Breaking Down Danimer Scientific, Inc. (DNMR) Financial Health: Key Insights for Investors

You're looking at Danimer Scientific, Inc. (DNMR) and trying to map the promise of bioplastics against the hard financial realities, and honestly, the numbers tell a story of high-stakes transition. The near-term picture shows significant pressure: the consensus estimate for full-year 2025 revenue sits at just $43.55 million, coupled with a forecast Earnings Per Share (EPS) loss of -$32.53, which is a stark reminder of the cost of scaling innovative technology. Here's the quick math: the trailing twelve-month (TTM) net income is deep in the red at approximately -$155.47 million, meaning the company is burning cash while trying to capture market share.

But still, the opportunity is real, which is why you can't look away. The company is actively working toward a 20-million-pound annual run rate for its significant cutlery award by mid-2025, a crucial commercial ramp-up that could finally move the needle on its Nodax PHA resin business. The core question is whether the company can manage its indebtedness and liquidity constraints long enough for this commercial ramp to defintely translate into positive operating cash flow. We need to break down how a company with such a compelling product can navigate these financial headwinds.

Revenue Analysis

You need to know that Danimer Scientific, Inc. (DNMR) is currently navigating a period of financial contraction, but its future revenue hinges on a major product ramp-up in its core biopolymer segment, a plan now framed by a significant corporate restructuring in 2025. The Trailing Twelve Months (TTM) revenue as of November 2025 stood at $37.42 Million USD, reflecting the challenges of a difficult transition year.

The company's revenue streams are straightforward, coming primarily from the sale of two distinct bioplastic resins: polyhydroxyalkanoate (PHA) and polylactic acid (PLA). PHA, sold under the proprietary Nodax brand, is the strategic focus, while PLA is a more mature product line. Geographically, the majority of sales come from the United States.

Here's the quick math on the segment contribution from the third quarter of 2024, which gives us the clearest recent picture of the revenue mix:

• PHA Revenue (Nodax): $6.6 million, contributing about 76.7% of the total.
• PLA Revenue: $1.3 million, accounting for roughly 15.1%.
• Other Revenue: The remaining 8.1%.

The PHA segment is the one to watch, defintely.

Historically, Danimer Scientific has struggled with consistent growth. The TTM revenue of $37.42 Million USD as of November 2025 represents a year-over-year decline of -19.83% compared to the full-year 2023 revenue of $46.68 Million USD. This isn't just a recent dip; 2023 revenue also decreased by -12.28% from 2022. The trend is clear: the company has been shrinking its top line, which is why the 2025 ramp-up is so critical.

What this estimate hides is the massive structural change in 2025. The company filed for a Bankruptcy: Admin/Reorg in March 2025 and was subsequently acquired in May 2025 by Teknor Apex. The TTM revenue of $37.42 Million USD reflects the financial performance during this tumultuous period. Still, the core business opportunity remains the significant cutlery award, which is expected to reach a 20-million-pound annual run rate by mid-2025. This is the key driver for future PHA revenue growth. The soft launch of 100% compostable Skittles packaging using Nodax PHA is another positive, concrete example of new commercial traction.

We've seen significant shifts in revenue streams recently. The Q3 2024 decline was driven by a $1.8 million drop in PHA revenue and a $0.6 million drop in PLA revenue, the former due to a temporary reapportionment of Starbucks' straw business. The PLA segment has also been impacted by geopolitical issues, specifically the conflict in Ukraine affecting shipments. The near-term action is to monitor the new PHA contracts to see if they can reverse the multi-year decline.

For a deeper dive into the company's long-term vision, check out Mission Statement, Vision, & Core Values of Danimer Scientific, Inc. (DNMR).

Profitability Metrics

The profitability picture for Danimer Scientific, Inc. (DNMR) is challenging, to be frank. As of the most recent Trailing Twelve Months (TTM) data, the company is operating with deeply negative margins across the board, which is a critical signal for investors to heed. This isn't just a small loss; it reflects a fundamental struggle to cover the cost of production and operations.

