Breaking Down Aethlon Medical, Inc. (AEMD) Financial Health: Key Insights for Investors

If you are looking at Aethlon Medical, Inc. (AEMD), you are defintely tracking a clinical-stage biotech that is all about capital preservation right now, which is the core tension for any investor here. The good news is management has shown real financial discipline, slashing consolidated operating expenses by a massive 48% to approximately $1.5 million for the quarter ending September 30, 2025, a move that narrowed the operating loss to the same $1.5 million. But let's be a realist: the company still operates with virtually no product revenue, and with a cash balance of just around $5.8 million as of September 30, 2025, the clock is ticking on their cash runway, even with that Australian R&D tax incentive credit of $218,000. You need to understand how the prior fiscal year's net loss of $13.4 million maps against their current burn rate and the critical clinical milestones for their Hemopurifier device, because that's the real opportunity-and the real risk.

Revenue Analysis

You're looking for a top-line number to anchor your valuation of Aethlon Medical, Inc. (AEMD), but the key insight here is that the company is a clinical-stage entity, so its reported revenue is essentially non-existent. For the fiscal year ended March 31, 2025, Aethlon Medical reported annual revenue of $0.0. This is not a failure; it's the financial reality of a medical therapeutic company focused on developing a clinical-stage device like the Hemopurifier.

The absence of product sales means the traditional revenue growth metric is misleading. The company reported zero revenue growth as of September 2025. This follows a significant drop from the prior period, as the company recognized $0.0 in annual revenue for FY 2025, down from $574,245 in FY 2023. This translates to a -100.00% change from FY 2024 to FY 2025, reflecting the cessation of prior contract or grant-based revenue.

To be fair, a clinical-stage company's value is in its pipeline, not its sales. The revenue stream breakdown confirms this development-heavy focus:

• Primary Revenue Source: Historically, revenue came from contracts and grants, notably with the National Institutes of Health (NIH).
• Current Status: For the fiscal year 2025, the company has not recognized any revenue from product sales, services, or grants.
• Other Income: The only measurable income is interest income, which totaled $22,730 for the quarter ended September 30, 2025.

This is a critical shift. The revenue segment contribution is 0% from the core therapeutic device business, as the Hemopurifier is still advancing through clinical trials in areas like oncology and infectious diseases. The small amount of other income, primarily interest on its cash balances, is not a sustainable business model, but it does show a conservative approach to managing its capital. The decline in this 'Other Income' from $95,146 in the prior-year period to $22,730 in Q2 2025 is defintely something to watch, as it reflects lower interest earnings on a dwindling cash balance.

The significant change in Aethlon Medical, Inc.'s revenue streams is the pivot from grant-funded research to a pure-play clinical development model, which means a top-line of zero until the Hemopurifier achieves regulatory approval and commercialization. This is a binary risk: huge upside if the trials succeed, but zero sales until then. You can read more about the company's long-term goals here: Mission Statement, Vision, & Core Values of Aethlon Medical, Inc. (AEMD).

Here's the quick math on the revenue trend:

Your action item is to stop focusing on the income statement's top line and move your analysis to the balance sheet and the clinical pipeline milestones. The company is spending money to earn future revenue, not generating it now.

Profitability Metrics

You are looking at Aethlon Medical, Inc. (AEMD) and the first thing to understand is that profitability, in the traditional sense, is not yet a factor. This is a clinical-stage medical device company, meaning its financial health is measured by its burn rate (how fast it spends cash) and its ability to manage costs, not by sales margins.

For the fiscal year ended March 31, 2025, Aethlon Medical, Inc. reported $0 in revenue. This immediately dictates the profitability ratios: your gross profit, operating profit, and net profit margins are all effectively 0% or, more accurately, a massive negative number when calculated against zero revenue. The real story is in the absolute loss figures and the cost-cutting trends.

