Free cash flow remains consistently negative with a $2.1 million burn in 2026Q2, reflecting a disconnect between accounting losses and an OCF/NI ratio of 0.49.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Aug'14 | Aug'13 | Aug'12 | Aug'11 | Aug'10 | Apr'09 |
|---|
| Cash from Operations | -7.65M | -7.32M | -4.89M | -6.64M | -12.28M | -13.66M | -4.99M | -4.85M | -4.62M | -4.7M | -4.51M | -4.41M | -4.27M | -2.92M | -3.95M | -2.62M | -732.23K | -37.67K |
| Operating CF Margin % | - | - | - | - | - | - | -1516.52% | -1179.4% | -2178.68% | -2058.66% | -354.3% | -581.58% | -1146.56% | -536.23% | -1380.09% | -375.3% | -85.66% | - |
| Operating CF Growth % | -212.5% | -49.73% | 26.31% | 45.95% | 10.14% | -174.05% | -2.9% | -4.99% | 1.79% | -4.31% | -2.11% | -3.41% | -45.87% | 25.91% | -50.88% | -257.34% | -1843.95% | - |
| Net Income | -10.44M | -7.19M | -6.17M | -8.37M | -17.55M | -13.34M | -6.36M | -2.78M | -5.04M | -5.03M | -5.03M | -2.84M | -8.44M | -14.89M | -5.2M | -7.09M | -589.97K | -73.92K |
| Depreciation & Amortization | 120.64K | 119.27K | 186.05K | 183.47K | 118.19K | 118.79K | 57.56K | 4.78K | 188.37K | 179.32K | 149.56K | 159.52K | 158.31K | 124.83K | 112.14K | 87.33K | 13.27K | 0 |
| Stock-Based Compensation | 662.99K | 729.64K | 537.49K | 1.25M | 2.26M | 3.2M | 598.36K | 46.51K | 154.31K | 115.55K | 259.38K | 267.22K | 956.63K | 627.02K | 1.92M | 4.01M | 340.12K | 43K |
| Deferred Taxes | 0 | 0 | 0 | -308K | -2.38M | -3.31M | -655.92K | -2.76M | 55.3K | 0 | 0 | 0 | 0 | 11.15M | -12.54K | 0 | 0 | 0 |
| Other Non-Cash Items | -247.18K | 0 | -14.77K | 308K | 2.38M | 3.31M | 655.92K | 2.75M | 12.42K | -162.03K | 135.16K | -1.48M | 2.85M | 491.41K | -1.21M | -3.33K | -382.74K | 0 |
| Working Capital Changes | 1.62M | -985.65K | 571.07K | 308K | 2.89M | -3.64M | 721.97K | -2.11M | 13.04K | 198.16K | -23.65K | -518.38K | 207.98K | -429.39K | 439.56K | 378.47K | -112.91K | -6.75K |
| Change in Receivables | 182.9K | -377.99K | 356.34K | 562.77K | 2.03B | -3.23M | 127.13K | 9.74K | -40K | 84.57K | 71.83K | -113.92K | 121.08K | -256.64K | 32.19K | 532.81K | -283.79K | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 77.91K | -156.15K | 181.32K | 307.85K | -522.39K | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | -556.27K | 882.84K | -124.72K | 998.9K | -1.88M | 172.45K | -302.73K | -230.55K | 31.26K | 106.22M | 19.41K | 275.52K | 0 | 0 | -9.37K |
| Cash from Investing | 0 | 0 | 0 | 0 | -5.66K | -6.15K | 19.07K | 6.42M | -4.47M | 1.69M | 557.41K | 122.47K | -741.41K | -9.54K | -78.34K | -309.78K | -88.88K | 0 |
| Capital Expenditures | 0 | 0 | 0 | 3 | -5.66K | -6.15K | -34.34K | -8.1K | -382.81K | -302.73K | -402.27K | -274.59K | -279.06K | -9.54K | -78.34K | -309.78K | -88.88K | 0 |
| CapEx % of Revenue | - | - | - | - | - | - | 10.44% | 1.97% | 180.7% | 132.61% | 31.63% | 36.19% | 74.99% | 1.75% | 27.39% | 44.43% | 10.4% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 29.48K | 6.39M | 0 | 0 | -66.69K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | -3 | 0 | 0 | 23.93K | 36.74K | 0 | 0 | 12M | 0 | 2.15K | -9.54K | -78.34K | 0 | 0 | 0 |
| Cash from Financing | 3.84M | 17.03M | 592.03K | 4.83M | 11.63M | 14.17M | 7.09M | 0 | 8.77M | 5.91K | 7.31M | 106.78K | 10.79M | 9.73M | 877.21K | 5.07M | 2.82M | 229.16K |
| Debt Issued (Net) | 23.14K | 0 | -29.53K | 0 | 0 | 0 | 29.75K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -35K | 0 |
| Equity Issued (Net) | 4.01M | 17.03M | 621.56K | 4.83M | 11.63M | 14.17M | 7.06M | 0 | 8.77M | 0 | 7.31M | 106.78K | 10.79M | 9.73M | 877.21K | 5.08M | 2.91M | 200.42K |
| Dividends Paid | 0 | 0 | 0 | 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 | -125.03K | 0 | 0 |
| Other Financing | -201.78K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.91K | 0 | 0 | 0 | 1.6K | 0 | -8.73K | -58.65K | 0 |
| Net Change in Cash | -3.89M | 9.75M | -4.32M | -1.73M | -748.34K | 625.56K | 2.18M | 1.66M | -345.43K | -2.85M | 3.46M | -4.81M | 5.57M | 6.86M | -3.15M | 2.14M | 1.99M | 191.49K |
