Liquidity constraints are acute, as indicated by a current ratio of 0.26 and a history of negative free cash flow that necessitates frequent, potentially dilutive, external capital raises.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 |
|---|
| Cash from Operations | -10.31M | -12.83M | -8.61M | -21.34M | -27.69M | -22.55M | -15.61M | -2.23M | -1.11M | -724.43K | -509.16K | -5.36M | -2.7M | -2.35M | -1.04M | -760.31K | -636.48K | -849.9K |
| Operating CF Margin % | - | -1282.72% | -46213.48% | -14439.19% | -7911.94% | -4663.16% | - | -5.48% | -3.61% | -1.75% | -1.22% | -12.65% | -15.46% | -34.2% | -71.35% | -557.82% | -92.96% | -363.12% |
| Operating CF Growth % | -362.4% | -49.02% | 59.67% | 22.92% | -22.77% | -44.43% | -601.57% | -100.58% | -53.17% | -42.28% | 90.51% | -98.33% | -14.88% | -125.38% | -37.37% | -19.46% | 25.11% | - |
| Net Income | -13.56M | -16.01M | -7.44M | -18.83M | -29.72M | -24.98M | -24.27M | -5.03M | -6.86M | -6.79M | -4.27M | -14.46M | -5.19M | -3.17M | -1.1M | -1.01M | -813.7K | -2.24M |
| Depreciation & Amortization | 88.05K | 89.26K | 83.11K | 75.75K | 93.26K | 95.16K | 58.31K | 2.16M | 1.82M | 2.28M | 2.34M | 2.36M | 622.27K | 383.45K | 87.62K | 11.08K | 11.48K | 11.2K |
| Stock-Based Compensation | -110.4K | 199.59K | 231.19K | 248.63K | 876.37K | 1.38M | 370.06K | 430K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -125.5K | 0 | -702.59K | -779.36K | -706.2K | 131.78K | 94.53K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 868.83K | 2.9M | 384.16K | 282K | 971.48K | 623 | 6.83M | -1.21M | 3.03M | 6.66M | 4.71M | 6.63M | 1.43M | 5.03K | 307.74K | 205.6K | 439.61K | 1.33M |
| Working Capital Changes | 2.4M | 0 | -1.87M | -3.12M | 93.46K | 1.09M | 1.4M | 2.13M | 2.62M | 1.31M | 25.23K | 277.67K | 436.54K | 424.17K | -336.37K | 34.57K | -273.87K | 49.17K |
| Change in Receivables | -577.78K | 0 | 24.5K | -69.27K | 0 | 0 | 0 | 91.8K | 114.01K | 35.15K | -336.55K | -758.1K | 7.46K | -52.36K | -73.83K | -50.8K | -25.66K | 6K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8.88K | 72.8K | 23.06K | 33.22K | -130.61K | 5.97K | -121.95K | 5.99K | 0 | 0 | 0 |
| Change in Payables | 2.04M | 630.38K | 48.42K | -2.63M | 971.04K | 1.72M | 168.81K | 1.39M | 2.51M | 1.04M | 1.54M | 1.17M | 464.93K | 785.97K | -58.78K | 89.81K | 26.4K | 149.12K |
| Cash from Investing | -12K | -12K | -12K | -443.25K | -896.48K | -3.62K | -76.18K | -2.44M | -1.25M | -439.3K | -430.82K | -10.49M | -4.07M | -2.62M | -1.65M | 246.37K | 648.12K | -299.82K |
| Capital Expenditures | 0 | 0 | -12K | -443.25K | -896.48K | -3.62K | -76.18K | -2.39M | -1.7M | -1.63M | -1.19M | -1.8M | -3.66M | -1.17M | -388.11K | -4.52K | -7.45K | -1.82K |
| CapEx % of Revenue | 0% | - | 64.43% | 299.89% | 256.18% | 0.75% | - | 5.89% | 5.53% | 3.92% | 2.86% | 4.24% | 20.91% | 17.05% | 26.51% | 3.31% | 1.09% | 0.78% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.44M | 770K | 1.19M | 751.46K | -9.02M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -12K | -12K | 0 | 0 | 0 | 0 | 0 | -1.49M | -322.28K | 461.16K | 0 | -169.64K | 267.1K | -256.28K | -150.47K | -680 | 0 | -279.05K |
| Cash from Financing | 7.09M | 26.05M | 6.49M | 21.01M | 4.01M | 42.83M | 23.01M | 2.26M | 1.32M | 1.36M | -21.98K | 17.14M | 5.89M | 6.03M | 2.8M | 557.58K | -23.42K | 1.16M |
| Debt Issued (Net) | 0 | 0 | 0 | -748 | 0 | -20.44K | 128.68K | 0 | 0 | 68.65K | -279.16K | 1.87M | 2.82M | -1.07M | 2.78M | 557.58K | -100K | 378.99K |
| Equity Issued (Net) | 1.07M | 0 | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 257.18K | 1000K | 1000K | 1000K | 21.11K | 0 | 76.58K | 784.7K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 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 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -691.99K | 26.05M | 2.6M | 849 | 0 | 0 | 3.81M | -526.06K | 383.08K | 0 | 0 | 348.11K | 0 | 43.72K | 0 | 0 | 0 | 0 |
| Net Change in Cash | -3.23M | 13.21M | -2.12M | -778.62K | -24.57M | 20.27M | 7.31M | 30.23K | 85.62K | 169.92K | -961.96K | 1.28M | -781.11K | 1.08M | 105.92K | 0 | 0 | 0 |