Gross, Operating, and Net Loss Analysis

Since Aethlon Medical, Inc. is pre-commercial, it has no cost of goods sold (COGS) to report, so the gross profit is $0. The focus shifts entirely to the operating loss (loss from core operations) and the net loss (the bottom line). Here's the quick math for the full fiscal year 2025, which ended March 31, 2025:

• Full FY 2025 Operating Loss: $9,341,365
• Full FY 2025 Net Loss: $13,388,090

The difference between the operating loss and the net loss is largely due to non-cash charges, like the approximately $4.6 million non-cash charge related to a warrant inducement offer recorded in the fiscal year 2025. You need to look past the net loss for a moment and focus on the operational efficiency, which is where the company can exert control.

Operational Efficiency and Profitability Trends

The trend in operational efficiency is defintely the most positive financial signal for Aethlon Medical, Inc. The company has executed a significant, disciplined cost-management strategy. For the full fiscal year 2025, operating expenses decreased by approximately 26%, falling to $9.3 million from $12.6 million in the prior year.

The cost-saving momentum continued into the most recent reporting period. In the second quarter of fiscal year 2025 (ended September 30, 2025), consolidated operating expenses were reduced by a massive 48% year-over-year, dropping to approximately $1.5 million from $2.9 million in the same period in 2024. That's a serious cut in the cash burn. This reduction in operating expense directly resulted in a lower operating loss of $1,509,830 for the quarter ended September 30, 2025.

• The cost cuts were broad, hitting payroll, general and administrative costs, and professional fees.

Industry Comparison: A Stark Contrast

Comparing Aethlon Medical, Inc.'s profitability ratios to the broader US Medical Devices or Biotechnology industry is a study in contrasts. The industry average forecast earnings growth rate for US Medical Devices is around 14.09% for 2025, and the average revenue growth rate is about 7.03%. Aethlon Medical, Inc. is nowhere near these metrics, which is normal for a company at this stage.

The comparison table below shows why you must use different metrics for a clinical-stage firm. If you want to dive deeper into who is betting on this stage of development, you should be Exploring Aethlon Medical, Inc. (AEMD) Investor Profile: Who's Buying and Why?

The key takeaway here is that Aethlon Medical, Inc. is not a profitable company, but it is demonstrating strong operational discipline by aggressively cutting its cash burn, which is the right action when revenue is zero and you are focused on clinical milestones.

Debt vs. Equity Structure

You're looking at Aethlon Medical, Inc. (AEMD) and trying to figure out how they finance their core mission of developing the Hemopurifier. The quick takeaway is that this is a company almost entirely funded by equity, not debt. They're a classic pre-revenue biotech firm, so their balance sheet is light on leverage but heavy on shareholder dilution.

As of the most recent data from September 30, 2025, Aethlon Medical, Inc.'s debt-to-equity (D/E) ratio is remarkably low at just 0.17. This tells you the company relies minimally on debt financing, which is a common, and often necessary, strategy for a clinical-stage medical device company. They hold more cash than debt on the balance sheet, which is a sign of short-term stability, but it also means they are constantly turning to the capital markets for funding.

Here's the quick math on how Aethlon Medical, Inc. stacks up against its peers:

• Aethlon Medical, Inc. D/E Ratio: 0.17.
• Average Biotechnology Industry D/E Ratio (as of November 2025): 0.17.
• Average Surgical and Medical Instruments D/E Ratio (Median 2024): 0.70.

The company's D/E ratio is perfectly aligned with the average for the broader Biotechnology industry, which is a sector known for low debt because banks and traditional lenders are often hesitant to finance high-risk, long-timeline clinical trials. The capital is too speculative.

What this low debt profile hides is the reliance on equity funding (selling shares) to keep the lights on and the trials running. A concrete example of this strategy is the $4.5 million Public Offering the company announced on September 4, 2025. This is the primary mechanism for funding their R&D, not a loan.

The company's financing strategy is clear:

To be fair, for a company with a cash balance of approximately $5.8 million as of September 30, 2025, and zero revenue, avoiding large debt burdens is defintely prudent. The trade-off is that every time they need capital, they dilute existing shareholders, which is why the stock price can be volatile around financing announcements. The lack of debt means they have more runway to focus on their clinical progress, like the recruitment for Cohort 2 of the Australian oncology trial, without the pressure of a looming debt maturity.