Here's the quick math on the core margins, using TTM data closest to the 2025 fiscal year:

• Gross Profit Margin: A staggering -84.8%.
• Operating Profit Margin: A deep -218.28% (as of October 2025 TTM).
• Net Profit Margin: A significant -297.1%.

A negative Gross Margin means the company is selling its products for less than the cost it takes to produce them. That's a serious operational issue.

Profitability Trends Over Time

The trend in DNMR's profitability has been one of significant deterioration over the past few years, moving from a position of slim positivity to severe negativity. The shift is dramatic and highlights the difficulty in scaling their bioplastics production (polyhydroxyalkanoate, or PHA) efficiently.

The Gross Margin, for example, plummeted from a positive 34.34% in 2019 to a negative -57.75% in 2023, and has since worsened to the current TTM figure of -84.8%. This shows that the cost of goods sold (COGS) has drastically outpaced revenue growth, which is often tied to high input costs and inefficiencies in scaling up manufacturing capacity.

• 2019 Gross Margin: 34.34%
• 2023 Gross Margin: -57.75%
• TTM Gross Margin (Late 2024/Early 2025): -84.8%

The net loss for the TTM period ending in late 2024 was approximately -$111.19 million on revenue of around $37.43 million. The losses are substantial relative to the company's size.

Operational Efficiency and Cost Management

The core of the profitability problem lies in operational efficiency, specifically cost management. The negative Gross Margin is the clearest indicator that the company is not currently able to cover its production costs, let alone the significant Selling, General, and Administrative (SG&A) and Research & Development (R&D) expenses that are typical for a growth-focused technology company.

To be fair, management is aware of this and has taken clear actions. They've focused on cost reduction, including reductions in discretionary spending, employee headcount rationalization, and even the temporary suspension of operations at their Danimer Catalytic Technologies business. They are defintely trying to stem the bleeding.

The anticipated ramp-up of a significant cutlery award, which is expected to reach a 20-million-pound annual run rate by mid-2025, is a key opportunity. Successfully hitting this scale is crucial, as it could finally allow for better fixed cost absorption and improve the gross margin trend.

Comparison with Industry Benchmarks

When you compare Danimer Scientific, Inc.'s profitability to its peers in the broader plastics and packaging industry, the contrast is stark. While the bioplastics industry is still maturing and often operates with lower margins due to high feedstock costs, DNMR's current ratios are outliers.

For context, a competitor like Karat Packaging reported an Operating Margin of 10.33%, and Myers Industries, another in the sector, showed an Operating Margin of 1.61%. Both are positive, meaning they are profitable at the operating level. DNMR's TTM Operating Margin of -218.28% shows a massive performance gap that needs to be closed for the company to be considered a viable, long-term investment.

The bioplastics market itself is growing rapidly, with a projected CAGR of 12.8% from 2025 to 2032. Danimer Scientific, Inc. is positioned in a high-growth sector, but its financial performance is currently failing to capitalize on that market trend. The key action for you as an investor is to monitor the next few quarters for any tangible improvement in the Gross Margin as production scales up.

Debt vs. Equity Structure

You need to know how Danimer Scientific, Inc. (DNMR) is funding its operations, and the short answer is: heavily through debt, especially given the financial distress in early 2025. The company's capital structure shows a significant reliance on borrowing, which has translated into a very high-risk profile for investors.

As of the most recent reporting period (Q3 2024), Danimer Scientific, Inc.'s total debt stood at approximately $413.04 million. This massive figure is the combination of its long-term obligations and the smaller, but still critical, short-term debt. The company is using debt to fuel its capital-intensive bioplastics production ramp-up, but the cost has been steep.

• Total Debt (Q3 2024): $413.04 million
• Long-Term Debt Component: Approximately $403.29 million
• Short-Term Debt Component: Approximately $9.75 million

Here's the quick math on risk: The Debt-to-Equity (D/E) ratio for Danimer Scientific, Inc. is a staggering 195.2% (or 1.95:1). This means the company has almost two dollars of debt for every dollar of shareholder equity. To be fair, a high D/E ratio can be normal for a capital-intensive growth company, but this level is a major red flag when you compare it to the industry.

