Despite a 0.60 cash conversion ratio in 2026Q2, free cash flow generation remains marginal at $5.9M and is highly volatile, as capital expenditure intensity has surged to 4.0% of revenue.
Telix Pharmaceuticals Limited (TLX) cash flow statement — 9-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Cash from Operations | 11.73M | -25.93M | 43.03M | 23.88M | -63.97M | -59.33M | 1.96M | -23.33M | -20.75M | -6.03M |
| Operating CF Margin % | - | -2.15% | 5.49% | 4.75% | -39.96% | -781.04% | 37.6% | -669.53% | -10632.77% | - |
| Operating CF Growth % | -1493.08% | -160.27% | 80.16% | 137.34% | -7.82% | -3126.94% | 108.4% | -12.45% | -244.01% | - |
| Net Income | 83.02M | -10.69M | 49.92M | 5.21M | -104.08M | -80.51M | -44.89M | -27.87M | -13.83M | -6.38M |
| Depreciation & Amortization | 73.98M | 32.67M | 8.02M | 6.74M | 5.38M | 5.17M | 4.88M | 4.24M | 7K | 3.79K |
| Stock-Based Compensation | 27.32M | 0 | 19.66M | 8.79M | 8.11M | 1.32M | 2.35M | 1.27M | 712K | 109.02K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -55.79M | 19.89M | 64.26M | 60.68M | 55.26M | 22.1M | 40.23M | 2.37M | 1.06M | 1.12M |
| Working Capital Changes | -98.82M | -67.81M | -98.82M | -57.53M | -28.64M | -7.42M | -612K | -3.34M | -8.7M | -890.22K |
| Change in Receivables | -57.08M | -30.69M | -57.08M | -27.38M | -19.93M | -7.19M | -328K | -3.63M | -7.22M | -338.8K |
| Change in Inventory | -3.24M | -11.46M | -3.24M | -9.64M | -5.02M | -2.82M | -91K | 101K | 0 | 0 |
| Change in Payables | 0 | 43.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -575.67M | -428.79M | -135.17M | -25.49M | -17M | -2.73M | -1.09M | -468K | -2.69M | -1.26K |
| Capital Expenditures | -122.54M | -83.98M | -14.32M | -9.68M | -7.04M | -1.34M | -248K | -403K | 0 | -5.64K |
| CapEx % of Revenue | 4.9% | 6.97% | 1.83% | 1.93% | 4.4% | 17.63% | 4.76% | 11.56% | - | - |
| Acquisitions | -349.92M | -330.92M | -34.69M | -1.48M | -973K | 0 | -322K | 0 | -2.69M | 4.38K |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -100.4M | -12.55M | -86.16M | -14.33M | -8.99M | -1.39M | -521K | -65K | 0 | 0 |
| Cash from Financing | 802.62M | -5.58M | 638.92M | 10.19M | 174.96M | 2.85M | 34.12M | 42.72M | -869K | 54.79M |
| Debt Issued (Net) | 174.8M | -434.9K | 652.81M | 3.53M | 1.74M | -936K | -904K | -1.17M | -869K | -769.18K |
| Equity Issued (Net) | 4.71M | 2.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 623.1M | -7.85M | -13.88M | 6.65M | 173.22M | 3.78M | 35.02M | 43.89M | 0 | 55.56M |
| Net Change in Cash | 296.44M | -446.35M | 587.11M | 6.91M | 94.29M | -55.91M | 33.35M | 18.83M | -22.99M | 54.79M |
| Free Cash Flow | -75.55M | -82.8M | 28.71M | 14.21M | -71.01M | -60.67M | 1.71M | -23.74M | -20.75M | -6.04M |
| FCF Margin % | -3.02% | -6.87% | 3.67% | 2.83% | -44.35% | -798.67% | 32.84% | -681.09% | -10632.77% | - |
| FCF Growth % | -308.87% | -388.42% | 102.09% | 120% | -17.05% | -3643.63% | 107.21% | -14.4% | -243.69% | - |
| FCF per Share | -0.21 | -0.25 | 0.08 | 0.04 | -0.23 | -0.21 | 0.01 | -0.10 | -0.10 | -0.05 |
| FCF Conversion (FCF/Net Income) | -0.91x | 2.43x | 0.86x | 4.58x | 0.61x | 0.74x | -0.04x | 0.84x | 1.50x | 0.95x |
| Interest Paid | 13M | 0 | 4.73M | 785K | 408K | 189K | 191K | 117K | 17K | 5.3K |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying TLX stock.
