The firm exhibits a persistent cash burn trajectory, evidenced by a free cash flow deficit that reached $52.4 million in 2025Q3, necessitating reliance on external financing to maintain liquidity.
| Cash from Operations | -183.1M | -186.36M | -118.01M | -121.14M | -116.31M | -106.11M | -53.09M | -28.36M | -17.19M | -19.26M |
| Operating CF Margin % | - | - | - | - | - | - | - | - | - | - |
| Operating CF Growth % | -159.75% | -57.92% | 2.59% | -4.16% | -9.61% | -99.88% | -87.2% | -64.97% | 10.75% | - |
| Net Income | -196.48M | -206.69M | -138.2M | -134.24M | -141.95M | -130.32M | -63.41M | -37.18M | -18.3M | -18.71M |
| Depreciation & Amortization | 2.17M | 2.17M | 2.15M | 2.15M | 2.11M | 3.41M | 667K | 493K | 488K | 271K |
| Stock-Based Compensation | 15.5M | 16.42M | 19.43M | 18.18M | 18.52M | 0 | 4.89M | 2.04M | 408K | 401K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -1.21M | -2.48M | -7.75M | -1.43M | 1.28M | 17.52M | 53K | 5.67M | -260K | 799K |
| Working Capital Changes | -3.08M | 4.23M | 6.36M | -5.8M | 3.74M | 3.28M | 4.72M | 625K | 478K | -1.22M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 6.67M | 4.49M | 4.94M | -2.08M | -287K | 3.86M | 1.51M | 931K | -253K | 144K |
| Cash from Investing | 119.49M | 190.05M | -218.8M | 70.7M | 58.44M | -88.24M | -83.16M | -267K | -17K | -567K |
| Capital Expenditures | -63K | -137K | -15K | -193K | -6.53M | -1.65M | -464K | -267K | -17K | -567K |
| CapEx % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | -64.97K | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 64.97K | 0 | -82.7K | 0 | 0 | 0 |
| Cash from Financing | 141.69M | 108.86M | 161.21M | 135.52M | 122.91M | 1.79M | 360.88M | 28.39M | 58.46M | 42K |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 143.28M | 110.47M | 161.87M | 135.51M | 130.48M | 1.79M | 363.83M | 30M | 58.34M | 0 |
| Dividends Paid | -1.86M | -1.86M | 0 | 0 | 0 | 0 | -6.22M | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 273K | 238K | -665K | 14K | -7.57M | 0 | 3.27M | -1.6M | 121K | 42K |
| Net Change in Cash | 78.08M | 112.55M | -175.61M | 85.09M | 65.04M | -193.72M | 224.63M | -244K | 41.21M | -19.81M |
| Free Cash Flow | -183.16M | -186.49M | -118.02M | -121.33M | -122.83M | -107.76M | -53.55M | -28.63M | -17.21M | -19.83M |
| FCF Margin % | - | - | - | - | - | - | - | - | - | - |
| FCF Growth % | -30.94% | -58.02% | 2.73% | 1.22% | -13.99% | -101.24% | -87.08% | -66.36% | 13.21% | - |
| FCF per Share | -0.94 | -1.20 | -0.86 | -1.60 | -2.25 | -2.81 | -3.16 | -0.75 | -1.50 | -0.52 |
| FCF Conversion (FCF/Net Income) | 0.93x | 0.90x | 0.85x | 0.90x | 0.82x | 0.81x | 0.84x | 0.76x | 0.94x | 1.03x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 5.07M | 4.89M | 0 | 0 | 0 | 0 | 2K | 1K | 0 |
Clinical trial funding dependency
According to the provided cash flow statements, Annexon consistently reports an OCF/NI ratio fluctuating between 0.73 and 1.12, indicating that the company's net losses are closely mirrored by actual cash outflows as it lacks the revenue-generating activities to create meaningful accrual-based accounting distortions.
The tight correlation between net income and operating cash flow suggests that the firm's financial results are primarily driven by cash-based R&D expenditures rather than complex non-cash accounting maneuvers. Investors should interpret this as a pure-play burn profile where the absence of revenue means that every dollar of loss represents a direct reduction in the company's liquidity runway.
As reported in financial statements, Annexon's free cash flow has remained consistently negative over the last ten quarters, with quarterly outflows reaching as high as $52.4 million in 2025Q3, underscoring the heavy financial burden of sustaining late-stage clinical development without any offsetting product revenue.
The trajectory of free cash flow appears to be worsening as the company advances its pipeline, suggesting that the capital intensity of Phase III trials is outpacing the firm's current cash management capabilities. This trend warrants close monitoring, as the widening gap between cash inflows and outflows necessitates frequent reliance on external financing to maintain operations.
Based on the reported figures, Annexon exhibits significant quarterly volatility in working capital changes, ranging from a $7.2 million inflow in 2025Q2 to a $7.5 million outflow in 2024Q1, which likely reflects the lumpy nature of clinical trial site payments and vendor contract milestones.
These fluctuations suggest that the company's cash position is highly sensitive to the timing of clinical trial activities and the settlement of research-related liabilities. Analysts should view these swings as operational noise rather than structural efficiency, as the firm lacks the recurring commercial cycles that typically stabilize working capital in mature industrial entities.
Data from the last ten quarters reveals that Annexon consistently utilizes stock-based compensation, averaging approximately $4.3 million per quarter, which effectively serves as a non-cash adjustment that masks the true economic cost of retaining specialized scientific talent during the company's pre-revenue development phase.
While stock-based compensation is a standard tool for talent retention in biotechnology, it represents a significant dilution risk that is not fully captured by traditional cash flow metrics. Investors should adjust their internal burn rate calculations to account for this persistent equity issuance, as it represents a real cost to shareholders that is often overlooked in headline cash flow figures.
Quick answers to the most common questions about buying ANNX stock.
Annexon, Inc. (ANNX) generated $-186.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Annexon, Inc. (ANNX) reported negative free cash flow of $186.5M in 2025, indicating capital requirements exceeded cash from operations.
Annexon, Inc. (ANNX) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Annexon, Inc. (ANNX) returned $1.9M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.