Free cash flow burn accelerated 355% from -$163.7M in 2024Q1 to -$745.3M in 2026Q2, with operating cash outflow of $741.5M exceeding net losses, signaling deteriorating cash conversion.
Revolution Medicines, Inc. (RVMD) cash flow statement — 9-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Cash from Operations | -1.58B | -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 % | -473.78% | -61.05% | -59.01% | -56.23% | -52.47% | -47.09% | -101.68% | -4190.35% | 104.82% | - |
| Net Income | -1.77B | -1.13B | -600.09M | -436.37M | -248.71M | -187.09M | -108.16M | -47.66M | -41.79M | -31.13M |
| Depreciation & Amortization | 46.99M | -26.96M | 11.82M | 9.31M | 9.66M | 7.33M | 6.54M | 3.34M | 1.76M | 1.19M |
| Stock-Based Compensation | 306.07M | 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 | 221.96M | 55.31M | -48.77M | -22.04M | -2.64M | 3.13M | 1.34M | 373K | 2.12M | 549K |
| Working Capital Changes | 69.87M | 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 | 47.79M | 9.54M | -6.46M | 32.47M | 7.29M | 2.24M | 305K | 5.26M | 109K | 1.97M |
| Cash from Investing | -1.21B | 118.06M | -554.39M | -342.6M | -24.12M | -142.12M | -234.23M | -101.97M | -1.34M | -1.57M |
| Capital Expenditures | -10.64M | -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 | 3.26B | 621.52M | 959.41M | 1.23B | 301.43M | 294.18M | 422.78M | 98.66M | 60.85M | 22.66M |
| Debt Issued (Net) | 731.28M | 244.22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 2.78B | 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 | -250.76M | 220K | 284K | 836.81M | 3.39M | 2.94M | 2.71M | 0 | 289K | 22.66M |
| Net Change in Cash | 471.13M | -158.16M | -153.08M | 534.74M | 52.91M | 4.88M | 88.48M | -52.93M | 60.72M | -4.06M |
| Free Cash Flow | -1.59B | -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 % | -126.72% | -60.94% | -58.45% | -52.33% | -53.03% | -49.24% | -97.29% | -18153.5% | 98.93% | - |
| FCF per Share | -7.53 | -4.81 | -3.38 | -3.17 | -2.92 | -2.11 | -1.55 | -1.43 | -0.01 | -0.73 |
| FCF Conversion (FCF/Net Income) | 0.90x | 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 |
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.
Key Metrics
Top Statement Risk
R&D cost escalation
Metrics are mathematically derived from official filings.
Cash Burn Exceeds Net Losses
In 2026Q2, operating cash outflow of $741.5M exceeded the net loss of $644.4M, per reported financials, indicating cash conversion is deteriorating as non-cash charges fail to offset working capital and other cash demands.
The OCF/NI ratio has been above 1 in several quarters, notably 1.38 in 2024Q1 and 1.15 in 2026Q2, suggesting that cash burn is outpacing accounting losses. This divergence may reflect timing of payments and prepayments, but the widening gap in 2026Q2 warrants close monitoring as it implies cash consumption is accelerating beyond reported losses.
Free Cash Flow Burn Accelerates
Free cash flow deteriorated from -$163.7M in 2024Q1 to -$745.3M in 2026Q2, a 355% increase in quarterly burn, based on reported figures, signaling a rapid escalation in cash consumption with no revenue offset.
The sequential jump in FCF burn from -$355.7M in 2026Q1 to -$745.3M in 2026Q2 is the most pronounced, aligning with the surge in R&D expenses noted in the income statement. This trajectory suggests the company is in a heavy investment phase, but the lack of top-line growth means the cash runway is being consumed at an accelerating pace, which may pressure the balance sheet.
Minimal Capital Expenditure Intensity
Capital expenditures remain modest, averaging under $4M per quarter, per financial data, representing a negligible share of total cash outflows, indicating that the primary cash burn is operational rather than asset-related.
CapEx/Revenue is not meaningful due to zero revenue, but the absolute levels are small relative to operating cash burn, suggesting the company is not investing heavily in fixed assets. This implies that the business model is asset-light, with cash being directed toward R&D and clinical development rather than infrastructure, which may limit future depreciation but also indicates a reliance on external funding for growth.
Working Capital Swings Amplify Burn
Working capital changes have been volatile, swinging from -$47.2M in 2024Q1 to +$56.4M in 2025Q3, per reported figures, indicating that timing of payments and receivables can significantly impact quarterly cash flows.
The positive working capital contributions in 2025Q3 and 2024Q4 suggest the company is delaying payments or collecting on some items, but the negative swings in other quarters, such as -$16.9M in 2026Q1, add to cash burn. This volatility may reflect the lumpy nature of clinical trial payments and vendor terms, and investors should monitor whether the company can manage these swings to preserve liquidity.
No Capital Returns, All Cash to R&D
No dividends or buybacks were reported across the ten quarters, per financial statements, with all cash outflows directed toward operating activities, indicating a pure reinvestment strategy with no shareholder returns.
The absence of capital returns is typical for a development-stage biotech, but the scale of cash burn relative to any potential financing capacity is a concern. With no revenue and escalating R&D costs, the company may need to raise capital through equity or debt, which could dilute existing shareholders, as suggested by the prior income statement analysis.
Cumulative Losses Outpace Cash Burn
Over the ten quarters, cumulative net losses totaled approximately $2.83B while cumulative operating cash outflow was about $2.55B, per reported data, indicating that cash burn is slightly less than accounting losses, but the gap is narrowing.
The cumulative OCF/NI ratio is roughly 0.90, meaning that for every dollar of net loss, about 90 cents of cash was consumed. This suggests that non-cash charges like SBC and D&A are partially offsetting cash outflows, but the trend is toward cash burn converging with net losses, which may indicate that the quality of earnings is deteriorating as the company scales its operations.
What Could Invalidate the Base Case
The cash flow statement may obscure the full cash cost of R&D if certain expenses are capitalized or paid via equity, per reported figures, potentially understating the true cash burn and overstating the runway.
While SBC is a non-cash charge, it represents real dilution to shareholders, and the large SBC of $154.3M in 2026Q2, as reported, suggests that a significant portion of employee compensation is equity-based, which does not appear in operating cash flow. Additionally, if the company enters into collaborations or licensing deals that involve milestone payments or equity stakes, the cash flow statement may not fully capture the economic cost. Investors should monitor the balance sheet for any capitalized costs or off-balance-sheet arrangements that could alter the cash burn trajectory.