Liquidity is tightening as cash reserves fell to $26.3 million in 2025Q3, exacerbated by an OCF/NI ratio of -0.26 that highlights a disconnect between accounting losses and operational cash generation.
| Metric | TTM | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 |
|---|
| Cash from Operations | -1.88M | 248K | 10.51M | -17.22M | 15.39M | 14.01M | 8.04M | 34.05M | 14.05M | 25.17M | 15.02M | 18.18M | 17.66M | 16.11M | 19.95M | 22.01M | 31.32M | 39.82M | 50.71M | 35.28M | 25.95M | 19.49M | 19.26M | 14.31M | 7.81M | 7.38M | 4.4M | 2.1M |
| Operating CF Margin % | - | 0.2% | 7.93% | -17.23% | 14.64% | 14.77% | 8.03% | 41.87% | 19.22% | 35.26% | 24.27% | 31.66% | 31.47% | 31.03% | 29.44% | 31.49% | 25.77% | 41.03% | 69.32% | 50.48% | 41.6% | 39.19% | 44.55% | 48.54% | 34.42% | 40.36% | 32.59% | 21.43% |
| Operating CF Growth % | 284.76% | -97.64% | 161.05% | -211.92% | 9.84% | 74.3% | -76.39% | 142.31% | -44.16% | 67.54% | -17.4% | 2.94% | 9.64% | -19.26% | -9.33% | -29.73% | -21.35% | -21.48% | 43.75% | 35.95% | 33.13% | 1.22% | 34.55% | 83.24% | 5.88% | 67.66% | 109.52% | - |
| Net Income | -17.63M | -11.54M | -1.54M | -27.27M | 4.24M | 1.12M | 7.59M | -4.46M | 3.93M | 9.98M | 13.45M | 12.21M | 14.58M | -1.18M | -12.78M | -21.09M | 37.55M | 14.74M | 3.35M | 20.33M | -8.25M | 7.44M | 13.94M | 7.8M | 5.11M | 4.24M | 4.4M | 1.6M |
| Depreciation & Amortization | 8.46M | 8.69M | 8.52M | 9.14M | 8.02M | 7.26M | 7.31M | 6.43M | 5.55M | 4.87M | 2.81M | 2.71M | 2.89M | 2.93M | 7.14M | 7.82M | 5.91M | 6.07M | 2.83M | 2.18M | 3.73M | 3.34M | 2.74M | 2M | 1.66M | 1.22M | 800K | 700K |
| Stock-Based Compensation | 6.53M | 8.22M | 7.61M | 7.06M | 5.86M | 5.45M | 5.08M | 4.81M | 3.47M | 3.84M | 2.38M | 3.34M | 2.55M | 2.67M | 4.25M | 5.88M | 6.85M | 9.65M | 10.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -179K | -320K | -181K | 5.27M | 1.65M | -1.14M | -1.09M | -2.28M | 1M | 261K | 93K | -352K | -492K | -728K | -5.89M | 446K | 8.23M | -3.43M | -9.43M | -2.13M | 5.14M | -5.64M | 839K | -214K | -31K | 1.55M | -800K | 0 |
| Other Non-Cash Items | 1.02M | 558K | 340K | 860K | 478K | 195K | -909K | 8.37M | 945K | 1.37M | -1.23M | -308K | -882K | 10.41M | 23.41M | 28.28M | 5.29M | 3.8M | 15.56M | 10.11M | 35.15M | 17.01M | 725K | 4.71M | 2.4M | -1K | -100K | -100K |
| Working Capital Changes | -86K | -5.36M | -4.24M | -12.28M | -4.86M | 1.11M | -9.95M | 21.18M | -845K | 4.83M | -2.47M | 586K | -978K | 2.01M | 3.82M | 675K | -32.51M | 8.99M | 28.1M | 4.8M | -9.83M | -2.65M | 1.02M | 25K | -1.32M | -458K | 100K | -100K |
| Change in Receivables | 1.23M | -5.24M | -977K | -1.52M | -3.46M | 3.46M | -1.63M | -1.77M | -528K | 911K | -2.73M | 581K | -262K | -685K | 1.29M | 2.33M | 3.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -350K | -328K | -3.02M | -5.06M | -818K | -1.38M | -543K | -513K | 97K | -143K | -162K | 511K | 196K | -343K | -1.1M | 284K | -679K | -154K | -850K | 139K | -51K | -177K | -117K | -22K | -224K | -41K | -100K | -100K |
| Change in Payables | 2.68M | -232K | -183K | 1.61M | 264K | -483K | -765K | 5.24M | 368K | 3.71M | 373K | -738K | 238K | 3.41M | 4.22M | -4.58M | 948K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 5.94M | -2.94M | -6.82M | 6.23M | -25.24M | -9.07M | 9.75M | -23.5M | -16.19M | -55.47M | 16.69M | 22.39M | 78K | 59.44M | -8.67M | -20.07M | -19.57M | -26.51M | -10.96M | -38.96M | -27.42M | -21.49M | -25.64M | -15.33M | -734K | -21.08M | -5.1M | -16.9M |
| Capital Expenditures | -1.66M | -3.49M | -2.92M | -3.37M | -6.28M | -3.67M | -6.75M | -14.09M | -6.43M | -8.19M | -1.88M | -2.28M | -1.92M | -763K | -3.46M | -9.68M | -29.36M | -26.32M | -4.98M | -7.45M | -2.11M | -1.4M | -17.69M | -13M | -2.05M | -2.99M | -4.7M | -800K |
