Investment Thesis
Absci is in critical financial distress with minimal revenue of $215K and operating losses of $30.8M, indicating fundamental business model failure. Operating cash flow of -$26.3M combined with only $8.6M in cash creates a runway of approximately 4 months, with no evident path to profitability or positive unit economics.
Strengths
- Low leverage with Debt/Equity ratio of 0.02x and only $4.0M long-term debt
- Substantial equity base of $172M provides temporary balance sheet cushion
- Minimal capital requirements evident from $30K CapEx spending demonstrates lean operations
Risks
- Critical cash runway of approximately 4 months at current annual operating burn of $26.3M
- Revenue collapse with $215K quarterly revenue down 38.2% YoY indicating market rejection
- Operating losses of $30.8M against minimal revenue signal fundamental business failure
- Negative operating cash flow with no discernible path to profitability or cash flow positivity
Key Metrics to Watch
- Monthly cash burn and remaining runway until depletion
- Revenue trends and any customer win announcements
- Operating cash flow and cost reduction initiatives
- Debt and financing activity including potential dilutive capital raises
Financial Metrics
Revenue
215.0K
Net Income
-29.6M
EPS (Diluted)
$-0.19
Free Cash Flow
-26.3M
Total Assets
195.6M
Cash
8.6M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-14,347.0%
Net Margin
-13,767.0%
ROE
-17.2%
ROA
-15.1%
FCF Margin
-12,249.8%
Balance Sheet & Liquidity
Current Ratio
6.59x
Quick Ratio
6.59x
Debt/Equity
0.02x
Debt/Assets
12.1%
Interest Coverage
-175.26x
Long-term Debt
4.0M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-09T09:16:16.479316 |
Data as of: 2026-03-31 |
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