Liquidity is under significant pressure as evidenced by a negative free cash flow margin of -40.7% reported in 2026Q3.
| Cash from Operations | -31.98M | -18.92M | -7.8M | -10.89M | -26.08M | -15.6M | -4.67M | -3.13M | -1.81M | -1.62M | 72K |
| Operating CF Margin % | - | -2063.69% | -1224.8% | -3901.79% | -6360.73% | -1945.26% | -95.03% | -63.52% | -41.52% | -28.89% | 1.29% |
| Operating CF Growth % | -735.78% | -142.55% | 28.33% | 58.26% | -67.16% | -234.35% | -48.98% | -72.56% | -11.83% | -2354.17% | - |
| Net Income | -32.55M | -30.64M | -65M | -2.21M | -140.55M | -22.84M | -10.41M | -4.92M | -12.08M | 138K | 710K |
| Depreciation & Amortization | 203K | 288K | 225K | 78K | 72K | 70K | 1.87M | 1.78M | 1.7M | 1.67M | 1.64M |
| Stock-Based Compensation | 0 | 2.12M | 2.3M | 2.19M | -917K | 6.63M | 0 | 372K | 0 | 0 | 0 |
| Deferred Taxes | -6K | -165K | 0 | 944K | 0 | 6K | 13K | -19K | 8.86M | -295K | 368K |
| Other Non-Cash Items | -28.25M | 8.51M | 55.29M | -11.79M | 115.32M | 8.15M | 2.72M | -868K | 104K | 113K | 95K |
| Working Capital Changes | -16K | 967K | -610K | -92K | -10K | -989K | 1.15M | 1.64M | -792K | -3.16M | -2.74M |
| Change in Receivables | -485K | 91K | -289K | -117K | 74K | -161K | 249K | -285K | -23K | -7K | -109K |
| Change in Inventory | 2K | -11K | 0 | 0 | 0 | 0 | 0 | 1.32M | -266K | -2.75M | -2.7M |
| Change in Payables | -1.44M | -922K | -146K | -827K | 52K | 164K | 713K | 533K | -35K | 50K | 9K |
| Cash from Investing | -516K | 44.03M | -10.82M | 21.21M | -63.8M | -7.26M | -1.03M | -31.24M | 4.11M | -11.22M | -3.65M |
| Capital Expenditures | 0 | -4K | -143K | 51.68M | -2K | 0 | -534K | -399K | -710K | -1.82M | -1.55M |
| CapEx % of Revenue | 0% | 0.44% | 22.45% | 18522.94% | 0.49% | 25.69% | 10.88% | 8.09% | 16.24% | 32.4% | 27.79% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -516K | -19.67M | -6.75M | -3.51M | -26.99M | -750K | 0 | -55.54M | -1.7M | -11.22M | -3.65M |
| Cash from Financing | 24.79M | 24.83M | -179K | -15.22M | 103.86M | 29.39M | -96K | 30.89M | 1.75M | 22.26M | 265K |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 25M | 25.05M | -168K | -218K | 110.17M | 15.07M | 29K | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -168K | -218K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -208K | -220K | 789K | -15M | -6.3M | 14.31M | -125K | 12.55M | 1.75M | 22.26M | 6.62M |
| Net Change in Cash | -7.44M | 50.09M | -18.82M | -5.04M | 13.68M | 6.65M | -5.82M | -3.78M | 4.05M | 9.42M | -3.31M |
| Free Cash Flow | -31.98M | -18.93M | -7.98M | 40.79M | -26.08M | -15.81M | -5.2M | -3.53M | -2.52M | -3.44M | -1.48M |
| FCF Margin % | -3263.67% | -2064.12% | -1252.75% | 14621.15% | -6361.22% | -1970.95% | -105.91% | -71.61% | -57.77% | -61.29% | -26.5% |
| FCF Growth % | -178.63% | -137.19% | -119.56% | 256.41% | -65% | -203.98% | -47.27% | -39.84% | 26.66% | -132.48% | - |
| FCF per Share | -0.62 | -0.64 | -0.34 | 1.75 | -1.32 | -0.96 | -0.33 | -0.27 | -0.20 | -0.27 | -0.12 |
| FCF Conversion (FCF/Net Income) | 0.98x | 0.62x | 0.23x | 5.80x | 0.21x | 0.64x | 0.45x | 0.64x | 0.16x | -11.76x | 0.10x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 31K |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 63K | 24K |
Clinical Trial Burn Rate
According to recent financial disclosures, RFL's operating cash flow consistently trails net income, with OCF/NI ratios fluctuating wildly, such as the 1.72 observed in 2026Q3, which suggests that non-cash accounting adjustments and working capital volatility are masking the underlying severity of the company's cash-burning operational model.
The erratic relationship between net income and operating cash flow indicates that the company's reported losses do not fully capture the cash-outflow reality of its pharmaceutical development. Investors should monitor this divergence, as it suggests that the company's core operations are not generating the necessary liquidity to offset its R&D-heavy cost structure.
As reported in quarterly filings, RFL's free cash flow margins remain deeply negative, reaching -40.7% in 2026Q3, which highlights a structural inability to achieve self-sustainability while the company continues to fund its high-risk oncology pipeline through its limited real estate-derived cash reserves.
The consistent negative FCF trajectory confirms that the company is effectively consuming its capital base to maintain its current corporate and clinical footprint. This trend appears unsustainable without a significant shift in the revenue-to-cost ratio or a successful monetization of its pharmaceutical assets.
Based on the provided cash flow statements, working capital changes have been highly inconsistent, swinging from a $2.4 million inflow in 2026Q1 to an $897,000 outflow in 2026Q3, which suggests that the company's cash position is highly sensitive to the timing of payables and receivables.
This volatility in working capital management may indicate an underlying instability in the company's ability to manage its short-term obligations efficiently. Such fluctuations complicate cash forecasting and suggest that the company's liquidity is subject to unpredictable operational timing rather than steady-state cash generation.
Financial statements reveal that stock-based compensation and other non-cash adjustments frequently distort the reported cash flow figures, as seen in the 2026Q2 period where SBC adjustments significantly impacted the net cash position, potentially obscuring the true economic cost of maintaining the current management and research team.
The reliance on non-cash adjustments to reconcile the cash flow statement warrants further investigation into the actual cash cost of the company's human capital. These adjustments may be masking the true extent of the cash burn, making it difficult for investors to assess the company's actual runway without adjusting for these non-cash items.
Quick answers to the most common questions about buying RFL stock.
Rafael Holdings, Inc. (RFL) generated $-18.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Rafael Holdings, Inc. (RFL) reported negative free cash flow of $18.9M in 2025, indicating capital requirements exceeded cash from operations.
Rafael Holdings, Inc. (RFL) 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.