Free cash flow has been persistently negative, averaging -$196M per quarter, with cumulative operating cash burn of -$1.9B exceeding net losses by $800M, while buybacks totaled $1.5B.
Roivant Sciences Ltd. (ROIV) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 |
|---|
| Cash from Operations | -809.36M | -750.35M | -839.45M | -765.27M | -843.39M | -677.73M | -552.14M | -761.83M |
| Operating CF Margin % | - | -9084.13% | -2889.38% | -2339.34% | -2674.89% | -1225.86% | -2320.39% | -1125.49% |
| Operating CF Growth % | 11.8% | 10.61% | -9.69% | 9.26% | -24.44% | -22.75% | 27.52% | - |
| Net Income | -266.25M | -397.91M | -356.73M | 4.23B | -1.12B | -924.12M | -900.23M | -519.39M |
| Depreciation & Amortization | 2.85M | 3.35M | 14.07M | 22.04M | 18.86M | 5.93M | 0 | 0 |
| Stock-Based Compensation | 265.51M | 346.17M | 289.03M | 199.63M | 217.78M | 564.96M | 84.96M | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -138.12M | -80.16M | -708.77M | -5.24B | 29.09M | -340.22M | 191.2M | -257.73M |
| Working Capital Changes | -577.52M | -621.8M | -77.05M | 19.04M | 6.34M | 15.72M | 71.94M | 15.3M |
| Change in Receivables | 0 | -770.24M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 22.27M | 3.42M | -18.17M | 22.68M | 4.36M | 15.4M | 3.75M | 6.6M |
| Cash from Investing | 684.64M | -682.33M | -1.77B | 5.2B | -44.27M | 303.3M | -31.7M | 1.69B |
| Capital Expenditures | -4.59M | -8.21M | -4.6M | -1.38M | -12.69M | -17.44M | -5.81M | -4.92M |
| CapEx % of Revenue | 60.98% | 99.38% | 15.83% | 4.22% | 40.25% | 31.54% | 24.4% | 7.26% |
| Acquisitions | 0 | 0 | 229.36M | -36.98M | 107.86M | -39K | 0 | 1.77B |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -349.27M | -636.64M | 110.47M | 5.24B | -139.43M | 600K | -25.9M | -20.05M |
| Cash from Financing | -66.23M | 134.24M | -1.22B | 419.36M | 499.46M | 306.79M | 456.26M | 217.16M |
| Debt Issued (Net) | 0 | 0 | -52.75M | -30.7M | 129.75M | 14.81M | 0 | -32.06M |
| Equity Issued (Net) | 115.11M | 143.61M | -1.18B | 438.56M | 379.71M | 100.41M | 455.76M | 165.75M |
| Dividends Paid | 0 | 0 | 0 | -6M | 0 | 0 | 0 | 0 |
| Share Repurchases | -317.94M | -319.5M | -1.29B | 0 | 0 | 0 | 0 | -1.19B |
| Other Financing | -181.35M | -9.37M | 13.41M | 17.51M | -10M | 191.57M | 508K | 83.48M |
| Net Change in Cash | -187.69M | -1.29B | -3.82B | 4.86B | -381.92M | -68.44M | -127.58M | 1.34B |
| Free Cash Flow | -813.95M | -758.56M | -844.05M | -766.65M | -856.08M | -695.16M | -557.94M | -766.75M |
| FCF Margin % | -10806.61% | -9183.51% | -2905.21% | -2343.56% | -2715.14% | -1257.4% | -2344.8% | -1132.75% |
| FCF Growth % | 5.21% | 10.13% | -10.1% | 10.45% | -23.15% | -24.59% | 27.23% | - |
| FCF per Share | -1.13 | -1.09 | -1.16 | -0.92 | -1.20 | -1.04 | -0.81 | -1.12 |
| FCF Conversion (FCF/Net Income) | 3.06x | 2.50x | 4.88x | -0.18x | 0.84x | 0.80x | 0.68x | -0.63x |
| Interest Paid | 0 | 0 | 5.96M | 10.27M | 5.3M | 5.54M | 2.02M | 0 |
| Taxes Paid | 0 | 0 | 61.91M | 12.35M | 5.13M | 916K | 4.08M | 0 |
Quick answers to the most common questions about buying ROIV stock.
Roivant Sciences Ltd. (ROIV) generated $-750.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Roivant Sciences Ltd. (ROIV) reported negative free cash flow of $758.6M in 2025, indicating capital requirements exceeded cash from operations.
