Investment Thesis
Aquestive Therapeutics exhibits critical financial distress with negative stockholders equity of -$34.1M, declining revenue (-22.6% YoY), and significant operating losses exceeding -$4M quarterly. The company is burning approximately $14.8M in operating cash flow per quarter, leaving only 7-8 quarters of runway despite a strong nominal cash position. Deteriorating fundamentals and inability to achieve profitability make this a high-risk investment.
Strengths
- Substantial cash balance of $110.7M provides near-term liquidity buffer
- Strong current ratio of 4.10x and quick ratio of 3.85x indicate adequate short-term solvency
- 21 Form 4 insider filings in last 90 days suggest ongoing management engagement
Risks
- Negative stockholders equity of -$34.1M represents balance sheet insolvency with accumulated losses exceeding total assets
- Operating cash flow is deeply negative at -$14.8M quarterly, unsustainable without business transformation
- Revenue declining 22.6% YoY with net margin of -55.8% indicates contracting business unable to achieve scale economics
- Negative interest coverage of -0.8x means company cannot service debt obligations from operations
Key Metrics to Watch
- Quarterly revenue trend and inflection to positive growth
- Operating cash flow trajectory and timeline to breakeven or profitability
- Cash burn rate relative to remaining runway and any capital raises
Financial Metrics
Revenue
14.4M
Net Income
-8.1M
EPS (Diluted)
$-0.07
Free Cash Flow
-14.9M
Total Assets
141.1M
Cash
110.7M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-29.1%
Net Margin
-55.8%
ROE
N/A
ROA
-5.7%
FCF Margin
-102.9%
Balance Sheet & Liquidity
Current Ratio
4.10x
Quick Ratio
3.85x
Debt/Equity
N/A
Debt/Assets
124.1%
Interest Coverage
-0.76x
Long-term Debt
45.0M
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: 2026-05-14T07:27:59.227502 |
Data as of: 2026-03-31 |
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