Investment Thesis
Esperion faces severe balance sheet deterioration with negative stockholders' equity of -$307.9M and quarterly operating cash burn of -$27.7M, despite 21.3% revenue growth. While the company has adequate near-term liquidity ($156.2M cash), the trajectory toward insolvency and inability to achieve profitability at current operational scale presents substantial downside risk.
Strengths
- Strong revenue growth of 21.3% YoY demonstrates market adoption and commercialization progress
- Adequate liquidity with $156.2M cash providing approximately 2 years of operating runway at current burn rates
- Minimal debt burden ($140.0K long-term debt) eliminates near-term refinancing risk
Risks
- Negative stockholders' equity of -$307.9M represents technical insolvency and indicates liabilities exceed all assets
- Operating cash flow of -$27.7M per quarter and widening net losses of -$25.2M show the company is not approaching profitability despite revenue growth
- Negative net margin of -31.5% indicates each dollar of revenue generates significant losses; cash runway is finite without profitability or capital raises
Key Metrics to Watch
- Quarterly operating cash burn trend - critical to determine if burn rate is declining with scale
- Revenue growth sustainability - must maintain growth trajectory to justify cash consumption
- Gross margin percentage - currently unavailable but essential to understand product-level unit economics and path to profitability
Financial Metrics
Revenue
80.1M
Net Income
-25.2M
EPS (Diluted)
$-0.10
Free Cash Flow
-27.9M
Total Assets
462.5M
Cash
156.2M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-8.2%
Net Margin
-31.5%
ROE
N/A
ROA
-5.4%
FCF Margin
-34.8%
Balance Sheet & Liquidity
Current Ratio
1.53x
Quick Ratio
1.18x
Debt/Equity
N/A
Debt/Assets
166.6%
Interest Coverage
-0.47x
Long-term Debt
140.0K
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: 2026-05-09T08:19:49.982457 |
Data as of: 2026-03-31 |
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