Liquidity is under severe pressure as evidenced by a $20.7 million negative free cash flow in 2024Q3 and a cash position that has declined from $171.5 million in 2022Q3 to $58.3 million.
| Cash from Operations | -100.02M | -109.71M | -123.06M | -99.54M | -57.36M | -60.25M | -40.31M | -44.73M | -40.54M | -23.03M | -11.97M | -7.19M |
| Operating CF Margin % | - | -1104.14% | -827.05% | -423.79% | -380.07% | -3040.01% | -1966.59% | -4062.58% | -12787.38% | -7264.98% | - | - |
| Operating CF Growth % | 58.53% | 10.85% | -23.63% | -73.52% | 4.79% | -49.46% | 9.87% | -10.34% | -76.01% | -92.41% | -66.37% | - |
| Net Income | -97.81M | -164.57M | -94.65M | -86.56M | -84.04M | -75.44M | -62.28M | -54.01M | -47.74M | -29.82M | -13.43M | -8.66M |
| Depreciation & Amortization | 1.27M | 2.25M | 2.97M | 3.02M | 3.04M | 2.72M | 1.6M | 1.53M | 1.27M | 602K | 258K | 170K |
| Stock-Based Compensation | 7.25M | 10.43M | 11.41M | 10.35M | 10.94M | 9.84M | 6.61M | 4.42M | 4.23M | 3.23M | 937K | 821K |
| Deferred Taxes | 8.08M | 0 | 0 | -16.46M | 326K | -1.13M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -22.18M | 37.13M | -37.27M | 706K | 2.32M | 7.24M | -642K | -102K | 10K | 17K | 334K | 394K |
| Working Capital Changes | 3.38M | 5.05M | -5.52M | -10.6M | 10.05M | -3.48M | 14.39M | 3.44M | 1.69M | 2.94M | 267K | 86K |
| Change in Receivables | 1.67M | 1.69M | 1.28M | 7K | 19.99M | -20.16M | 0 | 867K | -317K | 0 | 0 | 0 |
| Change in Inventory | 29K | 0 | -1.28M | 1.98M | -2.53M | -4.36M | 0 | 3.3M | 2.69M | 0 | 0 | 0 |
| Change in Payables | 6.79M | 5.13M | 2.77M | 48K | -1.06M | 1.49M | 888K | 141K | -404K | 2.02M | 334K | 0 |
| Cash from Investing | 1.95M | 37.34M | 67.19M | -52.65M | 46.66M | -11.73M | -10.64M | -15.59M | -27.34M | -1.18M | -201K | -878K |
| Capital Expenditures | -67K | -272K | -1.24M | -1.25M | -3.34M | -12.64M | -1.38M | -821K | -2.32M | -1.18M | -201K | -878K |
| CapEx % of Revenue | 17.36% | 2.74% | 8.34% | 5.3% | 22.1% | 637.64% | 67.51% | 74.57% | 732.49% | 370.98% | - | - |
| Acquisitions | 1.46M | 0 | 0 | 0 | 0 | 110K | 9K | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 25.22M | 1.56M | 0 | 0 | 0 | 0 | 9K | -14.77M | -25.02M | 0 | 0 | 0 |
| Cash from Financing | 43.16M | 43.46M | 131.04M | 70.51M | 142.95M | 65.99M | 69.08M | 33.94M | 90.56M | -278K | 68.76M | 10.04M |
| Debt Issued (Net) | -3K | -65K | -291K | -265K | 39.38M | -205K | -50K | -168K | -135K | -50K | 0 | 0 |
| Equity Issued (Net) | 43.27M | 43.27M | 119.68M | 70.34M | 102.27M | 65.82M | 68.51M | 32.31M | 90.3M | -228K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 115K | 0 | -81K | 0 | 0 | 0 | 0 | 0 | 0 | -620K | 0 | 0 |
| Other Financing | -111K | 257K | 11.66M | 439K | 1.3M | 374K | 626K | 1.8M | 395K | 0 | 68.76M | 10.04M |
| Net Change in Cash | -53.94M | -28.91M | 75.17M | -81.68M | 132.25M | -6M | 18.13M | -26.38M | 22.68M | -24.48M | 56.59M | 1.97M |
| Free Cash Flow | -100.06M | -109.98M | -124.31M | -100.78M | -60.7M | -72.89M | -41.7M | -45.55M | -42.86M | -24.21M | -12.17M | -8.07M |
| FCF Margin % | -25921.5% | -1106.87% | -835.39% | -429.09% | -402.17% | -3677.65% | -2034.1% | -4137.15% | -13519.87% | -7635.96% | - | - |
| FCF Growth % | 18.74% | 11.53% | -23.34% | -66.04% | 16.73% | -74.8% | 8.45% | -6.28% | -77.06% | -98.9% | -50.77% | - |
| FCF per Share | -2.54 | -3.88 | -9.84 | -16.12 | -13.18 | -18.12 | -12.77 | -17.93 | -33.76 | -97.78 | -49.16 | -73.64 |
