MeritValue

Nkarta, Inc.

NKTXdata completeness 88%7 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'; no data for concept 'pretaxIncome'

The thesis, from the filings

Nkarta, Inc. earns about -34% on equity, but has diluted owners by 125% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue———$01$02
Net income−$86.1M3−$113.8M4−$117.5M5−$108.8M6−$104.1M6
Operating cash flow−$67.9M7−$57M8−$86.2M9−$99.7M10−$88.7M10
Capital expenditure$5.03M11$47.1M12$28.1M13$4.41M14$1.21M14
Free cash flow (derived)−$73M7−$104.1M8−$114.3M9−$104.1M10−$89.9M10
Total debt—————
Cash & equivalents$60.8M15$37.5M16$31M17$27.9M18$39.6M18
Diluted shares32.9M43.6M49.0M67.9M74.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$42.21
your share of equity
Profit it earned you last year
−$14.07
Free cash flow it threw off
−$12.15
Debt you’d be carrying
—

10 shares is a claim on $42.21 of net worth that earned you −$14.07 and generated −$12.15 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
-34% avg · 5y
FY21 -34%FY22 -31%FY23 -43%FY24 -27%FY25 -33%

It earned an average -34% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+125% shares · 5y

Share count is up 125% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2024-12-31 · accession 0000950170-25-045262 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2025-12-31 · accession 0001787400-26-000006 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2021-12-31 · accession 0000950170-23-008523 (NetIncomeLoss)
  4. 10-K · period ending 2022-12-31 · accession 0000950170-24-034735 (NetIncomeLoss)
  5. 10-K · period ending 2023-12-31 · accession 0000950170-25-045262 (NetIncomeLoss)
  6. 10-K · period ending 2024-12-31 · accession 0001787400-26-000006 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000950170-23-008523 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000950170-24-034735 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0000950170-25-045262 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2024-12-31 · accession 0001787400-26-000006 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2021-12-31 · accession 0000950170-23-008523 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2022-12-31 · accession 0000950170-24-034735 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2023-12-31 · accession 0000950170-25-045262 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2024-12-31 · accession 0001787400-26-000006 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2021-12-31 · accession 0000950170-23-008523 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-12-31 · accession 0000950170-24-034735 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-12-31 · accession 0000950170-25-045262 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-12-31 · accession 0001787400-26-000006 (CashAndCashEquivalentsAtCarryingValue)