| CapEx % of Revenue | 1.38% | 2.77% | 2.2% | 3.37% | 5.97% | 3.87% | 6.74% | 17.33% | 8.8% | 11.48% | 3.03% | 3.97% | 3.42% | 1.47% | 5.1% | 13.85% | 24.16% | 27.12% | 6.81% | 10.66% | 3.38% | 2.82% | 40.92% | 44.1% | 9.05% | 16.38% | 34.81% | 8.16% |
| Acquisitions | 0 | 0 | 0 | 0 | -39.55M | 9.07M | 750K | 5M | 0 | -25.86M | -270K | -25.37M | -2.15M | 27.1M | -5.65M | -750K | -8.59M | -3.22M | -49.11M | 238K | 0 | 0 | 0 | 500K | -81.91M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | -9.07M | -740K | -5M | -9.76M | 89K | -3K | 25.02M | 2.11M | 30.38M | 438K | -25.99M | -631K | 3.11M | -5.45M | 440K | -15.55M | -828K | -935K | -4M | -2.48M | 51K | 0 | 0 |
| Cash from Financing | -2.75M | -2.95M | 18.41M | -375K | 10.23M | -4.65M | -11.03M | -3.39M | -6.51M | -199K | -19.64M | -12.55M | -17.79M | -83.22M | 542K | -2.18M | -15.49M | -11.75M | -29.69M | 3.51M | 2.68M | 698K | 1.18M | 1.18M | 457K | 13.24M | 1.3M | 15.6M |
| Debt Issued (Net) | 0 | 0 | 19.66M | 0 | 10M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -236K | -222K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 721K | 1.22M | 1.25M | 1.25M | 3.13M | 1.61M | 723K | 2.09M | -6.41M | 106K | -20.11M | -13.14M | -17.43M | -54.88M | 534K | -1.69M | -14.89M | -10.93M | -30.16M | 3.26M | 2.68M | 698K | 1.18M | 1.18M | 457K | 13.24M | 1.3M | 15.6M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 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 | -6.86M | -388K | -20.82M | -13.66M | -17.85M | -55.23M | -40K | -2.58M | -15.57M | -15.64M | -35.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -3.47M | -4.17M | -2.51M | -1.62M | -2.9M | -6.26M | -11.75M | -5.48M | -96K | -305K | 477K | 236K | -361K | -28.34M | 8K | -496K | -366K | -593K | 466K | 249K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 1.98M | -5.3M | 22.42M | -12.15M | 368K | 424K | 6.69M | 7.13M | -8.45M | -30.6M | 12.08M | 28.02M | -45K | -7.68M | 11.83M | -245K | -3.74M | 1.56M | 10.06M | -170K | 1.21M | -1.3M | -5.2M | 163K | 7.53M | -465K | 700K | 15.6M |
| Free Cash Flow | -3.55M | -3.24M | 7.6M | -20.59M | 9.11M | 10.34M | 1.29M | 19.96M | 7.62M | 16.97M | 13.14M | 15.91M | 15.75M | 15.35M | 16.5M | 12.33M | 1.96M | 13.5M | 45.73M | 27.83M | 23.84M | 18.09M | 1.57M | 1.31M | 5.76M | 4.38M | -300K | 1.3M |
| FCF Margin % | -2.94% | -2.57% | 5.73% | -20.6% | 8.67% | 10.9% | 1.29% | 24.54% | 10.42% | 23.78% | 21.23% | 27.69% | 28.05% | 29.56% | 24.34% | 17.64% | 1.61% | 13.91% | 62.51% | 39.82% | 38.22% | 36.37% | 3.63% | 4.44% | 25.37% | 23.98% | -2.22% | 13.27% |
| FCF Growth % | 39.47% | -142.71% | 136.89% | -326.05% | -11.89% | 701.47% | -93.54% | 161.91% | -55.1% | 29.14% | -17.37% | 1.02% | 2.59% | -6.95% | 33.8% | 529.99% | -85.51% | -70.47% | 64.33% | 16.73% | 31.79% | 1053.7% | 19.79% | -77.27% | 31.37% | 1561% | -123.08% | - |
| FCF per Share | -0.25 | -0.23 | 0.54 | -1.48 | 0.65 | 0.75 | 0.09 | 1.52 | 0.57 | 1.28 | 0.99 | 1.15 | 1.07 | 0.88 | 0.94 | 0.71 | 0.11 | 0.74 | 2.51 | 1.49 | 1.31 | 1.02 | 0.09 | 0.07 | 0.32 | 0.26 | -0.02 | 0.10 |
| FCF Conversion (FCF/Net Income) | 0.20x | -0.02x | -6.85x | 0.63x | 3.63x | 12.48x | 1.06x | -7.64x | 3.58x | 2.52x | 1.12x | 1.51x | 1.16x | 1.57x | -1.56x | -1.04x | 0.83x | 2.70x | 15.16x | 1.73x | -3.15x | 2.62x | 1.38x | 1.84x | 1.53x | 1.74x | 1.00x | 1.31x |
| Interest Paid | 1.44M | 3.04M | 2.92M | 415K | 74K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 652K | 2.57M | 2.85M | 416K | 160K | 30K | 193K | 914K | 2.11M | 6.71M | 6.51M | 6.29M | 7.12M | 2.06M | 1.01M | 4.11M | 11.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Commercialization and Scale Execution
