The company's free cash flow has deteriorated significantly, with quarterly burn accelerating from $35.5M in 2023Q4 to $89.0M by 2026Q1, highlighting the intensive capital requirements of its clinical pipeline.
| 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 | Dec'12 |
|---|
| Cash from Operations | -306.36M | -279.12M | -181.39M | -145.33M | -98.43M | -69.5M | -48.12M | -4.63M | -34.72M | -28.73M | -19.57M | -18.1M | 266K | -3.32M | 45.57M |
| Operating CF Margin % | - | -3721.57% | - | - | -1043.35% | -376.97% | -149.61% | -67.83% | - | -9236.66% | -1085.25% | -116.22% | 0.94% | -12.14% | 318.51% |
| Operating CF Growth % | -235.04% | -53.88% | -24.81% | -47.64% | -41.62% | -44.42% | -938.95% | 86.66% | -20.88% | -46.81% | -8.09% | -6905.64% | 108.01% | -107.29% | - |
| Net Income | -383.17M | -345.91M | -234.33M | -182.39M | -125.37M | -78.88M | -28.84M | -41.59M | -34.5M | -30.7M | -23M | -15.75M | 13.02M | 12.03M | -4.3M |
| Depreciation & Amortization | 2.47M | 2.54M | 2.56M | 3.54M | 1.62M | 906K | 644K | 429K | 586K | 649K | 864K | 1.04M | 738K | 705K | 786K |
| Stock-Based Compensation | 58.43M | 53.71M | 50.72M | 32.37M | 20.38M | 10.02M | 5.68M | 2.92M | 2.63M | 2.24M | 2.16M | 3.73M | 760K | 648K | 414K |
| Deferred Taxes | -837K | -3.2M | -8.86M | -292K | -44K | 58K | -285K | -133K | 646K | -1.47M | -1.3M | 6.9M | 72K | 83K | 996K |
| Other Non-Cash Items | 8.72M | 9.38M | 2.81M | -4.19M | 5.66M | 1.05M | 766K | 223K | -4.11M | 11K | -63K | -63K | -66K | -115K | 260K |
| Working Capital Changes | 8.02M | 4.36M | 5.71M | 5.63M | -676K | -2.65M | -26.09M | 33.52M | 30K | 556K | 1.77M | -13.96M | -14.26M | -16.68M | 47.42M |
| Change in Receivables | 7.48M | 104K | -614K | 130K | 1.76M | -459K | -1.03M | -653K | 175K | -232K | 121K | -107K | 209K | -76K | 11.23M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -2.97M | -2.02M | -4.54M | -783K | 613K | 571K | 0 | -573K | 0 | 0 |
| Change in Payables | 2.24M | 5.51M | 8.53M | 3.93M | 8.06M | 2.97M | 2.02M | 4.54M | 783K | -3K | 547K | 80K | 518K | 0 | 0 |
| Cash from Investing | -223.79M | 218M | 165M | -117.17M | -296M | -246.77M | -16.82M | -66.29M | -28.99M | 24.29M | -47.84M | 10.19M | -3.24M | -11.47M | 491K |
| Capital Expenditures | -889K | -799K | -3.08M | -5.62M | -2.89M | -2.05M | -2.64M | -1.24M | -507K | -315K | -279K | -551K | -1.53M | -156K | -526K |
| CapEx % of Revenue | - | 10.65% | - | - | 30.68% | 11.12% | 8.2% | 18.16% | - | 101.29% | 15.47% | 3.54% | 5.39% | 0.57% | 3.68% |
| Acquisitions | 0 | 0 | 0 | 0 | 296M | -144.75M | -214.71M | -75.44M | -48.52M | -52.62M | 0 | 0 | -13.54M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -213.11M | 0 | 0 | 0 | -296M | 144.75M | 214.71M | 75.44M | 48.52M | 52.62M | -47.56M | 10.74M | 13.54M | 10K | 7K |
| Cash from Financing | 958.98M | 117.11M | 12.13M | 353.52M | 278.47M | 447.54M | 85.8M | 27.52M | 111.59M | 7.07M | 23.96M | 278K | 41.12M | -4.39M | 0 |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | -16.74M | 0 | 8.45M | 6.89M | 0 | 0 | 0 | -1.7M | 0 |
| Equity Issued (Net) | 959.22M | 117.11M | 12.08M | 353.49M | 277.77M | 447.28M | 102.46M | 27.4M | 102.85M | 0 | 23.83M | 278K | 42.64M | 49K | 0 |
| Dividends Paid | 0 | 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 | 0 |
| Other Financing | -247.43K | 0 | 47K | 35K | 705K | 260K | 82K | 122K | 288K | 177K | 132K | 0 | -1.52M | -2.74M | 0 |
| Net Change in Cash | 429.21M | 56.45M | -5.93M | 91.4M | -118.45M | 130.68M | 20.25M | -43M | 47.27M | 3.39M | -41.56M | -13.38M | 34.08M | -22.21M | 46.23M |
| Free Cash Flow | -307.25M | -279.92M | -184.46M | -150.94M | -101.32M | -71.55M | -50.76M | -5.87M | -35.23M | -29.04M | -19.85M | -18.65M | -1.26M | -3.48M | 45.05M |
