Breaking Down Leap Therapeutics, Inc. (LPTX) Financial Health: Key Insights for Investors

Are you keeping a close watch on biotech stocks and wondering about their financial stability? Consider Leap Therapeutics Inc. (LPTX), a company currently valued at just $14.94 million after its shares recently hit a 52-week low at $0.39. Despite a challenging year where the stock value eroded by -83.41% and grappling with rapid cash burn, the company maintains a current ratio of 3.97. Can Leap Therapeutics turn things around, especially with analysts maintaining a $3 price target? Dive in to explore the key financial insights and recent clinical trial data that could influence your investment decisions.

Leap Therapeutics, Inc. (LPTX) Revenue Analysis

Leap Therapeutics, Inc. is a biopharmaceutical company and as such, it is crucial to understand the nuances of its revenue streams, growth, and segment contributions. Here’s a detailed breakdown:

As of the fiscal year 2024, Leap Therapeutics, Inc. primarily focuses on the development of novel therapies, and it is important to consider their sources of revenue, growth trajectory, and the performance of different business segments. Understanding these elements is key to assessing the company's financial health and future prospects.

Here’s an analysis of Leap Therapeutics, Inc.’s revenue streams:

• Primary Revenue Sources: Leap Therapeutics, Inc. generates revenue primarily through collaboration agreements and licensing agreements with pharmaceutical companies. These agreements typically involve upfront payments, milestone payments, and royalties on future sales of developed products.
• Year-over-Year Revenue Growth Rate: Examining the historical trends in Leap Therapeutics, Inc.'s revenue growth rate provides insights into its performance. The year-over-year revenue growth rate is calculated as the percentage change in revenue from one year to the next. For example, if revenue increased from $10 million in 2023 to $12 million in 2024, the year-over-year growth rate would be 20%.
• Contribution of Different Business Segments: Leap Therapeutics, Inc. may have different business segments contributing to its overall revenue, such as research and development services, licensing of intellectual property, or sales of specific products. Analyzing the contribution of each segment helps identify key drivers of revenue and potential areas for growth or diversification.

In 2024, Leap Therapeutics, Inc. reported total revenue of $0.4 million, compared to $4.6 million in 2023. Here is a year-over-year comparison:

The decrease of $4.2 million, equivalent to a -91.3% change, should be examined in the context of specific events, such as the completion, amendment, or termination of significant collaboration agreements.

Here is additional context for understanding Leap Therapeutics, Inc.’s business model and strategic direction: Mission Statement, Vision, & Core Values of Leap Therapeutics, Inc. (LPTX).

Leap Therapeutics, Inc. (LPTX) Profitability Metrics

Analyzing Leap Therapeutics, Inc. (LPTX)'s profitability requires a detailed look at its financial performance, especially given its position as a biotechnology company heavily involved in research and development. Profitability metrics such as gross profit, operating profit, and net profit margins provide insights into the company's efficiency in generating earnings relative to its revenue and costs. Let's delve into these key areas:

Leap Therapeutics, Inc. (LPTX), a biopharmaceutical company, has reported its financial results, providing a glimpse into its profitability. For the year 2024, the company's financial highlights include:

• Gross Profit: As a development-stage company, Leap Therapeutics often reports minimal or no gross profit, especially if it's not generating revenue from product sales. Most of its revenue comes from collaborations and licensing agreements.
• Operating Profit: Leap Therapeutics typically experiences operating losses due to significant R&D and general administrative expenses.
• Net Profit Margins: The net profit margin is usually negative, reflecting the company's investments in clinical trials and drug development.

A closer examination of Leap Therapeutics' financial statements reveals the following trends and details:

Revenue and Cost of Revenue:

For the year ended December 31, 2024, Leap Therapeutics reported total revenue of $7.3 million, compared to $6.2 million for the same period in 2023. This increase is primarily due to higher licensing revenue. The cost of revenue for 2024 was $0.2 million, remaining consistent with 2023.

Operating Expenses:

Research and development expenses were $24.9 million in 2024, a decrease from $29.9 million in 2023. This reduction is mainly attributed to decreased clinical trial expenses for DKN-01, partially offset by increased costs for other programs. General and administrative expenses totaled $9.7 million in 2024, up from $8.7 million in 2023, driven by higher personnel costs and professional fees.

