Breaking Down Aquestive Therapeutics, Inc. (AQST) Financial Health: Key Insights for Investors

Are you keeping a close watch on Aquestive Therapeutics, Inc. (AQST) and wondering about its financial stability? Let's dive into the numbers! In 2024, the company reported a total revenue of $57.56 million, marking a 13.80% increase from the previous year. However, losses significantly increased to -$44.14 million. With cash and cash equivalents at $71.5 million as of December 31, 2024, and total debt at $38 million, how does this pharmaceutical company balance growth and financial risk? Keep reading to uncover key insights into AQST's financial health and what it means for investors.

Aquestive Therapeutics, Inc. (AQST) Revenue Analysis

Understanding Aquestive Therapeutics, Inc.'s revenue streams involves examining its sources, growth rates, and segment contributions. Aquestive Therapeutics is a pharmaceutical company known for developing and commercializing differentiated products to address unmet medical needs. A comprehensive analysis of their revenue provides key insights into the company's financial health and future prospects. For additional details, you can explore: Breaking Down Aquestive Therapeutics, Inc. (AQST) Financial Health: Key Insights for Investors

Here's a breakdown of what to consider:

• Primary Revenue Sources:

Aquestive Therapeutics generates revenue primarily from:

• Product Sales: This includes sales of their proprietary products, such as Sympazan® (clobazam) oral film for the treatment of seizures associated with Lennox-Gastaut syndrome in patients 2 years of age and older, and Libervant™ (diazepam) Buccal Film for the treatment of seizure clusters.
• Licensing and Collaboration Agreements: Revenue is also derived from partnerships with other pharmaceutical companies, including upfront payments, milestone payments, and royalties on sales of partnered products.
• Contract Manufacturing and Services: Income from providing manufacturing services to other pharmaceutical companies.

• Year-over-Year Revenue Growth Rate:

Analyzing the year-over-year revenue growth rate reveals the company's ability to increase sales over time. Examining historical trends provides insights into factors driving growth, such as new product launches, market penetration, and changes in demand.

• Contribution of Different Business Segments to Overall Revenue:

Understanding the contribution of each business segment helps identify key revenue drivers and areas of strength. For Aquestive, this includes assessing the revenue generated from product sales, licensing agreements, and contract manufacturing.

• Analysis of Significant Changes in Revenue Streams:

Significant changes in revenue streams can indicate shifts in the company's business strategy, market dynamics, or competitive landscape. Monitoring these changes helps investors assess the company's adaptability and growth potential.

Recent financial results can provide a clearer picture. For example, information from Aquestive Therapeutics' reports can offer insights into their revenue streams. While specific 2024 fiscal year data may not be available yet, referencing their latest annual report and quarterly updates is essential for the most current figures. For instance, their financial performance in 2023 and early 2024 would offer a perspective on their revenue trends.

To illustrate, consider a hypothetical breakdown based on available information:

Note that these figures are illustrative and should be verified with the company's official financial statements for 2024 when they become available.

Examining these aspects of Aquestive Therapeutics, Inc.'s revenue streams offers a comprehensive understanding of the company's financial dynamics and is crucial for making informed investment decisions.

Aquestive Therapeutics, Inc. (AQST) Profitability Metrics

Assessing the profitability of Aquestive Therapeutics, Inc. (AQST) requires a detailed examination of its financial performance, particularly its gross profit, operating profit, and net profit margins. These metrics provide insights into the company's efficiency in generating earnings from its revenue and managing its expenses.

Aquestive Therapeutics Inc.'s financial performance reveals some important aspects of its profitability. For the year 2024, Aquestive reported total revenues of $46.9 million and a gross profit of $29.8 million. Research and development expenses totaled $27.8 million, while selling, general, and administrative expenses amounted to $24.4 million. The company's operating loss was $22.4 million, and the net loss was $25.5 million, or $1.01 per share.

Here's a snapshot of Aquestive Therapeutics, Inc.'s profitability metrics:

Analyzing Aquestive Therapeutics' operational efficiency involves evaluating its cost management and gross margin trends. Monitoring these elements helps in understanding the company's ability to control costs and improve profitability over time.

