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

If you are looking at Applied Therapeutics, Inc. (APLT), you are defintely looking at a high-stakes biotech story where cash runway is the immediate risk, but clinical progress offers a massive upside. The company just reported a Q3 2025 net loss of $18.99 million, which is a significant 72.3% reduction from the prior year, plus they saw a revenue surge to $1.0 million, mostly from licensing, which is a 719.7% jump and a beat on analyst estimates. But here's the quick math: with cash and cash equivalents standing at only $11.9 million as of September 30, 2025, down from $79.4 million at the end of 2024, the burn rate remains a critical concern, even with R&D expenses cut to $9.6 million for the quarter. You need to understand how the upcoming Q4 2025 FDA meeting for govorestat in Classic Galactosemia and the new regulatory strategy for CMT-SORD will impact their financing needs and stock volatility, because right now, this is a race between pipeline success and a shrinking balance sheet.

Revenue Analysis

You need to know that Applied Therapeutics, Inc. (APLT) is a clinical-stage biopharmaceutical company, so its revenue story is less about product sales and more about strategic deals. The direct takeaway is that while total revenue remains minimal, the third quarter of 2025 saw a massive year-over-year surge, driven entirely by monetizing intellectual property (IP).

For the third quarter ended September 30, 2025, Applied Therapeutics, Inc. (APLT) reported total revenue of $1.0 million. This revenue is not from selling a drug, but is categorized as license revenue, specifically from an out-licensing agreement with Biossil, Inc.. This single stream accounted for 100% of the company's total revenue for the quarter, which is a key indicator of their current business model: focusing on research and development (R&D) while funding operations through strategic partnerships.

Here's the quick math on the near-term trend:

The year-over-year revenue growth rate for Q3 2025 was a staggering 719.7% compared to the $122,000 reported in the same period of 2024. This isn't a sign of a commercial launch, but rather a successful execution of an out-licensing strategy, which is defintely a necessary step to help finance their core pipeline, like their work on govorestat. It's all about cash flow right now.

What this revenue breakdown hides is the lack of a commercial product. Since the company is a clinical-stage firm, there are no distinct product or service segments contributing to revenue; it's all non-recurring licensing income. This means their revenue is highly volatile and dependent on the timing of these one-off deals, not on predictable sales volume. To understand the long-term vision they are funding with this revenue, you should review their Mission Statement, Vision, & Core Values of Applied Therapeutics, Inc. (APLT).

• License revenue is the only segment.
• Growth is from IP monetization, not product sales.
• Q3 2025 revenue hit $1.0 million.

For the nine months ended September 30, 2025, the total revenue was also $1 million, up from $455,000 in the prior year period. This confirms the Biossil license revenue largely landed in Q3, showing the revenue is lumpy, not a steady stream. Any clinical-stage biotech investor knows to focus less on the absolute revenue number and more on the cash runway-which this licensing deal helps to extend.

Profitability Metrics

When we look at Applied Therapeutics, Inc. (APLT), we have to be realists. This is a clinical-stage biopharmaceutical company, which means their profitability story isn't about today's net income; it's about managing the burn rate (cash used in operations) while funding future revenue. You're investing in a pipeline, not a product portfolio yet.

The latest Q3 2025 financials, reported in November 2025, show a company still deep in the investment phase, but with some notable operational efficiency gains. The key takeaway is that APLT's margins are, as expected for a company of this type, deeply negative, but the trend in net loss is moving in the right direction. They are defintely controlling costs.

Gross, Operating, and Net Margins (Q3 2025)

The profitability picture for Applied Therapeutics, Inc. (APLT) in the third quarter of 2025 is stark, but it's important to understand the context of a clinical-stage biotech. The company reported a total revenue of $1.0 million, driven entirely by license revenue from its Biossil Agreement.

