Free cash flow remains consistently negative, with quarterly outflows averaging between $2.0 million and $2.5 million, highlighting a total dependence on external financing.
| Cash from Operations | -3.11M | -4M | -4.96M | -5.27M | -767.31K | -726.57K | -390.99K |
| Operating CF Margin % | - | - | - | - | - | - | - |
| Operating CF Growth % | 22.19% | 19.37% | 5.77% | -586.43% | -5.61% | -85.83% | - |
| Net Income | -3.58M | -4.36M | -5.87M | -7.45M | -1.35M | -812.37K | -390.99K |
| Depreciation & Amortization | 392.74K | 745.59K | 769.69K | 604.4K | 26.46K | 9.52K | 0 |
| Stock-Based Compensation | 244.81K | 449.31K | 930K | 2.76M | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 59.04K | -248K | -282.56K | -159.34K | 0 | 0 | 0 |
| Working Capital Changes | 18.86K | -585.37K | -508.94K | -1.02M | 552.98K | 76.28K | 0 |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 2.69M | 5.24M | 58.98K | -10.78M | 0 | -117.84K | 0 |
| Capital Expenditures | -152.69K | -5.38K | -27.39K | -780.88K | 0 | -117.84K | 0 |
| CapEx % of Revenue | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 86.37K | -10M | 0 | 0 | 0 |
| Cash from Financing | 0 | 102.28K | 134.91K | 22.41M | 439.75K | 988.08K | 480.99K |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 480.99K |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 102.28K | 134.91K | 22.41M | 439.75K | 988.08K | 0 |
| Net Change in Cash | -542.12K | 1.4M | -4.85M | 6.36M | -327.57K | 143.67K | 90K |
| Free Cash Flow | -3.27M | -4.01M | -4.99M | -6.05M | -767.31K | -844.41K | -390.99K |
| FCF Margin % | - | - | - | - | - | - | - |
| FCF Growth % | 18.49% | 19.7% | 17.49% | -688.2% | 9.13% | -115.97% | - |
| FCF per Share | -0.01 | -0.01 | -0.01 | -0.01 | -0.00 | -0.00 | -0.00 |
| FCF Conversion (FCF/Net Income) | 0.87x | 0.93x | 0.85x | 0.71x | 0.57x | 0.89x | 1.00x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Clinical Trial Funding Exhaustion
According to recent SEC filings, the company's operating cash flow consistently reflects deep negative values, with the OCF/NI ratio frequently reaching extreme levels, such as 1936.34 in 2024Q2, which indicates that net income figures are entirely disconnected from the underlying reality of cash-based operational expenditures.
The massive divergence between net income and operating cash flow suggests that non-cash items and accounting adjustments are masking the true severity of the company's cash burn. Investors should monitor this gap as it confirms that the firm is not generating any internal cash to support its clinical development activities.
As reported in financial statements, Regencell's free cash flow remains consistently negative, with quarterly outflows averaging approximately $2.0 million to $2.5 million, illustrating a trajectory that is entirely dependent on external financing rather than any self-sustaining commercial revenue or operational efficiency gains.
The lack of positive free cash flow trajectory underscores the company's status as a pre-revenue entity where every dollar spent on R&D directly depletes the balance sheet. This trend appears unsustainable without a fundamental shift toward commercialization or a significant reduction in the current burn rate.
Based on reported figures, capital expenditures remain negligible, often hovering near zero or low thousands, which suggests that the company is not currently investing in physical manufacturing infrastructure or heavy equipment, but rather focusing its limited resources on intangible clinical trial and research-related costs.
The absence of meaningful capital investment implies that the firm has not yet reached the stage of scaling production capacity. This low capex profile may change rapidly if the company successfully transitions to a commercial phase, requiring significant investment in standardized manufacturing facilities.
Data from recent periods shows that working capital changes are consistently negative, with outflows reaching $292.7K in 2024Q2, suggesting that the company is struggling to manage its operational liquidity as it continues to fund research without any offsetting inflows from product sales or customer collections.
The persistent negative working capital trend indicates that the firm is consuming cash to maintain its current operational state. Without revenue to drive accounts receivable or inventory turnover, these outflows represent a direct drain on the company's already limited cash reserves.
As indicated by the provided financial data, stock-based compensation has historically been a significant non-cash adjustment, with figures reaching $1.4 million in 2022, which effectively obscures the true economic cost of talent retention and management incentives during this period of intense cash depletion.
The reliance on stock-based compensation suggests that the company is attempting to preserve its limited cash by paying for services with equity. Investors should monitor whether this practice continues, as it represents a form of dilution that is not immediately apparent in the headline cash flow figures.
Quick answers to the most common questions about buying RGC stock.
Regencell Bioscience Holdings Limited (RGC) generated $-3.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Regencell Bioscience Holdings Limited (RGC) reported negative free cash flow of $3.3M in 2025, indicating capital requirements exceeded cash from operations.
Regencell Bioscience Holdings Limited (RGC) spent $0.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.