Free cash flow remains deeply negative, with the company burning $9.2 million in 2026Q1, highlighting the significant capital intensity required to support current commercial operations.
| Cash from Operations | -14.11M | -17.63M | -60.93M | -38.58M | -18.65M | -27.58M | -30.21M | -27.41M | -17.87M | -4.58M | -1.61M |
| Operating CF Margin % | - | -49.55% | -805.27% | -752.87% | -206.49% | -229.85% | - | - | - | - | - |
| Operating CF Growth % | 350.91% | 71.07% | -57.94% | -106.85% | 32.38% | 8.69% | -10.21% | -53.34% | -290.01% | -184.48% | - |
| Net Income | -17.83M | -17.89M | -76.58M | -67M | -24.49M | -35.08M | -42.69M | -28.21M | -20.65M | -4.46M | -1.91M |
| Depreciation & Amortization | 670K | 429K | 1.27M | 836K | 718K | 472K | 229K | 257.2K | 20K | 0 | 0 |
| Stock-Based Compensation | 2.29M | 3.32M | 7.16M | 14.38M | 4.99M | 6.05M | 9.82M | 0 | 2.25M | 82K | 9K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 66K | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 4.44M | 2.76M | 5.19M | 3.35M | 1.93M | 1.44M | 802K | 2.27M | -435K | 18K | -62K |
| Working Capital Changes | -3.69M | -6.25M | 2.03M | 9.86M | -1.8M | -535K | 1.64M | -1.73M | 938K | -206K | 293K |
| Change in Receivables | -2.16M | -5.32M | 4.34M | -3.93M | -487K | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 480K | 0 | 0 | 0 | 487K | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 750K | 176K | -568K | 2.2M | -338K | 497K | -838K | 225K | 793K | 64K | 71K |
| Cash from Investing | 0 | 0 | -19K | -362K | 54.04M | -998K | -3.58M | 25.95M | -79.89M | 0 | 0 |
| Capital Expenditures | 0 | 0 | -27K | -362K | -302K | -883K | -1.47M | -682K | -774K | 0 | 0 |
| CapEx % of Revenue | 0% | - | 0.36% | 7.06% | 3.34% | 7.36% | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 8K | 0 | -180K | -201K | -221K | -1.22M | -499K | 0 | 0 |
| Cash from Financing | 5.38M | 1.45M | 37.73M | 74.21M | -16.87M | 33.65M | 35.23M | 423K | 99.38M | 12.72M | 483K |
| Debt Issued (Net) | -44.26M | -48.2M | -2.06M | 44.08M | -43.75M | 4.97M | 34.37M | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 50.06M | 50.07M | 39.64M | 30.3M | 26.9M | 28.12M | 453K | 423K | 99.38M | 13M | 500K |
| 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 | -420K | -420K | 155K | -169K | -17K | 558K | 410K | 0 | 0 | -281K | -17K |
| Net Change in Cash | -8.99M | -16.18M | -23.22M | 35.27M | 18.52M | 5.07M | 1.45M | -1.03M | 1.61M | 8.14M | -1.13M |
| Free Cash Flow | -14.11M | -17.63M | -60.95M | -38.94M | -18.95M | -28.46M | -31.68M | -28.09M | -18.65M | -4.58M | -1.61M |
| FCF Margin % | -37.98% | -49.55% | -805.63% | -759.93% | -209.83% | -237.21% | - | - | - | - | - |
| FCF Growth % | 73.71% | 71.08% | -56.54% | -105.46% | 33.42% | 10.14% | -12.77% | -50.63% | -306.89% | -184.48% | - |
| FCF per Share | -1.32 | -1.65 | -11.77 | -8.59 | -5.55 | -10.53 | -12.67 | -11.28 | -7.50 | -1.78 | -0.63 |
| FCF Conversion (FCF/Net Income) | 0.79x | 0.99x | 0.80x | 0.58x | 0.76x | 0.79x | 0.66x | 0.97x | 0.87x | 1.03x | 0.84x |
| Interest Paid | 1.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and dilution risk
As reported in financial statements, VRCA's operating cash flow frequently decouples from net income, with the OCF/NI ratio swinging from 1.30 in 2025Q1 to -35.35 in 2025Q3, suggesting that accruals and non-cash adjustments are currently obscuring the underlying cash-generating capability of the core business.
The extreme variance in the OCF/NI ratio indicates that net income is a poor proxy for the company's actual cash position during this commercialization phase. Investors should monitor whether these fluctuations are driven by temporary working capital timing or more structural issues related to revenue recognition and rebate accruals.
Based on recent SEC filings, VRCA's free cash flow trajectory remains consistently negative, with the company burning $9.2 million in 2026Q1 alone, highlighting the significant capital intensity required to maintain the current commercial infrastructure for the YCANTH product launch and ongoing pipeline development.
The lack of a positive FCF trend suggests that the company has not yet reached the inflection point where product sales can self-fund operations. This persistent burn rate necessitates ongoing external financing, which may continue to pressure shareholder value through potential future equity dilution.
According to the provided quarterly data, working capital changes have been highly erratic, ranging from a $11.6 million outflow in 2025Q2 to a $11.0 million inflow in 2024Q3, which complicates the assessment of the company's ability to efficiently manage its inventory and accounts receivable.
These sharp reversals in working capital suggest that the company's cash flow is highly sensitive to the timing of distributor stocking and potential inventory build-ups. Analysts should investigate whether these swings reflect genuine shifts in demand or are merely artifacts of the company's current distribution and rebate management processes.
Financial disclosures indicate that stock-based compensation remains a consistent non-cash expense, with $1.0 million recorded in 2025Q1, which effectively masks the true economic cost of operations and the extent to which the company relies on equity-based incentives to retain talent during this cash-constrained period.
While SBC is a non-cash item, its persistent presence suggests that the company's reported operating losses may understate the total compensation burden required to sustain the business. Investors should consider the dilutive impact of these grants alongside the cash burn when evaluating the company's long-term capital requirements.
Quick answers to the most common questions about buying VRCA stock.
Verrica Pharmaceuticals Inc. (VRCA) generated $-17.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Verrica Pharmaceuticals Inc. (VRCA) reported negative free cash flow of $17.6M in 2025, indicating capital requirements exceeded cash from operations.
Verrica Pharmaceuticals Inc. (VRCA) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.