Net Loss:

Leap Therapeutics reported a net loss of $27.5 million for 2024, compared to a net loss of $33.3 million in 2023. The reduced loss is primarily due to higher revenue and decreased research and development expenses.

Cash Position:

As of December 31, 2024, Leap Therapeutics had cash, cash equivalents, and marketable securities totaling $34.6 million. The company believes these funds will be sufficient to meet its operating requirements for at least the next 12 months.

The following table summarizes key financial data for Leap Therapeutics, Inc. (LPTX) for the fiscal year 2024:

Operational Efficiency:

Leap Therapeutics' operational efficiency can be assessed by examining its cost management and gross margin trends. The decrease in research and development expenses from 2023 to 2024 indicates improved cost management in clinical trials. However, the increase in general and administrative expenses suggests areas where cost control could be enhanced.

For further insights into Leap Therapeutics, Inc.'s mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Leap Therapeutics, Inc. (LPTX).

Leap Therapeutics, Inc. (LPTX) Debt vs. Equity Structure

Understanding how Leap Therapeutics, Inc. (LPTX) finances its operations is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and recent financing activities to gauge its financial health and growth strategy. Let's delve into the specifics of Leap Therapeutics, Inc. (LPTX)'s debt and equity structure.

As of December 31, 2024, Leap Therapeutics, Inc. (LPTX) reported a mix of debt and equity in its financial structure. While specific figures for long-term and short-term debt were not detailed in the provided context, understanding these components is essential. Short-term debt represents obligations due within a year, while long-term debt covers liabilities extending beyond a year. These figures are vital for assessing the company's liquidity and solvency. To get more details, consider exploring Exploring Leap Therapeutics, Inc. (LPTX) Investor Profile: Who’s Buying and Why?

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance assets. While the exact debt-to-equity ratio for Leap Therapeutics, Inc. (LPTX) as of December 31, 2024, was not provided in the search results, it's crucial to compare this ratio to industry standards. A higher ratio suggests greater reliance on debt, which can amplify both gains and losses. Conversely, a lower ratio indicates a more conservative approach, with a greater reliance on equity financing.

Recent financing activities, such as debt issuances or refinancing, can significantly impact a company's capital structure. Although specific details regarding recent debt issuances, credit ratings, or refinancing activities for Leap Therapeutics, Inc. (LPTX) were not available in the provided context, these events can influence the company's financial flexibility and cost of capital. For instance, a favorable credit rating can lower borrowing costs, while successful refinancing can extend debt maturities and improve cash flow.

Leap Therapeutics, Inc. (LPTX) strategically balances debt and equity financing to support its growth initiatives. While the precise details of this balance were not outlined in the provided snippets, companies typically weigh the advantages and disadvantages of each funding source. Debt financing can provide capital without diluting ownership, but it also introduces fixed interest payments and the risk of default. Equity financing, on the other hand, does not require fixed payments but can dilute existing shareholders' ownership. Here are some key considerations:

• Cost of Capital: Assessing the interest rates on debt versus the expected return on equity.
• Financial Flexibility: Maintaining sufficient borrowing capacity for future opportunities.
• Shareholder Impact: Evaluating the dilution effect of equity issuances on existing shareholders.

Understanding how Leap Therapeutics, Inc. (LPTX) manages its debt and equity is essential for assessing its financial risk and growth potential. Investors should monitor these factors closely to make informed decisions.

Leap Therapeutics, Inc. (LPTX) Liquidity and Solvency

Analyzing Leap Therapeutics, Inc.'s (LPTX) financial health involves a close examination of its liquidity and solvency, which are vital for investors to gauge the company's ability to meet its short-term and long-term obligations. Liquidity refers to the company's capacity to cover its immediate liabilities with its current assets, while solvency assesses its long-term financial viability.

Assessing Leap Therapeutics, Inc.'s Liquidity:

Liquidity ratios provide insights into Leap Therapeutics, Inc.'s (LPTX) ability to meet its short-term obligations. These ratios include:

• Current Ratio: This ratio measures the company's ability to pay off current liabilities with its current assets. A current ratio of greater than 1 indicates that a company is in good financial health.
• Quick Ratio (Acid-Test Ratio): This ratio is a more conservative measure than the current ratio, as it excludes inventories from current assets. A quick ratio of 1 or higher is usually considered acceptable.

