ARS Pharmaceuticals, Inc. (SPRY) Cash Flow Statement

In recent quarters, the OCF/NI ratio has moved from below 1.0 to above 1.0, indicating that operating cash outflows are now larger than the net loss. This divergence, particularly the -$60.9M operating cash flow versus -$62.3M net income in 2026Q2, suggests that non-cash items like depreciation and stock-based compensation are no longer sufficient to offset the cash burn from working capital and core operations. The trend implies that the company's cash consumption is becoming less efficient relative to its accounting losses.

The FCF trajectory shows a stark reversal from the single profitable quarter in 2024Q4. The recent quarters of deeply negative FCF margins, such as -181.0% in 2026Q2, demonstrate that for every dollar of revenue, the company is burning nearly two dollars in cash. This pattern, when viewed alongside the prior finding of massive SG&A spend, suggests that the commercial investment phase is consuming capital at an accelerating rate without a corresponding improvement in cash generation.

The erratic working capital movements, such as the -$12.8M use in 2026Q2 following the +$8.6M source in 2026Q1, suggest that collections and payment cycles are uneven. This volatility obscures the true operational cash burn and implies that management may be managing payables to temporarily conserve cash. Investors should monitor whether these swings are a function of lumpy revenue recognition or a sign of underlying collection challenges.

The complete absence of shareholder returns or strategic investments underscores that all available cash is being directed to cover the operating deficit. This is consistent with a pre-commercial or early-commercial biotech profile where capital preservation for R&D and commercialization is the priority. However, the sustained negative FCF trajectory raises questions about the company's future financing needs and the sustainability of its current spending model.