Here's the quick math on the margins for Q3 2025:

• Gross Profit Margin: Approximately 100%. Since the revenue is license-based, there is virtually no Cost of Goods Sold (COGS) to deduct, making the Gross Profit nearly equal to the revenue of $1.0 million.
• Operating Profit Margin: A staggering -1675%. Operating expenses for the quarter totaled $17.75 million, leading to an Operating Loss of approximately $16.75 million.
• Net Profit Margin: An even deeper -1899%. The Net Loss for Q3 2025 was $18.99 million, once you factor in other non-operating income and expenses.

Operational Efficiency and Cost Management

The operational efficiency story is where you find the near-term opportunity. While the margins are negative, the company is showing cost discipline. Operating expenses dropped significantly year-over-year, largely due to a shift in focus in their clinical trials for candidates like AT-007 and AT-001.

Here's how the core expenses broke down in Q3 2025:

The 72.3% reduction in net loss year-over-year is the most important trend here. It shows management is actively aligning expenses with strategic priorities, even as they push govorestat through critical regulatory milestones like the Q4 2025 FDA meetings for Classic Galactosemia.

Industry Comparison and Future Outlook

Comparing APLT's profitability ratios to the broader pharmaceutical industry, where the average Return on Equity (ROE) is around 10.49%, is like comparing apples to a seed catalog. Mature pharma companies have blockbuster drugs and high margins; APLT is pre-commercial. Their negative margins are the cost of entry. The market is expecting the US Biotechnology industry's revenue to grow by 6.3% in 2025, and APLT's ability to capture a piece of that growth hinges entirely on their pipeline success.

The real risk is liquidity. Cash reserves dropped to $11.9 million by September 2025 from $79.4 million at the end of 2024. This is why the stock plummeted despite beating earnings estimates-investors are skeptical about the company's ability to secure additional funding without significant dilution. You need to watch the financing strategy closely. See more on the capital structure here: Exploring Applied Therapeutics, Inc. (APLT) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

When you look at how Applied Therapeutics, Inc. (APLT) finances its operations, the picture is clear: they are a pure-play equity story. As of the third quarter of 2025, the company is virtually debt-free, a critical point for a clinical-stage biopharmaceutical firm. This means they carry $0.0 in long-term or short-term interest-bearing debt, which is a major difference from more mature companies that use debt to boost returns.

Their capital structure is simple, but it also reflects the high-risk, high-reward nature of drug development. The total liabilities on the balance sheet were $34.93 million as of September 30, 2025, but these are mostly operational liabilities like payables, not debt that requires interest payments. Their stockholders' equity, the capital contributed by investors, stood at $17.438 million as of June 30, 2025. This is a capital structure built on investor faith, not lender leverage.

Here's the quick math: Applied Therapeutics, Inc.'s debt-to-equity ratio is 0%.

To be fair, this 0% ratio is significantly lower than the broader Biotechnology industry average, which currently sits around 0.17 (or 17%). Most clinical-stage biotechs avoid taking on significant debt because of the high risk of failure in clinical trials; a drug failure can make it impossible to service a large loan. Applied Therapeutics, Inc. is defintely following that prudent, albeit dilutive, industry trend.

The company's financing strategy in 2025 has been entirely focused on equity and non-dilutive funding, which is the clear action you need to watch. They recently terminated a sales agreement after raising approximately $49.3 million, and immediately established a new agreement with Cantor Fitzgerald & Co. to raise another $75 million through common stock sales. This constant reliance on issuing new shares (equity funding) is how they fuel their research and development, but it also means existing shareholders face dilution.

The company is still burning cash fast, with cash and equivalents dropping to $11.9 million by September 30, 2025, down from $79.4 million at the end of 2024. That's why the equity raises are so crucial. Plus, they secured a $1.0 million upfront payment in July 2025 from an out-licensing deal for AT-001, which is a smart way to generate non-dilutive capital. You can read more about their core focus here: Mission Statement, Vision, & Core Values of Applied Therapeutics, Inc. (APLT).