Roivant Sciences Ltd. (ROIV) spent $8.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Roivant Sciences Ltd. (ROIV) spent $319.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Dependence on pipeline milestones
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Non-Cash Items
Roivant's operating cash flow has been consistently negative, averaging -$196M per quarter over the last ten quarters, while net income swung wildly, indicating low earnings quality and heavy reliance on non-cash adjustments.
The gap between net income and operating cash flow is stark: in 2025Q4, net income was +$303M but operating cash flow was -$164M, a divergence of $467M, likely due to non-cash gains from fair value changes or one-time items. Conversely, in 2025Q3, net income was -$266M and operating cash flow was -$197M, showing that cash burn is more stable than reported earnings. This suggests that reported profitability is not a reliable indicator of cash generation, and investors should focus on the underlying cash burn.
Persistent Cash Burn with No Inflection
Free cash flow has remained deeply negative, ranging from -$108.8M in 2023Q4 to -$263.8M in 2026Q1, with no quarter of positive FCF in the series, indicating a sustained cash consumption phase.
FCF margins have deteriorated from -3.8% in 2023Q4 to -183.0% in 2026Q1, reflecting both declining revenue and escalating operating expenses. The consistent negative FCF, despite occasional net income gains, underscores that the company is not yet self-sustaining. This trajectory suggests that Roivant will require continued external financing to fund operations and pipeline development.
Minimal Capital Expenditure Signals Asset-Light Model
Capital expenditures have been negligible, averaging under $2M per quarter, representing less than 1% of revenue in most periods, indicating an asset-light business model focused on R&D rather than physical infrastructure.
CapEx/Revenue ratios have spiked in quarters with low revenue (e.g., 185.9% in 2025Q1) but absolute CapEx remains tiny, suggesting that the company's cash burn is driven by operating expenses, particularly R&D and SG&A, rather than capital investments. This implies that the company's future growth depends on successful pipeline advancement rather than scaling physical assets.
Working Capital Swings Reflect Deal Activity
Working capital changes have been volatile, with swings from -$601.1M in 2025Q4 to +$34.5M in 2024Q4, likely driven by milestone payments or deal-related adjustments, as per reported figures.
The large negative working capital change in 2025Q4 (-$601M) suggests a significant cash outflow, possibly related to a licensing or acquisition milestone, while other quarters show modest positive or negative changes. This volatility indicates that working capital is not a steady source of cash but is influenced by discrete events. Investors should monitor these swings as they can materially impact quarterly cash flow.
Aggressive Buybacks Despite Cash Burn
Roivant has deployed substantial cash on share repurchases, totaling over $1.5B in the last ten quarters, while paying no dividends, as per financial statements, indicating a focus on shareholder returns despite negative operating cash flow.
Buybacks have been significant, with notable amounts in 2024Q1 (-$648.4M) and 2024Q4 (-$295.4M), even as operating cash flow remained negative. This suggests that management is using balance sheet cash or financing to support the stock price, which may be a strategic move to offset dilution from stock-based compensation. However, this capital deployment reduces liquidity available for pipeline investment, and the sustainability of such buybacks is questionable given the ongoing cash burn.
Cumulative Losses Outpace Cash Burn
Over the last ten quarters, cumulative net income was -$1.1B while cumulative operating cash flow was -$1.9B, a divergence of $800M, indicating that cash consumption exceeds reported losses.
The cumulative gap between net income and operating cash flow suggests that non-cash gains (e.g., fair value adjustments) have inflated reported earnings relative to actual cash generation. This divergence is a red flag for earnings quality, as it implies that the company is burning cash faster than its income statement suggests. Investors should be cautious about relying on net income as a measure of financial health.
What Could Invalidate the Base Case
The cash flow statement obscures the impact of stock-based compensation, which totaled over $500M in the last ten quarters, and the sustainability of buybacks funded by balance sheet cash rather than operations.
Stock-based compensation (SBC) has been a significant non-cash expense, averaging around $70M per quarter, which is not reflected in operating cash flow but does dilute shareholders. Additionally, the aggressive buyback program, totaling over $1.5B, may be funded by cash reserves or financing rather than operating cash flow, raising questions about long-term liquidity. If the pipeline fails to generate revenue, the company may face a funding gap that could lead to further dilution or strategic restructuring.