Investment Thesis
Jaguar Health exhibits severe financial distress with massive operating losses (-298% margin), negative cash flow (-$18.2M), and liquidity crisis (0.81x current ratio). The company is burning cash at an unsustainable rate despite modest revenue growth, with minimal equity cushion ($4.4M) and high leverage (1.43x debt/equity), indicating imminent solvency risk.
Strengths
- Revenue growth of 19.8% YoY demonstrates some market demand for products
- Modest improvement in net loss on a percentage basis (1.9% YoY)
- Small positive insider activity with 4 Form 4 filings in last 90 days
Risks
- Critical liquidity crisis: current ratio of 0.81x indicates inability to cover short-term obligations
- Massive cash burn of $18.2M annually against only $3.5M in cash reserves signals runway of ~2 months
- Operating losses of $24.7M vastly exceed $8.3M revenue, indicating fundamentally unprofitable business model
- High debt burden ($6.2M) relative to minimal equity ($4.4M) with debt/equity of 1.43x leaves no margin for error
- Negative free cash flow of -220% FCF margin demonstrates business cannot sustain operations from operations
Key Metrics to Watch
- Cash runway and quarterly cash burn rate
- Operating cash flow trend and path to profitability
- Revenue growth sustainability and gross margin expansion
- Debt refinancing capacity and covenant compliance
- Working capital management and accounts receivable quality
Financial Metrics
Revenue
8.3M
Net Income
-30.4M
EPS (Diluted)
$-22.61
Free Cash Flow
-18.2M
Total Assets
49.5M
Cash
3.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-298.0%
Net Margin
-367.0%
ROE
-696.8%
ROA
-61.4%
FCF Margin
-220.1%
Balance Sheet & Liquidity
Current Ratio
0.81x
Quick Ratio
0.52x
Debt/Equity
1.43x
Debt/Assets
91.2%
Interest Coverage
N/A
Long-term Debt
6.2M
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: 2026-03-29T16:50:12.358211 |
Data as of: 2025-09-30 |
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