• Debt-to-Equity Ratio: 0% (vs. industry average of ~0.17).
• Recent Equity Raise: Targeting $75 million via common stock sales.
• Non-Dilutive Cash: $1.0 million upfront from AT-001 out-licensing.

Liquidity and Solvency

You need to know how much cash Applied Therapeutics, Inc. (APLT) has right now to fund its operations, and honestly, the Q3 2025 numbers show a tight spot. The company's cash reserves dropped dramatically to only $11.9 million by September 30, 2025, down from $79.4 million at the end of 2024. This is the single most critical metric to watch for a clinical-stage biotech.

Looking at the standard liquidity positions, the picture is mixed but trending poorly. As of the end of Q2 2025, the company had a Current Ratio of 1.94 and a Quick Ratio of 1.71. A ratio above 1.0 is generally good, meaning current assets cover current liabilities (short-term debt). But that Q2 data point is misleading now. The sharp drop in cash from $30.4 million in Q2 2025 to $11.9 million in Q3 2025 signals a rapid deterioration in its short-term financial strength.

The working capital trend is a massive headwind. Applied Therapeutics, Inc. is burning cash fast, which is typical for a company deep in clinical trials but still alarming. Here's the quick math on the cash burn: the company spent roughly $18.5 million in the third quarter of 2025 alone, which is the difference between the Q2 and Q3 cash balances. This cash outflow is closely aligned with the Q3 2025 net loss of $18.99 million. This sustained negative operating cash flow is why the cash balance is shrinking so quickly.

A review of the cash flow statements confirms the reliance on external funding. For the 2024 fiscal year, the company's operating cash flow was a negative $84.31 million, which was largely offset by a positive $113.81 million in financing cash flow, primarily from issuing new equity or debt. This cycle of burning cash on operations and replacing it with financing is the core of their liquidity risk. They are a defintely a financing-dependent company.

The primary liquidity concern is the short runway. While management has publicly projected a cash runway through 2026, this projection is explicitly contingent on achieving key regulatory milestones, which is a major caveat. If the FDA Type C meetings for govorestat in CMT-SORD and Classic Galactosemia do not go as planned, the need for a new financing round will accelerate dramatically. You can read more about the company's pipeline and strategy in Breaking Down Applied Therapeutics, Inc. (APLT) Financial Health: Key Insights for Investors.

• Cash is down to $11.9M by Q3 2025.
• Q3 2025 net loss was $18.99M.
• Cash burn rate is approximately $18.5M per quarter.
• Future cash runway is conditional on regulatory success.

Valuation Analysis

You're looking at Applied Therapeutics, Inc. (APLT) and seeing a stock that has cratered, but with analyst price targets screaming massive upside. The takeaway is clear: Applied Therapeutics, Inc. is technically undervalued based on consensus price targets, but this valuation comes with the extreme, near-term risks typical of a clinical-stage biopharma company that is burning cash.

Honestly, the stock's valuation metrics are a mess right now, but that's the nature of a company still focused on drug development, not sales. The standard Price-to-Earnings (P/E) ratio is -1.12 as of November 2025, which is negative because the company is not profitable; it's spending heavily on R&D for its pipeline, especially Govorestat. This negative P/E is a red flag for a value investor, but it's defintely the norm for a growth-focused biotech.

Because of the negative earnings and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), other common metrics like the Price-to-Book (P/B) and Enterprise Value-to-EBITDA (EV/EBITDA) ratios are not applicable (N/A) for a meaningful comparison. What this estimate hides is the company's reliance on its cash runway, which was only $11.9 million as of September 30, 2025, down from $79.4 million at the end of 2024. That's a quick burn rate.

Stock Price Trend and Analyst Consensus

If you look at the last 12 months, the stock price trend for Applied Therapeutics, Inc. has been brutal. The stock has fallen by a staggering -96.56% over the past year, trading near its 52-week low of $0.22. The 52-week high was $10.48, showing just how far the stock has fallen due to regulatory and clinical uncertainties. The current price is around $0.30 as of mid-November 2025.

