Investment Thesis
Biofrontera demonstrates deteriorating fundamental health despite modest revenue growth. Severe cash burn of $13.4M annually combined with negative profitability across all metrics suggests the company is consuming capital at an unsustainable rate. With only $6.4M in cash and negative operating cash flow, the company faces significant liquidity pressure without a clear path to profitability.
Strengths
- Revenue growth of 11.7% year-over-year shows top-line expansion
- Positive cash position of $6.4M provides some operational runway
- Low leverage with 0.00x debt-to-equity ratio reduces financial stress
Risks
- Severe cash burn of $13.4M annually with only 5.7 months of runway at current burn rate
- Consistently negative profitability with -25.3% net margin and -27.2% operating margin
- Operating cash flow of -$13.4M indicates core business cannot fund operations
- Negative ROE of -100.5% and ROA of -36.9% demonstrate capital destruction
- Free cash flow margin of -32.0% indicates value destruction on every dollar of revenue
Key Metrics to Watch
- Operating cash flow trend and path to positive FCF
- Monthly cash burn rate and cash runway remaining
- Revenue growth sustainability and gross margin if disclosed
- Operating leverage improvements and timeline to EBITDA profitability
Financial Metrics
Revenue
41.7M
Net Income
-10.5M
EPS (Diluted)
$-1.04
Free Cash Flow
-13.4M
Total Assets
28.6M
Cash
6.4M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-27.2%
Net Margin
-25.3%
ROE
-100.5%
ROA
-36.9%
FCF Margin
-32.0%
Balance Sheet & Liquidity
Current Ratio
1.52x
Quick Ratio
1.40x
Debt/Equity
0.00x
Debt/Assets
63.3%
Interest Coverage
-5.56x
Long-term Debt
N/A
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: 2026-03-20T23:12:10.391817 |
Data as of: 2025-12-31 |
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