For a deeper dive into the operational side of this financing, check out Breaking Down Aethlon Medical, Inc. (AEMD) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You need to know if Aethlon Medical, Inc. (AEMD) has enough short-term cash to fund its clinical trials and operations, and the quick answer is yes, but the cash burn is defintely the key risk. The company's liquidity position is currently strong, driven by a high Current Ratio, but that strength is entirely dependent on its cash balance, which is being depleted by operating losses.

As of the trailing twelve months (TTM) ending September 30, 2025, Aethlon Medical, Inc. (AEMD) reported a Current Ratio of approximately 2.49. This means the company has $2.49 in current assets (those convertible to cash within a year) for every $1.00 in current liabilities (short-term debts). For a clinical-stage biotech, this is a solid liquidity buffer.

The Quick Ratio, which excludes inventory from current assets, is also approximately 2.49. This is a critical point; the ratios are identical because AEMD has virtually no inventory, so all its current assets are highly liquid-mostly cash.

• Current Assets (Sept 30, 2025): Approximately $6.25 million.
• Current Liabilities (Estimated TTM): Approximately $2.51 million.
• Liquidity is strong, but cash is the only real asset.

The working capital trend shows the company is managing its expenses, but the core challenge remains the negative cash flow from operations. At the end of fiscal year 2025 (March 31, 2025), the company's total current assets were approximately $5,949,800. This working capital is almost entirely composed of cash and cash equivalents, which stood at $5,501,261 at that time.

Here's the quick math on the cash flow statements for the first half of fiscal year 2026 (the six months ended September 30, 2025), which is the most recent 2025 data.

For the three months ended June 30, 2025 (Q1 FY2026), AEMD used approximately $1.71 million in net cash from operating activities. This is the cash burn rate you need to watch. The company's cash balance was approximately $5.8 million as of September 30, 2025, which represents an increase from the March 31, 2025 balance of $5.5 million. This increase, despite the operating loss, is a clear signal that the company raised capital or had a significant non-operating cash inflow during the period.

What this estimate hides is the reliance on financing cash flow. A clinical-stage company with no significant revenue will always have negative operating cash flow. The liquidity strength is not from organic operations but from successful capital raises. The risk is simply the runway; with an operating loss of $9.3 million for the full fiscal year 2025, the existing cash balance provides limited time before another capital raise is required. You can get a deeper dive into the shareholder base in Exploring Aethlon Medical, Inc. (AEMD) Investor Profile: Who's Buying and Why?

The company's cost-cutting efforts-reducing consolidated operating expenses by approximately 48% for the quarter ended September 30, 2025, compared to the prior year-are a clear action to extend the cash runway and mitigate the immediate liquidity concern. Still, the long-term solvency hinges on clinical success and subsequent commercialization or further financing.

Valuation Analysis

You're looking at Aethlon Medical, Inc. (AEMD) and trying to figure out if it's a bargain or a value trap. Honestly, for a clinical-stage biotech like this, traditional valuation metrics are defintely tricky, but they still give us a starting point for the near-term risk.

The core takeaway is that Aethlon Medical, Inc. appears undervalued relative to the median analyst price target, but its valuation ratios are distorted by negative earnings, which is a major risk factor. The stock closed at around $4.95 on November 14, 2025. The median 12-month price target from analysts is significantly higher at $12.38, suggesting a potential upside of over 150%, but you have to understand the caveats here.

The Problem with Standard Ratios

When you look at the classic valuation ratios for Aethlon Medical, Inc., you quickly hit a wall. Here's the quick math on the 2025 fiscal year data:

• Price-to-Earnings (P/E) Ratio: This is negative or 'N/A.' The company is not profitable, with an estimated Earnings Per Share (EPS) for the 2025 fiscal year around $-9.41. You can't use a negative P/E to compare it to a profitable peer.
• Enterprise Value-to-EBITDA (EV/EBITDA): This is also distorted. The company reported a Fiscal Year 2025 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of approximately $-9.002 million. A negative EBITDA makes this ratio non-standard for valuation, though one calculation showed a ratio of 0.15 based on a negative Enterprise Value of $-1.86 USD.
• Price-to-Book (P/B) Ratio: This is the most stable metric right now, sitting around 1.0. This suggests the stock is trading close to its net asset value, which is common for companies with significant intangible assets (like intellectual property) or those undergoing a financial restructuring.

