The company exhibits a concerning free cash flow burn rate, with quarterly outflows consistently hovering near $45M, highlighting a critical liquidity risk.
| 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 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | -203.76M | -208.51M | -175.71M | -192.61M | -304.01M | -412.66M | -313.29M | -328.68M | 718.21M | -80.41M | -117.02M | -73.08M | -142.01M | -38.53M | -129.76M | -113.74M | -55.87M | 39.74M | -145.78M | 146.3M | -92.72M | -78M | -78.14M | -76.2M | -74.97M | -50.77M | -35.74M | -15.33M | -19.22M | 4.98M | -5.8M |
| Operating CF Margin % | - | -377.52% | -178.52% | -213.72% | -330.25% | -404.94% | -204.88% | -286.76% | 60.19% | -26.13% | -70.74% | -31.67% | -70.75% | -25.87% | -159.82% | -159.12% | -35.13% | 55.25% | -161.65% | 53.59% | -42.58% | -61.77% | -68.38% | -71.71% | -79.05% | -65.54% | -69.23% | -37.08% | -88.2% | 30.64% | -84.06% |
| Operating CF Growth % | -63.26% | -18.67% | 8.77% | 36.64% | 26.33% | -31.72% | 4.68% | -145.76% | 993.15% | 31.28% | -60.12% | 48.54% | -268.59% | 70.31% | -14.08% | -103.58% | -240.59% | 127.26% | -199.64% | 257.8% | -18.87% | 0.18% | -2.55% | -1.64% | -47.66% | -42.06% | -133.09% | 20.23% | -486.08% | 185.84% | -9.43% |
| Net Income | -158.1M | -164.08M | -118.96M | -276.06M | -368.2M | -523.84M | -444.44M | -440.67M | 681.31M | -96.69M | -153.52M | -81.18M | -53.92M | -162.01M | -171.85M | -133.98M | -37.94M | -102.52M | -34.34M | -32.76M | -154.76M | -185.11M | -101.89M | -46.68M | -107.47M | -250.01M | -97.4M | -38.45M | -18.36M | -9.98M | -10M |
| Depreciation & Amortization | -682K | -4.49M | 4.39M | 7.82M | 13.03M | 14.15M | 14.18M | 13.16M | 10.87M | 14.74M | 15.35M | 12.86M | 12.93M | 14.28M | 14.51M | 14.95M | 16.55M | 14.88M | 22.49M | 28.15M | 32.63M | 26.23M | 19.19M | 18.42M | 18.97M | 40.38M | 10.12M | 7.25M | 3.6M | 2.44M | 1.2M |
| Stock-Based Compensation | 8.75M | 12.65M | 21.61M | 33.39M | 57.32M | 94.67M | 94.26M | 99.8M | 88.1M | 36.62M | 25.85M | 19.67M | 17.02M | 17.71M | 16.2M | 18.89M | 17.4M | 10.33M | 9.87M | 14.78M | 9.7K | 1.85M | 1.18M | 201K | 549K | 881K | 865K | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | -140K | 2.71M | 8.02M | 20.35M | 0 | 0 | 15.08M | 0 | 1.58M | 0 | 0 | 1.68M | 133.98M | 12.58M | 0 | -79.44M | -13.8M | -2.14M | -1.85M | -1.18M | -201K | 1.55M | -881K | -865K | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -16.79M | -15.58M | -76.51M | 62.19M | -9.36M | 17.41M | -14.35M | -22.65M | -23.06M | -12.54M | -12.63M | 8.7M | -1.61M | 918K | 8.11M | -132.62M | 198K | -657K | -37.57M | 43.17M | 40.39M | 76.32M | 12.22M | -29.26M | 960K | 150.81M | 47.92M | 10.69M | 284K | 600K | 200K |
| Working Capital Changes | -36.94M | -37.02M | -6.24M | -19.8M | 492K | -23.08M | 16.71M | 21.69M | -39.01M | -37.62M | 7.93M | -34.7M | -116.42M | 90.58M | 1.61M | -14.96M | -64.66M | 117.71M | -26.79M | 106.75M | -8.85M | 4.56M | -7.66M | -18.68M | 10.47M | 8.04M | 3.62M | 5.17M | -4.75M | 11.92M | 2.8M |
| Change in Receivables | 0 | 0 | -3.04M | 4.78M | 16.51M | 12.4M | 1.91M | 6.41M | -25.5M | 10.66M | 4.27M | -16.34M | -1.38M | 3.58M | -867K | 20.16M | -20.3M | 6.03M | 10.48M | 24.32M | 0 | 6.02M | -6.03M | -2.33M | 1.73M | -4.24M | -964K | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 497K | 699K | -3.4M | -509K | -2.63M | -1.28M | -655K | 383K | 237K | 1.61M | 500K | 4.82M | -5.61M | -5.39M | -795K | 2.85M | 2.87M | 1.5M | 3.97M | -7.42M | -3.69M | -263.01M | -241.35M | -291.63M | -462.74M | 0 | 0 | 0 | 0 |
| Change in Payables | -7.97M | -625K | 2.67M | -2.88M | 3.1M | -11.69M | 2.38M | 12.97M | 971K | 2.07M | 518K | -412K | -6.36M | 6.2M | -122K | -3.38M | 4.27M | -8.05M | 6.18M | -3.15M | 0 | 10.33M | -683K | -12.98M | 2.77M | 2.26M | 4.48M | 0 | 0 | 0 | 0 |
