Vera Therapeutics, Inc. (VERA) Cash Flow Statement

The OCF/NI ratio has hovered below 1.0 for most of the past two years, indicating that non-cash charges like stock-based compensation are not fully offsetting working capital outflows. In 2026Q2, net income of -$109.5M exceeded operating cash outflow of -$100.3M, implying that roughly $9M of losses were non-cash, but the trend is toward a tighter conversion as the company scales Phase 3 costs. Investors should monitor whether the gap between net income and operating cash flow widens further, as this would signal that reported losses are understating the true cash burn.

The FCF trajectory shows a clear inflection point in early 2025, coinciding with the Phase 3 entry, where quarterly FCF more than doubled from -$54.6M in 2025Q1 to -$106.7M in 2026Q1. With no revenue to offset this burn, the company is consuming cash at a rate that, based on the reported $355M cash balance, implies a runway of under two years. This suggests that management will need to access capital markets before any potential approval, and the lack of FCF margin (all negative) underscores the pre-revenue stage.

The near-zero capex-to-revenue ratio (revenue is nil) suggests that Vera's asset-light model relies on contract research organizations and manufacturing partners rather than internal facilities. This means that the cash burn is driven by operating expenses, not depreciation, and the $132K D&A in 2026Q2 is immaterial. Investors should recognize that the lack of capex does not imply low capital needs; rather, it reflects a strategic choice to outsource, which may limit control over costs but preserves flexibility.

The working capital line has been erratic, with positive contributions in some quarters (e.g., +$10.4M in 2025Q4) and negative in others, suggesting timing differences in payments to CROs and vendors. In 2026Q2, the -$6.4M working capital outflow indicates that the company is paying down accrued liabilities, which may reflect tighter payment terms or a deliberate effort to manage vendor relationships. This volatility complicates forecasting, but the overall trend is that working capital is a minor, yet unpredictable, component of the burn.

Capital deployment is entirely focused on advancing atacicept, with zero returns to shareholders, which is typical for a clinical-stage biotech. The absence of buybacks or dividends is not a negative signal but rather a reflection of the company's need to conserve cash for the Phase 3 program. However, the $13K buyback in 2024Q3 is negligible and likely related to employee stock plan transactions, not a strategic capital return initiative.