| FCF Conversion (FCF/Net Income) | 1.02x | 0.67x | 1.30x | 1.15x | 0.68x | 0.80x | 0.65x | 0.83x | 0.85x | 0.77x | 0.89x | 0.78x |
| Interest Paid | 0 | 0 | 0 | 0 | 1.5M | 72K | 2K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 7K | 29K | 7K | 0 | 0 | 0 | 0 | 0 |
Clinical Trial Funding Gap
As reported in recent financial statements, the persistent gap between net income and operating cash flow, exemplified by the 2024Q1 OCF/NI ratio of 8.39, indicates that accounting losses significantly understate the actual cash required to sustain the company's ongoing clinical development and operational infrastructure.
The wide variance between reported net income and cash outflows suggests that non-cash charges and working capital fluctuations are masking the true intensity of the company's cash consumption. Investors should interpret this divergence as a signal that the firm's operational reality is far more capital-intensive than the bottom-line figures imply.
Based on quarterly data, Syros Pharmaceuticals has consistently generated negative free cash flow, with outflows reaching $31.1 million in 2024Q1, confirming that the company remains in a deep cash-burning phase without any meaningful offset from internal product-driven cash generation or operational self-sufficiency.
The lack of positive free cash flow trajectory underscores the company's total dependence on external financing to fund its R&D pipeline. This trend appears to be accelerating as the firm approaches critical clinical milestones, necessitating a high degree of caution regarding future liquidity and potential shareholder dilution.
According to historical cash flow data, working capital changes have been highly erratic, swinging from a $7.8 million inflow in 2023Q2 to a $7.2 million outflow in 2023Q1, which suggests that the company's cash position is sensitive to the timing of milestone-related receivables and vendor payment cycles.
This volatility in working capital management may indicate a lack of predictable cash conversion cycles, which is typical for firms reliant on lumpy collaboration payments. Analysts should monitor these fluctuations as they directly impact the company's short-term liquidity and ability to manage its ongoing operational burn.
As indicated by SEC filings, stock-based compensation remains a consistent non-cash expense, averaging over $2 million per quarter, which effectively hides the true economic cost of talent retention while simultaneously diluting existing shareholders to support the company's ongoing clinical research and development efforts.
While stock-based compensation is a standard practice in biotechnology, its consistent presence in the cash flow statement suggests that the company's true operational cost is higher than the cash burn figures alone would suggest. This practice warrants further investigation into the long-term impact on equity value and capital structure.
Quick answers to the most common questions about buying SYRS stock.
Syros Pharmaceuticals, Inc. (SYRS) generated $-109.7M in net cash from operating activities in 2023. This reflects the cash generated directly from core business operations.
Syros Pharmaceuticals, Inc. (SYRS) reported negative free cash flow of $110.0M in 2023, indicating capital requirements exceeded cash from operations.
Syros Pharmaceuticals, Inc. (SYRS) spent $0.3M on capital expenditures in 2023. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.