More information about Aquestive Therapeutics, Inc. (AQST) is available here: Exploring Aquestive Therapeutics, Inc. (AQST) Investor Profile: Who’s Buying and Why?

Aquestive Therapeutics, Inc. (AQST) Debt vs. Equity Structure

Aquestive Therapeutics, Inc. (AQST) utilizes a mix of debt and equity to fund its operations and growth initiatives. Understanding the company's debt levels, debt-to-equity ratio, and recent financing activities is crucial for investors assessing its financial health.

As of December 31, 2023, Aquestive Therapeutics, Inc. (AQST) reported the following debt levels:

• Total Current Liabilities: $21.948 million
• Total Liabilities: $73.898 million

The company's approach to balancing debt and equity is evident in its financial statements. The debt-to-equity ratio offers insights into the extent to which Aquestive Therapeutics, Inc. (AQST) relies on borrowing versus equity to finance its assets. As of December 31, 2023, the Total Stockholders' Equity is $3.276 million.

Below is a table summarizing Aquestive Therapeutics, Inc. (AQST)'s debt and equity situation as of December 31, 2023:

Recent activities, such as debt issuances, credit ratings, or refinancing, can significantly impact Aquestive Therapeutics, Inc. (AQST)'s capital structure. Monitoring these developments provides valuable context for assessing the company's financial strategy and risk profile. For instance, in November 2023, Aquestive announced a $30 million private placement of common stock and warrants. This capital was intended to support the commercialization of Libervant, fund pipeline development, and cover general corporate purposes.

Balancing debt financing with equity funding is a strategic decision for Aquestive Therapeutics, Inc. (AQST). While debt can provide capital for growth, it also introduces financial risk through interest expenses and repayment obligations. Equity financing, on the other hand, dilutes ownership but strengthens the balance sheet. Aquestive Therapeutics, Inc. (AQST)'s approach to this balance is crucial for sustaining long-term financial stability and supporting its strategic objectives.

More insights into Aquestive Therapeutics, Inc. (AQST)'s financial health can be found here: Breaking Down Aquestive Therapeutics, Inc. (AQST) Financial Health: Key Insights for Investors

Aquestive Therapeutics, Inc. (AQST) Liquidity and Solvency

Analyzing Aquestive Therapeutics, Inc.'s (AQST) 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 and long-term obligations. Let's examine the key indicators based on the latest available financial data.

Assessing Aquestive Therapeutics, Inc.'s (AQST) Liquidity:

Liquidity ratios reveal AQST's capacity to cover its immediate liabilities. Key metrics include:

• Current Ratio: This ratio measures a company's ability to pay short-term obligations with its current assets. For the fiscal year 2024, AQST's current ratio can be calculated using the formula: Current Assets / Current Liabilities.
• Quick Ratio: Also known as the acid-test ratio, it excludes inventory from current assets to provide a more conservative view of liquidity. The formula is: (Current Assets - Inventory) / Current Liabilities.

A higher current and quick ratio generally indicates a stronger liquidity position, suggesting that the company is more capable of meeting its short-term obligations. Monitoring these ratios over time helps identify trends and potential liquidity issues.

Analysis of Working Capital Trends:

Working capital, defined as current assets minus current liabilities, is a crucial measure of a company's operational efficiency and short-term financial health. A positive working capital balance indicates that a company has enough liquid assets to cover its short-term liabilities. Declining working capital could signal potential liquidity problems.

Cash Flow Statements Overview:

Cash flow statements provide a comprehensive view of all the cash inflows and outflows of Aquestive Therapeutics, Inc. (AQST), categorized into operating, investing, and financing activities:

• Operating Cash Flow: Cash generated from the company's core business activities. Trends in operating cash flow indicate the sustainability of the business model.
• Investing Cash Flow: Cash flow related to the purchase and sale of long-term assets. Negative investing cash flow often indicates investments in growth.
• Financing Cash Flow: Cash flow related to debt, equity, and dividends. This section reveals how the company is funding its operations and growth.

Analyzing these cash flow trends helps investors understand how AQST manages its cash and funds its activities. Consistent positive operating cash flow is generally a healthy sign, while reliance on financing activities to cover operational shortfalls may raise concerns.

Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios, working capital, and cash flow statements, investors can identify potential strengths and weaknesses in Aquestive Therapeutics, Inc.'s (AQST) liquidity position. For instance, a high current ratio coupled with positive operating cash flow would indicate a strong liquidity position. Conversely, declining working capital and negative operating cash flow might signal liquidity concerns.

Here is a sample table illustrating hypothetical liquidity data for AQST:

In this hypothetical scenario, the declining current and quick ratios, along with decreasing working capital and negative operating cash flow, may suggest potential liquidity challenges for AQST. Investors should monitor these trends and consider them in their overall assessment of the company's financial health.

For further insights into the investors of Aquestive Therapeutics, Inc. (AQST), consider reading: Exploring Aquestive Therapeutics, Inc. (AQST) Investor Profile: Who’s Buying and Why?

Aquestive Therapeutics, Inc. (AQST) Valuation Analysis

Determining whether Aquestive Therapeutics, Inc. (AQST) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Let's delve into the details to provide a clearer picture for investors.

To assess Aquestive Therapeutics, Inc. (AQST)'s valuation, several key ratios are essential:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share (EPS), indicating how much investors are willing to pay for each dollar of earnings.
• Price-to-Book (P/B) Ratio: This ratio compares the company's market capitalization to its book value of equity, helping to identify if the stock is trading at a premium or discount to its net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA), providing a valuation measure that accounts for debt levels.

Analyzing these ratios in comparison to industry peers and historical averages can offer insights into whether Aquestive Therapeutics, Inc. (AQST) is trading at a fair value.

Examining Aquestive Therapeutics, Inc. (AQST)'s stock price trends over the past year provides context on market sentiment and investor confidence. Significant price fluctuations may reflect company-specific events, industry trends, or broader market conditions. As of April 20, 2025, real-time stock data indicates:

Aquestive Therapeutics, Inc. (AQST) stock price demonstrated considerable volatility over the last 12 months. The stock started at approximately $2.00 in April 2024, peaking at around $9.44 in late February 2025, before settling back to approximately $5.77 as of April 19, 2025. This fluctuation highlights the dynamic nature of the market's perception of Aquestive Therapeutics, Inc. (AQST)'s value and potential.

For companies that distribute dividends, the dividend yield and payout ratios are important valuation metrics. However, it is important to note that Aquestive Therapeutics, Inc. (AQST) does not currently offer dividends. Therefore, these metrics are not applicable in this valuation analysis.

It's valuable to consider analyst consensus on Aquestive Therapeutics, Inc. (AQST)'s stock. Analyst ratings typically fall into categories such as 'buy,' 'hold,' or 'sell,' reflecting their overall assessment of the stock's potential. These ratings are based on in-depth analysis of the company's financials, industry trends, and future growth prospects. As of April 2025, the analyst consensus for Aquestive Therapeutics, Inc. (AQST) is:

This consensus suggests a generally positive outlook on Aquestive Therapeutics, Inc. (AQST), with a majority of analysts recommending a 'buy' rating. However, it's important to consider that analyst opinions can vary and should be viewed as one factor among many in making investment decisions.

In summary, evaluating whether Aquestive Therapeutics, Inc. (AQST) is overvalued or undervalued involves a comprehensive review of financial ratios, stock price trends, and analyst opinions. While the absence of dividends simplifies some aspects of the analysis, the stock's volatility and positive analyst consensus provide valuable insights for investors. Always conduct thorough due diligence and consider your personal investment goals before making any investment decisions.

Further insights into the company's investors can be found here: Exploring Aquestive Therapeutics, Inc. (AQST) Investor Profile: Who’s Buying and Why?

Aquestive Therapeutics, Inc. (AQST) Risk Factors

Aquestive Therapeutics, Inc. (AQST) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in their financial reports.

Here's a breakdown of key risk areas:

• Industry Competition: The pharmaceutical industry is intensely competitive. Aquestive faces competition from companies with greater financial, technical, manufacturing, marketing, and distribution resources. This competition can affect the pricing and market share of Aquestive's products.
• Regulatory Changes: The development, manufacturing, and marketing of pharmaceutical products are subject to extensive regulation by governmental authorities in the United States and other countries. Changes in these regulations can increase the time and cost associated with bringing new products to market and maintaining existing product approvals.
• Market Conditions: Economic downturns, changes in healthcare policies, and shifts in market demand for Aquestive’s products can impact revenue and profitability.

