Negative Operating And Free Cash FlowPersistent negative operating and free cash flow forces recurring capital raises, creating dilution risk and limiting strategic flexibility. Until products generate sales or large milestone receipts occur, ongoing cash burn constrains the company’s ability to scale trials, absorb delays, or invest in broader commercial capabilities.
Ongoing Net Losses And Weak ProfitabilityDespite strong gross margins, Tango remains unprofitable at the EBIT and net levels. Sustained losses mean shareholder value hinges on successful clinical outcomes or partnerships; absent regulatory approvals and product revenue, profitability remains a structural risk for several years.
Revenue Dependent On Collaborations And MilestonesAs a clinical-stage biotech, Tango’s revenues are lumpy and milestone-driven, lacking recurring product sales. This makes cash flow timing unpredictable, increases reliance on external funding, and can cap upside from successful drugs if partnerships allocate a large share of future commercial economics to collaborators.