| Cash from Investing | -395.68M | -1.2M | 142.57M | 139.56M | 365.83M | 202.78M | 496.21M | 206.89M | -1.38B | -28.81M | -82.4M | -14.34M | -37.57M | 49.91M | 113.02M | -111.95M | 16.71M | -149.03M | 274.65M | -32.66M | -116.88M | 32.4M | -88.91M | 4.07M | 40.32M | -77.04M | -299.75M | -82.44M | -6.5M | -84.71M | -3.8M |
| Capital Expenditures | -187K | -171K | -1.47M | -865K | -5.68M | -14.99M | -7.26M | -26.29M | -14.24M | -9.68M | -6.39M | -11.2M | -9.98M | -4.09M | -10.58M | -9.72M | -31.46M | -20.7M | -18.86M | -32.8M | -22.52M | -17.95M | -27.19M | -18.75M | -16.33M | -34.32M | -53.85M | -20.5M | -34.58M | -17.26M | -2.2M |
| CapEx % of Revenue | 0.34% | 0.31% | 1.49% | 0.96% | 6.17% | 14.71% | 4.75% | 22.93% | 1.19% | 3.14% | 3.86% | 4.85% | 4.97% | 2.75% | 13.03% | 13.6% | 19.78% | 28.78% | 20.91% | 12.01% | 10.35% | 14.22% | 23.8% | 17.64% | 17.21% | 44.3% | 104.3% | 49.57% | 158.68% | 106.23% | 31.88% |
| Acquisitions | 0 | -697K | 65.39M | 0 | 13.2M | -217.77M | -503.47M | 0 | 2.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4M | 115M | 0 | 0 | -30.71M | -31.97M | 0 | 3.44M | -82.05M | -2.29M | -15.29M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 1.25M | 0 | 217.77M | 503.47M | 0 | 2.63M | -19.13M | -76.01M | 25M | -27.59M | 54M | -25M | 0 | 0 | -440K | -169K | 0 | 0 | 0 | 31.97M | 92K | 39K | -14.8M | -1.23M | 10K | 0 | 0 | 100K |
| Cash from Financing | 710.11M | 180.57M | 42.12M | 30K | 1.51M | 36.24M | -80.35M | 23.36M | 851.97M | 54.39M | 203.62M | 130.78M | 152.98M | 2.22M | 26.8M | 222.34M | 7.54M | 3.54M | -49.74M | -101.77M | 11.77M | 274.85M | 207.41M | 101.3M | 38.72M | 22.61M | 438.07M | 106.29M | 36.53M | 76.11M | 24.4M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | -103.75M | 0 | 0 | -5.13M | -5.95M | 98.58M | -10.54M | -5.99M | -96.9M | -1.98M | -1.36M | -1.28M | -50.13M | -105.55M | -10.49M | 232.43M | -3.95M | 98.75M | -1.72M | 16.56M | 461.44M | 104.74M | -181K | 4.83M | -300K |
| Equity Issued (Net) | 710.11M | 180.57M | -3M | 30K | 758K | 33.24M | 23.4M | 0 | 790.23M | 0 | 189.28M | 32.21M | 116.54M | 0 | 0 | 219.78M | 8.89M | 4.82M | 384K | 3.78M | 22.26M | 42.42M | 211.36M | 2.55M | 40.44M | 6.05M | 17.32M | 1.54M | 36.72M | 71.28M | 24.6M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 45.12M | 0 | 750K | 3M | 0 | 23.36M | 61.73M | 59.52M | 20.29M | 0 | 46.98M | 8.21M | 123.7M | 4.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -40.69M | 0 | 0 | 0 | 100K |
| Net Change in Cash | 129.61M | -29.14M | 8.97M | -52.95M | 63.01M | -173.74M | 102.59M | -98.54M | 190.14M | -54.88M | 4.07M | 43.2M | -26.7M | 13.63M | 10.13M | -2.44M | -31.84M | -105.99M | 79.29M | 12.53M | -197.51M | 229.21M | 40.36M | 29.17M | 4.07M | -105.2M | 102.58M | 8.51M | 10.81M | -3.62M | 14.8M |
| Free Cash Flow | -203.94M | -208.68M | -177.18M | -193.47M | -309.68M | -427.65M | -320.55M | -354.97M | 703.98M | -90.09M | -123.42M | -84.28M | -151.98M | -42.62M | -140.34M | -123.46M | -87.33M | 19.04M | -164.64M | 113.51M | -115.24M | -95.95M | -105.34M | -94.95M | -91.3M | -85.09M | -89.59M | -35.84M | -53.81M | -12.28M | -8M |
| FCF Margin % | -366.59% | -377.83% | -180.01% | -214.68% | -336.41% | -419.65% | -209.62% | -309.7% | 58.99% | -29.28% | -74.6% | -36.52% | -75.72% | -28.62% | -172.85% | -172.73% | -54.91% | 26.47% | -182.55% | 41.57% | -52.93% | -75.98% | -92.18% | -89.36% | -96.26% | -109.85% | -173.53% | -86.65% | -246.88% | -75.59% | -115.94% |
| FCF Growth % | -14.45% | -17.78% | 8.42% | 37.53% | 27.58% | -33.41% | 9.7% | -150.42% | 881.41% | 27% | -46.44% | 44.55% | -256.61% | 69.63% | -13.67% | -41.38% | -558.73% | 111.56% | -245.05% | 198.5% | -20.1% | 8.91% | -10.94% | -3.99% | -7.29% | 5.02% | -150.01% | 33.4% | -338.1% | -53.52% | -21.21% |
| FCF per Share | -8.24 | -12.37 | -12.92 | -15.27 | -24.82 | -35.00 | -26.92 | -30.43 | 58.63 | -8.67 | -13.26 | -9.54 | -17.97 | -5.52 | -18.33 | -16.40 | -13.92 | 3.08 | -26.72 | 18.53 | -19.25 | -16.75 | -20.14 | -25.51 | -24.77 | -24.02 | -32.00 | -15.80 | -25.67 | -6.68 | -5.28 |
