Breaking Down Applied Therapeutics, Inc. (APLT) Financial Health: Key Insights for Investors

Are you keeping a close watch on Applied Therapeutics, Inc. (APLT) and wondering about its financial stability? With a recent 52-week low of $0.30 and a staggering 93% annual decline, it's natural to have concerns. But, is there more than meets the eye? Despite these challenges, the company's latest financial results for 2024 reveal cash and cash equivalents totaling $79.4 million as of December 31, 2024. So, how do these figures paint the real picture of APLT's financial health, and what key insights can investors like you glean from this data? Read on to discover more!

Applied Therapeutics, Inc. (APLT) Revenue Analysis

Understanding Applied Therapeutics, Inc. (APLT)'s revenue streams is crucial for investors seeking to assess the company's financial health and growth potential. Here's a breakdown of the key aspects of their revenue performance:

Primary Revenue Sources:

As a clinical-stage biopharmaceutical company, Applied Therapeutics primarily generates revenue through:

• Licensing agreements
• Research and development services

Year-over-Year Revenue Growth Rate:

Analyzing the year-over-year revenue growth rate provides insights into the company's ability to increase sales and expand its market presence. Here’s a look at Applied Therapeutics' revenue trends:

• 2024 (TTM): -£0.17 million, a decrease of -102.14%.
• 2023: £7.84 million.
• 2022: Data not available (N/A).

According to WallStreetZen, Applied Therapeutics' revenue for the trailing 12 months ending September 30, 2024, was -$211.00k, with N/A growth year over year. For the last reported fiscal year 2023 ending December 31, 2023, APLT annual revenue was $10.0M, with Infinity% growth year-over-year.

TipRanks.com reports that Applied Therapeutics had a revenue of 122.00K in the quarter ending September 29, 2024, with -15.28%. This brings the company's revenue in the last twelve months to -211.00K, decreased 36.64%. In the fiscal year ending December 30, 2024, Applied Therapeutics had annual revenue of 455.00K with -95.45% growth.

Stock Analysis indicates that Applied Therapeutics had revenue of $122.00K in the quarter ending September 30, 2024. This brings the company's revenue in the last twelve months to $-212.00K, down -101.99% year-over-year. In the year 2023, Applied Therapeutics had annual revenue of $9.99M.

Contribution of Business Segments:

The company's lead product candidate is AT-007 that has completed phase 3 for the treatment of galactosemia in healthy volunteers and adults, in pediatric clinical study for the treatment of galactosemia in kids, for treating enzyme sorbitol dehydrogenase, and for the treatment of phosphomannomutase enzyme-CDG.

Analysis of Significant Changes in Revenue Streams:

In 2024, Applied Therapeutics faced a significant revenue decline. AInvest indicates that the total operating revenue at the end of 2024 was -33022000 yuan, a decrease of approximately 57.6% from the total operating revenue of -21008000 yuan at the end of 2023. This decline indicates substantial challenges in revenue generation.

Here is more information: Breaking Down Applied Therapeutics, Inc. (APLT) Financial Health: Key Insights for Investors

Applied Therapeutics, Inc. (APLT) Profitability Metrics

Analyzing Applied Therapeutics, Inc. (APLT)'s financial health requires a close examination of its profitability metrics. Profitability ratios offer insights into how efficiently a company generates profits from its revenues and assets. Here’s a breakdown of key areas:

As of now, comprehensive profitability details, such as gross profit, operating profit, and net profit margins, along with detailed trends over time and comparisons with industry averages, are not readily available. The company's financial performance can be evaluated effectively by monitoring these metrics as new data becomes available, providing a clearer picture of its financial trajectory.

Typically, when evaluating a company's operational efficiency, several factors are considered:

• Cost Management: How well the company controls its expenses.
• Gross Margin Trends: The consistency and growth of gross profit margin, indicating pricing strategy and cost of goods sold management.

For more in-depth information about the company's goals and guiding principles, see Mission Statement, Vision, & Core Values of Applied Therapeutics, Inc. (APLT).

Applied Therapeutics, Inc. (APLT) Debt vs. Equity Structure

Understanding how a company finances its operations is crucial for investors. Applied Therapeutics, Inc. (APLT) utilizes a mix of debt and equity to fund its growth initiatives. Examining the specifics of their debt levels, ratios, and financing activities provides valuable insights. For more information, check out: Exploring Applied Therapeutics, Inc. (APLT) Investor Profile: Who’s Buying and Why?

As of the fiscal year 2024:

• Applied Therapeutics, Inc. (APLT) had a total long-term debt of approximately $133.7 million.

This long-term debt is a significant factor in assessing the company's financial leverage and long-term stability.

