Breaking Down Cyclo Therapeutics, Inc. (CYTH) Financial Health: Key Insights for Investors

You're looking at Cyclo Therapeutics, Inc. (CYTH) and wondering if the clinical promise of Trappsol Cyclo can outrun the near-term balance sheet risks, and honestly, that's the right question. The market is defintely focused on the pivotal Phase 3 TransportNPC™ data expected in H1 2025, because the financials tell a story of a biotech burning cash to reach that finish line. Analysts project 2025 revenue will only hit about $1.23 million, while the expected loss per share (EPS) is still deep in the red at -$0.68. Here's the quick math: the company reported a net loss of over $19.1 million for the first nine months of 2024, but their cash and cash equivalents were down to just $928,010 as of September 30, 2024. That cash position, coupled with a Nasdaq delisting notice, means the stock is a binary event-a high-stakes bet on the clinical trial results and the subsequent New Drug Application (NDA) submission targeted for H2 2025. We need to map the runway against the catalysts.

Revenue Analysis

You need to understand one key thing about Cyclo Therapeutics, Inc. (CYTH) right now: its revenue is minimal because it's a clinical-stage biotech company. The money coming in is a side effect of its core business, which is burning cash to get its lead drug, Trappsol® Cyclo™, approved. So, don't look for blockbuster sales here; look for R&D progress.

The company operates in a single segment, meaning all its revenue streams contribute to the same core business of developing cyclodextrin-based treatments for rare diseases like Niemann-Pick Type C (NPC). This focus is what drives its high R&D spending, not its sales figures.

Breakdown of Primary Revenue Sources

Cyclo Therapeutics, Inc.'s revenue is not from a commercially approved drug, but from a small, specialized chemicals business that helps fund its clinical trials. The primary sources are sales of cyclodextrins (sugar molecules used in drug delivery) and related products to other pharmaceutical and nutritional companies, plus some income from collaborative agreements and grants.

• Trappsol HPB: A high-purity beta-cyclodextrin product sold to the pharmaceutical industry.
• Trappsol Fine Chemical: Another cyclodextrin product sold to the nutritional and other industries.
• Collaborative Agreements/Grants: Revenue from partnerships, which can fluctuate wildly based on milestones and trial phases.

To be fair, the impressive part is the 91.2% gross profit margin this small revenue stream maintains, according to InvestingPro data around the time of the merger. That's defintely high-quality revenue, even if the volume is low.

Year-over-Year Revenue Growth and 2025 Outlook

The historical trend shows the volatility typical of a pre-commercial biotech, with revenue declining as the company shifts its focus almost entirely to the pivotal Phase 3 TransportNPC™ trial. For a clear view, look at the last full year before the 2025 merger with Rafael Holdings, which closed in March 2025.

Here's the quick math on the recent trend:

What this estimate hides is the strategic pivot. The company's revenue is not the story for 2025; the story is the Phase 3 trial. The merger with Rafael Holdings in March 2025 was a move to consolidate resources and focus on the lead asset, Trappsol® Cyclo™. Moving forward, Cyclo Therapeutics, Inc.'s revenue figures will be consolidated into Rafael Holdings' financial reports, and the real value driver will be the topline data from the 48-week interim analysis of the TransportNPC™ study, which was expected in mid-2025. If that data is positive, revenue will explode from zero to something significant upon NDA submission, which was targeted for the second half of 2025. If you want to dig into the capital structure that supported this, you can check out Exploring Cyclo Therapeutics, Inc. (CYTH) Investor Profile: Who's Buying and Why?

Next step: Finance needs to model a scenario where NDA submission is delayed by six months past the H2 2025 target, as that revenue spike is the only thing that changes the long-term cash flow view.

Profitability Metrics

You need to know the bottom line, and for Cyclo Therapeutics, Inc. (CYTH), the story is typical for a clinical-stage biotech: massive losses driven by research, but a strong gross margin that hints at future pricing power. The company is currently deep in the red, with a projected 2025 net loss of over $20 million, but its core product sales show excellent efficiency.

Here's the quick math on CYTH's profitability for the 2025 fiscal year, based on available projections and recent financial data. The revenue base is small, just $1.08 million, so the loss margins look huge-which is defintely the case for a company focused on a costly Phase 3 trial (TransportNPC™) for a rare disease like Niemann-Pick Type C1.

• Gross Profit Margin: The core product sales are highly efficient.
• Operating & Net Margins: These are negative, a direct result of high R&D spend.
• Industry Context: This is the cost of developing an orphan drug.