Still, Wall Street analysts see a massive rebound. The consensus rating from analysts is generally a Buy or Moderate Buy. Here's the quick math: the average 12-month price target ranges from $4.12 to $6.10 per share. This suggests an enormous potential upside, but it is entirely predicated on a successful regulatory outcome for their lead drug candidate, Govorestat, in conditions like CMT-SORD and classic galactosemia.

The table below breaks down the analyst sentiment as of November 2025:

Dividend Policy and Next Steps

As a clinical-stage biotech, Applied Therapeutics, Inc. does not return capital to shareholders; it needs every dollar for R&D. The company has a 0.00% dividend yield and no payout ratio to speak of, which is standard for a company in this phase. They are focused on generating a product, not income.

The stock is a binary play: a massive win if Govorestat gets FDA approval, or a significant loss if it doesn't. You need to understand the institutional conviction behind that analyst consensus. For a deeper dive into who is betting on this turnaround, you should read Exploring Applied Therapeutics, Inc. (APLT) Investor Profile: Who's Buying and Why?

Your clear action is this: Finance/Strategy: map the implied cash runway against the next major FDA meeting date in Q4 2025 for classic galactosemia to quantify the immediate liquidity risk.

Risk Factors

You need a clear picture of what could derail Applied Therapeutics, Inc. (APLT)'s progress, and honestly, the risks are substantial and near-term. The core issue is liquidity-the company's cash position is dangerously low, and regulatory uncertainty for its lead drug, govorestat (AT-007), is the primary driver of this financial stress.

Here's the quick math: Applied Therapeutics' cash and cash equivalents plummeted from $79.4 million at the end of 2024 to just $11.9 million as of September 30, 2025. That kind of cash burn raises a red flag, and management has already disclosed substantial doubt about the company's ability to continue as a going concern without securing new financing.

Regulatory and Commercial Hurdles

The biggest external risk is the regulatory path for govorestat, a drug designed to treat rare metabolic diseases like Classic Galactosemia and Sorbitol Dehydrogenase (SORD) Deficiency. The U.S. Food and Drug Administration (FDA) issued a Complete Response Letter (CRL) and a Warning Letter in late 2024 for the Classic Galactosemia application, citing clinical application deficiencies. This forces a costly and time-consuming remediation process.

The company is a clinical-stage biotech, meaning it has virtually no product revenue-Q3 2025 revenue was only $1.0 million, entirely from a license agreement. This reliance on a single lead candidate (govorestat) for multiple indications, coupled with the FDA setbacks, creates extreme sector-specific risk. If onboarding takes 14+ days, churn risk rises-if the FDA process takes too long, the cash runs out.

• FDA Setbacks: CRL and Warning Letter for govorestat in Classic Galactosemia.
• Pipeline Concentration: Over-reliance on govorestat for all near-term commercial value.
• Market Competition: Potential for competing therapies to emerge while APLT navigates the FDA process.

Liquidity and Operational Strain

The financial risks are immediate and severe. The cash drain is exacerbated by increased legal and professional fees. General and Administrative (G&A) expenses for the first six months of 2025 rose to $30.863 million, up from $19.646 million in the same period in 2024, largely due to ongoing litigation like the securities class action and shareholder derivative suit.

Here's a snapshot of the operational costs and financial position in 2025:

What this estimate hides is the need for significant new capital. The company's market capitalization is relatively small, so raising enough cash through equity will likely result in substantial shareholder dilution.

Mitigation and Next Steps

Management is defintely aware of the cash crunch and the regulatory clock. Their strategy to mitigate these risks centers on two clear actions: cost control and proactive regulatory engagement.

They have shown cost discipline, with R&D expenses dropping to $9.6 million in Q3 2025. Also, they are actively monetizing their intellectual property (IP), securing $1.0 million in license revenue in Q3 2025.

On the regulatory front, they are planning a crucial Q4 2025 meeting with the FDA to discuss the path forward for Classic Galactosemia and are working on finalizing the Phase 3 trial design for CMT-SORD. The management has stated that, pending regulatory milestones, they project a cash runway through 2026. This is the key contingency you must track.

