Liquidity is under significant pressure, with free cash flow reaching a negative $50.4 million in 2026Q1, reflecting a persistent inability to fund operations through core commercial activities.
| 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 |
|---|
| Cash from Operations | -126.51M | -109.44M | -15.76M | 12.8M | 31.98M | 64.21M | 51.77M | 45.95M | 29.99M | -1.98M | -8.1M | 12.45M | -81.55M | -39.59M | -44.92M | -28.41M | -10.9M | 169.34M | -45.96M | -51.64M | -51.62M | -17.71M | -8.61M |
| Operating CF Margin % | - | -50.64% | -7.93% | 6.64% | 12.57% | 23.9% | 20.86% | 20.22% | 15.53% | -1.2% | -5.55% | 11.33% | -162.6% | -116.86% | -137.25% | -90.85% | -30.94% | 3723.52% | - | - | - | - | -25352.95% |
| Operating CF Growth % | -1807.54% | -594.56% | -223.09% | -59.98% | -50.19% | 24.03% | 12.68% | 53.23% | 1612.15% | 75.53% | -165.09% | 115.26% | -105.99% | 11.86% | -58.1% | -160.69% | -106.44% | 468.48% | 11.01% | -0.04% | -191.4% | -105.62% | - |
| Net Income | -239.55M | -220.47M | -18.9M | 2.51M | 6.28M | 33.15M | 23.34M | 115.55M | 25.21M | -15.57M | -18.01M | -39.87M | 20.19M | -20.25M | -27.66M | -9.8M | 7.19M | -35.86M | -51.06M | -74.07M | -63.51M | -23.88M | -9.47M |
| Depreciation & Amortization | 8.66M | -950K | 8.13M | 3.01M | 2.73M | 2.84M | 2.86M | 2.89M | 2.96M | 2.98M | 11.87M | 13.55M | 2.78M | 1.93M | 2.13M | 1.96M | 1.83M | 1.42M | 530.8K | 571.59K | 575.37K | 423.83K | 376.71K |
| Stock-Based Compensation | 6.5M | 9.47M | 12.43M | 14.04M | 16.28M | 15.37M | 13.36M | 0 | 11.67M | 10.46M | 8.54M | 7.96M | 5.88M | 4.6M | 4.09M | 5.5M | 4.98M | 11.23M | 13.39M | 19.62M | 6.13B | 0 | 0 |
| Deferred Taxes | 89.24M | 81.44M | -6.48M | -1.29M | 1.13M | 6.75M | 6.19M | -87.77M | -2.22M | -426K | -104K | 677K | 174K | 0 | 560K | 1.82M | -1.82M | 0 | -174 | -19.59M | -6.13B | 0 | 0 |
| Other Non-Cash Items | 6.3M | 12.76M | -4.38M | -4.72M | -507K | 3.37M | 1.71M | 12.14M | 167K | 587K | 708K | 657K | -77.62M | 155K | 1.83M | 900K | -2.7M | 138.09K | -235.16K | 18.05M | 5.75M | 5.06M | 66.08K |
| Working Capital Changes | 2.34M | 8.31M | -6.56M | -747K | 6.07M | 2.74M | 4.32M | 3.13M | -7.79M | -26K | -11.11M | 29.46M | -32.96M | -26.02M | -25.86M | -28.79M | -20.38M | 192.4M | -8.57M | 3.78M | 5.53M | 686.46K | 416.56K |
| Change in Receivables | -12.33M | -7.46M | -13.01M | -707K | -1.09M | -2.47M | -3.77M | 2.34M | -11.21M | 2.52M | -4.3M | -12.68M | -1.62M | -863K | 450K | -1.11M | 2.65M | -3.16M | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -1.32M | -3.47M | -29K | -771K | -4.48M | -2.23M | -2.88M | -722K | 70K | -1.06M | 200K | 387K | -2.21M | 1.25M | -57K | -1.67M | 2.4M | -2.4M | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 11.66M | 15.82M | 1.71M | -10.98M | 11.79M | 3.04M | 3.76M | 3.51M | -4.88M | 5.95M | 575K | 9.43M | 174K | 374K | -709K | 348K | -1.77M | 1.91M | -2.48M | 204.03K | 526.71M | 0 | 0 |
| Cash from Investing | 71.19M | 94.86M | -17.43M | -12.06M | 49.92M | -76.7M | -41.5M | -68.31M | -109.66M | -10.11M | -10.07M | -26.6M | -12.04M | -34.27M | 45.75M | 73.75M | -155.62M | -4.74M | 43.09M | -48.76M | 8.22M | -10.82M | -414.53K |
| Capital Expenditures | -783K | -998K | -490K | -383K | -679K | -552K | -1.79M | -1.02M | -25.37M | -1.66M | -1.41M | -2.53M | -8.77M | -176K | -2.02M | -275K | 0 | -12M | -943.66K | -279.43K | -1.35M | -291.98K | -414.53K |
| CapEx % of Revenue | 0.36% | 0.46% | 0.25% | 0.2% | 0.27% | 0.21% | 0.72% | 0.45% | 13.14% | 1.01% | 0.96% | 2.3% | 17.48% | 0.52% | 6.16% | 0.88% | - | 263.87% | - | - | - | - | 1219.93% |
| Acquisitions | -10M | 0 | -4.23M | -100.67M | 0 | 0 | 0 | 0 | 25M | 0 | 0 | 0 | -8M | 0 | 0 | 0 | 0 | 12M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -25M | 124K | -46K | -24.07M | 8.24M | -34.1M | 47.77M | -600K | 66K | -12M | 0 | 200.18K | 0 | -430.23K | 0 |
| Cash from Financing | -2.36M | -2.91M | -155K | 0 | 734K | 3.55M | 5.63M | 6.26M | 107.13M | 5.25M | 7.75M | 4.09M | 89.73M | 49.86M | 12K | 25K | 3.78M | 1.62M | 0 | 111.4M | 53.31M | 33.29M | 18.15M |
| Debt Issued (Net) | -2.36M | -1.99M | -155K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -142.61K | -224.19K | -199.33K |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 734K | 3.55M | 5.63M | 6.26M | 100.87M | 0 | 0 | 0 | 87.31M | 48.51M | 0 | 0 | 0 | 0 | 0 | 111.25M | 53.46M | 33.52M | 18.35M |
