Free cash flow remains deeply negative, with the company burning $8.6 million in 2026Q1 as it continues to fund clinical development without offsetting revenue.
| Cash from Operations | -39.73M | -45.65M | -42.44M | -23.77M | -24.49M | -21.71M | -10.42M | -10.55M |
| Operating CF Margin % | - | - | - | -1188.3% | - | - | - | - |
| Operating CF Growth % | 19.86% | -7.58% | -78.55% | 2.96% | -12.81% | -108.43% | 1.29% | - |
| Net Income | -43.51M | -51.04M | -45.57M | -27.88M | -30.5M | -24.44M | -11.37M | -14.26M |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 130K | 0 | 0 | 1K |
| Stock-Based Compensation | 4.98M | 6.45M | 5.29M | 4.99M | 1.88M | 1.9M | 775K | 2.99M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 2.23M | -8K | -1.11M | 98K | -215K | 883K | 104K | 75K |
| Working Capital Changes | -3.42M | -1.05M | -1.05M | -978K | 4.21M | -55K | 75K | 645K |
| 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 | 0 | 929K | -907K | 120K | 0 | 0 | 0 | 0 |
| Cash from Investing | 11.36M | 4.56M | -61.68M | 12.58M | -32.01M | 0 | 20K | -27K |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 20K | -27K |
| Cash from Financing | 275K | 275K | 104.82M | 86.17M | -73K | 9.74M | 68.89M | 18.48M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.36M |
| Equity Issued (Net) | 275K | 275K | 105.75M | 89.68M | 12K | 10.8M | 68.89M | 21.85M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -931K | -3.51M | -85K | -1.06M | 0 | 0 |
| Net Change in Cash | -28.09M | -40.82M | 701K | 74.98M | -56.57M | -11.97M | 58.49M | 7.91M |
| Free Cash Flow | -39.73M | -45.65M | -42.44M | -23.77M | -24.49M | -21.71M | -10.42M | -10.55M |
| FCF Margin % | - | - | - | -1188.3% | - | - | - | - |
| FCF Growth % | 21.74% | -7.58% | -78.55% | 2.96% | -12.81% | -108.43% | 1.29% | - |
| FCF per Share | -1.22 | -1.41 | -1.35 | -1.31 | -1.10 | -0.98 | -0.47 | -0.48 |
| FCF Conversion (FCF/Net Income) | 0.91x | 0.89x | 0.93x | 0.85x | 0.80x | 0.89x | 0.92x | 0.74x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 136K |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent capital dilution risk
According to the provided financial data, Sagimet's operating cash flow consistently tracks below net income, with the OCF/NI ratio fluctuating between 0.68 and 1.34, suggesting that non-cash adjustments and working capital volatility significantly distort the company's true cash-generating capacity during this pre-revenue development phase.
The divergence between net income and operating cash flow highlights the reliance on non-cash items like stock-based compensation to manage the burn rate. Investors should monitor these fluctuations as they indicate that the company's reported losses do not fully capture the actual cash outflow required to sustain clinical operations.
As reported in financial statements, Sagimet's free cash flow remains deeply negative, reaching a peak outflow of $19.6 million in 2024Q3, which underscores the company's total dependence on external financing to fund its ongoing MASH clinical development programs and general corporate overhead requirements.
The lack of positive free cash flow is expected for a clinical-stage biotech, yet the volatility in quarterly outflows suggests that trial enrollment and milestone-driven expenses create significant liquidity pressure. This trajectory necessitates a clear path to partnership or commercialization to avoid further erosion of shareholder value.
Based on the reported figures, working capital changes have been erratic, swinging from a $3.7 million inflow in 2024Q4 to a $4.3 million outflow in 2025Q4, which reflects the timing of clinical trial vendor payments and the inherent instability of cash management in a pre-revenue entity.
These swings in working capital suggest that management is actively managing payment cycles to preserve cash, yet the lack of consistent operational inflows makes this a fragile strategy. Analysts should view these shifts as a reflection of clinical trial intensity rather than operational efficiency.
Data from recent filings indicates that Sagimet consistently utilizes stock-based compensation, averaging approximately $1.5 million per quarter, which effectively masks the true cash burn rate by substituting equity for cash-based talent retention during critical phases of the company's clinical development and regulatory strategy.
While this practice preserves immediate cash, it creates a persistent dilution risk that investors must account for when valuing the company's long-term prospects. The reliance on non-cash compensation suggests that the company's cash-on-hand is being prioritized for external clinical costs at the expense of equity holders.
Quick answers to the most common questions about buying SGMT stock.
Sagimet Biosciences Inc. (SGMT) generated $-45.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sagimet Biosciences Inc. (SGMT) reported negative free cash flow of $45.6M in 2025, indicating capital requirements exceeded cash from operations.
Sagimet Biosciences Inc. (SGMT) 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.