| FCF Margin % | - | -3732.23% | - | - | -1074.03% | -388.09% | -157.81% | -85.99% | - | -9337.94% | -1100.72% | -119.75% | -4.45% | -12.71% | 314.84% |
| FCF Growth % | -52.63% | -51.75% | -22.21% | -48.97% | -41.61% | -40.96% | -764.46% | 83.33% | -21.31% | -46.33% | -6.39% | -1376.96% | 63.69% | -107.72% | - |
| FCF per Share | -3.52 | -3.53 | -2.37 | -2.26 | -1.67 | -1.64 | -1.47 | -0.23 | -1.81 | -1.61 | -1.28 | -1.31 | -0.09 | -0.35 | 33.84 |
| FCF Conversion (FCF/Net Income) | 0.80x | 0.81x | 0.77x | 0.80x | 0.79x | 0.88x | 1.67x | 0.11x | 1.01x | 0.94x | 0.85x | 1.15x | 0.02x | -0.28x | -10.60x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Clinical trial execution dependency
According to recent financial disclosures, Xenon's operating cash flow consistently trails net losses, with the OCF/NI ratio fluctuating between 0.56 and 0.96, suggesting that non-cash expenses like stock-based compensation are insufficient to bridge the widening gap between accounting losses and actual cash outflows.
The persistent delta between net income and operating cash flow indicates that the company's burn is driven by real, cash-intensive R&D activities rather than accounting artifacts. Investors should monitor this conversion ratio as a proxy for the efficiency of the company's clinical trial spending relative to its reported losses.
As reported in quarterly filings, Xenon's free cash flow has deteriorated significantly, moving from a quarterly burn of $35.5M in 2023Q4 to $89.0M by 2026Q1, reflecting the escalating capital requirements necessary to sustain late-stage clinical development programs without any offsetting commercial revenue streams.
The trajectory of free cash flow suggests a company in a high-intensity investment phase where capital requirements are scaling faster than the underlying pipeline value is being realized. This trend implies that the company's runway is shortening, necessitating either a major partnership milestone or further dilutive equity financing.
Based on reported figures, Xenon maintains a negligible capital expenditure profile, with quarterly outlays rarely exceeding $300,000, which underscores the company's asset-light model that prioritizes outsourced clinical research over the ownership of physical manufacturing or laboratory infrastructure.
The low capital intensity relative to revenue is typical for a clinical-stage biotech that relies on CROs for trial execution. This structure allows the company to focus its limited liquidity on R&D rather than fixed asset maintenance, though it leaves the firm highly vulnerable to fluctuations in third-party service costs.
Data from recent statements reveals that stock-based compensation has consistently exceeded $12M per quarter, effectively masking the true magnitude of the company's operational cash burn by inflating the non-cash expense line items that are added back to arrive at operating cash flow.
While stock-based compensation is a standard tool for talent retention in biotechnology, its scale relative to the total cash burn warrants caution. Analysts should adjust for these non-cash charges to understand the true cash-based operational deficit, which appears more severe than the headline operating cash flow figures suggest.
Quick answers to the most common questions about buying XENE stock.
Xenon Pharmaceuticals Inc. (XENE) generated $-279.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Xenon Pharmaceuticals Inc. (XENE) reported negative free cash flow of $279.9M in 2025, indicating capital requirements exceeded cash from operations.
Xenon Pharmaceuticals Inc. (XENE) spent $0.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.