Breaking Down AquaBounty Technologies, Inc. (AQB) Financial Health: Key Insights for Investors

You've seen AquaBounty Technologies, Inc. (AQB) pivot hard this year, shifting from a pure land-based aquaculture growth story to a strategic asset-sale play, and honestly, the financials show just how tight the margin for error is right now. While the first quarter of 2025 saw a temporary net income of $401,000-driven mostly by a $2.0 million non-cash gain from loan forgiveness and asset sales-the underlying burn rate is still a serious concern, with the net loss returning to $1.4 million in Q3 2025. The big risk is liquidity: as of September 30, 2025, the company had just $951,000 in cash and cash equivalents, a defintely modest sum for a company exploring strategic alternatives for its fully-permitted Ohio Farm Project, which is the main remaining asset. We need to look past the occasional positive one-off transaction, like the $2.4 million in net proceeds from Ohio Equipment Assets sales in Q2, and focus on the core question: can management secure a major strategic investment before that cash balance hits zero, or is a deep-discount equity raise the only path left?

Revenue Analysis

You're looking at AquaBounty Technologies, Inc. (AQB) in 2025, and the first thing you need to know is that the traditional revenue model has essentially stopped. The company is in a controlled liquidation phase, so its financial health is now less about product sales and more about asset sales for liquidity. That's the hard truth.

For the third quarter of 2025, AquaBounty Technologies, Inc. reported a product revenue of $0.0. This isn't a temporary dip; it's a direct consequence of a strategic pivot that began in 2024. The company sold its Indiana grow-out farm in July 2024 and then completed the sale of its Canadian farms and all corporate intellectual property (IP) for its genetically engineered Atlantic salmon in March 2025.

The year-over-year revenue trend shows a sharp decline, confirming this operational wind-down. For the full fiscal year 2024, product revenue was only $789 thousand, which was a massive 68% decrease compared to the $2.5 million reported in 2023. Honestly, for 2025, the year-over-year product revenue growth rate is effectively negative and non-existent, as the core business segment is gone.

The breakdown of revenue streams has completely changed, and this is the critical insight. There is no meaningful contribution from different business segments to overall product revenue anymore. Instead, the company's primary source of cash generation in 2025 has been non-operational, coming from the sale of assets to fund its remaining operations and strategic alternatives for the Ohio Farm Project. Here's the quick math on the cash-generating transactions from the first half of 2025:

• Sale of Canadian Farms and Corporate IP (Q1 2025): $1.9 million net proceeds.
• Sale of Ohio Equipment Assets (Q1 2025): $2.3 million net proceeds.
• Sale of Ohio Equipment Assets (Q2 2025): $2.4 million net proceeds.

Plus, the company recognized a significant non-cash gain of $2.0 million in Q1 2025 from the forgiveness of an outstanding loan. What this estimate hides is that these are one-time events, not a sustainable business model. The company is converting hard assets into cash, which is a sign of capital preservation, not operational success.

If you are looking for a deeper dive into the company's liquidity and valuation, you can read the full analysis at Breaking Down AquaBounty Technologies, Inc. (AQB) Financial Health: Key Insights for Investors. Still, the bottom line is that for AquaBounty Technologies, Inc., the revenue story in 2025 is about liquidation, not aquaculture.

Profitability Metrics

You need to understand that AquaBounty Technologies, Inc. (AQB) is not currently an operating business in the traditional sense; its financial picture is dominated by a strategic wind-down and asset sales, not core commercial profitability. This means standard profitability margins are non-existent or heavily distorted by non-cash events.

For the nine months ended September 30, 2025, the company reported a total net loss of approximately $4.35 million. This loss is not from selling genetically engineered salmon (the core product) but from administrative costs and non-cash charges, plus the impact of asset sales.

Here's the quick math on core operations: Since the company has ceased fish farming operations and is focused on selling assets, its revenue from continuing operations is negligible. Consequently, for the third quarter of 2025, the company's Gross Profit from its core business was effectively $0. This immediately puts the Gross Profit Margin at 0%-a clear sign of a company in transition, not a healthy operating entity.

