Free cash flow remains deeply negative with a $44.9 million deficit in 2026Q1, exacerbated by erratic OCF/NI conversion ratios that have swung as low as 0.58 in recent periods.
| Cash from Operations | -175.07M | -170.87M | 13.55M | -59.27M | -40.08M | -17.56M | 9.07M | -18.9M | -16.88M |
| Operating CF Margin % | - | -202.74% | 15.2% | -197553.33% | -3045.44% | -318.94% | 50.86% | - | - |
| Operating CF Growth % | -882.97% | -1361.19% | 122.86% | -47.88% | -128.22% | -293.6% | 148% | -11.99% | - |
| Net Income | -197.98M | -171.3M | 8M | -54.37M | -34.68M | -20.24M | -1.06M | -23.97M | -17.58M |
| Depreciation & Amortization | 1.48M | 1.37M | -7.17M | 73K | 319K | 213K | 6K | 1.55M | 1.42M |
| Stock-Based Compensation | 24.22M | 22.09M | 14.53M | 9.23M | 5.84M | 2.83M | 3.54M | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 1K | 0 | 0 |
| Other Non-Cash Items | -1.81M | -3.03M | 0 | -6.88M | 1.2M | -4K | 121K | 223K | 2.04M |
| Working Capital Changes | -988K | -20M | -1.81M | -7.33M | -12.75M | -356K | 6.46M | 3.3M | -433K |
| Change in Receivables | -16.92M | -17.2M | -8.18M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -13.83M | -21.99M | -5.95M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 25.03M | 18.88M | 16.43M | -2.78M | -10.29M | 0 | 1.79M | 4.01M | 513K |
| Cash from Investing | 55.49M | 56.77M | -106.1M | -87.18M | -199K | -55K | -917K | -96K | -449K |
| Capital Expenditures | -248K | -339K | -563K | -175K | -199K | -55K | -917K | -96K | -449K |
| CapEx % of Revenue | 0.25% | 0.4% | 0.63% | 583.33% | 15.12% | 1% | 5.14% | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -7.86M | -7.86M | -7.5M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 104.03M | 104.6M | 72.4M | 6.9M | 190.73M | 53.16M | 5.1M | 8.61M | 19.4M |
| Debt Issued (Net) | 96.26M | 96.26M | 69.38M | 0 | -8.68M | -1.82M | 5M | 8.59M | -852K |
| Equity Issued (Net) | 5.02M | 5.68M | 3.02M | 6.9M | 570K | 54.81M | 409.21M | 19K | 20.25M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 2.76M | 2.66M | 0 | 0 | 198.84M | 169K | -409.11M | 0 | 0 |
| Net Change in Cash | -15.54M | -9.5M | -20.15M | -139.55M | 150.46M | 35.54M | 14.17M | -10.18M | 2.08M |
| Free Cash Flow | -175.32M | -171.21M | 12.98M | -59.44M | -40.28M | -17.62M | 8.15M | -18.99M | -17.32M |
| FCF Margin % | -177.11% | -203.14% | 14.57% | -198136.67% | -3060.56% | -319.94% | 45.72% | - | - |
| FCF Growth % | -732.67% | -1418.48% | 121.85% | -47.58% | -128.64% | -316.04% | 142.93% | -9.64% | - |
| FCF per Share | -1.77 | -1.74 | 0.13 | -0.62 | -1.01 | -0.61 | 0.23 | -0.57 | -0.52 |
| FCF Conversion (FCF/Net Income) | 0.89x | 1.00x | 1.69x | 1.09x | 1.16x | 0.87x | -8.52x | 0.79x | 0.96x |
| Interest Paid | 0 | 0 | 0 | 0 | 366K | 576K | 325K | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and dilution
According to recent quarterly filings, the relationship between net income and operating cash flow for SPRY remains erratic, with OCF/NI ratios fluctuating wildly from 0.58 to 2.43, suggesting that reported earnings are currently poor proxies for the actual cash-generating capacity of the underlying commercial launch.
The significant variance between net income and operating cash flow suggests that non-cash items and working capital swings are heavily distorting the bottom line. Investors should monitor whether this volatility stabilizes as the company moves past its initial launch phase and into a more predictable commercial cadence.
As reported in financial statements, ARS Pharmaceuticals continues to experience a persistent free cash flow deficit, with quarterly burn rates reaching $44.9 million in 2026Q1, indicating that the company's current commercial scale is insufficient to cover its heavy investment in market penetration and operational infrastructure.
The consistent negative FCF margins suggest that the company is currently in a high-burn phase where every dollar of revenue is eclipsed by the cost of customer acquisition. This trajectory warrants further investigation into the specific volume thresholds required to reach cash flow break-even.
Based on the company's reported figures, working capital changes have been a significant source of cash flow volatility, including a $10.4 million outflow in 2025Q1, which suggests that inventory build-up and accounts receivable management are currently creating meaningful friction in the company's cash conversion cycle.
These fluctuations appear to be tied to the initial stocking of the supply chain, which may not repeat in future periods. Analysts should be cautious in extrapolating these working capital trends, as they likely reflect the lumpy nature of early-stage pharmaceutical distribution rather than long-term operational efficiency.
As indicated by the latest financial data, stock-based compensation has consistently added back millions to the cash flow statement, with $7.4 million in 2026Q1 alone, which effectively masks the true economic cost of talent retention during this critical commercialization period for the firm.
While SBC is a non-cash expense, it represents a real dilution risk to shareholders that is not fully captured by the operating cash flow metric. The reliance on equity-based incentives suggests that management is prioritizing cash preservation at the expense of long-term ownership dilution.
Quick answers to the most common questions about buying SPRY stock.
ARS Pharmaceuticals, Inc. (SPRY) generated $-170.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ARS Pharmaceuticals, Inc. (SPRY) reported negative free cash flow of $171.2M in 2025, indicating capital requirements exceeded cash from operations.
ARS Pharmaceuticals, Inc. (SPRY) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.