The average D/E ratio for the Specialty Chemicals sector is around 0.65. Danimer Scientific, Inc.'s ratio is roughly 3x the industry average, signaling that creditors, not shareholders, hold the majority of the financial claim on the company's assets. This is a very aggressive, defintely risky, financing strategy.

The balance between debt and equity has tipped dangerously toward debt, largely because the company's equity has been consistently eroded by significant operating losses and negative cash flow. This erosion, coupled with increasing debt to fund operations and expansion, is the core issue for the company's financial health.

The company's recent financing activities highlight its struggle for liquidity and capital structure stability. In December 2024, Danimer Scientific, Inc. issued an $11.25 million super senior secured promissory note with a punishing 15.0% annual interest rate. Plus, the company has an outstanding 3.25% convertible bond with a $200 million volume, maturing in December 2026. Securing capital at a 15.0% rate is a clear sign of financial distress and limited options. This reliance on high-cost, secured debt shows a pivot to prioritizing creditor protection over shareholder returns, a move that foreshadowed the company's subsequent filing for bankruptcy in March 2025.

The stark reality is that the company has been forced to balance its financing by taking on increasingly expensive debt, ultimately leading to a restructuring event. This is not a balanced approach; it's a fight for survival. For a deeper look at who is still betting on the company, check out Exploring Danimer Scientific, Inc. (DNMR) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need to know the cold, hard truth about Danimer Scientific, Inc. (DNMR)'s ability to cover its short-term bills and stay afloat through its anticipated 2025 growth ramp. The direct takeaway is this: while the company's Current Ratio looks strong on paper, its underlying cash position and persistent negative cash flow raise serious, immediate liquidity concerns that management itself has flagged.

As of the most recent data from September 30, 2024, the company's financial position shows a significant reliance on inventory to pad its current assets, which is a key distinction for a manufacturing business. Here's the quick math on their immediate liquidity, with all figures in thousands of U.S. dollars:

The Current Ratio of 3.27x looks great, suggesting over three dollars in current assets for every dollar of current liabilities. But, the Quick Ratio (acid-test) drops to 1.59x when you strip out inventory of $26.04 million. This tells you that nearly half of their current assets are tied up in inventory, which isn't cash until it's sold and paid for. That's a big difference, and it means the company is heavily dependent on moving product quickly to meet its short-term obligations.

Working capital trends also point to a tight spot. Working capital, which is just current assets minus current liabilities, stood at approximately $48.54 million as of Q3 2024. This is a positive number, but it's a far cry from the cash needed to fund operations when cash flow is consistently negative. The company is burning through cash to fund its growth and operations, which is the real problem.

• Cash and Cash Equivalents were only $22.19 million in Q3 2024.
• Operating cash flow for the first nine months of 2024 was a significant outflow of $46.5 million.

This negative operating cash flow trend is the primary liquidity concern. It means the core business is not generating enough cash to run itself, forcing the company to rely on financing activities (like raising debt or equity) to cover the difference. For the nine months ending September 30, 2024, the net cash from financing activities was $15.6 million, which is a lifeline, not a sustainable business model. The company itself has stated that its liquidity is 'insufficient to sustain operations' until its anticipated 2025 revenue growth kicks in, creating a 'substantial doubt about its ability to continue as a going concern' (the technical term for bankruptcy risk). They are defintely in a race against the clock. To get a full picture of the risks and opportunities, you should read the full analysis at Breaking Down Danimer Scientific, Inc. (DNMR) Financial Health: Key Insights for Investors.

Valuation Analysis

The valuation picture for Danimer Scientific, Inc. (DNMR) is defintely complex, dominated by its recent financial distress and delisting proceedings. You are not looking at a standard growth stock; you are looking at a deeply speculative situation where traditional metrics are heavily distorted by negative earnings and a Chapter 11 bankruptcy context for a related entity.