• Gross Profit Margin: 0% (No significant revenue from continuing operations).
• Operating Loss (Q3 2025): $1,616,278 from continuing operations.
• Net Loss (9 Months 2025): $4.35 million, heavily influenced by non-cash items.

The Non-Operational Profitability Trend

The net profit margin trend is volatile and misleading because it is driven by one-time events, not operational efficiency. For instance, in Q1 2025, AquaBounty Technologies reported a net income of $401 thousand. But, to be fair, this was only possible due to a $2.0 million non-cash gain from loan forgiveness and a $307 thousand net gain from selling equipment originally intended for the Ohio Farm Project. Without those one-off gains, the quarter would have shown a substantial net loss.

The operational efficiency is best measured by the cash burn on general and administrative (G&A) expenses. The operating loss of $1,616,278 in Q3 2025 is almost entirely composed of G&A and Research & Development (R&D) costs, with R&D being a small portion at only $70,300 for the quarter. The company is defintely in cost-cutting mode, but the cash outflow is still significant.

Industry Comparison and Operational Reality

When you look at the wider aquaculture industry, the picture is starkly different. The US Fish & Seafood Aquaculture industry is an estimated $2.3 billion market in 2025, with many players expected to see a profitability surge. This surge is driven by normalizing feed prices-a major cost, often comprising up to 70% of operational expenses for fish farms.

AquaBounty Technologies, Inc. is not participating in this industry-wide tailwind. Its profitability ratios are not comparable to profitable aquaculture companies. Instead of managing high feed costs, it is managing a wind-down and asset sales. The key risk here is the cash position, which stood at only $951 thousand as of September 30, 2025. The only path to continued operations is through strategic alternatives for its Ohio Farm Project and further asset disposals.

For a detailed look at the balance sheet and cash flow, check out our full analysis: Breaking Down AquaBounty Technologies, Inc. (AQB) Financial Health: Key Insights for Investors.

Next Step: Monitor the company's progress on strategic alternatives for the Ohio Farm Project, as the ability to secure a new investment or partnership is the single biggest factor for future financial health.

Debt vs. Equity Structure

You're looking at AquaBounty Technologies, Inc. (AQB), a company that has been fundamentally restructuring its balance sheet in 2025, shifting its financing mix dramatically. The direct takeaway is that AquaBounty has substantially reduced its formal long-term debt burden through asset sales and loan forgiveness, but it has replaced that with a significant amount of current liabilities, creating a short-term liquidity puzzle.

The company's Debt-to-Equity (D/E) ratio stood at 0.65 as of September 30, 2025. This is a crucial metric, as it tells you how much debt the company is using to finance its assets compared to the value of shareholders' equity (book value). For context, the median D/E ratio for the broader Agriculture, Forestry, and Fishing industry in 2024 was around 0.73, so AquaBounty's ratio appears slightly lower than the industry median. Honestly, for a capital-intensive business like a recirculating aquaculture system (RAS) farm, a ratio under 1.0 is generally considered healthy, but this number hides the underlying distress.

Here's the quick math on the debt levels: The company's total liabilities were $11,933,588 as of September 30, 2025. What's interesting is the composition. Long-term debt, net, was essentially zero or negligible in the 2025 reporting periods, down from $1,996,558 at the end of 2024. The bulk of the financing risk is now short-term, with a significant non-cash conversion of accounts payable to current debt totaling $7,386,235 in the first nine months of 2025. That's a huge chunk of debt that needs to be managed in the near term.

AquaBounty has been actively de-leveraging through asset disposition, not just operations. In 2025, the company completed several strategic transactions to manage its debt load and generate cash for the Ohio Farm Project. This included a non-cash gain of $2.0 million from the forgiveness of an outstanding loan in Q1 2025. Plus, the sale of the Canadian Farms in March 2025 included the buyer assuming $3.2 million in outstanding loans. These moves are clear signals of a company prioritizing liquidity and shedding debt obligations at all costs, even if it means selling core assets. You can read more about the shareholders' perspective on these moves in Exploring AquaBounty Technologies, Inc. (AQB) Investor Profile: Who's Buying and Why?