The company's approach to balancing debt and equity is critical. A high debt-to-equity ratio can indicate higher financial risk, while a lower ratio may suggest a more conservative approach. Here's a summary of key debt-related information:

• The company's debt-to-equity ratio stands at approximately 2.63. This ratio provides a view on how much debt Applied Therapeutics, Inc. (APLT) is using to finance its assets relative to the value of shareholders’ equity.

Recent financing activities, such as debt issuances or refinancing, can significantly impact a company's financial structure. Investors should monitor these activities to understand changes in the company’s capital structure and their potential effects on financial health.

Applied Therapeutics, Inc. (APLT) strategically manages its capital structure by carefully balancing debt financing and equity funding. This balance is essential for supporting ongoing research and development, clinical trials, and operational activities. The company's decisions in this area reflect its broader financial strategy and risk management approach.

Here's a brief overview of Applied Therapeutics, Inc. (APLT)'s debt structure:

Understanding these financial aspects helps investors gauge the company's financial health and make informed decisions.

Applied Therapeutics, Inc. (APLT) Liquidity and Solvency

Understanding Applied Therapeutics, Inc.'s financial health requires a close look at its liquidity and solvency positions. These metrics provide insights into the company's ability to meet its short-term obligations and long-term financial stability. Here’s an overview of key financial indicators for Applied Therapeutics, Inc., based on the latest available data.

Assessing Applied Therapeutics, Inc.'s Liquidity:

Liquidity ratios measure a company's ability to cover its short-term liabilities with its short-term assets. Key ratios include the current ratio and the quick ratio.

• Current Ratio: The current ratio is calculated by dividing current assets by current liabilities. As of December 31, 2023, Applied Therapeutics, Inc.'s current ratio was approximately 7.3x. This indicates a strong ability to cover its short-term liabilities with its current assets.
• Quick Ratio: The quick ratio, which excludes inventories from current assets, provides a more conservative measure of liquidity. Applied Therapeutics, Inc.'s quick ratio as of December 31, 2023, was about 7.3x, mirroring the current ratio due to minimal inventory.

Analysis of Working Capital Trends:

Working capital, defined as current assets minus current liabilities, is a vital measure of a company's operational efficiency and short-term financial health. For Applied Therapeutics, Inc., the working capital has shown specific trends based on recent financial data.

• As of December 31, 2023, Applied Therapeutics, Inc. reported working capital of approximately $160.4 million.

Cash Flow Statements Overview:

Cash flow statements provide a detailed look at how a company generates and uses cash through its operating, investing, and financing activities. Analyzing these cash flow trends can reveal important insights into Applied Therapeutics, Inc.'s financial sustainability.

• Operating Activities: For the year 2023, Applied Therapeutics, Inc. had a net cash used in operating activities of approximately $78.5 million. This reflects the cash outflow from the company's core business operations.
• Investing Activities: In 2023, the company used approximately $0.4 million in investing activities.
• Financing Activities: Applied Therapeutics, Inc. reported net cash provided by financing activities of about $154.1 million for 2023, primarily due to proceeds from the sale of common stock.

Potential Liquidity Concerns or Strengths:

Based on the analyzed financial data, Applied Therapeutics, Inc. exhibits several notable liquidity strengths:

• Strong Liquidity Position: High current and quick ratios (7.3x) suggest a robust ability to meet short-term obligations.
• Adequate Working Capital: A substantial working capital of $160.4 million supports operational needs.
• Financing Boost: Significant cash inflow from financing activities ($154.1 million in 2023) enhances the company's financial flexibility.

Here is a summary table of Applied Therapeutics, Inc.'s key financial data:

For further insights into Applied Therapeutics, Inc.'s mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Applied Therapeutics, Inc. (APLT).

Applied Therapeutics, Inc. (APLT) Valuation Analysis

Determining whether Applied Therapeutics, Inc. (APLT) is overvalued or undervalued requires a multifaceted approach, incorporating several key financial metrics and market indicators. This analysis helps investors gauge the company's current market price relative to its intrinsic value.

Here's a breakdown of essential valuation considerations:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company’s stock price to its earnings per share (EPS). As of now, Applied Therapeutics doesn't have a positive P/E ratio because the company has negative earnings.
• Price-to-Book (P/B) Ratio: This ratio compares a company's market capitalization to its book value of equity. As of December 31, 2023, Applied Therapeutics' Price to Book ratio is at 2.73.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares a company's enterprise value (EV) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). As of December 31, 2023 Applied Therapeutics' EV/EBITDA ratio is negative, meaning the company is currently not profitable.

Analyzing stock price trends provides insights into market sentiment and investor confidence:

• Stock Price Trends: Over the past year, Applied Therapeutics' stock has shown considerable volatility. As of April 2024, APLT's stock experienced a significant increase, trading as high as $29.84. However, it has since stabilized, trading around $6.71 as of April 18, 2025.

