Investment Thesis
Karyopharm is technically insolvent with negative stockholders' equity of -$265.6M, signaling severe structural distress. The company is deteriorating rapidly with net income down 156.5% YoY, operating margin of -76.3%, and negative free cash flow of -$22.7M. With flat revenue growth (+0.6%) and approximately 4 quarters of cash runway remaining, the company faces acute solvency risk without dramatic operational turnaround.
Strengths
- Maintains $90.8M in cash providing near-term liquidity runway
- Generating $35.1M in quarterly revenue indicating some product commercialization
- Pharmaceutical sector can achieve margin recovery if pipeline products achieve market adoption
Risks
- Negative stockholders' equity of -$265.6M represents technical insolvency and balance sheet insolvency
- Net income deteriorated 156.5% YoY with operating losses of -$26.8M per quarter unsustainable
- Negative free cash flow of -$22.7M with limited runway before cash depletion forces financing or restructuring
- Debt burden of $169.3M cannot be serviced from operations with interest coverage of -1.8x
- Revenue growth at +0.6% is insufficient to improve operating leverage or reduce losses
Key Metrics to Watch
- Quarterly cash burn rate and absolute cash balance - determines path to solvency or distress event
- Revenue growth acceleration - must exceed 10%+ YoY to justify operational losses
- Operating margin improvement trajectory - must approach breakeven within 2-3 quarters for viability
Financial Metrics
Revenue
35.1M
Net Income
-22.4M
EPS (Diluted)
$-1.24
Free Cash Flow
-22.7M
Total Assets
131.4M
Cash
90.9M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-76.3%
Net Margin
-63.9%
ROE
N/A
ROA
-17.0%
FCF Margin
-64.8%
Balance Sheet & Liquidity
Current Ratio
1.08x
Quick Ratio
1.05x
Debt/Equity
N/A
Debt/Assets
302.1%
Interest Coverage
-1.80x
Long-term Debt
169.3M
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: 2026-05-15T07:46:18.856550 |
Data as of: 2026-03-31 |
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