To be clear, when a company is unprofitable, the standard valuation ratios become less meaningful. Here's the quick math on the key multiples as of November 2025:

• Price-to-Earnings (P/E): The TTM P/E is negative, reported around -0.01. This simply flags that the company is currently unprofitable, which is the core financial problem.
• Price-to-Book (P/B): This ratio sits at an extremely high 14.97. A number this high suggests the market is assigning a value far beyond the company's net asset value, but in this context, it is likely an artifact of a low stock price and a balance sheet that has not been fully marked to market to reflect the distress.
• Enterprise Value-to-EBITDA (EV/EBITDA): As of November 15, 2025, the TTM EV/EBITDA is -6.4. This is negative because the company's TTM EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is negative, reported at approximately -$57 million. You cannot value a company on a negative cash-flow proxy.

Stock Price and Market Reality

The stock price trend over the last 12 months maps directly to the company's financial deterioration. The 52-week high was approximately $18.36, but as of November 2025, the stock is trading around $0.350. That is a catastrophic loss of value for shareholders.

The company executed a 1-for-40 reverse stock split in November 2024 to maintain listing compliance, but the NYSE commenced delisting proceedings shortly after, moving the stock to the OTCQX marketplace. This move, coupled with the March 2025 bankruptcy filing, confirms the stock's current price reflects a high probability of minimal or no recovery for equity holders.

Dividends and Analyst Disconnect

Danimer Scientific, Inc. is not a dividend stock. The company's dividend yield is consistently 0.00%. They are focused on survival and capital preservation, not returning cash to shareholders.

What is interesting is the analyst consensus. Despite the stock trading at $0.350, the overall consensus from Wall Street analysts is Neutral, with a median price target of $4.50. This target is likely stale, reflecting projections made before the full impact of the operational and financial restructuring was priced in. Still, one analyst maintains a 'Hold' rating. That is a massive disconnect you have to acknowledge.

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

Actionable Insight

The high P/B ratio and the analyst price target of $4.50 are not signals of undervaluation; they are signals of a broken valuation model. The market is telling you the truth: this is a distressed asset. Your action should not be based on multiples, but on the probability of a successful operational turnaround and the terms of any potential restructuring plan.

Risk Factors

The core risk for Danimer Scientific, Inc. (DNMR) has been, and remains, its financial viability as a standalone entity, which was only structurally resolved by the mid-2025 acquisition by Teknor Apex. Before that strategic shift, the company faced a severe liquidity crunch and operational challenges in scaling its proprietary polyhydroxyalkanoate (PHA) biopolymer production.

Honestly, the biggest near-term worry for investors in late 2024 was the 'going concern' risk-the very real doubt about the company's ability to sustain operations for the next twelve months due to negative cash flow and insufficient financial resources.

Operational and Financial Headwinds

The company's financial performance leading into the 2025 fiscal year showed significant strain. The cost of goods sold consistently outpaced revenue, resulting in persistent negative gross profit. For the third quarter of 2024, the gross profit was a loss of $(7.3) million, which was only a slight improvement from the $(7.7) million loss in the third quarter of 2023.

This lack of operational efficiency meant a high cash burn. At September 30, 2024, Danimer Scientific, Inc. reported total debt outstanding of $387.9 million. The continuous need for capital to fund operations and growth, coupled with a negative net loss of $(21.8) million in Q3 2024, created a precarious balance sheet situation. Here's the quick math: negative gross profit plus high debt service equals a constant scramble for cash.

• Negative Gross Profit: $(7.3) million (Q3 2024).
• Total Debt: $387.9 million (Sep 30, 2024).
• Q3 2024 Revenue: $8.6 million, a drop from $10.9 million in Q3 2023.

Strategic and External Market Risks

Beyond the internal financials, Danimer Scientific, Inc. faced critical strategic and external risks. The stock itself was delisted from the NYSE at the end of 2024, moving to the OTCQX market, after failing to maintain the minimum $15 million average market capitalization requirement. This delisting alone reduces the stock's visibility and liquidity for investors.

The company's revenue growth is heavily dependent on the successful, on-time ramp-up of major customer contracts, such as the significant cutlery award. While this program was anticipated to reach a 20 million-pound annual run rate in mid-2025, any delays in a customer's ramp plan or production issues could defintely derail projected 2025 revenue growth. This concentration risk is high. Plus, the bioplastics industry is competitive, and Danimer Scientific, Inc. must continuously defend its proprietary technology (like Nodax PHA) against cheaper, petroleum-based alternatives and other biopolymer rivals.