| FCF Conversion (FCF/Net Income) | 1.29x | 1.27x | 1.48x | 0.70x | 0.83x | 0.79x | 0.70x | 0.75x | 1.05x | 0.83x | 0.76x | 0.90x | 2.63x | 0.24x | 0.76x | 0.85x | 1.47x | -0.39x | 4.25x | -4.47x | 0.60x | 0.42x | 0.77x | 1.63x | 0.70x | 0.20x | 0.37x | 0.40x | 1.05x | -0.50x | 0.58x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 9.74M | 19.2M | 19.47M | 20.12M | 20.59M | -20.23M | 17.45M | 17.59M | 9.62M | -10.28M | -10.6M | 11.22M | 14.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 76K | 2.66M | 272K | 325K | 539K | 555K | 618K | 556K | 757K | -860K | 964K | 1.01M | 1.02M | -957K | -407K | 743K | 812K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and solvency
As reported in recent financial statements, Nektar consistently exhibits a negative relationship between net income and operating cash flow, with the OCF/NI ratio frequently exceeding 1.0, which suggests that accounting losses are being compounded by actual cash outflows required to sustain the company's ongoing research operations.
The persistent gap between net income and operating cash flow indicates that the company's reported losses are not merely non-cash accounting artifacts but reflect a genuine, ongoing depletion of liquid assets. Investors should monitor this trend closely, as the inability to align cash burn with operational milestones suggests a structural inefficiency in the current research-heavy business model.
Based on quarterly cash flow data, Nektar's free cash flow remains deeply negative, with quarterly burn rates consistently hovering near $45M, a trajectory that appears unsustainable given the company's limited cash reserves and the absence of a reliable, recurring revenue stream to offset these significant outflows.
The consistent negative FCF margin highlights the company's reliance on external financing to fund its clinical pipeline. This trajectory suggests that without a major partnership milestone or capital raise, the company may face severe constraints on its ability to maintain its current research programs in the near term.
According to recent SEC filings, Nektar's working capital changes have been highly erratic, with a significant $23.1M outflow in 2025Q4, illustrating the inherent instability of a business model that relies on the timing of milestone payments rather than predictable, recurring cash inflows from commercial operations.
The volatility in working capital suggests that the company's cash position is highly sensitive to the timing of collaboration-related receipts. This lack of predictability in cash conversion cycles warrants further investigation, as it complicates the company's ability to manage its liquidity and plan for future clinical trial expenditures.
As evidenced by the provided cash flow statements, stock-based compensation has historically accounted for millions in non-cash expenses, yet the underlying cash burn remains elevated, suggesting that the company's true operational costs are often obscured by these accounting adjustments and capitalized research-related commitments.
While stock-based compensation provides a non-cash buffer to the income statement, it does not alleviate the fundamental pressure on the company's cash position. The reliance on these adjustments may mask the true extent of the cash burn required to keep the pipeline operational, potentially misleading investors regarding the company's actual runway.
Quick answers to the most common questions about buying NKTR stock.
Nektar Therapeutics (NKTR) generated $-208.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Nektar Therapeutics (NKTR) reported negative free cash flow of $208.7M in 2025, indicating capital requirements exceeded cash from operations.
Nektar Therapeutics (NKTR) spent $0.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.