The company's balancing act between debt and equity is currently skewed toward using equity (or asset sales, which is a form of equity liquidation) to solve its debt problems, rather than using debt to fund growth. They repaid $832,194 in term debt through the first nine months of 2025. This isn't a growth-oriented financing strategy; it's a survival strategy focused on extending the cash runway. The key actions in 2025 show this:

• Shed debt via asset sales (e.g., Canadian Farms).
• Reduce debt through loan forgiveness (non-cash gain of $2.0 million).
• Generate liquidity from equipment sales (Ohio Equipment Assets sales in 2025).

Liquidity and Solvency

You're looking at AquaBounty Technologies, Inc. (AQB) because it's a pioneer in land-based aquaculture, but honestly, the near-term financial picture is dominated by severe liquidity stress. The company is actively selling assets to keep the lights on, which is a major red flag for investors.

The core issue is that AquaBounty Technologies, Inc. (AQB) simply doesn't have enough liquid assets to cover its short-term debts. As of the most recent trailing twelve months (TTM) data, the Current Ratio is a deeply concerning 0.12, and the Quick Ratio (which strips out inventory) is even lower at 0.08. For context, a ratio below 1.0 means Current Liabilities exceed Current Assets-a ratio of 0.12 means current assets cover only 12 cents of every dollar of current debt. That's a tough spot.

• Current Ratio: 0.12 (TTM)
• Quick Ratio: 0.08 (TTM)

This poor ratio translates directly into a significant working capital deficit (Current Assets minus Current Liabilities). The TTM Net Current Asset Value sits at approximately -$10.46 million. The trend shows the company's liquidity position has deteriorated sharply from prior years, necessitating the sale of core assets to manage day-to-day operations. This isn't a sustainable business model; it's a liquidation strategy.

Cash Flow: Operations vs. Asset Sales

When you review the cash flow statements for the 2025 fiscal year, you see a clear distinction between cash burned by operations and cash generated by selling off parts of the business. The company's operations continue to consume cash, with the TTM Operating Cash Flow at a negative $6.68 million. That's the core burn rate.

To offset this, the company has relied on financing and investing activities, specifically asset sales. Here's the quick math on the cash injection this year:

This strategy temporarily boosted the cash position from $230 thousand at the end of 2024 to $1.4 million in Q1 2025. But, as of September 30, 2025 (Q3 2025), cash and cash equivalents had dropped back to just $951 thousand. They are spending the cash from asset sales faster than they are generating new capital.

Near-Term Liquidity Concerns

The biggest concern is the company's reliance on non-recurring asset sales to fund its negative operating cash flow. This is a classic sign of a company struggling with its going concern (the ability to continue operating indefinitely). The company has explicitly stated they are working with investment bankers to 'assess strategic alternatives' for their remaining Ohio Farm Project, which is code for finding a buyer or a major capital infusion, defintely. If a sale or new financing doesn't materialize quickly, the current cash runway is extremely short. For a deeper dive into who is still investing despite these risks, you might want to read Exploring AquaBounty Technologies, Inc. (AQB) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at AquaBounty Technologies, Inc. (AQB) and asking the core question: is the stock priced right? For a growth company like this, which is still in the pre-profit stage, traditional metrics like the Price-to-Earnings (P/E) ratio are essentially useless. The quick takeaway is that while the stock trades well below its book value, the analyst consensus is a clear 'Sell,' reflecting significant near-term financial and execution risk.

Honestly, you can't use P/E or Enterprise Value-to-EBITDA (EV/EBITDA) here because the company is not profitable. AquaBounty Technologies, Inc. reported a net loss of $1.4 million for the third quarter of 2025, so the P/E ratio is not applicable (n/a). Similarly, the EV/EBITDA is also n/a. That's just the reality of valuing an early-stage, capital-intensive aquaculture business.