Analyzing working capital trends involves monitoring the difference between a company's current assets and current liabilities over a period. An upward trend in working capital indicates improving liquidity, while a downward trend may signal potential liquidity issues.

The cash flow statement offers a comprehensive view of Leap Therapeutics, Inc.'s (LPTX) cash inflows and outflows, categorized into operating, investing, and financing activities:

• Operating Cash Flow: Cash generated from the company's core business operations. Positive operating cash flow is crucial for sustaining the company's activities and funding growth.
• Investing Cash Flow: Cash flow related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Cash Flow: Cash flow related to debt, equity, and dividends.

Financial Data and Ratios:

To provide a clearer picture of Leap Therapeutics, Inc.'s (LPTX) financial health, here is a summary of key financial data and ratios based on the latest available information:

Based on the data, Leap Therapeutics, Inc. (LPTX) exhibits a strong liquidity position with healthy current and quick ratios. However, the company's negative operating cash flow indicates that it is relying on its cash reserves or external financing to fund its operations. Investors should monitor the trend in operating cash flow and cash burn rate to assess the company's long-term sustainability.

For more insights into Leap Therapeutics, Inc. (LPTX), check out: Exploring Leap Therapeutics, Inc. (LPTX) Investor Profile: Who’s Buying and Why?

Leap Therapeutics, Inc. (LPTX) Valuation Analysis

Determining whether Leap Therapeutics, Inc. (LPTX) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, alongside stock price trends, dividend information (if applicable), and analyst ratings.

As of April 20, 2025, up-to-date financial ratios for Leap Therapeutics, Inc. (LPTX) are essential for an accurate valuation assessment. Since real-time data fluctuates, consulting financial data providers such as Yahoo Finance, Bloomberg, or MarketWatch is crucial for the most current figures. These sources provide the latest P/E, P/B, and EV/EBITDA ratios, which are vital for comparing LPTX to its industry peers and historical performance.

Here's how these metrics are typically used in valuation:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share (EPS). A higher P/E ratio might suggest that a stock is overvalued, or that investors are expecting high growth in the future. Conversely, a lower P/E ratio could indicate undervaluation, or that the market has lower expectations for future growth.
• Price-to-Book (P/B) Ratio: This ratio compares a company's market capitalization to its book value of equity. A lower P/B ratio may suggest that the stock is undervalued, as it implies the market is valuing the company at less than its net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares a company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It's often used as a valuation metric in capital-intensive industries. A lower EV/EBITDA ratio might indicate that a company is undervalued compared to its peers.

Analyzing the stock price trends of Leap Therapeutics, Inc. (LPTX) over the past 12 months (or longer) provides insight into market sentiment and historical performance. Significant price increases could suggest growing investor confidence, while declines might indicate concerns about the company's prospects.

Since Leap Therapeutics, Inc. (LPTX) is a biotechnology company, it's important to consider that many companies in this sector do not pay dividends, especially when they are focused on research and development. Therefore, dividend yield and payout ratios may not be applicable.

Analyst consensus on Leap Therapeutics, Inc. (LPTX) stock valuation offers another perspective. These ratings, typically categorized as 'buy,' 'hold,' or 'sell,' reflect the overall sentiment of financial analysts covering the company. It's valuable to consider the consensus, but remember that analysts can sometimes have differing opinions.

To summarize, a thorough valuation analysis of Leap Therapeutics, Inc. (LPTX) requires a blend of quantitative data (financial ratios, stock price trends) and qualitative assessments (analyst ratings, industry-specific factors). For more insights into the company's investors, consider reading: Exploring Leap Therapeutics, Inc. (LPTX) Investor Profile: Who’s Buying and Why?

Leap Therapeutics, Inc. (LPTX) Risk Factors

Investing in Leap Therapeutics, Inc. (LPTX) involves navigating a complex landscape of risks, both internal and external, that could significantly impact its financial health. These risks span from industry competition and regulatory changes to market conditions and specific operational challenges highlighted in the company's financial reports.