Since Applied Therapeutics does not currently offer dividends, dividend yield and payout ratios are not applicable.

Analyst consensus is a critical indicator of market sentiment and future stock performance. According to recent analyst ratings:

• Analyst Consensus: The consensus among analysts is that APLT is a 'buy,' with a median price target of $44.00.

Here is a summary of the key valuation metrics for Applied Therapeutics, Inc. (APLT):

For additional insights, you can explore: Breaking Down Applied Therapeutics, Inc. (APLT) Financial Health: Key Insights for Investors

Applied Therapeutics, Inc. (APLT) Risk Factors

Assessing the financial health of Applied Therapeutics, Inc. (APLT) requires a close look at the various risks that could impact its performance. These risks span internal operational challenges and external market dynamics. Investors need to understand these factors to make informed decisions. For an overview of Applied Therapeutics, Inc. (APLT) financial health, see: Breaking Down Applied Therapeutics, Inc. (APLT) Financial Health: Key Insights for Investors.

Here's an overview of the key risks facing Applied Therapeutics, Inc. (APLT):

Industry Competition:

The biotechnology industry is intensely competitive. Applied Therapeutics, Inc. (APLT) faces competition from other pharmaceutical and biotechnology companies, academic institutions, government agencies, and private and public research institutions. Many of these competitors have substantially greater financial, technical, manufacturing, marketing, and human resources than Applied Therapeutics, Inc. (APLT). These competitors may develop products and therapies that are more effective or less costly than those being developed by Applied Therapeutics, Inc. (APLT). The company's success depends on its ability to effectively compete in this challenging environment.

Regulatory Changes:

The pharmaceutical industry is heavily regulated, and changes in regulations can significantly impact Applied Therapeutics, Inc. (APLT). This includes:

• Drug Approval Processes: Delays or rejections in the drug approval process by regulatory agencies like the FDA can significantly impact the company's timelines and financial projections.
• Pricing and Reimbursement: Changes in healthcare laws and regulations related to drug pricing and reimbursement can affect the profitability of Applied Therapeutics, Inc. (APLT)'s products.
• Clinical Trial Regulations: Changes in the requirements for clinical trials can increase the cost and time needed to bring new therapies to market.

Market Conditions:

Broader economic and market conditions can also affect Applied Therapeutics, Inc. (APLT). Factors include:

• Economic Downturns: Economic recessions or downturns can reduce healthcare spending, affecting the demand for Applied Therapeutics, Inc. (APLT)'s products.
• Market Volatility: Fluctuations in the stock market can impact the company's stock price and its ability to raise capital.
• Interest Rate Changes: Rising interest rates can increase the cost of borrowing, affecting the company's ability to fund its operations and research activities.

Operational Risks:

Operational risks include challenges related to manufacturing, supply chain, and clinical trials:

• Manufacturing Issues: Problems with manufacturing processes, quality control, or scaling up production can lead to delays and increased costs.
• Supply Chain Disruptions: Disruptions in the supply chain for raw materials or essential components can impact the company's ability to produce and distribute its products.
• Clinical Trial Risks: Clinical trials may not produce the desired results, or they may be delayed due to patient enrollment issues, adverse events, or regulatory hurdles.

Financial Risks:

Financial risks include cash flow management, debt obligations, and funding requirements:

• Cash Burn Rate: Applied Therapeutics, Inc. (APLT) needs to manage its cash burn rate carefully to ensure it has enough funds to support its operations and research activities.
• Debt Obligations: The company's debt obligations can impact its financial flexibility and ability to invest in new opportunities.
• Funding Requirements: Applied Therapeutics, Inc. (APLT) may need to raise additional capital through equity or debt financing, which can dilute existing shareholders or increase its debt burden.

Strategic Risks:

Strategic risks involve decisions related to product development, partnerships, and market entry:

• Product Development: The failure to successfully develop and commercialize new products can significantly impact the company's growth prospects.
• Partnership Risks: Reliance on partnerships for development or commercialization can create risks if these partnerships are not successful or if the partners have conflicting interests.
• Market Entry: Entering new markets can be challenging due to regulatory hurdles, competition, and the need to establish a strong presence.

Mitigation strategies or plans (if available):

While specific mitigation strategies can vary depending on the exact nature of the risk, Applied Therapeutics, Inc. (APLT) may employ several common strategies:

• Diversification: Diversifying its product pipeline to reduce reliance on a single product or therapy.
• Strategic Partnerships: Forming strategic alliances to share risks and resources.
• Risk Management: Implementing robust risk management processes to identify, assess, and mitigate potential risks.
• Financial Planning: Maintaining a strong balance sheet and managing cash flow effectively to ensure financial stability.

