Free cash flow has deteriorated to a $355.7 million deficit in 2026Q1, reflecting an accelerating burn rate that outpaces the company's historical cash management capacity.
| Cash from Operations | -1.06B | -897.74M | -557.44M | -350.57M | -224.4M | -147.18M | -100.06M | -49.62M | 1.21M | -25.15M |
| Operating CF Margin % | - | - | - | -3027.39% | -634.26% | -500.78% | -232.8% | -99.15% | 6.02% | - |
| Operating CF Growth % | -312.44% | -61.05% | -59.01% | -56.23% | -52.47% | -47.09% | -101.68% | -4190.35% | 104.82% | - |
| Net Income | -1.37B | -1.13B | -600.09M | -436.37M | -248.71M | -187.09M | -108.16M | -47.66M | -41.79M | -31.13M |
| Depreciation & Amortization | 46M | -26.96M | 11.82M | 9.31M | 9.66M | 7.33M | 6.54M | 3.34M | 1.76M | 1.19M |
| Stock-Based Compensation | 93.31M | 118.39M | 79.2M | 61.77M | 31.2M | 20.72M | 8.89M | 3.16M | 855K | 141K |
| Deferred Taxes | 0 | 0 | -762K | -3.91M | -419K | 0 | -375K | -4.37M | 201K | 0 |
| Other Non-Cash Items | 107.48M | 55.31M | -48.77M | -22.04M | -2.64M | 3.13M | 1.34M | 373K | 2.12M | 549K |
| Working Capital Changes | 67.44M | 86.82M | 1.17M | 40.66M | -13.49M | 8.72M | -8.3M | -4.46M | 38.06M | 4.65M |
| Change in Receivables | 0 | 0 | 1.25M | 3.42M | 1.26M | 464K | 2.34M | -1.43M | -7.3M | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 7.68M | -2.34M | 0 | 0 | 0 |
| Change in Payables | 34.66M | 9.54M | -6.46M | 32.47M | 7.29M | 2.24M | 305K | 5.26M | 109K | 1.97M |
| Cash from Investing | 306.62M | 118.06M | -554.39M | -342.6M | -24.12M | -142.12M | -234.23M | -101.97M | -1.34M | -1.57M |
| Capital Expenditures | -14.26M | -15.99M | -10.31M | -7.73M | -10.82M | -6.53M | -2.93M | -2.59M | -1.5M | -1.57M |
| CapEx % of Revenue | - | - | - | 66.74% | 30.57% | 22.21% | 6.82% | 5.17% | 7.43% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 13.3M | 135.59M | 231.3M | 6.2M | 160K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -13.3M | -135.59M | -231.3M | 0 | 0 | 0 |
| Cash from Financing | 859.39M | 621.52M | 959.41M | 1.23B | 301.43M | 294.18M | 422.78M | 98.66M | 60.85M | 22.66M |
| Debt Issued (Net) | 244.22M | 244.22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 614.94M | 377.09M | 959.13M | 392.39M | 298.05M | 291.24M | 420.07M | 98.66M | 60.56M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -45K | -131K | 0 |
| Other Financing | 238K | 220K | 284K | 836.81M | 3.39M | 2.94M | 2.71M | 0 | 289K | 22.66M |
| Net Change in Cash | 108.55M | -158.16M | -153.08M | 534.74M | 52.91M | 4.88M | 88.48M | -52.93M | 60.72M | -4.06M |
| Free Cash Flow | -1.07B | -913.73M | -567.74M | -358.3M | -235.22M | -153.71M | -103M | -52.2M | -286K | -26.72M |
| FCF Margin % | - | - | - | -3094.14% | -664.83% | -522.99% | -239.62% | -104.32% | -1.42% | - |
| FCF Growth % | -78.11% | -60.94% | -58.45% | -52.33% | -53.03% | -49.24% | -97.29% | -18153.5% | 98.93% | - |
| FCF per Share | -5.41 | -4.81 | -3.38 | -3.17 | -2.92 | -2.11 | -1.55 | -1.43 | -0.01 | -0.73 |
| FCF Conversion (FCF/Net Income) | 0.78x | 0.79x | 0.93x | 0.80x | 0.90x | 0.79x | 0.93x | 1.04x | -0.03x | 0.81x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Clinical trial execution failure
According to recent financial statements, RVMD's operating cash flow consistently trails net losses, with the OCF/NI ratio fluctuating between 0.68 and 1.38 over the last ten quarters, highlighting the significant disconnect between accounting accruals and the actual cash required to sustain the company's clinical development pipeline.
The persistent gap between net income and operating cash flow suggests that non-cash charges, primarily stock-based compensation, are playing a substantial role in reconciling the company's reported losses. Investors should monitor this conversion quality closely, as the reliance on non-cash adjustments may mask the true velocity of cash depletion as clinical trial intensity increases.
As reported in quarterly filings, free cash flow has deteriorated significantly, reaching a deficit of $355.7 million in 2026Q1 compared to $122.9 million in 2023Q4, indicating that the company's cash burn trajectory is accelerating in direct correlation with the expansion of its late-stage oncology clinical programs.
The widening FCF deficit reflects the high-cost nature of transitioning flagship assets into pivotal trials, which requires substantial upfront capital. This trend suggests that the company's current cash runway may be shorter than historical averages imply, necessitating a disciplined approach to capital allocation to avoid premature equity dilution.
Based on the provided cash flow data, working capital changes have been highly erratic, swinging from a $56.4 million inflow in 2025Q3 to a $16.9 million outflow in 2026Q1, which complicates the predictability of the company's short-term liquidity position and overall cash management strategy.
These fluctuations appear to be driven by the timing of milestone-related payments and the settlement of clinical research obligations rather than operational efficiency. Such volatility warrants further investigation into the company's accounts payable cycles, as management may be utilizing working capital levers to manage the timing of cash outflows during periods of peak clinical activity.
As indicated by the company's cash flow statements, stock-based compensation has grown to $33.7 million by 2025Q4, a non-cash expense that effectively obscures the true magnitude of the operational cash burn required to maintain the company's research and development infrastructure and retain specialized scientific talent.
By excluding these significant non-cash charges, the headline operating cash flow figures may present a more favorable liquidity picture than the underlying business reality suggests. Analysts should adjust for these persistent equity-based costs to better understand the actual cash requirements needed to reach commercialization milestones.
Quick answers to the most common questions about buying RVMD stock.
Revolution Medicines, Inc. (RVMD) generated $-897.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Revolution Medicines, Inc. (RVMD) reported negative free cash flow of $913.7M in 2025, indicating capital requirements exceeded cash from operations.
Revolution Medicines, Inc. (RVMD) spent $16.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.