The gross profit margin of approximately 73.56% is a crucial sign of operational efficiency. This margin, which measures revenue minus the cost of goods sold, is comparable to other high-margin biotech peers, such as Burning Rock Biotech, which reported a 75.1% gross margin in Q3 2025. It shows that the commercial side of the business-selling cyclodextrins-has a strong cost structure and pricing power. This is the foundation you want for a post-approval scenario.

But still, the massive negative operating and net profit margins-both exceeding -1,800%-tell the real story of a clinical-stage company. The losses are driven almost entirely by research and development (R&D) expenses, which are necessary to move the lead candidate, Trappsol® Cyclo™, toward its targeted New Drug Application (NDA) submission in the second half of 2025. For context, the biopharma industry spends over $300 billion on R&D annually, and most early-stage biotechs are deeply unprofitable because of this massive investment. This isn't a cost management issue; it's a development-stage reality.

The trend in profitability is one of consistent, deep losses as the company advances its pipeline. The net loss of $20.06 million in 2025 is a continuation of this pattern, reflecting the high burn rate required to complete a Phase 3 trial. What this estimate hides is the potential for a massive, sudden shift in profitability if the TransportNPC™ trial data is positive and leads to a successful launch. That's the binary risk-reward in this sector. For a deeper look at the context of this financial profile, read our full article: Breaking Down Cyclo Therapeutics, Inc. (CYTH) Financial Health: Key Insights for Investors.

Next step: Keep a close watch on the H1 2025 topline data from the Phase 3 trial, as that is the single biggest catalyst that will change these profitability metrics overnight.

Debt vs. Equity Structure

When you look at Cyclo Therapeutics, Inc. (CYTH)'s balance sheet, the first thing that jumps out is how they've financed their operations, which is typical for a clinical-stage biotechnology company. They rely on a mix of convertible debt and equity raises, but the scale of their debt is relatively contained compared to their recent capital injections.

As of the Most Recent Quarter (MRQ) ending March 2025, Cyclo Therapeutics, Inc. (CYTH) carried approximately $12.21 million in Total Debt, with the majority classified as Short-Term Debt at around $12.18 million. This is a crucial distinction: most of their debt is current, meaning it's due within one year. For a company focused on drug development, this short-term pressure is a constant reality, but it also signals a reliance on near-term financing or conversion.

The Debt-to-Equity (D/E) ratio for Cyclo Therapeutics, Inc. (CYTH) in March 2025 stood at an alarming -0.91. Here's the quick math: a negative D/E ratio means the company has an accumulated deficit, or negative shareholder equity (the total value of assets is less than total liabilities). This is defintely a red flag for solvency, but it's not uncommon for biotech firms burning cash on Research & Development (R&D) before a product hits the market.

To put this into perspective, the average Debt-to-Equity ratio for the Biotechnology sector is much lower, around 0.17 as of November 2025. Cyclo Therapeutics, Inc. (CYTH)'s negative equity position makes a direct comparison difficult, but it underscores the high-risk, high-reward nature of their financing model. They're not using traditional long-term bank loans; they're essentially funding R&D through capital market transactions.

The company's strategy to balance this leverage is clearly centered on equity funding. The most significant recent action was the closing of a $25 million rights offering in June 2025, which raised net proceeds of $24.9 million. This massive equity infusion immediately bolstered the shareholder equity section of the balance sheet, dramatically reducing the D/E ratio's magnitude and providing a cash runway for their Phase 3 clinical trials.

The debt itself has primarily been in the form of convertible promissory notes issued to Rafael Holdings, Inc., totaling approximately $18 million in convertible debt since June 2024. This is a common strategy:

• Lower initial interest payments than straight debt.
• Conversion option shifts the liability to equity, avoiding a cash repayment.
• Strategic alignment with a key investor/merger partner (Rafael Holdings).

This approach effectively transforms debt financing into equity funding upon conversion, which is a cleaner exit for the liability. The merger with Rafael Holdings, Inc., which was completed by June 2025, further solidifies this capital structure shift. If you want to understand the long-term vision behind this financial maneuvering, you should review their Mission Statement, Vision, & Core Values of Cyclo Therapeutics, Inc. (CYTH).

The key takeaway is that Cyclo Therapeutics, Inc. (CYTH) is deep in the equity-funding lifecycle, using convertible notes as a bridge to major equity events. The short-term debt is a risk, but the $24.9 million equity raise is the clear action that bought the company time and significantly de-risked its immediate capital structure.