Understanding these risks is crucial for investors looking to assess the potential of Applied Therapeutics, Inc. (APLT). Evaluating how the company manages and mitigates these risks is key to determining its long-term financial health and viability.

Applied Therapeutics, Inc. (APLT) Growth Opportunities

Future growth prospects for Applied Therapeutics, Inc. (APLT) are multifaceted, relying on product innovation, strategic partnerships, and market expansion within the rare disease sector. The company's focus on developing novel Aldose Reductase Inhibitors (ARIs) targeting diseases with high unmet medical needs, such as Galactosemia, SORD Deficiency, and PMM2-CDG, positions it as a notable research-driven specialist Exploring Applied Therapeutics, Inc. (APLT) Investor Profile: Who’s Buying and Why?.

Key growth drivers for Applied Therapeutics, Inc. (APLT):

• Product Innovations: Applied Therapeutics is focused on pioneering advanced therapies that target central nervous system (CNS) disorders and other critical conditions. The company's product candidates include:
  • Govorestat: A novel CNS-penetrant ARI designed for the treatment of rare, debilitating metabolic diseases such as Classic Galactosemia and SORD Deficiency.
  • AT-001: Developed as an innovative treatment for diabetic cardiomyopathy, this potent ARI candidate is aimed at mitigating the fibrosis and complications associated with heart disease in diabetic patients.
  • AT-003: Focused on diabetic retinopathy, this ARI is engineered to achieve oral bioavailability and cross critical biological barriers to directly address retinal changes in diabetic conditions.
• Market Expansion: The market potential for Applied Therapeutics' products has recently been revised upward, particularly for its SORD treatment. A new epidemiological assessment suggests that the prevalence of SORD may be higher than initially estimated, potentially expanding the addressable market for the company's therapy.
• Strategic Initiatives and Partnerships: Applied Therapeutics is actively pursuing long-term financing options, including equity capital, debt, convertible debt, and synthetic royalty financing. It is also in discussions with potential partners for business development opportunities related to its programs, particularly focusing on the commercialization of AT-007 in Europe through an exclusive licensing agreement with Advanz Pharma.

Future revenue growth projections and earnings estimates from Wall Street analysts show:

• Applied Therapeutics's revenue in 2025 is $455,000.
• On average, 2 Wall Street analysts forecast APLT's revenue for 2025 to be $3,624,333,466, with the lowest APLT revenue forecast at $1,670,591,207, and the highest APLT revenue forecast at $5,578,075,724.
• In 2026, APLT is forecast to generate $7,687,551,062 in revenue, with the lowest revenue forecast at $7,687,551,062 and the highest revenue forecast at $7,687,551,062.

Applied Therapeutics's earnings in 2025 is -$105,624,000. On average, 2 Wall Street analysts forecast APLT's earnings for 2025 to be -$87,776,826, with the lowest APLT earnings forecast at -$93,439,847, and the highest APLT earnings forecast at -$82,113,805. On average, 1 Wall Street analyst forecast APLT's earnings for 2026 to be -$80,698,050, with the lowest APLT earnings forecast at -$80,698,050, and the highest APLT earnings forecast at -$80,698,050. In 2027, APLT is forecast to generate $342,612,773 in earnings, with the lowest earnings forecast at $342,612,773 and the highest earnings forecast at $342,612,773.

Strategic initiatives and partnerships that may drive future growth:

• Partnership with Advanz Pharma: In January 2023, Applied Therapeutics announced a partnership with Advanz Pharma for the commercialization of AT-007 (govorestat) in Europe. Advanz Pharma receives exclusive commercial rights in the European Economic Area, Switzerland, and the UK for AT-007 in Galactosemia and SORD Deficiency, with certain rights to future indications for AT-007 in Europe.
• Focus on Regulatory Progress: Applied Therapeutics has recently experienced positive momentum on the regulatory front. The company received encouraging feedback from the U.S. Food and Drug Administration (FDA) regarding its New Drug Application (NDA) for its galactosemia treatment.

Competitive Advantages:

• Focus on Rare Diseases: Applied Therapeutics operates within the competitive and highly regulated biopharmaceutical industry, where a robust pipeline and rigorous clinical testing define success. The company distinguishes itself by its specialized focus on conditions with no currently available conventional treatments.
• Orphan Drug Designations: AT-007 has received orphan drug designation and rare pediatric disease designation from the FDA for Galactosemia and SORD Deficiency.
• Innovation in ARI Technology: Applied Therapeutics leverages technological advances to target molecules and pathways with proven roles in disease biology. By applying the right science and the right development strategies, the company believes it can accelerate time from clinical development to approval, and into the hands of patients who urgently need treatment.

Despite these opportunities, Applied Therapeutics faces challenges, including regulatory hurdles and the need for additional financing to continue its operations and planned research and clinical development activities.