Free cash flow remains inconsistent, fluctuating from a positive $16.3 million in 2025Q3 to a negative $30.5 million in 2026Q1 due to significant working capital outflows.
| Cash from Operations | -16.45M | -12.45M | -83.03M | -117.49M | -49.03M | 3.75M | -21.14M | -3.67M | -1.18M |
| Operating CF Margin % | - | -2.76% | -45.38% | -673.43% | -189.92% | 6.57% | - | - | - |
| Operating CF Growth % | 374.76% | 85% | 29.33% | -139.63% | -1408.16% | 117.73% | -475.5% | -210.48% | - |
| Net Income | -48.27M | -66.42M | -115.55M | -135.89M | -62.09M | -13.83M | -26.81M | -4.67M | -1.32M |
| Depreciation & Amortization | 1.73M | 1.82M | 1.23M | 877K | 325K | 312K | 96K | 37K | 1K |
| Stock-Based Compensation | 34.79M | 41.72M | 27.82M | 19.83M | 13.46M | 8.46M | 839K | 18K | 9K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 8.22M | -4.21M | -360K | -2.61M | 227K | 7.44M | 3.28M | 457K | -116K |
| Working Capital Changes | -12.93M | 14.64M | 3.84M | 306K | -951K | 1.37M | 1.46M | 485K | 126K |
| Change in Receivables | -53.05M | -39.05M | -30.14M | -14.13M | -3.49M | -73K | 16K | -32K | -4K |
| Change in Inventory | -1.86M | -1.75M | -2.05M | -3.11M | 3.49M | 0 | 0 | 0 | 0 |
| Change in Payables | 3.31M | 6.91M | 40.34M | 13.24M | 821K | 3.88M | 3.24M | 245K | 131K |
| Cash from Investing | -65.73M | -42.12M | -199.19M | 140.6M | -144.63M | -586K | -456K | -175K | -7K |
| Capital Expenditures | -15.09M | -9.86M | -1.57M | -1.5M | -506K | -586K | -456K | -175K | -7K |
| CapEx % of Revenue | 2.82% | 2.18% | 0.86% | 8.61% | 1.96% | 1.03% | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 144.12M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | -5M | -4M | -144.12M | 0 | 0 | 0 | 0 |
| Cash from Financing | 8.03M | 143.39M | 154.66M | 130.18M | 93.99M | 21K | 131.77M | 59.45M | 3.56M |
| Debt Issued (Net) | 0 | 0 | 39.6M | 10M | 19.13M | 0 | 0 | 1.99M | 0 |
| Equity Issued (Net) | 8.03M | 143.39M | 115.06M | 120.18M | 74.86M | 21K | 131.4M | 57.46M | 3.56M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -28K | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 | 370K | 0 | 0 |
| Net Change in Cash | -74.16M | 88.82M | -127.57M | 153.29M | -99.67M | 3.18M | 110.18M | 55.6M | 2.37M |
| Free Cash Flow | -31.54M | -22.31M | -84.59M | -123M | -49.54M | 3.16M | -21.59M | -3.85M | -1.19M |
| FCF Margin % | -5.89% | -4.94% | -46.24% | -704.96% | -191.88% | 5.54% | - | - | - |
| FCF Growth % | 56.72% | 73.63% | 31.22% | -148.29% | -1666.6% | 114.64% | -461.17% | -223.36% | - |
| FCF per Share | -0.73 | -0.53 | -2.25 | -4.19 | -2.01 | 0.15 | -1.06 | -0.20 | -0.28 |
| FCF Conversion (FCF/Net Income) | 0.65x | 0.19x | 0.72x | 0.86x | 0.79x | -0.27x | 0.79x | 0.79x | 0.90x |
| Interest Paid | 2.12M | 0 | 0 | 2.88M | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Payer reimbursement and GTN
As reported in recent financial statements, Tarsus Pharmaceuticals exhibits a volatile relationship between net income and operating cash flow, with the OCF/NI ratio fluctuating significantly from 3.54 in 2026Q1 to -2.31 in 2025Q4, suggesting that accruals and working capital shifts currently dominate the reported cash flow profile.
The wide variance in the OCF/NI ratio indicates that net income is currently a poor proxy for the company's underlying cash generation capabilities. Investors should monitor whether this divergence stabilizes as the commercial launch of Xdemvy matures and the company moves toward a more predictable revenue recognition cycle.
Based on the company's reported figures, free cash flow remains inconsistent, swinging from a positive $16.3 million in 2025Q3 to a negative $30.5 million in 2026Q1, which reflects the heavy investment required to support the ongoing commercialization and market penetration of its primary therapeutic product.
The erratic FCF trajectory suggests that the company is still in a high-intensity phase of capital deployment where commercial success is not yet translating into sustained cash self-sufficiency. This pattern warrants further investigation into whether the recent cash outflows are driven by temporary inventory builds or structural increases in operating expenses.
According to the provided cash flow data, working capital changes have been a primary driver of quarterly cash flow volatility, evidenced by a significant $29.5 million outflow in 2026Q1 following a period of positive contributions, which highlights the sensitivity of the company's cash position to inventory and receivables.
The sharp reversal in working capital suggests that the company's cash conversion cycle is highly sensitive to the timing of pharmacy channel inventory stocking. Analysts should interpret these swings as a reflection of the early-stage commercial launch dynamics rather than a permanent shift in the company's operational efficiency.
As indicated by the financial statements, stock-based compensation has consistently added back millions to operating cash flow, reaching $14.3 million in 2025Q4, which effectively obscures the true economic cost of operations and the actual cash burn required to sustain the company's current headcount and growth initiatives.
The reliance on SBC as a non-cash adjustment suggests that the company's reported operating cash flow may be artificially bolstered relative to its actual cash-based expenses. Investors should adjust for these figures to better understand the true burn rate and the potential for future dilution as the company continues to scale.
Quick answers to the most common questions about buying TARS stock.
Tarsus Pharmaceuticals, Inc. (TARS) generated $-12.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Tarsus Pharmaceuticals, Inc. (TARS) reported negative free cash flow of $22.3M in 2025, indicating capital requirements exceeded cash from operations.
Tarsus Pharmaceuticals, Inc. (TARS) spent $9.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.