Investment Thesis
Spero Therapeutics is a pre-commercial pharmaceutical company with minimal revenue (258K) and severe operating losses (net margin -2791.9%), indicating the business is not yet financially viable. While the strong balance sheet (56M cash, no debt) provides runway, the company is burning approximately 7.2M per period with no evidence of near-term profitability, making current fundamentals uninvestable despite improving loss trends.
Strengths
- Exceptional balance sheet with 56.1M cash representing 94.9% of total assets
- Zero long-term debt with 0.00x debt-to-equity ratio and minimal liabilities
- Improving loss trajectory with net losses declining 112.5% YoY, suggesting operational burn rate improvement
- Positive operating cash flow of 15.9M despite negative net income suggests potential non-operational cash inflows
Risks
- Pre-commercial stage with negligible revenue (258K) generating near-zero profitability metrics
- Severe operating losses of -7.5M with -2921.7% operating margin indicating business model is not yet operational
- Estimated 7-8 year cash runway at current burn rate, but no visible path to cash flow breakeven from disclosed fundamentals
- Pharmaceutical company model is entirely dependent on undisclosed clinical pipeline success rates and regulatory outcomes
Key Metrics to Watch
- Revenue growth trajectory and achievement of commercialization milestones
- Operating cash burn rate sustainability and timeline to profitability
- Cash balance and run-rate to assess remaining development runway
Financial Metrics
Revenue
258.0K
Net Income
-7.2M
EPS (Diluted)
$-0.13
Free Cash Flow
15.9M
Total Assets
59.0M
Cash
56.1M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-2,921.7%
Net Margin
-2,791.9%
ROE
-13.6%
ROA
-12.2%
FCF Margin
6,148.8%
Balance Sheet & Liquidity
Current Ratio
10.50x
Quick Ratio
10.50x
Debt/Equity
0.00x
Debt/Assets
10.3%
Interest Coverage
N/A
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: 2026-05-14T09:15:10.183941 |
Data as of: 2026-03-31 |
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