| Free Cash Flow | -10.31M | -12.83M | -8.61M | -21.79M | -28.58M | -22.56M | -15.69M | -4.62M | -2.81M | -2.35M | -1.7M | -7.16M | -6.4M | -3.53M | -1.43M | -764.83K | -643.92K | -851.72K |
| FCF Margin % | -1031.07% | -1282.72% | -46213.48% | -14739.08% | -8168.12% | -4663.91% | - | -11.37% | -9.14% | -5.67% | -4.08% | -16.89% | -36.55% | -51.25% | -97.86% | -561.13% | -94.05% | -363.9% |
| FCF Growth % | -1.3% | -49.02% | 60.49% | 23.79% | -26.72% | -43.75% | -239.74% | -64.46% | -19.51% | -38.2% | 76.26% | -11.99% | -81.28% | -146.26% | -87.3% | -18.78% | 24.4% | - |
| FCF per Share | -2.60 | -3.14 | -13.14 | -167.87 | -1157.00 | -2264.19 | -4104.36 | -42397.26 | -51110.72 | -59620.31 | -50209.69 | -322066.08 | -938478.16 | -889167.80 | -496215.98 | -382415.00 | -427882.25 | -598845.51 |
| FCF Conversion (FCF/Net Income) | 0.76x | 0.80x | 1.16x | 1.13x | 0.93x | 0.90x | 0.64x | 0.46x | 0.16x | 0.11x | 0.06x | 0.44x | 0.45x | 0.74x | 0.95x | 0.75x | 0.78x | 0.38x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and dilution risk
As reported in recent financial statements, the relationship between net income and operating cash flow remains highly volatile, with OCF/NI ratios fluctuating significantly from 0.47 to 2.65, suggesting that accruals and non-cash adjustments frequently distort the underlying reality of the company's cash-based operational performance.
The wide variance in the conversion ratio indicates that net income is a poor proxy for the company's actual cash consumption. Investors should monitor these swings, as they often reflect the timing of milestone-based revenue recognition rather than a consistent ability to convert earnings into liquid capital.
Based on the company's quarterly cash flow data, free cash flow remains consistently negative, with the firm burning through millions in cash each quarter to fund clinical development, leaving little room for error given the current $5.1M cash balance reported in recent filings.
The trajectory of FCF shows no signs of stabilization, as the company lacks a recurring revenue base to offset its heavy R&D spending. This persistent cash drain suggests that the firm is entirely dependent on external financing to maintain its current clinical trial timelines.
According to historical cash flow records, working capital changes have been highly erratic, swinging from a $2.5M outflow in 2023Q3 to a $1.9M inflow in 2025Q3, which complicates the assessment of the company's underlying operational efficiency and cash management capabilities.
These fluctuations in working capital appear to be driven by the timing of milestone payments and the settlement of clinical trial liabilities rather than operational improvements. Analysts should view these inflows with caution, as they do not represent a sustainable improvement in the company's core cash-generating capacity.
As indicated by the provided financial data, the cash flow statement masks the true extent of the company's capital dependency by failing to account for the dilutive impact of equity-based financing, which is the primary mechanism currently sustaining the firm's ongoing research and development operations.
The absence of debt service costs might appear favorable, but it actually highlights the company's inability to access traditional credit markets. Consequently, the cash flow statement provides an incomplete picture of the firm's financial health, as it ignores the significant dilution risk inherent in the current funding model.
Quick answers to the most common questions about buying SONN stock.
Sonnet BioTherapeutics Holdings, Inc. (SONN) generated $-12.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sonnet BioTherapeutics Holdings, Inc. (SONN) reported negative free cash flow of $12.8M in 2025, indicating capital requirements exceeded cash from operations.
Sonnet BioTherapeutics Holdings, Inc. (SONN) 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.