Liquidity and Solvency

You need to know if Cyclo Therapeutics, Inc. (CYTH) can cover its near-term bills, especially as a clinical-stage biotech company with high cash burn. The direct takeaway is that while the pre-merger liquidity ratios were a red flag, the March 2025 merger with Rafael Holdings, Inc. fundamentally altered the company's cash position, injecting much-needed capital to fund its pivotal Phase 3 trial.

Current and Quick Ratios: A Pre-Merger Red Flag

Before the merger, Cyclo Therapeutics, Inc.'s short-term liquidity was under significant pressure. The Trailing Twelve Months (TTM) Current Ratio was a very low 0.17 as of March 2025, meaning the company had only 17 cents in current assets for every dollar of current liabilities. The Quick Ratio, which strips out inventory, was even tighter at 0.06 for the most recent quarter (MRQ). Honestly, any ratio below 1.0 signals a working capital deficit, and these numbers defintely indicated a need for immediate financing to meet obligations.

• Current Ratio (MRQ/TTM): 0.17
• Quick Ratio (MRQ/TTM): 0.06
• A ratio below 1.0 means you're operating on borrowed time.

Working Capital Trends and the Merger Catalyst

The trend was a classic biotech story: high operational costs for clinical trials leading to a continuous working capital shortfall. This is why the company repeatedly turned to convertible debt (a form of financing that can be converted into stock) from Rafael Holdings, Inc. A key financing move in March 2025 was securing a $2.5 million convertible promissory note specifically for working capital and general corporate purposes. This was part of a larger $18 million in convertible debt issued since June 2024, all pointing to a scramble for cash.

However, the March 26, 2025, closing of the merger with Rafael Holdings, Inc. was the game-changer. The combined entity's balance sheet, as of a recent 2025 period, shows a dramatic liquidity improvement. Cash and cash equivalents jumped to approximately $9,246,592, and total current assets reached $12,318,257. This capital infusion, plus the discharge of outstanding convertible debt as part of the merger, is the new foundation for their liquidity.

Cash Flow Statements Overview: The Burn Continues

Even with the new cash cushion, the core operational reality remains challenging. The Trailing Twelve Months (TTM) Operating Cash Flow (OCF) for Cyclo Therapeutics, Inc. was a negative -$22.52 million, reflecting a substantial cash burn rate necessary to advance the Phase 3 TransportNPC™ trial. This is where the new financing structure is crucial.

Here is the quick math on the cash flow story:

The Financing Cash Flow has been the lifeblood, offsetting the negative OCF. For example, the combined entity (Rafael Holdings, Inc., including Cyclo's expenses) reported a net loss of $12.1 million for the three months ended July 31, 2025, with Research and Development expenses at $7.5 million for that same period. So, the cash is being used exactly as expected: to fund the clinical pipeline.

Near-Term Liquidity Concerns and Strengths

The primary liquidity strength is now the financial backing and combined resources of the merged entity. The immediate liquidity concern-the inability to pay short-term debts-has been addressed by the capital injection. The long-term risk, however, is the sustained, high cash burn rate. The company is now betting on a positive outcome from the 48-week interim analysis of the TransportNPC™ trial, expected in mid-2025. A positive result would trigger a target submission for a New Drug Application (NDA) in the second half of 2025, which would be the ultimate liquidity solution by changing the company's status from a cash-burning clinical-stage firm to a revenue-generating commercial one. Investors need to watch the cash balance versus the burn rate until that data drops. For a deeper dive into the strategic landscape, you can read our full analysis: Breaking Down Cyclo Therapeutics, Inc. (CYTH) Financial Health: Key Insights for Investors.

Next Step: Track the cash balance in the next quarterly report and compare it directly to the $7.5 million quarterly R&D expense run-rate to calculate the remaining cash runway.

Valuation Analysis

You're looking at Cyclo Therapeutics, Inc. (CYTH) and wondering if the market has it right. Is it overvalued, or is there an opportunity here? For a clinical-stage biotechnology company like CYTH, traditional valuation metrics often look skewed, and honestly, they should. They are pre-revenue or minimal-revenue companies, so you have to look beyond the surface.

The core takeaway is this: Cyclo Therapeutics, Inc. is currently trading near the low end of its 52-week range, but analysts see a significant upside based on its drug pipeline progress. The stock is technically undervalued based on analyst consensus, but its valuation ratios are negative, which is a massive red flag for anyone new to biotech investing.

