Persistent free cash flow deficits are evident, with quarterly outflows reaching $63.2M in 2025Q1, reflecting a business model that relies on external capital to fund operations.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | -182.35M | -187.49M | -151.03M | -19.43M | -127.78M | -88.99M | -115.98M | -188.23M | -22.86M | -83.67M | -31.87M | -12.53M | -4.43M | -3.55M |
| Operating CF Margin % | - | -438.82% | -139.45% | -17.15% | -3501.81% | -217.25% | -577.69% | -1177.7% | -158.61% | -2258.94% | -2146.26% | -8241.45% | - | - |
| Operating CF Growth % | -31.68% | -24.15% | -677.24% | 84.79% | -43.59% | 23.27% | 38.38% | -723.34% | 72.68% | -162.52% | -154.43% | -183.03% | -24.64% | - |
| Net Income | -183.59M | -204.38M | -97.01M | -57.51M | -161.82M | -122.25M | -149.91M | -193.64M | -146.65M | -102.03M | -55.4M | -19.2M | -5.23M | -3.32M |
| Depreciation & Amortization | 8.15M | 8.85M | 8.66M | 9.21M | 10.11M | 9.84M | 9.98M | 9.2M | 5.58M | 2.15M | 784K | 594K | 281K | 276K |
| Stock-Based Compensation | 21.73M | 0 | 13.14M | 9.79M | 17.19M | 16.41M | 14.3M | 19.51M | 15.6M | 12.14M | 6.85M | 4.02M | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -12.64M | -9.14M | 0 | 44K | 774K | -874K | 36K | 84K | -330K |
| Other Non-Cash Items | 9.43M | 24.97M | 0 | 0 | 12K | 12.64M | 9.14M | 0 | 183K | 3.59M | 565K | 88K | -6K | -6K |
| Working Capital Changes | -38.08M | -16.94M | -75.82M | 19.08M | 6.72M | 7.01M | 9.65M | -23.3M | 102.39M | -299K | 16.21M | 1.93M | 430K | -173K |
| Change in Receivables | 177.78K | 146K | 19.66M | -21.09M | 0 | 30M | 20M | 10M | -59M | -1M | 0 | 193K | -129K | -102K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 2.04M | 4.61M | 0 | -4.08M | 0 | 0 | 242K | 398K | 0 |
| Change in Payables | 4.81M | -561K | 3.42M | -3.76M | 9.35M | -6.57M | 5.12M | -3.5M | 4.94M | 3.89M | 3.37M | 1.65M | 9K | -152K |
| Cash from Investing | -981.99K | -718K | -938K | -1.11M | -1.25M | -560K | -1.34M | -3.92M | -9.94M | -18.9M | -8.16M | -2.91M | -257K | -47K |
| Capital Expenditures | -273K | -718K | -938K | -1.11M | -1.36M | -560K | -1.34M | -3.92M | -9.94M | -18.89M | -5.57M | -1.86M | -590K | -47K |
| CapEx % of Revenue | 0.38% | 1.68% | 0.87% | 0.98% | 37.3% | 1.37% | 6.66% | 24.51% | 68.95% | 509.91% | 374.88% | 1221.71% | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4K | 3K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -708.99K | 0 | 0 | 0 | 106K | 0 | 0 | 0 | -9.94M | -9K | -2.6M | -1.05M | 333K | 0 |
| Cash from Financing | 489.54M | 488.24M | 253.89M | 132.53M | 67.19M | 55.83M | 154.54M | 164.4M | 65.09M | 94.37M | 29.12M | 175.59M | 5.62M | 3.67M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -16K | -62K | -62K | -126K | 0 | 0 |
| Equity Issued (Net) | 486.47M | 488.24M | 236.18M | 131.28M | 52.33M | 54.97M | 153.63M | 161.79M | 60M | 93.51M | 30M | 175.61M | 5.58M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 3.07M | 0 | 17.71M | 1.26M | 14.86M | 858K | 912K | 2.61M | 5.11M | 927K | -817K | 112K | 34K | 3.67M |
| Net Change in Cash | 301.55M | 300.04M | 101.79M | 111.89M | -62.06M | -33.93M | 37.34M | -27.64M | 32.33M | -7.79M | -10.93M | 160.17M | 609K | 60K |
| Free Cash Flow | -183.34M | -187.49M | -151.96M | -20.55M | -129.14M | -89.55M | -117.32M | -192.15M | -32.8M | -102.56M | -37.44M | -14.38M | -5.02M | -3.6M |
| FCF Margin % | -255.35% | -438.82% | -140.31% | -18.13% | -3539.11% | -218.61% | -584.35% | -1202.21% | -227.56% | -2768.84% | -2521.14% | -9463.16% | - | - |