| 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 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -283K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | -915K | 0 | 0 | 0 | 0 | 0 | 0 | 6.26M | 5.25M | 7.75M | 4.09M | 2.42M | 1.35M | 12K | 25K | 3.78M | 1.62M | 0 | 148.64K | 0 | 0 | 0 |
| Net Change in Cash | -57.76M | -17.36M | -33.51M | 792K | 82.96M | -9.02M | 16.02M | -16.03M | 27.41M | -6.8M | -10.42M | -10.06M | -3.86M | -24.01M | 849K | 45.36M | -162.74M | 166.22M | -2.85M | 11M | 9.92M | 4.75M | 9.09M |
| Free Cash Flow | -127.3M | -110.44M | -16.25M | 12.42M | 31.3M | 63.66M | 49.98M | 44.93M | 4.62M | -3.65M | -9.51M | 9.92M | -90.32M | -39.77M | -46.93M | -28.68M | -10.9M | 157.34M | -46.9M | -51.92M | -52.97M | -18.01M | -9.03M |
| FCF Margin % | -58.45% | -51.1% | -8.17% | 6.45% | 12.31% | 23.69% | 20.14% | 19.78% | 2.39% | -2.21% | -6.51% | 9.03% | -180.08% | -117.38% | -143.41% | -91.73% | -30.94% | 3459.66% | - | - | - | - | -26572.88% |
| FCF Growth % | -121.8% | -579.76% | -230.83% | -60.33% | -50.83% | 27.37% | 11.24% | 872.89% | 226.62% | 61.65% | -195.85% | 110.98% | -127.12% | 15.27% | -63.62% | -163.21% | -106.93% | 435.48% | 9.67% | 1.99% | -194.2% | -99.42% | - |
| FCF per Share | -2.14 | -1.87 | -0.28 | 0.22 | 0.55 | 1.12 | 0.91 | 0.82 | 0.09 | -0.08 | -0.22 | 0.23 | -2.46 | -1.31 | -1.66 | -1.02 | -0.38 | 5.82 | -1.76 | -1.97 | -2.09 | -0.04 | -0.02 |
| FCF Conversion (FCF/Net Income) | 0.53x | 0.50x | 0.83x | 5.10x | 5.10x | 1.94x | 2.22x | 0.40x | 1.19x | 0.13x | 0.45x | -0.31x | -4.04x | 1.95x | 1.62x | 2.90x | -1.52x | -4.72x | 0.90x | 0.70x | 0.81x | 0.74x | 0.91x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent Cash Burn Rate
According to quarterly financial data, Vanda's operating cash flow consistently trails net income, with the 2025Q4 period showing a net loss of $141.2 million against an operating cash outflow of $29.4 million, highlighting a structural inability to convert core business activities into positive liquidity.
The persistent gap between net income and operating cash flow suggests that the company's accounting losses are being compounded by actual cash outflows required to sustain operations. Investors should monitor whether this divergence reflects ongoing legal expenditures that fail to generate future economic benefits.
As reported in recent financial statements, Vanda's free cash flow has remained deeply negative, reaching a low of -$50.4 million in 2026Q1, which underscores a deteriorating trend in the company's ability to self-fund its research and development pipeline through existing product revenue.
The consistent negative FCF margins indicate that the company is currently reliant on its remaining cash reserves to bridge the gap between operational costs and revenue. This trajectory appears unsustainable without a significant shift in either revenue scale or a drastic reduction in defensive spending.
Based on reported figures, Vanda's working capital changes have been highly erratic, swinging from a $15.3 million inflow in 2025Q2 to an $8.1 million outflow in 2025Q3, suggesting significant instability in the timing of collections and payments relative to the company's core commercial activities.
This volatility may indicate challenges in managing specialty pharmacy distribution channels or unpredictable timing of gross-to-net adjustments. Such fluctuations complicate cash flow forecasting and suggest that the company lacks a stable operational rhythm in its cash conversion cycle.
Data from recent filings reveals that Vanda has directed capital toward acquisitions, such as the $10 million outflow in 2026Q1, rather than returning value to shareholders, reflecting a management strategy that prioritizes asset expansion and litigation-heavy defense over traditional capital return programs like dividends or buybacks.
The allocation of scarce cash resources toward acquisitions during a period of negative operating cash flow warrants further investigation into the expected return on these investments. It appears that management is attempting to buy growth to offset the erosion of its core HETLIOZ franchise.
Quick answers to the most common questions about buying VNDA stock.
Vanda Pharmaceuticals Inc. (VNDA) generated $-109.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Vanda Pharmaceuticals Inc. (VNDA) reported negative free cash flow of $110.4M in 2025, indicating capital requirements exceeded cash from operations.
Vanda Pharmaceuticals Inc. (VNDA) spent $1.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.