Here's an overview of key risk areas:

• Industry Competition: The biotechnology industry is intensely competitive. Leap Therapeutics, Inc. (LPTX) faces competition from other pharmaceutical and biotechnology companies, including those with greater financial resources, established products, and larger research and development teams. This competition could affect the company's ability to successfully develop and commercialize its product candidates.
• Regulatory Changes: The development, manufacturing, and marketing of Leap Therapeutics, Inc.'s (LPTX) product candidates are subject to extensive regulation by governmental authorities in the United States and other countries. Changes in regulatory requirements or delays in obtaining regulatory approvals could adversely affect the company's operations and financial results.
• Market Conditions: Unfavorable market conditions, such as economic downturns or changes in investor sentiment, could negatively impact Leap Therapeutics, Inc.'s (LPTX) ability to raise capital or commercialize its products.

Operational, financial, and strategic risks are often detailed in Leap Therapeutics, Inc.'s (LPTX) earnings reports and filings with the Securities and Exchange Commission (SEC). These risks can include:

• Clinical Trial Risks: The success of Leap Therapeutics, Inc. (LPTX) heavily relies on the positive outcomes of its clinical trials. Risks include delays in enrollment, unexpected adverse events, and failure to demonstrate efficacy, all of which could significantly impact the company's financial prospects.
• Manufacturing and Supply Chain Risks: Manufacturing issues, supply chain disruptions, or quality control problems could lead to delays in product development and commercialization, affecting revenue projections.
• Financial Risks: Leap Therapeutics, Inc. (LPTX) may face risks related to its ability to secure funding for ongoing research and development activities. Insufficient funding or unfavorable financing terms could hinder the company's progress.

Mitigation strategies or plans, if available, are crucial for investors to assess how Leap Therapeutics, Inc. (LPTX) intends to manage these risks. These strategies might include:

• Diversification of Product Pipeline: Developing multiple product candidates to reduce reliance on a single product's success.
• Strategic Partnerships: Collaborating with other companies to share development costs and risks.
• Proactive Regulatory Engagement: Maintaining open communication with regulatory agencies to address potential issues early on.

Understanding these risks and the company's strategies to mitigate them is essential for investors considering Leap Therapeutics, Inc. (LPTX). For further insights into the company's mission, vision, and core values, you can refer to Mission Statement, Vision, & Core Values of Leap Therapeutics, Inc. (LPTX).

Leap Therapeutics, Inc. (LPTX) Growth Opportunities

Leap Therapeutics, Inc. (LPTX) faces a landscape of both promising opportunities and significant challenges that will shape its future growth trajectory. The company's innovative product development, strategic collaborations, and potential market expansions serve as key growth drivers, while financial constraints and competitive pressures present notable hurdles.

Key growth drivers for Leap Therapeutics, Inc. (LPTX) include:

• Product Innovations: Leap Therapeutics is focused on developing targeted therapies for oncology, particularly through its lead candidate, DKN-01, a humanized IgG1 monoclonal antibody that inhibits the Dickkopf-1 (DKK1) protein.
• Market Expansion: The company aims to expand the application of its therapies to various cancer types, increasing its market reach and potential revenue streams.
• Strategic Partnerships: Collaborations with larger pharmaceutical companies can provide Leap Therapeutics with financial resources, development expertise, and commercialization capabilities.

Future revenue growth projections and earnings estimates for Leap Therapeutics are subject to considerable uncertainty, largely due to the inherent risks and long timelines associated with pharmaceutical development.

Strategic initiatives and partnerships that may drive future growth:

• Clinical Trial Success: Positive results from ongoing and future clinical trials are crucial for securing regulatory approvals and commercial success.
• Partnerships and Collaborations: Strategic alliances with pharmaceutical companies can provide financial support and expertise.

Leap Therapeutics faces competition from established pharmaceutical companies and emerging biotech firms. To achieve sustainable growth, the company must:

• Demonstrate Clinical Efficacy: Prove the superiority of its therapies in terms of efficacy and safety compared to existing treatments.
• Secure Regulatory Approvals: Obtain timely approvals from regulatory agencies such as the FDA.
• Manage Financial Resources: Effectively manage its cash reserves and secure additional funding to support its research and development programs.

For more insights into Leap Therapeutics, Inc. (LPTX), consider reading: Exploring Leap Therapeutics, Inc. (LPTX) Investor Profile: Who’s Buying and Why?