Persistent negative free cash flow, which reached -$8.0 million in 2026Q1, highlights a structural inability to fund operations through internal cash generation.
| Cash from Operations | -27.59M | -29.81M | -49.28M | -60.27M | -57.28M | -45.53M | -22.04M | -15.03M |
| Operating CF Margin % | - | -3474.71% | -7748.74% | - | - | - | - | - |
| Operating CF Growth % | 145.59% | 39.51% | 18.22% | -5.2% | -25.81% | -106.6% | -46.67% | - |
| Net Income | -7.82M | -8.98M | -57.77M | -74.56M | -66.65M | -47.01M | -26.45M | -17.56M |
| Depreciation & Amortization | 67K | 92K | 131K | 150K | 167K | 109K | 62K | 26K |
| Stock-Based Compensation | 3.44M | 5.31M | 7.99M | 10.92M | 9.5M | 3.65M | 704K | 194K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 103K |
| Other Non-Cash Items | -21.86M | -22.05M | 627K | -1.05M | 640K | 1.5M | 1.52M | 144K |
| Working Capital Changes | -1.41M | -4.19M | -258K | 4.28M | -936K | -3.78M | 2.12M | 2.07M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 540K | -152K | -698K | -99K | 487K | -976K | 723K | 728K |
| Cash from Investing | 54.09M | 47.27M | 33.49M | 27.66M | -112.17M | -2.33M | -2.07M | -188K |
| Capital Expenditures | 0 | 0 | 0 | -12K | -54K | -333K | -137K | -188K |
| CapEx % of Revenue | 0% | - | - | - | - | - | - | - |
| Acquisitions | 20M | 0 | -2M | -2.25M | -300K | -2M | -1.94M | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -500K | 18.5M | 0 | 2.25M | 0 | -2K | -1.94K | 0 |
| Cash from Financing | 19K | 16K | 5.2M | 143K | 51.08M | 82.97M | 144.89M | 31.57M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 19K | 16K | 5.41M | 143K | 51.53M | 86.2M | 145.21M | 31.6M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 10K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -206K | 0 | -455K | -3.23M | -319K | -33K |
| Net Change in Cash | 26.52M | 17.47M | -10.59M | -32.46M | -118.38M | 35.1M | 120.78M | 16.35M |
| Free Cash Flow | -27.59M | -29.81M | -49.28M | -60.28M | -57.34M | -45.87M | -22.18M | -15.21M |
| FCF Margin % | -3215.15% | -3474.71% | -7748.74% | - | - | - | - | - |
| FCF Growth % | 37.35% | 39.51% | 18.24% | -5.13% | -25.01% | -106.83% | -45.76% | - |
| FCF per Share | -4.85 | -5.30 | -9.05 | -11.92 | -14.41 | -11.42 | -7.98 | -5.47 |
| FCF Conversion (FCF/Net Income) | 3.53x | 3.32x | 0.85x | 0.81x | 0.86x | 0.97x | 0.83x | 0.85x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Binary clinical trial outcomes
According to reported financial data, RLYB exhibits a persistent disconnect between net income and operating cash flow, with the 2025Q3 period showing a $16.0 million net profit that failed to translate into positive cash generation, as operating cash flow remained negative at $6.5 million.
The divergence between accounting profit and cash reality suggests that the reported net income is heavily influenced by non-cash or non-operating items rather than core business performance. Investors should monitor this gap, as it indicates that the company's operational survival is entirely decoupled from its reported earnings metrics.
As reported in financial statements, RLYB has consistently burned cash to fund operations, with quarterly free cash flow ranging from -$4.7 million to -$15.5 million over the last ten quarters, reflecting a structural inability to generate self-sustaining cash flow from its current clinical-stage pipeline.
The lack of a positive FCF trajectory underscores the company's reliance on external financing to maintain its R&D programs. This trend appears likely to continue until the company achieves a significant clinical milestone or commercial partnership that alters its fundamental cost-to-revenue profile.
Based on the provided cash flow statements, RLYB's working capital movements have been highly erratic, swinging from a $6.1 million source of cash in 2023Q4 to a $5.1 million use of cash in 2024Q3, indicating significant fluctuations in timing-related operational payables and receivables.
These swings suggest that the company's cash position is sensitive to the timing of milestone payments and vendor obligations. Such volatility warrants further investigation into whether these movements represent genuine operational efficiency or merely the lumpy nature of pre-commercial biotech accounting.
As indicated by recent filings, RLYB consistently utilizes stock-based compensation, reaching as high as $2.5 million in 2023Q4, which effectively serves as a non-cash substitute for salary expenses and obscures the true economic cost of retaining the scientific talent required for clinical development.
While this practice preserves immediate cash, it represents a significant dilution risk for shareholders that is not fully captured in the operating cash flow figures. Analysts should treat these SBC figures as a deferred cost that will eventually impact the company's long-term equity value.
Quick answers to the most common questions about buying RLYB stock.
Rallybio Corporation (RLYB) generated $-29.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Rallybio Corporation (RLYB) reported negative free cash flow of $29.8M in 2025, indicating capital requirements exceeded cash from operations.
Rallybio Corporation (RLYB) 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.