Here's where you should focus your attention:

• Price-to-Book (P/B) Ratio: At approximately 0.34 as of November 2025, the stock is trading far below its book value. This suggests the market is pricing the company at less than one-third of its net tangible assets, which often signals a deep discount or, more often, a lack of confidence in the assets' ability to generate future profit.
• Enterprise Value (EV): The EV, which accounts for debt and cash, is much higher than the market capitalization (market cap). The market cap is around $4.15 million, but the Enterprise Value is about $11.14 million. This difference highlights the company's debt and the market's focus on its total funding structure, not just its equity value.

The stock's movement over the last 12 months (52 weeks) shows extreme volatility, which is typical for small-cap biotech or aquaculture stocks. The stock price has fluctuated wildly, ranging from a 52-week low of $0.47 to a high of $2.95. The price has seen a modest increase of about +4.90% over the last 52 weeks, but that hides a lot of sharp swings.

For income-focused investors, there is no dividend to consider. AquaBounty Technologies, Inc. does not pay a dividend, so the yield and payout ratios are n/a. They are correctly prioritizing capital retention for facility build-out and operations, as any growth company should.

To be fair, the analyst consensus is decidedly bearish. The consensus rating from Wall Street analysts is a Sell. The average price target is around $1.02, with a tight range between $1.01 and $1.05. With the stock trading around $1.07 in mid-November 2025, this target suggests a slight downside, or at best, that the stock is defintely fully priced at its current level. The market is waiting for tangible revenue from their new facilities before re-rating the stock.

For a deeper dive into the operational and financial risks, you should read the full analysis here: Breaking Down AquaBounty Technologies, Inc. (AQB) Financial Health: Key Insights for Investors.

Risk Factors

You need to understand that investing in AquaBounty Technologies, Inc. (AQB) right now is a bet on a strategic pivot, not on a stable operating business. The direct takeaway is this: the company faces an existential financial risk, evidenced by its minimal cash reserves and an accumulated deficit of nearly $374 million as of Q3 2025.

Operational and Financial Risks: The Liquidity Crunch

The most immediate and critical risk is liquidity, or the company's ability to pay its short-term obligations. AquaBounty has ceased all salmon-farming operations and is essentially in wind-down mode, focused on asset monetization. As of September 30, 2025, the company's cash and cash equivalents were only $951 thousand. Honestly, that's an extremely tight margin for a company of this scale, and it's why management has cited 'substantial doubt about its ability to continue as a going concern' in its filings.

Here's the quick math: while the net loss for Q3 2025 narrowed to $1.4 million (down from a $3.4 million loss in Q3 2024), this improvement is not from sales, but from cutting expenses and selling assets. The company's future hinges on its ability to secure new funding or a strategic partner for the Ohio Farm Project, which remains partially constructed after being paused in 2023 due to rising costs.

The balance sheet shows the strain, with total assets dropping to $24.17 million in Q3 2025, a massive decline following the sale of major assets. You're defintely looking at a company in a high-stakes, high-risk transition.

• Cash Burn: Cash reserves are critically low.
• Asset Impairment: Non-cash impairment charges, like the $69,000 in Q3 2025 for Ohio equipment, show the ongoing difficulty in valuing and monetizing assets.
• Operational Halt: Core business operations (farming) have stopped, making the company a holding entity for the Ohio project and intellectual property.

Strategic and External Risks: Competition and Consumer Sentiment

Even if the company secures funding, the path to profitability is fraught with external challenges. The core product, AquAdvantage salmon, is a genetically modified (GM) food, and consumer skepticism around GM seafood remains a persistent market headwind. This isn't a simple commodity market; it involves public perception and regulatory oversight.

In the broader aquaculture market, AquaBounty Technologies, Inc. is competing in the Recirculating Aquaculture System (RAS) sector, which has high entry barriers for smaller players. Their strategic plan is now to find a buyer or partner for the Ohio asset, which means they are competing for capital and attention against other, potentially more financially stable, RAS projects globally.