Here's the quick math on why standard metrics are essentially useless right now:

• Price-to-Earnings (P/E) Ratio: The trailing P/E ratio is negative, around -3.23, because the company is not yet profitable. Trailing 12-month (ttm) Earnings Per Share (EPS) is approximately -$1.67.
• Price-to-Book (P/B) Ratio: This ratio is also negative, sitting at about -1.54. This indicates that shareholder equity is negative, a common situation for a company burning cash on Research and Development (R&D).
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric, which strips out financing and accounting effects, is also negative at approximately -2.5.

What this estimate hides is the fact that clinical-stage biotech is valued on the potential of its drug pipeline, not current earnings. The current market capitalization is around $23.59 million, but the Enterprise Value is higher at $34.87 million, reflecting the debt and cash position.

The stock price trend over the last 12 months shows high volatility. The 52-week trading range for Cyclo Therapeutics, Inc. has been between a low of $0.55 and a high of $1.79. As of November 2025, the stock is trading near the lower end of that range, at approximately $0.72 per share, having only grown by about 0.1% over the past year.

For income-focused investors, there is no dividend. Cyclo Therapeutics, Inc. has a 0.00% dividend yield and a 0.0% payout ratio, as all capital is reinvested into its pivotal Phase 3 TransportNPC™ trial for Niemann-Pick Disease Type C1 (NPC1).

The real signal of market sentiment comes from the analyst community. The consensus rating from analysts covering the stock is a clear Buy. The average 12-month price target is approximately $0.95, which suggests a potential upside of over 31.83% from the current price. This optimism is largely tied to the anticipated topline data readout from the 48-week interim analysis of the TransportNPC™ trial, expected in the first half of 2025. If that data is significant, a New Drug Application (NDA) submission is targeted for the second half of 2025.

Here is a snapshot of the key valuation data as of late 2025:

So, is it undervalued? Only if you believe the Phase 3 trial data will be positive. The stock price is currently a bet on future regulatory approval, not on current financials. For a deeper dive into who is making that bet, you should be Exploring Cyclo Therapeutics, Inc. (CYTH) Investor Profile: Who's Buying and Why?

Risk Factors

You're looking at Cyclo Therapeutics, Inc. (CYTH), a clinical-stage biotech, and the core risk is simple: it's a binary bet on a single drug's success. Your investment thesis hinges entirely on the Phase 3 trial for Trappsol® Cyclo™ (hydroxypropyl beta cyclodextrin), the lead drug candidate for Niemann-Pick Disease Type C1 (NPC1), a rare, fatal genetic disorder.

If that trial fails, the company's financial runway shortens dramatically. The near-term risks fall into three buckets: clinical, financial, and regulatory/competitive.

Operational and Clinical Risks: The Drug Pipeline

The biggest operational risk is the clinical trial outcome. While the independent Data Monitoring Committee (DMC) approved the Phase 3 TransportNPC™ trial to continue after its 48-week interim review in June 2025, this only confirms no safety concerns or futility signals were identified. It doesn't guarantee efficacy.

Topline results for the 52-week endpoint are expected in mid-2025, and that readout will be the single most important catalyst for the stock. If the data isn't strong enough to support a New Drug Application (NDA) for the U.S. Food and Drug Administration (FDA), the stock price will plummet.

• Clinical trial failure is the ultimate risk.
• Regulatory approval is never defintely guaranteed.
• Manufacturing scale-up could introduce delays post-approval.

Financial Health and Liquidity Risks

The company's financial position, despite the recent merger, is still a major concern. As of September 30, 2024, the company reported cash and cash equivalents of only $928,010, a sharp drop from $9,246,592 at the end of 2023. This cash burn is typical for a biotech in late-stage trials, but it creates significant liquidity risk.

Here's the quick math on the cash burn: the net loss for the nine months ended September 30, 2024, was $19,157,261, which is a 32.9% increase from the loss of $14,414,893 in the same period of 2023. The company is spending heavily on Research and Development (R&D) and professional fees to push the trial forward.

The financial lifeline has been the merger with Rafael Holdings in March 2025 and the subsequent $25 million rights offering in early June 2025. This capital is intended to fund the trial to completion and commercial preparation, but continued losses mean more capital raises or debt will be necessary without a commercial product.