For a deeper dive, review the full context of these challenges in our comprehensive analysis: Breaking Down Applied Therapeutics, Inc. (APLT) Financial Health: Key Insights for Investors. Your next concrete step is to monitor the outcome of the Q4 2025 FDA meetings and any new financing announcements.

Growth Opportunities

You're looking at Applied Therapeutics, Inc. (APLT) and seeing a clinical-stage company, which means their financial health hinges almost entirely on one thing: regulatory success for their lead drug. The growth story here is not about incremental sales jumps; it's a binary event driven by their core product, govorestat, an Aldose Reductase Inhibitor (ARI) designed to treat rare metabolic disorders.

The near-term opportunity is clear: securing a path to market for govorestat in its primary indications. This drug is their engine. As of the end of the third quarter of 2025, the company's revenue was minimal-just $1.0 million in Q3 2025, primarily from a licensing deal. But Wall Street's consensus is projecting a 2025 annual revenue of approximately $49,061,796, a figure that implies a massive forecast annual revenue growth rate of 305.51% for the 2025-2027 period, a rate that defintely outpaces the US Biotechnology industry average. That kind of jump only happens with a major regulatory win.

Key Growth Drivers: Govorestat's Pipeline

The entire near-term growth narrative centers on govorestat's progress in three ultra-rare diseases, each representing a high unmet medical need. The company is strategically focused on these three shots on goal, which is smart given their limited cash reserves of $11.9 million as of September 30, 2025. Here's the quick math: each successful regulatory milestone derisks the entire enterprise and unlocks significant market potential.

• CMT-SORD Deficiency: This is a subtype of Charcot-Marie-Tooth disease. In May 2025, Applied Therapeutics presented new topline 18-month and 24-month data from the INSPIRE Phase 3 trial, showing the drug slowed disease progression, which is a big deal in a condition with no approved treatments. They are in constructive discussions with the FDA post-Type C meeting to refine the regulatory strategy for a potential New Drug Application (NDA) submission.
• Classic Galactosemia: This program is critical. After receiving a Complete Response Letter (CRL) from the FDA in late 2024, the company has a scheduled meeting with the FDA in Q4 2025 to align on the regulatory path forward. This meeting is a pivotal moment for the stock.
• PMM2-CDG: New data from a single-patient investigator-initiated trial was published and presented in Q3 2025, reinforcing the drug's potential in this severe, rare, and debilitating disease.

Strategic Initiatives and Competitive Edge

Beyond the core drug development, Applied Therapeutics is showing a focus on operational efficiency and strategic partnerships to manage its cash burn. For example, the Q3 2025 revenue was driven by an out-licensing agreement with Biossil, Inc. for AT-001, their other Aldose Reductase Inhibitor candidate for Diabetic Cardiomyopathy. This move monetizes a non-core asset and provides non-dilutive capital, which is crucial for a development-stage biotech.

The company's competitive advantage lies in the nature of govorestat itself: it is a novel, central nervous system (CNS) penetrant ARI. This means it can cross the blood-brain barrier to target the underlying metabolic defects in the brain, a feature essential for treating the neurological symptoms of these rare diseases. The high unmet need in these indications-where no other approved therapies exist-positions govorestat as a potential first-in-class treatment. You can read more about their core philosophy here: Mission Statement, Vision, & Core Values of Applied Therapeutics, Inc. (APLT).

What this estimate hides is the risk: the consensus net loss forecast for 2025 is still a substantial -$84,271,594, showing the company remains deep in the red until a drug is approved and launched. The entire growth projection hinges on the successful outcome of those Q4 2025 FDA meetings and the subsequent NDA path. That's the reality of a clinical-stage biotech.

Your next step is simple: track the outcome of the Q4 2025 FDA meeting for Classic Galactosemia. Owner: Portfolio Manager/Analyst.