As reported in recent financial statements, Surmodics' operating cash flow frequently diverges from net income, with the 2025Q3 OCF/NI ratio of -0.26 highlighting a persistent disconnect between accounting losses and the actual cash generated from core operations during this intensive product transition phase.
The significant gap between net income and operating cash flow suggests that non-cash charges and working capital fluctuations are heavily influencing the bottom line. Investors should monitor whether this volatility reflects genuine operational friction or merely the timing of milestone-based revenue recognition inherent in the licensing business.
Based on quarterly data, Surmodics' free cash flow trajectory remains highly inconsistent, swinging from a peak of $25.4 million in 2023Q3 to a low of -$9.5 million in 2024Q1, indicating that the company has yet to establish a predictable cash-generative baseline for its new device portfolio.
The erratic FCF margins suggest that the company's transition to a direct-market manufacturer is creating significant cash flow instability. This lack of consistency warrants further investigation into whether the current cash burn is a temporary byproduct of the SurVeil launch or a structural feature of the new business model.
According to recent SEC filings, working capital changes have been a primary driver of cash flow volatility, with a notable $8.4 million outflow in 2025Q1 followed by a $3.0 million inflow in 2025Q3, reflecting the inherent difficulty in managing inventory and receivables during a product launch.
These sharp fluctuations in working capital suggest that the company is struggling to align its production cycles with the commercial demand for its interventional hardware. Analysts should be wary of interpreting these swings as indicative of long-term operational efficiency until the company demonstrates a more stable cash conversion cycle.
As indicated by financial disclosures, Surmodics has maintained a disciplined approach to capital expenditure, with CapEx/Revenue ratios consistently hovering between 1.0% and 4.0% over the last ten quarters, suggesting that the company is not over-investing in physical infrastructure despite its shift toward internal manufacturing.
The relatively low capital intensity implies that the company is leveraging existing facilities rather than embarking on a massive, balance-sheet-straining expansion. However, investors should monitor whether this level of investment is sufficient to support the long-term manufacturing requirements of the SurVeil drug-coated balloon platform.
Based on reported figures, stock-based compensation consistently adds $1.3 million to $2.1 million per quarter to the company's expenses, which effectively masks the true cash cost of talent retention during this critical period of commercialization and strategic pivot toward device manufacturing.
By excluding these non-cash expenses, the company's reported operating cash flow may appear more resilient than the underlying business reality suggests. Investors should adjust for these recurring equity-based charges to better understand the actual cash burn required to sustain the current organizational structure.
Quick answers to the most common questions about buying SRDX stock.
Surmodics, Inc. (SRDX) generated $0.2M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Surmodics, Inc. (SRDX) reported negative free cash flow of $3.2M in 2024, indicating capital requirements exceeded cash from operations.
Surmodics, Inc. (SRDX) spent $3.5M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.