Investment Thesis
Aptevo is a pharmaceutical company experiencing catastrophic revenue decline of 74.7% YoY while burning $8M annually from operations against only $3.1M in revenue, indicating a fundamentally broken business model. Despite maintaining adequate cash reserves of $14.5M and zero debt, the company's unsustainable cash burn rate combined with negative margins exceeding -215% suggests insolvency within approximately 18-24 months without material business recovery.
Strengths
- Strong cash position of $14.5M provides runway for near-term operations
- No long-term debt; leverage is not a compounding risk factor
- Adequate short-term liquidity ratios (current ratio 3.36x) for immediate obligations
Risks
- Catastrophic 74.7% revenue decline YoY indicates fundamental loss of market or product viability
- Unsustainable operating cash burn of $8M annually against $3.1M revenue creates solvency risk within ~2 years
- Deeply negative margins (-219.6% operating, -215.1% net) with no visible path to profitability
- Zero insider Form 4 activity suggests lack of confidence or trading restrictions from management
Key Metrics to Watch
- Quarterly revenue trend and stabilization of decline
- Operating cash burn rate and runway months of cash remaining
- Clinical/regulatory progress if pipeline advancement can validate future revenue potential
Financial Metrics
Revenue
3.1M
Net Income
-6.7M
EPS (Diluted)
$-6.41
Free Cash Flow
-8.0M
Total Assets
19.9M
Cash
14.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-219.6%
Net Margin
-215.1%
ROE
-57.7%
ROA
-33.6%
FCF Margin
-256.7%
Balance Sheet & Liquidity
Current Ratio
3.36x
Quick Ratio
2.07x
Debt/Equity
0.00x
Debt/Assets
41.7%
Interest Coverage
N/A
Long-term Debt
0.0
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: 2026-05-23T07:43:17.177600 |
Data as of: 2026-03-31 |
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