Operational, financial, and strategic risks highlighted in recent earnings reports and filings include:

• Reliance on Key Products: A significant portion of Aquestive's revenue may be derived from a limited number of products. Any issues affecting these products, such as manufacturing problems, patent expirations, or increased competition, could substantially harm the company’s financial performance.
• Clinical Trial Risks: The success of Aquestive’s pipeline products depends on the successful completion of clinical trials. Delays, failures, or inconclusive results in these trials can significantly delay or prevent the commercialization of new products.
• Manufacturing Risks: Aquestive faces risks related to the manufacturing of its products, including reliance on third-party manufacturers, potential quality control issues, and disruptions in the supply chain.
• Intellectual Property Risks: The protection of Aquestive’s intellectual property is crucial. Challenges to the company’s patents or the failure to obtain and maintain adequate patent protection could adversely affect its competitive position.
• Financial Risks: Aquestive may require additional capital to fund its operations and develop its product pipeline. The availability of financing on acceptable terms is not guaranteed, and failure to secure necessary funding could limit the company’s growth prospects.

Mitigation strategies and plans, as disclosed in company filings, may include:

• Diversification of Product Pipeline: Developing a broader range of products to reduce reliance on key revenue sources.
• Strategic Partnerships: Collaborating with other companies to share development costs and market access.
• Risk Management Programs: Implementing comprehensive programs to monitor and mitigate operational, financial, and compliance risks.

Understanding these risks is crucial for investors assessing Aquestive Therapeutics, Inc. (AQST). For more detailed insights, you can read: Breaking Down Aquestive Therapeutics, Inc. (AQST) Financial Health: Key Insights for Investors.

Aquestive Therapeutics, Inc. (AQST) Growth Opportunities

Aquestive Therapeutics, Inc. (AQST) faces a dynamic future, influenced by several growth drivers, strategic initiatives, and competitive advantages. Understanding these elements is crucial for investors assessing the company's potential.

Key growth drivers for Aquestive Therapeutics, Inc. (AQST) include:

• Product Innovations: Aquestive Therapeutics, Inc. (AQST)'s focus on developing innovative pharmaceutical products, particularly in the area of oral dissolving films, is a significant growth driver.
• Market Expansion: Expanding into new markets and therapeutic areas can provide additional revenue streams.
• Acquisitions: Strategic acquisitions can broaden Aquestive Therapeutics, Inc. (AQST)'s product portfolio and market reach.

To assess Aquestive Therapeutics, Inc. (AQST)'s future, investors should consider revenue growth projections and earnings estimates. While specific figures can fluctuate, understanding the general trajectory is key. For example, as of the 2024 fiscal year:

• Analysts may project a revenue growth rate of 15-20% over the next few years, driven by increased adoption of its key products.
• Earnings per share (EPS) are estimated to grow at a similar pace, reflecting improved operational efficiency and profitability.

Strategic initiatives and partnerships play a crucial role in Aquestive Therapeutics, Inc. (AQST)'s growth trajectory. These may include:

• Partnerships with pharmaceutical companies to co-develop or commercialize products.
• Research and development collaborations to expand its pipeline.
• Geographic expansion through distribution agreements or establishing a presence in new markets.

Aquestive Therapeutics, Inc. (AQST) possesses several competitive advantages that position it for growth:

• Proprietary Technology: Aquestive Therapeutics, Inc. (AQST)'s PharmFilm® technology provides a unique drug delivery platform.
• Niche Market Focus: Targeting specific therapeutic areas with unmet needs allows Aquestive Therapeutics, Inc. (AQST) to establish a strong presence.
• Strong Intellectual Property: Patents and other intellectual property protections safeguard its innovations.

Here's a look at potential future performance indicators:

For more insight into the values of Aquestive Therapeutics, Inc. (AQST), you can explore: Mission Statement, Vision, & Core Values of Aquestive Therapeutics, Inc. (AQST).