| Free Cash Flow | -7.65M | -7.32M | -4.89M | -6.64M | -12.28M | -13.67M | -5.02M | -4.85M | -5M | -5M | -4.91M | -4.69M | -4.55M | -2.93M | -4.03M | -2.93M | -821.1K | -37.67K |
| FCF Margin % | - | - | - | - | - | - | -1526.97% | -1181.37% | -2359.38% | -2191.27% | -385.94% | -617.77% | -1221.55% | -537.98% | -1407.48% | -419.73% | -96.05% | - |
| FCF Growth % | -34.92% | -49.73% | 26.31% | 45.98% | 10.14% | -172.3% | -3.44% | 2.89% | 0.08% | -1.93% | -4.71% | -3.11% | -54.91% | 27.11% | -37.58% | -256.39% | -2079.9% | - |
| FCF per Share | -0.93 | -1.29 | -1.53 | -2.32 | -5.86 | -7.92 | -4.08 | -7.41 | -10.45 | -210.10 | -23.35 | -24.74 | -25.18 | -23.88 | -38.63 | -32.27 | -22.11 | -3.91 |
| FCF Conversion (FCF/Net Income) | 0.73x | 1.02x | 0.79x | 0.79x | 0.70x | 1.02x | 0.78x | 1.78x | 0.92x | 0.93x | 0.90x | 1.55x | 0.51x | 0.20x | 0.76x | 0.37x | 1.24x | 0.51x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 800 | 800 | 7.2K | 36.8K | -30.2K | 800 | 800 | 800 | 0 | 0 |
Clinical Trial Funding Gap
As reported in financial statements, Edesa Biotech's operating cash flow consistently trails net income, with the OCF/NI ratio fluctuating significantly, reaching 0.49 in 2026Q2, which highlights the disconnect between accounting losses and the actual cash required to sustain the company's ongoing clinical development programs.
The variability in the OCF/NI ratio suggests that non-cash adjustments, likely related to warrant liabilities and stock-based compensation, frequently distort the reported net loss. Investors should monitor this divergence as it indicates that the company's cash burn is driven by operational requirements that are not fully captured by GAAP net income metrics.
Based on Edesa Biotech's reported figures, the company has maintained a consistent negative free cash flow trajectory, with quarterly outflows reaching $2.1 million in 2026Q2, reflecting the heavy reliance on external financing to fund the development of its lead therapeutic candidates in the absence of revenue.
The lack of positive free cash flow is expected for a clinical-stage entity, yet the trend shows no signs of stabilization as R&D intensity remains high. This trajectory implies that the company will remain dependent on capital markets until a major milestone or partnership provides a non-dilutive liquidity event.
According to recent SEC filings, Edesa Biotech's working capital movements have been erratic, including a $1.7 million inflow in 2026Q2, which suggests that timing differences in accounts payable and accrued liabilities are playing a disproportionate role in managing the company's immediate cash position.
These fluctuations appear to be a byproduct of managing clinical trial vendor payments rather than operational efficiency. Analysts should interpret these swings with caution, as they do not represent sustainable cash generation but rather the tactical deferral of obligations to preserve the limited cash runway.
As indicated by the company's financial disclosures, the cash flow statement is heavily influenced by non-cash warrant liability adjustments, which can mask the true operational burn rate and complicate the assessment of the company's actual financial runway for investors evaluating the firm's long-term viability.
The reliance on these accounting adjustments suggests that the reported net income is a poor proxy for the company's financial health. A more accurate assessment requires focusing on the net cash burn, which remains the primary indicator of how long the company can continue operations before requiring additional dilutive financing.
Quick answers to the most common questions about buying EDSA stock.
Edesa Biotech, Inc. (EDSA) generated $-7.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Edesa Biotech, Inc. (EDSA) reported negative free cash flow of $7.3M in 2025, indicating capital requirements exceeded cash from operations.
Edesa Biotech, Inc. (EDSA) 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.