Free cash flow remains structurally negative with quarterly outflows often exceeding $30 million, reflecting a persistent inability to fund operations through internal cash generation.
| Cash from Operations | -125.57M | -125.25M | -170.86M | -207.82M | -163.75M | -154.09M | -86.83M | -39.14M | -24.25M |
| Operating CF Margin % | - | - | -253.41% | - | - | - | - | - | -173221.43% |
| Operating CF Growth % | 61.1% | 26.7% | 17.79% | -26.91% | -6.27% | -77.48% | -121.81% | -61.41% | - |
| Net Income | -124.13M | -137.06M | -165.87M | -292.19M | -237.11M | -166.09M | -118.55M | -46.38M | -23.43M |
| Depreciation & Amortization | 628K | 739K | 1.29M | 1.39M | 1.43M | 544K | 160K | 111K | 51K |
| Stock-Based Compensation | 14.24M | 20.72M | 67.27M | 54.82M | 46.84M | 35.74M | 23.15M | 617K | 308K |
| Deferred Taxes | 0 | 0 | 0 | -853K | -769K | -2.51M | 17K | 0 | 2.37M |
| Other Non-Cash Items | -4.69M | -526K | -57.01M | 23.15M | 12.61M | -38.38M | 556K | 0 | -2.37M |
| Working Capital Changes | -11.6M | -9.12M | -16.54M | 5.86M | 13.25M | 16.61M | 7.84M | 6.51M | -1.18M |
| Change in Receivables | 0 | 5M | -5M | 0 | 0 | 413K | -277K | 777K | -254K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -5.52M | 0 | -1.86M |
| Change in Payables | -12.77M | -17.32M | -18.02M | 10.92M | 15.53M | 13.96M | 14.31M | 7.12M | 977K |
| Cash from Investing | 121.16M | 131.62M | 176.56M | -44.46M | -114.18M | -18.11M | -284.83M | -352K | -227K |
| Capital Expenditures | -34K | 0 | -221K | -583K | -2.55M | -6.11M | -758K | -352K | -227K |
| CapEx % of Revenue | - | - | 0.33% | - | - | - | - | - | 1621.43% |
| Acquisitions | 1.13M | 0 | 65K | 0 | 111.63K | -14.32M | 18.42M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -440K | 698K | 0 | 0 | -111.63K | 0 | -18.42M | 0 | 0 |
| Cash from Financing | -5.59M | -4.28M | 108K | 237.3M | 261.04M | 178.52M | 360.44M | 81.83M | 9.47M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -4.14M | -4.28M | 349K | 237.3M | 261.04M | 179.67M | 342.01M | 81.88M | 9.47M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.45M | 0 | -241K | 0 | 0 | -1.15M | 18.42M | -46K | 0 |
| Net Change in Cash | -10M | 2.09M | 5.81M | -14.98M | -16.89M | 6.31M | -11.22M | 42.34M | -15.01M |
| Free Cash Flow | -125.6M | -125.25M | -171.08M | -208.41M | -166.3M | -160.2M | -87.58M | -39.49M | -24.48M |
| FCF Margin % | - | - | -253.74% | - | - | - | - | - | -174842.86% |
| FCF Growth % | 17.21% | 26.79% | 17.91% | -25.32% | -3.81% | -82.91% | -121.76% | -61.35% | - |
| FCF per Share | -1.79 | -1.74 | -2.41 | -3.19 | -3.15 | -3.75 | -2.13 | -1.10 | -1.36 |
| FCF Conversion (FCF/Net Income) | 1.01x | 0.91x | 1.03x | 0.71x | 0.69x | 0.97x | 0.74x | 0.86x | 1.15x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 359K | 140K | 12K | 20K | 18K | 15K | 4K |
Clinical hold and liquidity
As reported in financial statements, ZNTL exhibits a consistent pattern where operating cash flow outflows closely track net losses, with OCF/NI ratios frequently hovering near 1.0, indicating that the company's reported losses are largely cash-based rather than driven by non-cash accounting adjustments or significant accrual-based distortions.
The tight correlation between net income and operating cash flow suggests that the company's burn is driven by actual cash expenditures on clinical development rather than accounting noise. Investors should monitor this relationship, as it confirms that the reported losses are a direct proxy for the rapid depletion of the company's liquid assets.
Based on ZNTL's reported figures, the company has maintained a consistently negative free cash flow trajectory, with quarterly outflows often exceeding $30 million, reflecting a structural inability to generate internal cash to fund its extensive clinical trial pipeline and ongoing research and development activities.
The absence of positive free cash flow is expected for a clinical-stage entity, yet the magnitude of these outflows relative to the company's cash reserves warrants concern. This trajectory suggests that the firm remains entirely dependent on external capital markets to sustain its operations, leaving it highly vulnerable to market sentiment.
According to recent SEC filings, ZNTL's working capital movements have been highly erratic, with significant swings such as the $14.1 million inflow in 2024Q2 followed by a $7.3 million outflow in 2024Q3, suggesting that timing differences in vendor payments and clinical trial accruals are creating substantial quarterly cash flow noise.
These fluctuations appear to be a byproduct of the lumpy nature of clinical trial expenses and milestone-based payments to research partners. Analysts should look through these short-term working capital shifts to focus on the underlying structural burn rate, which remains consistently elevated regardless of these timing-related variances.
Based on the provided data, ZNTL has utilized significant stock-based compensation, reaching as high as $31.4 million in 2024Q4, which effectively obscures the true economic cost of talent retention by shifting the burden of compensation from cash outflows to shareholder dilution over the observed period.
While stock-based compensation is a non-cash expense, it represents a real cost to shareholders through equity dilution that is not captured in the operating cash flow statement. Investors should adjust their valuation models to account for this persistent dilution, as it serves as a hidden financing mechanism for the company's ongoing cash burn.
Quick answers to the most common questions about buying ZNTL stock.
Zentalis Pharmaceuticals, Inc. (ZNTL) generated $-125.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Zentalis Pharmaceuticals, Inc. (ZNTL) reported negative free cash flow of $125.2M in 2025, indicating capital requirements exceeded cash from operations.
Zentalis Pharmaceuticals, Inc. (ZNTL) 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.