Free cash flow has deteriorated significantly, with the quarterly burn rate accelerating to $82.2 million in 2026Q1, reflecting the intensifying capital requirements of late-stage clinical development.
| Cash from Operations | -303.46M | -300.04M | -200.95M | -145.23M | -132.69M | -126.79M | -60.27M | -63.12M | 24.57M | -21.74M | -15.14M |
| Operating CF Margin % | - | - | - | - | -399.76% | -673.84% | -391.29% | -308% | - | - | -3994.99% |
| Operating CF Growth % | -144.62% | -49.31% | -38.37% | -9.44% | -4.66% | -110.36% | 4.51% | -356.87% | 213.04% | -43.56% | - |
| Net Income | -408.73M | -377.94M | -246.29M | -165.79M | -134.5M | -131.8M | -86.48M | -51M | -49.33M | -25M | -16.21M |
| Depreciation & Amortization | 1.6M | 1.66M | 1.94M | 2.84M | 2.99M | 2.63M | 1.49M | 1.3M | 807K | 669K | 575K |
| Stock-Based Compensation | 62.19M | 75.6M | 36.63M | 27.14M | 27.7M | 23.15M | 11.18M | 7.97M | 5.21M | 1.48M | 556K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 176K | 272K | -199K | -250K |
| Other Non-Cash Items | 21.19M | 1.7M | 186K | 1.19M | 5.51M | 7.67M | 2.3M | -401K | -289K | -162K | -162K |
| Working Capital Changes | 20.29M | -1.05M | 6.59M | -10.61M | -34.39M | -28.44M | 11.24M | -21.16M | 67.9M | 1.47M | 347K |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 25M | -25M | 0 | 0 | 380K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -25.61M |
| Change in Payables | 4.78M | 208K | 6.63M | -529K | -251K | 1.02M | 2.1M | -1.34M | 1.66M | 636K | 91K |
| Cash from Investing | 178.8M | 218.69M | -76.06M | 41.14M | -171.7M | 134.31M | -63.5M | -62.24M | -60.23M | 17.66M | -20.32M |
| Capital Expenditures | -399K | -602K | -98K | -71K | -1.06M | -5.25M | -4.09M | -3.12M | -1.49M | -361K | -794K |
| CapEx % of Revenue | - | - | - | - | 3.21% | 27.89% | 26.54% | 15.2% | - | - | 209.5% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 13K | 0 | 0 | 0 | 8K | -58.74M | 18.03M | -19.52M |
| Cash from Financing | 418.02M | 228.4M | 353.03M | 102.57M | 194.83M | 44.95M | 247.82M | 48.88M | 94.27M | 50.5M | 1M |
| Debt Issued (Net) | 142.31M | 49.14M | 0 | 0 | -975K | 24.98M | 24.62M | -365K | -667K | -667K | 1M |
| Equity Issued (Net) | 181.24M | 179.26M | 324.41M | 97.71M | 195.31M | 13.1M | 215.92M | 48.35M | 0 | 46.89M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 94.47M | 0 | 28.61M | 4.87M | 492K | 6.87M | 7.28M | 900K | 94.94M | 4.28M | 0 |
| Net Change in Cash | 294.02M | 147.05M | 76.02M | -1.51M | -109.56M | 52.48M | 124.05M | -76.47M | 58.61M | 46.43M | -34.46M |
| Free Cash Flow | -303.86M | -300.64M | -201.05M | -145.3M | -133.76M | -132.04M | -64.36M | -66.23M | 23.08M | -22.1M | -15.94M |
| FCF Margin % | - | - | - | - | -402.97% | -701.73% | -417.83% | -323.2% | - | - | -4204.49% |
| FCF Growth % | -32.01% | -49.54% | -38.37% | -8.63% | -1.3% | -105.16% | 2.83% | -386.97% | 204.44% | -38.68% | - |
| FCF per Share | -2.39 | -2.62 | -2.01 | -1.91 | -2.24 | -3.60 | -2.09 | -2.41 | 1.47 | -1.23 | -0.89 |
| FCF Conversion (FCF/Net Income) | 0.74x | 0.79x | 0.82x | 0.88x | 0.99x | 0.96x | 0.70x | 1.24x | -0.50x | 0.87x | 0.93x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Clinical trial execution dependency
As reported in financial statements, Scholar Rock consistently exhibits a significant divergence between net losses and operating cash flow, with the OCF/NI ratio fluctuating between 0.67 and 1.05 over the last ten quarters, highlighting the heavy influence of non-cash expenses on the company's reported bottom line.
The persistent gap between net income and operating cash flow suggests that non-cash charges, particularly stock-based compensation, are masking the true magnitude of the company's operational cash burn. Investors should monitor this relationship closely, as the reliance on non-cash adjustments to bridge the deficit may become less effective if equity-based compensation reaches saturation or faces shareholder pushback.
Based on the company's reported figures, free cash flow has deteriorated from a quarterly burn of $37.3 million in 2023Q4 to $82.2 million in 2026Q1, reflecting the intensifying capital requirements necessary to support the late-stage clinical execution of the SAPPHIRE trial for apitegromab.
The downward trajectory of free cash flow indicates that the company is entering a period of peak capital intensity, which is typical for pre-revenue biotech firms approaching regulatory milestones. This trend suggests that the current cash runway is being consumed at an accelerating rate, necessitating careful management of liquidity to avoid premature dilution.
According to recent SEC filings, stock-based compensation has surged from $7.0 million in 2023Q4 to $24.4 million in 2025Q2, effectively obscuring the true cash-based operational costs required to sustain the company's research and development activities during this critical clinical trial phase.
The significant increase in stock-based compensation suggests that the company is utilizing equity as a primary tool to preserve cash, which may lead to future dilution for existing shareholders. Analysts should interpret these figures as a non-cash subsidy that artificially improves the appearance of operating cash flow while failing to reduce the underlying cash-based operational expenses.
As indicated by historical cash flow data, working capital changes have remained relatively negligible, with quarterly fluctuations rarely exceeding $17.5 million, suggesting that the company's cash burn is driven almost entirely by R&D and SG&A expenses rather than operational inefficiencies in inventory or receivables.
The lack of significant working capital volatility implies that the company's cash flow profile is currently insulated from the complexities of commercial-scale inventory management or customer collection cycles. This stability warrants further investigation only if the company transitions to a commercial stage, where working capital management will become a more material driver of cash flow.
Quick answers to the most common questions about buying SRRK stock.
Scholar Rock Holding Corporation (SRRK) generated $-300.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Scholar Rock Holding Corporation (SRRK) reported negative free cash flow of $300.6M in 2025, indicating capital requirements exceeded cash from operations.
Scholar Rock Holding Corporation (SRRK) spent $0.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.