Liquidity remains a primary concern, as the firm has reported zero operating cash flow for ten consecutive quarters while continuing to issue stock-based compensation, such as the $275,000 recorded in 2024Q2.
| Cash from Operations | 0 | 322K | -13.89M | -17.73M | -9.48M | -7.69M | -25.24M | -22.5M | -23.47M | -24.09M | -18.5M | -8.04M | -4.83M |
| Operating CF Margin % | - | 1.66% | -120.38% | -1140.93% | -244.24% | -24.59% | -287.78% | -98.24% | -18191.47% | -13844.25% | - | - | - |
| Operating CF Growth % | 0% | 102.32% | 21.66% | -86.95% | -23.31% | 69.53% | -12.18% | 4.12% | 2.58% | -30.25% | -129.92% | -66.54% | - |
| Net Income | -14.91M | -6.13M | -10.58M | -27.24M | -14.92M | 3.22M | -29.29M | -24.61M | -32.2M | -31.57M | -20.77M | -9.66M | -4.85M |
| Depreciation & Amortization | 0 | 109K | 233K | 342K | 562K | 880K | 946K | 887K | 762K | 471K | 359K | 300K | 225K |
| Stock-Based Compensation | 2.13M | 0 | 786K | 1.86M | 1.53M | 687K | 1.22M | 2.55M | 4.65M | 3.97M | 952K | 1.13M | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -96K | 138K | 65K | 29K | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 12.78M | 148K | 74K | -361K | -188K | 55K | 104K | 50K | -5K | 6.18M | 8K | 448K | -66K |
| Working Capital Changes | 0 | 6.19M | -4.4M | 7.67M | 3.54M | -12.44M | 1.64M | -1.45M | 3.33M | -3.15M | 957K | -261K | -141K |
| Change in Receivables | 0 | 1.63M | -4.2M | 7.54M | 12.55M | -18.31M | 1.97M | -4.12M | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.69M | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 820K | 780K | 1.47M | -8.3M | 5.62M | -542K | 938K | 3.03M | -2.49M | 2.5M | 449K | 0 |
| Cash from Investing | 0 | -8.58M | 26.69M | -9.74M | 1.7M | 19.87M | -2.69M | 16.02M | -54.73M | -5.94M | -391K | -210K | 897K |
| Capital Expenditures | 0 | -47K | -2K | -134K | -171K | -143K | -449K | -597K | -1.05M | -1.93M | -385K | -291K | -268K |
| CapEx % of Revenue | 0% | 0.24% | 0.02% | 8.62% | 4.4% | 0.46% | 5.12% | 2.61% | 815.5% | 1106.32% | - | - | - |
| Acquisitions | 0 | 54K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | -20K | 6K | 74K | 0 | -5K | -21K | -10K | 8K | -4.01M | 9K | 89K | 1.17M |
| Cash from Financing | 0 | 6K | 0 | 21.81M | 15K | 837K | 26.46M | 10.61M | 78.82M | 28M | 20M | 13.57M | 3.33M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 28M | 20M | 13.57M | 0 |
| Equity Issued (Net) | 0 | 6K | 0 | 21.54M | 15K | 505K | 26.31M | 10.61M | 78.78M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 268K | 0 | 332K | 151K | 0 | 44K | 0 | 0 | 0 | 3.33M |
| Net Change in Cash | -8.11M | -8.46M | 12.8M | -5.74M | -7.64M | 12.96M | -1.49M | 4.09M | 651K | -1.98M | 1.11M | 5.3M | -672K |
| Free Cash Flow | 0 | 275K | -13.89M | -17.86M | -9.65M | -7.83M | -25.69M | -23.1M | -24.52M | -26.01M | -18.88M | -8.34M | -5.1M |
| FCF Margin % | 0% | 1.42% | -120.39% | -1149.55% | -248.65% | -25.05% | -292.9% | -100.84% | -19006.98% | -14950.57% | - | - | - |
| FCF Growth % | - | 101.98% | 22.24% | -85.02% | -23.24% | 69.51% | -11.23% | 5.8% | 5.75% | -37.79% | -126.51% | -63.5% | - |
| FCF per Share | 0.00 | 0.10 | -0.50 | -0.66 | -0.42 | -0.33 | -1.14 | -1.18 | -1.37 | -1.45 | -1.61 | -0.71 | -1.90 |
| FCF Conversion (FCF/Net Income) | -0.00x | -0.05x | 1.31x | 0.65x | 0.64x | -2.39x | 0.86x | 0.91x | 0.73x | 0.76x | 0.89x | 0.83x | 1.00x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 34K | 7K | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and dilution risk
According to the provided financial data, Sol-Gel has reported zero operating cash flow across the last ten quarters, indicating a complete disconnect between accounting net income and the actual cash generated from its core royalty-based business model during this period of intense clinical development.
The consistent reporting of zero operating cash flow suggests that the company's royalty streams are currently insufficient to cover the cash-based operating expenses required to sustain its R&D pipeline. Investors should interpret this as a signal that the business is not yet self-funding, necessitating reliance on external capital to bridge the gap between accounting results and operational reality.
As reported in the company's financial statements, free cash flow has remained at zero for ten consecutive quarters, reflecting a persistent inability to generate surplus cash after accounting for the significant R&D expenditures required to advance the firm's proprietary silica-based microencapsulation pipeline assets.
The lack of positive free cash flow highlights the structural challenge of a biotech firm that has achieved FDA approval but has yet to reach a scale where royalty income exceeds the burn rate. This trajectory suggests that the company remains in a capital-intensive phase where cash preservation is secondary to pipeline progression.
Based on the provided figures, Sol-Gel has directed zero capital toward dividends, share repurchases, or acquisitions over the last ten quarters, which is consistent with a firm prioritizing the preservation of its limited $11 million cash balance to fund ongoing clinical research and development activities.
The absence of capital deployment activities suggests that management is focused exclusively on survival and pipeline advancement rather than shareholder returns. This approach appears prudent given the current liquidity constraints, though it leaves little room for error should clinical milestones or royalty receipts fail to meet expectations.
Data from recent filings suggests that the reported zero cash flow figures may obscure the underlying cash burn, as the company continues to issue stock-based compensation, such as the $275,000 recorded in 2024Q2, which effectively dilutes shareholders to cover operational costs without impacting cash.
The reliance on stock-based compensation as a non-cash expense suggests that the company is managing its cash runway by shifting the burden of compensation to equity holders. Analysts should monitor whether this trend continues, as it may indicate that the company is attempting to preserve its limited cash reserves at the expense of long-term equity dilution.
Quick answers to the most common questions about buying SLGL stock.
Sol-Gel Technologies Ltd. (SLGL) generated $0.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sol-Gel Technologies Ltd. (SLGL) generated $0.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Sol-Gel Technologies Ltd. (SLGL) 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.