| FCF Growth % | -1.11% | -23.38% | -639.63% | 84.09% | -44.21% | 23.67% | 38.94% | -485.82% | 68.02% | -173.93% | -160.28% | -186.76% | -39.41% | - |
| FCF per Share | -0.92 | -1.11 | -1.10 | -0.19 | -1.64 | -1.73 | -2.99 | -5.67 | -1.13 | -3.87 | -1.64 | -0.67 | -0.24 | -1.01 |
| FCF Conversion (FCF/Net Income) | 1.00x | 0.92x | 1.56x | 0.34x | 0.79x | 0.73x | 0.77x | 0.97x | 0.16x | 0.82x | 0.58x | 0.65x | 0.85x | 1.07x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 37K | 29K | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11K | 554K | 0 | 0 | 0 |
Clinical milestone dependency
As reported in recent financial statements, the relationship between net income and operating cash flow is highly volatile, with OCF/NI ratios fluctuating from 0.60 to 2.28, indicating that reported earnings are currently an unreliable indicator of the company's actual cash-generating capacity or underlying operational efficiency.
The significant divergence between net income and operating cash flow suggests that non-cash items and working capital adjustments are heavily influencing the bottom line. Investors should monitor these fluctuations closely, as they imply that the company's reported losses do not fully capture the cash-intensive nature of its ongoing research activities.
Based on quarterly cash flow data, Wave Life Sciences consistently records negative free cash flow, with quarterly outflows reaching as high as $63.2M, reflecting a business model that remains entirely dependent on external capital and milestone payments to sustain its extensive clinical development pipeline.
The persistent FCF burn highlights the lack of self-sustaining operations, as the company continues to prioritize R&D investment over cash preservation. This trajectory suggests that until a commercial product is successfully launched, the company will remain vulnerable to the timing of milestone-driven cash inflows.
According to historical cash flow filings, working capital changes have been a major source of cash flow instability, including a significant $78.3M outflow in 2024Q4, which underscores the unpredictable nature of managing deferred revenue and partner-related receivables within the company's current collaboration-heavy business model.
The erratic swings in working capital suggest that the timing of milestone recognition and subsequent cash collection is not perfectly aligned. This creates periodic liquidity pressure that may necessitate careful cash management to ensure the company maintains its runway through critical clinical trial milestones.
As evidenced by the absence of dividends or share repurchases in the provided data, Wave Life Sciences is currently directing all available capital toward R&D and operational maintenance, reflecting a strategic necessity to preserve its $602M cash position for upcoming clinical readouts and platform validation.
The lack of capital return programs is appropriate for a clinical-stage biotech, as the company must prioritize funding its pipeline over shareholder distributions. The current allocation strategy appears designed to maximize the probability of reaching key data inflection points without the need for immediate dilutive financing.
Quick answers to the most common questions about buying WVE stock.
Wave Life Sciences Ltd. (WVE) generated $-187.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Wave Life Sciences Ltd. (WVE) reported negative free cash flow of $187.5M in 2025, indicating capital requirements exceeded cash from operations.
Wave Life Sciences Ltd. (WVE) spent $0.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.