter during periods of significant cash depletion.
The reliance on non-cash adjustments to reconcile operating cash flow may mask the true economic cost of maintaining the current workforce and commercial footprint. Analysts should be wary of these adjustments, as they appear to minimize the perceived impact of the company's high fixed-cost structure on its liquidity.
Quick answers to the most common questions about buying RDHL stock.
RedHill Biopharma Ltd. (RDHL) generated $-9.4M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
RedHill Biopharma Ltd. (RDHL) reported negative free cash flow of $9.4M in 2024, indicating capital requirements exceeded cash from operations.
RedHill Biopharma Ltd. (RDHL) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.