External and Strategic Risks: Competition and Regulatory Hurdles

The competitive landscape is heating up. While Trappsol® Cyclo™ has Orphan Drug Designation, Zevra Therapeutics has a competing candidate, arimoclomol, which received backing from an FDA advisory committee. This means Cyclo Therapeutics, Inc. is not guaranteed to be the first-to-market for NPC1, which is crucial in the rare disease (orphan drug) space where market exclusivity is a key driver of value.

Also, the company received a delisting notice from Nasdaq in October 2024 for failing to meet certain listing requirements, including minimum bid price and stockholders' equity. While the merger with Rafael Holdings and the capital raise are mitigation steps, the threat of delisting is a constant drag on investor confidence and liquidity. The successful completion of the merger in March 2025 was a necessary step to stabilize the strategic direction and funding, but the core issue remains: a clinical-stage biotech is only as good as its data.

For a deeper dive into the valuation models and strategic frameworks, you should check out the full post: Breaking Down Cyclo Therapeutics, Inc. (CYTH) Financial Health: Key Insights for Investors.

The next step is clear: monitor all press releases for any updates on the TransportNPC™ topline data expected in mid-2025.

Growth Opportunities

You're looking at Cyclo Therapeutics, Inc. (CYTH) and wondering if the clinical-stage promise will translate into real shareholder value. The short answer is that 2025 is a make-or-break year, entirely dependent on a single, massive data readout. The entire growth story hinges on their lead asset, Trappsol® Cyclo™, which treats the rare, fatal genetic disorder Niemann-Pick Disease Type C1 (NPC1).

The core of Cyclo Therapeutics' near-term value is their pivotal Phase 3 global study, TransportNPC™, which is fully enrolled with 104 patients. The key growth driver for 2025 isn't sales-it's a regulatory milestone. We are all waiting for the topline data from the 48-week interim analysis, which is expected in the first half of 2025. If that data is significant, the company plans to submit a New Drug Application (NDA) to the FDA and a Marketing Authorization Application (MAA) to the EMA in the second half of 2025.

Future Revenue and Earnings Estimates

Right now, Cyclo Therapeutics is a research story, not a revenue one. The 2025 financial projections reflect this pre-commercial reality. Analysts project their average revenue for the 2025 fiscal year to be around $1.23 million, which is a projected growth of 24.49% from 2024 estimates, but this is mainly from their small existing cyclodextrin sales, not the drug itself. Honestly, the high-end revenue projection of $1.9 million is a better reflection of what a positive clinical outcome could mean, but it's still a fraction of what a commercial launch would bring.

As a clinical-stage biotech, they are spending heavily on R&D, so profitability remains elusive. For the 2025 fiscal year, the average Earnings Per Share (EPS) estimate is a loss of -$0.68 per share. For context, their net loss in the third quarter of 2024 was already approximately $8.8 million, with R&D expenses at $5.5 million. This is a high-risk, high-reward bet. The market's average 12-month price target of $0.95 suggests a potential 31.83% upside from a recent price, but that target is built on the hope of positive Phase 3 data.

Strategic Moves and Competitive Edge

The company has made a defintely smart strategic move by merging with Rafael Holdings, a deal expected to close in late 2024. This merger is designed to consolidate resources and focus on advancing Trappsol® Cyclo™ for NPC1, giving them the capital to fund the pivotal trial through the 48-week interim analysis. This is a crucial lifeline for a clinical-stage company.

Their competitive advantage rests on two pillars: the drug's mechanism and its regulatory status. Trappsol® Cyclo™ is a proprietary formulation of hydroxypropyl beta cyclodextrin that works by capturing and transporting accumulated cholesterol out of cells, effectively addressing the root cause of the disease. This mechanism is proving effective, with a sub-study in the youngest patients showing that 86% of those who reached 48 weeks demonstrated stabilization or improvement. Plus, the drug has Orphan Drug Designation in both the U.S. and Europe, and the company is qualified to receive a Priority Review Voucher (PRV) upon NDA submission. A PRV is a tradable asset worth hundreds of millions, which is a major, non-dilutive financial opportunity.

• Expect topline Phase 3 data in H1 2025.
• NDA/MAA submission targeted for H2 2025 if data is positive.
• Merger with Rafael Holdings strengthens the financial runway.
• Pipeline includes a Phase IIb trial for early Alzheimer's disease.

To understand the full context of these financials, you should read the preceding analysis in Breaking Down Cyclo Therapeutics, Inc. (CYTH) Financial Health: Key Insights for Investors. Your next step, as an investor, is to set a firm alert for the H1 2025 data readout; that single event will determine the company's trajectory. (Analyst: update financial models immediately following the H1 2025 data release.)