The P/B of 1.0 is your best anchor, but it only tells you what the balance sheet is worth, not the future potential of the Hemopurifier technology.

Stock Performance and Analyst View

The stock price trend over the last year is a stark warning. The 52-week high was a staggering $84.40, but the price has plummeted, with a decline of around -87.01% over the last 12 months to November 2025. That kind of volatility shows extreme investor uncertainty and dilution risk. The 52-week low is $4.02. Your action here is to understand the market has punished this stock severely.

Also, don't expect income. Aethlon Medical, Inc. is a growth-focused, development-stage company, so it has a 0.00% dividend yield and pays no dividend.

The current analyst consensus is a 'Hold' rating, which is a neutral stance. This means the smart money is saying, 'Wait and see.' The median 12-month price target is $12.38, but the range is wide, with some targets as low as $1.50 and others much higher.

The company is managing costs, with operating expenses dropping by 48% to approximately $1.5 million in the fiscal second quarter ended September 30, 2025. This cost control is a positive signal for cash burn, but the valuation still hinges entirely on the success of its clinical trials. For a deeper dive into the company's operational status, check out our full report: Breaking Down Aethlon Medical, Inc. (AEMD) Financial Health: Key Insights for Investors

Next step: Track the Hemopurifier trial progress in the Australian oncology trial; that's the real value driver.

Risk Factors

You're looking at Aethlon Medical, Inc. (AEMD), a clinical-stage medical device company, and the first thing you need to understand is that their risk profile is typical of a biotech firm: high-reward potential, but with significant, near-term financial and operational hurdles. The biggest risk is always the cash runway, and while they've been disciplined, the clock is still ticking.

As of September 30, 2025, Aethlon Medical, Inc. reported a cash balance of approximately $5.8 million. This is a crucial number because it directly maps to their operational longevity. They did a good job cutting costs, reducing consolidated operating expenses by a substantial 48% to approximately $1.5 million for the quarter ended September 30, 2025, compared to the prior year. Still, they have zero revenue growth and a net loss of $1.8 million in a recent 2025 fiscal quarter, so the burn rate is a constant threat that requires a new financing event or a partnership to defintely solve.

Operational and Strategic Hurdles

The core strategic risk is the clinical trial process for their flagship product, the Hemopurifier. The technology is innovative-it removes viruses and tumor-derived extracellular vesicles (EVs) from the bloodstream-but its success hinges entirely on trial outcomes and regulatory approval, which are never guaranteed. Plus, the stock's high volatility, with a Beta of 2.03, means any news, good or bad, will hit the share price hard.

The most pressing operational risk right now is patient enrollment in the Australian oncology trial. Management has specifically highlighted the slow pace, citing the difficulty of explaining extracorporeal therapies to cancer patients and the anticipated slowdown from the Australian holiday period. Slow enrollment means a delayed timeline, which burns more cash and pushes back the potential commercialization date.

Here's the quick math on their financial challenges as of September 30, 2025:

• Zero revenue growth.
• Earnings Per Share (EPS) at a concerning -71.9.
• Return on Equity (ROE) is significantly negative at -227.76%, reflecting poor efficiency in generating returns from shareholder capital.

The company's low debt-to-equity ratio of 0.17 shows minimal leverage, which is a positive, but this is offset by the persistent lack of profitability and the inherent uncertainties of a clinical-stage medical device company.

Mitigation Strategies and External Risks

To be fair, Aethlon Medical, Inc. is not standing pat. They've implemented clear mitigation strategies to address the enrollment issue and the cash burn. The 48% reduction in operating expenses is a clear sign of financial discipline, driven by cuts in payroll and general administrative costs, plus a neat $218,000 R&D tax incentive credit from the Australian government. That's smart, focused management.

