Investment Thesis
Gossamer Bio faces severe financial distress with negative stockholders' equity of -$122.8M, indicating liabilities exceed total assets by this amount. The company burns cash operationally at -$171.3M with only $37.7M cash reserves, providing less than 3 months of runway, while revenue has collapsed 57.7% YoY signaling fundamental business failure.
Strengths
- Current ratio of 2.64x provides short-term liquidity coverage for immediate obligations
- Absence of long-term debt eliminates interest burden and refinancing risk
- Retains $37.7M in cash providing temporary operational runway
Risks
- Negative stockholders' equity of -$122.8M indicates technical insolvency with liabilities exceeding assets
- Operating cash burn of -$171.3M vastly exceeds cash reserves with estimated 2-3 month runway remaining
- Revenue collapsed 57.7% YoY reflecting severe commercialization or product failure in pharmaceutical operations
- Operating margin of -352.2% demonstrates core business is fundamentally unprofitable and unsustainable
- Liabilities of $295.0M exceed total assets of $172.2M by 71%, creating acute solvency crisis
Key Metrics to Watch
- Quarterly cash burn rate and months of runway remaining
- Revenue trends for stabilization or further deterioration
- Ability to secure emergency financing or strategic alternatives
Financial Metrics
Revenue
48.5M
Net Income
-170.4M
EPS (Diluted)
$-0.75
Free Cash Flow
-171.3M
Total Assets
172.2M
Cash
37.7M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-352.2%
Net Margin
-351.5%
ROE
N/A
ROA
-98.9%
FCF Margin
-353.5%
Balance Sheet & Liquidity
Current Ratio
2.64x
Quick Ratio
2.64x
Debt/Equity
N/A
Debt/Assets
171.3%
Interest Coverage
-54.56x
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: 2026-04-10T16:09:23.346847 |
Data as of: 2025-12-31 |
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