To learn more about who was holding the stock during this tumultuous period, you should check out Exploring Danimer Scientific, Inc. (DNMR) Investor Profile: Who's Buying and Why?

Mitigation and Structural Change

In late 2024, Danimer Scientific, Inc. took clear steps to manage its liquidity, including aggressive cost-cutting through reductions in discretionary spending, employee headcount rationalization, and postponing capital expenditures. They also secured a critical $11.25 million Secured Loan in December 2024 at a high interest rate of 15.0% per annum to provide near-term operating liquidity.

However, the most significant risk mitigation was the acquisition of Danimer Scientific, Inc. by Teknor Apex, a global leader in plastic material science solutions, announced in July 2025. This move fundamentally changed the company's risk profile, shifting the financial burden and growth capital requirements from a struggling public entity to a larger, more stable private industrial player. The acquisition is a clear signal that the technology, with its 480+ granted patents and pending applications, is valued, even if the standalone business model was not yet sustainable.

Growth Opportunities

You're looking at Danimer Scientific, Inc. (DNMR) because you know the bioplastics market is exploding, but the company's recent financial turmoil makes the path forward murky. Here's the direct takeaway: the company's core technology is a clear winner, but its growth prospects are now fundamentally tied to its new parent company, Teknor Apex, following the acquisition in 2025.

The real opportunity for Danimer Scientific lies in its proprietary polyhydroxyalkanoate (PHA) biopolymer, branded as Nodax. This material is verifiably biodegradable and compostable, which is a massive competitive advantage (a key differentiator) over traditional plastics and even some other bioplastics. The total addressable market for sustainable plastics was estimated at a colossal $180 billion as of late 2023, so the demand runway is huge.

Near-Term Operational Growth Drivers

The company's near-term growth is driven by securing high-volume commercial contracts that validate its scaling capabilities. This is where the rubber meets the road, and the numbers are concrete. For fiscal year 2025, the key operational ramp-up is a significant cutlery award that is on track to reach a 20-million-pound annual run rate by mid-2025.

• Scale production for a 20-million-pound annual cutlery run rate.
• Expand PHA segment, targeting a tripling of annualized PHA revenues by the end of the second quarter of 2025.
• Capitalize on the soft launch of 100% compostable Skittles packaging (a long-standing partnership with Mars Wrigley).
• Leverage existing strategic partnerships, including with PepsiCo, for future product film applications.

Here's the quick math: if they hit that 20-million-pound cutlery target, it drastically changes the revenue mix, which is crucial given the trailing twelve-month (TTM) revenue as of November 2025 was only $37.42 million USD. The goal was to pivot from a full-year Adjusted EBITDA loss-which was guided between $(34.4) million and $(34.9) million in late 2024-to a positive Adjusted EBITDA in early 2025.

Strategic Restructuring and Future Stability

To be fair, the financial challenges were real. The company was managing a significant total debt of $387.9 million as of Q3 2024, which led to a strategic shift. The most important event for its future was the acquisition by Teknor Apex, which was announced in mid-2025. This move provides the stability and resources-the financial and operational backing-that the former public entity desperately needed to fully realize its growth potential.

The acquisition means the growth story is no longer about a struggling public company, but about a proprietary technology (Nodax PHA) now housed within a larger, more financially robust materials science leader. Danimer Scientific continues to operate as a separate, dedicated entity, but with the support to accelerate its R&D and scale its operations. This is the ultimate action to secure the 20-million-pound production ramp and the tripling of PHA revenue. The risk profile for the core technology has dropped, even if the stock is no longer trading on the NYSE (it moved to the OTCQX market).

For a deeper dive into the numbers and the pre-acquisition financial picture, you can check out Breaking Down Danimer Scientific, Inc. (DNMR) Financial Health: Key Insights for Investors.

The next step for you is to monitor Teknor Apex's capital expenditure and commercial announcements regarding the Danimer Scientific division; that's where the defintely actionable insights will come from now.