On the operational side, they have a three-pronged strategy to accelerate Cohort 2 enrollment for the Hemopurifier trial:

• Holding a virtual investigator meeting to share best practices.
• Adding new clinical sites via their Australian Contract Research Organization (CRO), ResQ.
• Engaging Trialfacts for digital marketing and online patient pre-screening.

But external factors still loom. They operate in the highly competitive and heavily regulated medical devices and oncology sector. Any competitor's breakthrough in cancer treatment or a sudden, adverse regulatory change from the FDA or international bodies could instantly devalue the Hemopurifier's market opportunity. You also have to consider the risk of intellectual property (IP) challenges, which is a constant shadow over any company whose value is tied to a single, novel device.

For a deeper dive into the company's full financial picture, you can read more here: Breaking Down Aethlon Medical, Inc. (AEMD) Financial Health: Key Insights for Investors

Growth Opportunities

The growth story for Aethlon Medical, Inc. (AEMD) is not about near-term revenue, but about de-risking a breakthrough technology with a massive addressable market. The core opportunity lies in advancing the Hemopurifier®-a first-in-class blood purification device-through clinical trials, especially now that the company has significantly tightened its operational belt.

You need to look past the current financial state. For the fiscal year ending March 31, 2025, the company reported annual earnings of approximately -$13.4 million, with recorded annual revenue of just $570,000.00. This is a clinical-stage company, so the focus is on pipeline progress, not sales. The good news is that management cut consolidated operating expenses for the quarter ended September 30, 2025, to about $1.5 million, a sharp 48% decrease from the same period in 2024. That's defintely a necessary move to extend their cash runway.

Here's the quick math: with a cash balance of roughly $5.8 million as of September 30, 2025, plus the gross proceeds of approximately $4.5 million from the September 2025 public offering, their current burn rate is manageable for now, but still requires a successful clinical outcome to truly stabilize.

Key Growth Drivers: Hemopurifier and Clinical Progress

The future revenue growth is entirely dependent on the Hemopurifier's success in its two primary indications: oncology and infectious disease. The product's potential to selectively remove cancer-promoting exosomes (tiny vesicles that suppress the immune system) and circulating viruses is the main value driver.

• Oncology Trial Expansion: The Australian oncology trial is now recruiting for Cohort 2 under an amended protocol, which is a critical step. This amendment allows the Hemopurifier to be used in combination with anti-PD-1 agents like Pembrolizumab (Keytruda®) or Nivolumab (Opdivo®), broadening the patient pool and testing a more commercially relevant treatment regimen.
• Long COVID Research: A strategic collaboration with the University of California San Francisco (UCSF) on Long COVID research is a smart, low-cost way to explore a huge potential market. Preclinical data showing the device can bind to extracellular vesicles (EVs) implicated in Long COVID is promising.
• Technology Innovation: The company is also evaluating the Hemopurifier's compatibility with a simplified blood treatment system, which could significantly lower the barrier to adoption in a hospital setting.

Competitive Edge and Earnings Outlook

Aethlon Medical, Inc. has a powerful competitive advantage that often gets overlooked: the Hemopurifier has been granted a United States Food and Drug Administration (FDA) "Breakthrough Device" designation for both advanced cancer and life-threatening viruses. This designation can expedite the regulatory review process, which is a massive time-to-market advantage over competitors.

Still, investors must be realistic about the earnings timeline. Analyst consensus forecasts for the next fiscal year (FY ending March 2026) still project a loss per share of around -$9.00. This is a pre-revenue, clinical-stage investment. The opportunity isn't in next quarter's profit, but in the potential for a multi-billion dollar market if the clinical data is strong enough to support a Biologics License Application (BLA) or Pre-Market Approval (PMA).

If you want to dig deeper into who is betting on this turnaround, you should read Exploring Aethlon Medical, Inc. (AEMD) Investor Profile: Who's Buying and Why?

The table below maps the two core growth opportunities to their potential financial impact.