Telix Pharmaceuticals Limited (TLX) generated $-25.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Telix Pharmaceuticals Limited (TLX) reported negative free cash flow of $82.8M in 2025, indicating capital requirements exceeded cash from operations.
Telix Pharmaceuticals Limited (TLX) spent $84.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Negative free cash flow during expansion
Earnings Quality Supported by Non-Cash Items
Net income of $55.5M in 2026Q2 was supported by $37.2M in depreciation & amortization, yet operating cash flow of $33.4M implies a conversion ratio of only 0.60, suggesting significant non-cash gains or tax benefits are inflating reported earnings beyond cash generation.
The persistent gap between net income and operating cash flow, especially evident in quarters like 2025Q2 where a $3.5M net loss coincided with $27.0M of operating cash flow, indicates that working capital swings and non-cash items are major drivers of reported profitability. This inconsistent conversion pattern warrants careful scrutiny of the quality and sustainability of the company's net income figure.
FCF Trajectory Volatile and Capex-Driven
Free cash flow has been highly volatile, turning negative in 2025Q4 at -$92.6M due to a $41.5M capital expenditure outlay, and remaining marginal at $5.9M in 2026Q2 despite a positive net income, signaling that growth investments are consuming nearly all operating cash generation.
The FCF margin has swung from -14.9% to 0.9% in recent quarters, highlighting that the business is not yet generating meaningful free cash flow on a consistent basis. The trajectory is entirely dictated by the timing and scale of capital expenditure, which has ramped significantly from under $5M per quarter in 2021-2023 to over $40M in recent periods, suggesting the company is in a heavy investment phase that suppresses near-term free cash generation.
Capital Intensity Rises with Expansion
Capital expenditure as a percentage of revenue has surged to 4.0% in 2026Q2 and 6.7% in 2025Q4, a dramatic increase from the ~2% levels seen in 2024, which, alongside rising depreciation of $37.2M, indicates a major shift toward funding growth assets rather than just maintaining existing operations.
This elevated and increasing capital intensity is consuming a substantial portion of operating cash flow and is the primary reason for the mismatch between net income and free cash flow. Investors should monitor whether these investments translate into future revenue growth or represent a permanent increase in the asset base that requires ongoing high maintenance spending.
Working Capital as a Major Cash Swing Factor
Working capital changes have been a dominant and unpredictable cash flow driver, with a negative $98.8M outflow in 2024Q4 and a negative $57.5M outflow in 2023Q4, which materially distorted the relationship between operational performance and operating cash flow in those periods.
The lumpy and often negative working capital movements suggest inconsistent collection patterns, inventory build for new product launches, or timing of payables, creating noise in the core operating cash flow trend. This volatility makes it difficult to assess the underlying cash generation power of the business on a quarterly basis.
What the Cash Flow Statement Obscures
The $344.0M acquisition in 2025Q2 was an all-cash transaction that is excluded from operating cash flow but represents a major capital commitment, while the lack of any share-based compensation cash outlay in recent quarters may understate the true dilutive cost of employee compensation.
The cash flow statement does not capture the full economic cost of growth; the large acquisition, likely funded from balance sheet cash, represents a strategic bet whose return is not visible in these figures. Furthermore, while SBC is listed as zero in recent periods, its historical presence suggests it remains a component of employee costs that does not consume cash, potentially making operating cash flow appear more robust than the all-in economic reality.