Investment Thesis
TherapeuticsMD exhibits severe financial distress with long-term debt (93.6M) nearly 2.5x total assets (37.6M), creating imminent solvency risk. Negative operating cash flow (-8.7M), deeply negative operating margins (-99.9%), and inability to service debt (interest coverage: -90.4x) indicate the company cannot sustain operations or meet obligations. Minimal revenue base (724K) with unsustainable cost structure provides no clear path to profitability.
Strengths
- Revenue growth of 35.3% YoY demonstrates demand for products despite financial distress
- Current ratio of 3.11x and quick ratio of 1.74x provide near-term liquidity cushion
- Cash position of 8.4M offers runway for operational adjustments or restructuring negotiations
Risks
- Long-term debt (93.6M) exceeds total assets (37.6M), indicating insolvency and default risk
- Negative operating cash flow (-8.7M) and free cash flow (-8.7M) show unsustainable cash burn
- Inability to cover interest expenses with negative interest coverage ratio (-90.4x) suggests debt servicing failure is imminent
- Tiny absolute revenue (724K) provides insufficient cash generation to support debt burden
- Suspicious accounting (179.8% gross margin, positive net income amid negative operating income) raises quality-of-earnings concerns
Key Metrics to Watch
- Operating cash flow trend and timeline to positive cash generation
- Debt refinancing status and negotiations with creditors regarding 93.6M long-term debt
- Revenue growth sustainability and path to operating profitability
Financial Metrics
Revenue
724.0K
Net Income
95.0K
EPS (Diluted)
$0.01
Free Cash Flow
-8.7M
Total Assets
37.6M
Cash
8.4M
Profitability Ratios
Gross Margin
179.8%
Operating Margin
-99.9%
Net Margin
13.1%
ROE
0.4%
ROA
0.3%
FCF Margin
-1,204.7%
Balance Sheet & Liquidity
Current Ratio
3.11x
Quick Ratio
1.74x
Debt/Equity
3.47x
Debt/Assets
28.2%
Interest Coverage
-90.38x
Long-term Debt
93.6M
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: 2026-05-14T09:24:03.982936 |
Data as of: 2026-03-31 |
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