The company's mitigation strategy is clear: liquidate non-core assets and find a strategic alternative for the Ohio Farm Project. They've successfully secured all necessary permits for the Ohio farm, including the wastewater discharge permit in September 2025, which is a crucial step for making the asset more attractive to a potential buyer or partner. They are working with an investment banker to explore these options.

For a deeper dive into the company's long-term vision, you can review their Mission Statement, Vision, & Core Values of AquaBounty Technologies, Inc. (AQB).

The next step for you is to monitor the strategic review process closely; any announcement of a new funding source or a sale of the Ohio asset will be the primary catalyst for the stock.

Growth Opportunities

You're looking at AquaBounty Technologies, Inc. (AQB) and trying to map a path to profitability, and honestly, the near-term picture is all about execution and capital. The company's future growth hinges on successfully funding and deploying its Recirculating Aquaculture System (RAS) technology, specifically the Ohio farm, and capitalizing on its unique product. This isn't a quick-flip stock; it's a long-term, technology-driven play in the growing sustainable protein market.

The core growth driver is the AquAdvantage Salmon, a genetically engineered Atlantic salmon that reaches market size in roughly half the time of conventional farmed salmon. This product innovation is a massive efficiency advantage, cutting the grow-out cycle and lowering production risk. Plus, the land-based RAS farms are located near key U.S. and Canadian consumption markets, which drastically cuts down on shipping costs and carbon footprint-a clear selling point for retailers and consumers.

• Product Innovation: Faster-growing AquAdvantage Salmon.
• Market Expansion: Focus on the lucrative U.S. and Canadian markets.
• Technological Edge: Vertically integrated, sustainable RAS farming.

Future Revenue and Earnings Estimates

The financial projections for the 2025 fiscal year reflect a company still in its pre-commercial scale-up phase, not a fully operational one. Analysts project AquaBounty Technologies, Inc.'s full-year 2025 revenue to be around $1.31 million. That's a tiny number for a public company, but it's a placeholder until the major facilities come online. The consensus Earnings Per Share (EPS) estimate for FY 2025 is a loss of -$2.30. The company is still burning cash to build the future, but the Q3 2025 net loss did narrow to $1.4 million from a $3.4 million loss in Q3 2024, a positive sign of operational control.

Here's the quick math: The RAS market is projected to reach $7 billion by 2033, growing at a 15% Compound Annual Growth Rate (CAGR). AquaBounty Technologies, Inc. is positioned to capture a piece of that, but the financial risk is high until the Ohio facility is fully funded and operational. The company's cash and cash equivalents were only $951 thousand as of September 30, 2025, which is defintely insufficient for full-scale RAS deployment without new capital.

Strategic Initiatives and Competitive Moat

The biggest near-term opportunity is the Ohio farm. As of October 2025, the project is fully permitted for its designed RAS activities, securing the final wastewater discharge and right-of-way permits. This regulatory hurdle is a huge win. The next crucial step is the strategic alternative process, where management is working with an investment banker to secure funding or a major partnership for the Ohio farm. This is the action that will change the company's valuation. They also announced a strategic partnership with a major retail chain in August 2025 to expand market reach across North America, which is a key distribution channel win.

AquaBounty Technologies, Inc.'s competitive advantages (its 'moat') are clear:

• Proprietary Genetics: The only FDA-approved genetically modified salmon, offering a significant growth time advantage.
• Biosecurity: Land-based RAS prevents disease and protects wild fish populations, allowing them to raise fish antibiotic-free.
• Vertical Integration: Control over the supply chain from broodstock (retaining capacity at the Bay Fortune hatchery) to harvest.

The sale of the Rollo Bay farm is a necessary move to boost the balance sheet and focus resources on the Ohio project, demonstrating management's pivot to a more capital-efficient strategy. To understand the deeper principles guiding these decisions, you can review the company's long-term goals here: Mission Statement, Vision, & Core Values of AquaBounty Technologies, Inc. (AQB).