EPS of $-0.04 increased by 37.3% from previous year
Net income of -1.68M
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Anebulo Pharmaceuticals Inc (ANEB) QQ3 2025 Earnings Analysis — Pre-Revenue Clinical-Stage Biotech with Solid Liquidity and Visible Burn
Executive Summary
Anebulo Pharmaceuticals reported a non-revenue quarter (calendar Q3 2025) with a net loss of $1.676 million and an operating burn of $1.892 million. R&D expense stood at $638,324 and general and administrative expense at $1.254 million, yielding an EBITDA of -$1.431 million and a net loss per share of -$0.04. Despite the lack of revenue, the company closed the quarter with a robust cash balance of $13.28 million and no debt, positioning it with a solid liquidity runway to fund ANEB001 development and ongoing R&D through early pipeline milestones. The current ratio of 32.29 and cash ratio of 31.06 underscore substantial near-term liquidity, though the company remains a high-risk, pre-revenue biotech focused on a single lead asset.
The balance sheet shows total assets of $14.01 million against liabilities of $0.546 million and stockholders’ equity of $13.46 million. Retained earnings are deeply negative at approximately $71.74 million, highlighting the ongoing stage-appropriate burn and the need for external financing to sustain operations absent material commercialization milestones. A Q4 2024 revenue entry of $467,706 indicates limited early-stage monetization, but the QQ3 2025 period remains revenue-light. Absent clear guidance on near-term milestones, the investment thesis hinges on ANEB001’s clinical progress, potential partnerships, and the likelihood of additional financing to extend runway into 2026.
Overall, the stock presents a high-risk, high-variance profile typical of early-stage biotechs: strong liquidity and clear cash sufficiency versus execution risk on clinical milestones and the need for continued fundraising. Investors should monitor interim clinical updates, IND/phase progression, and any strategic partnerships that could unlock value or ease capital constraints.
Key Performance Indicators
Operating Income
-1.89M
QoQ: 26.89% | YoY:-13.70%
Net Income
-1.68M
QoQ: 31.95% | YoY:-1.33%
EPS
-0.04
QoQ: 55.46% | YoY:37.30%
Revenue Trend
Margin Analysis
Key Insights
Total assets: $14,008,484
Total current assets: $13,807,935
Total current liabilities: $546,032
Total liabilities: $546,032
Cash and cash equivalents: $13,279,901
Financial Highlights
Revenue: No revenue reported in QQ3 2025. C4Q24 revenue was $467,706.
Operating Income: -$1,892,000 in QQ3 2025; QoQ improvement of 26.89% from QQ2 2025 (-$2,588,000) but still negative. YoY change: -13.70%.
Net Income: -$1,676,000 in QQ3 2025; QoQ improvement of 31.95% from QQ2 2025; YoY change: -1.33%.
Cash Flow: Operating cash flow -$1,601,902; Free cash flow -$1,601,902.
Net Change in cash: -$1,718,566; Cash at end of period: $13,279,901; Cash at beginning: $14,998,467.
Balance Sheet:
- Total assets: $14,008,484
- Total current assets: $13,807,935
- Total current liabilities: $546,032
- Total liabilities: $546,032
- Cash and cash equivalents: $13,279,901
- Retained earnings: -$71,743,679
- Total stockholders’ equity: $13,462,452
- Common stock outstanding: 41,086 (shares in thousands)
- Weighted average shares outstanding: 41,085,000
Liquidity ratios (as of 2025-03-31): current ratio 32.29; quick ratio 32.29; cash ratio 31.06.
Transcript data not provided in the supplied materials. No QQ3 2025 earnings call transcript is attached to the dataset; as a result, management quotes or thematic highlights from an earnings call are not available in this analysis.
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Forward Guidance
No formal guidance was issued for QQ4 2025 or full-year 2025 in the provided 10-Q. Given the pre-revenue status, the company did not provide revenue targets or explicit milestones. Our assessment is that near-term catalysts hinge on:
- ANEB001 progress (preclinical/IND-enabling studies, safety signals, PK/PD data).
- Any strategic partnership, collaboration, or licensing agreement that could provide non-dilutive or dilutive financing and/or upfront payments.
- Additional capital raises if needed to sustain operations until meaningful data readouts or partnerships materialize.
Key factors investors should monitor:
- Interim clinical updates for ANEB001 and any safety signals.
- Milestones related to IND submissions, if applicable, and progression to human trials.
- Announcements of partnerships, licensing discussions, or potential grant funding.
- Ongoing burn rate and any changes in capex or operational scope that affect runway.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
ANEB Focus
0.00%
0.00%
-12.50%
-7.97%
JBIO
0.00%
0.00%
1.00%
0.00%
ADAG
1.00%
-22.89%
-10.50%
-2.26%
ACRV
0.00%
0.00%
-11.40%
-2.97%
RZLT
0.00%
0.00%
-22.90%
-2.68%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given ANEB’s pre-revenue status, the investment thesis is highly contingent on the progression and data from ANEB001 and any potential strategic collaborations. The company demonstrates solid liquidity and minimal liabilities, yielding a tangible runway to pursue early-stage development and data generation. However, the absence of revenue and ongoing net losses create a high-risk profile, with valuation drivers tied to clinical milestones rather than cash-flow generation.
If ANEB001 demonstrates favorable safety and efficacy signals and management secures a strategic partnership or favorable financing, the stock could re-rate based on expected milestone-based milestones and potential licensing economics. Absent such catalysts, investors should expect continued reliance on external funding and a valuation that reflects a higher risk premium typical of pre-revenue biotech. Near-term focus should be on clinical progress, strategic partnerships, and any changes to the financing plan that would extend the runway.
Key Investment Factors
Growth Potential
Potential upside from advancing ANEB001 through clinical development and potential licensing deals; a successful data readout could unlock significant near-term value.
Profitability Risk
Clinical trial and regulatory risk; no revenue to date; continued operating losses; need for additional funding or partnerships; high clinical and financial burn typical of early-stage biotech.
Financial Position
Strong liquid balance with $13.28M cash and no debt, providing runway to fund operations; deep negative retained earnings imply substantial cumulative losses but current equity base remains positive at ~$13.46M.
SWOT Analysis
Strengths
Strong liquidity with $13.28M cash and no debt, providing runway for ANEB001 development.
Pre-revenue but with a clear, focused development plan and a defined lead asset (ANEB001).
Low near-term liabilities and robust current ratio (~32x), supporting ongoing R&D investments.
Weaknesses
No current revenue; ongoing net losses; reliance on a single lead candidate.
Deep cumulative deficit in retained earnings, signaling substantial prior funding requirements and dilution risk.
Limited public data on pipeline breadth and clinical readouts reduces near-term upside visibility.
Opportunities
Advancement of ANEB001 could unlock licensing deals or collaborations with upfront payments and milestones.
Potential strategic partnerships to fund further development and expand the pipeline.
Regulatory incentives or designations that could accelerate development timelines or market access.
Threats
Clinical development risk and potential delays or failures impacting milestones.
Funding risk if additional capital is required; potential dilution to continue operations.
Competitive biotech landscape with other cannabinoid-related or overdose-treatment programs; regulatory hurdles.