Breaking Down Nutriband Inc. (NTRB) Financial Health: Key Insights for Investors

You're looking at Nutriband Inc. (NTRB) and seeing a classic biotech dilemma: a small, revenue-generating business with a huge, binary pharmaceutical opportunity. Honestly, this isn't a stock you buy for its current earnings; you're buying a call option on its AVERSA™ technology. Here's the quick math: the company reported a net loss of $10.5 million for the full Fiscal Year 2025, which ended January 31, 2025, but its Q2 2025 revenue, driven by the Pocono Pharma contract manufacturing, hit $1,289,884, a 50.87% jump year-over-year. That growth is defintely solid, but the real story is the abuse-deterrent fentanyl patch, AVERSA Fentanyl, which analysts estimate could reach peak annual sales between $80 million and $200 million. You need to understand how the current cash position of $6.9 million as of July 31, 2025, bridges the gap to that enormous potential, especially after the successful September 2025 meeting with the FDA confirmed the regulatory pathway. The risk is high, but the potential return is a multiple of their current valuation.

Revenue Analysis

You're looking at Nutriband Inc. (NTRB) and trying to figure out where the money is actually coming from today, which is smart because the revenue story is split between current manufacturing and massive future potential. The direct takeaway is this: current revenue, while small, is growing sharply, but it's almost entirely dependent on one business segment, which is a near-term risk. The company's total annual revenue for the fiscal year (FY) ending January 31, 2025, was $2.14 million, representing a modest year-over-year growth of 2.6%.

Here's the quick math: the bulk of that revenue-nearly all of it-comes from the company's contract manufacturing services. Specifically, the Pocono Pharma subsidiary, which focuses on kinesiology tape and other consumer transdermal products, generated approximately $2.1 million in revenue for FY2025. This is the engine that keeps the lights on, and it's defintely not the primary reason you'd invest.

The good news is the short-term growth trend is strong. For the six months ended July 31, 2025, Nutriband reported revenue of $1,289,884, marking a substantial increase of 50.87% year-over-year. The first quarter of 2025 (ended April 30, 2025) saw revenue of $667,000, which was a 63% jump from the prior year. That's a great growth rate for a small manufacturing operation.

• Primary Revenue Source: Kinesiology tape contract manufacturing via Pocono Pharma.
• Current Revenue Focus: Sale of goods to major U.S. retailers like Target and Walmart.
• Future Revenue Focus: Pharmaceutical product development (AVERSA™ Fentanyl).

What this current revenue estimate hides is the massive, yet unproven, pharmaceutical pipeline. The significant change in the revenue profile will come from the abuse-deterrent transdermal patch technology, AVERSA™ Fentanyl. This product, which is progressing toward a New Drug Application (NDA), is projected to have potential peak annual sales between $80 million and $200 million, according to market analysis. That's the real opportunity, but it's a future one, not a present one.

To be fair, a small company relying on a manufacturing segment for operating cash while developing a high-value pharmaceutical asset is a common biotech strategy (a 'two-pronged approach'). The steady, if small, revenue stream from Pocono Pharma supports the development of AVERSA™ Fentanyl, which is the true value driver. For a deeper dive into the company's strategic position, you can check out the full analysis at Breaking Down Nutriband Inc. (NTRB) Financial Health: Key Insights for Investors.

Profitability Metrics

You're looking for a clear picture of Nutriband Inc. (NTRB)'s financial health, and honestly, the profitability numbers tell the story of a development-stage pharmaceutical company. The bottom line is that the company is still heavily investing in its pipeline, so all core profit margins are deeply negative, which is expected before a major product launch like AVERSA Fentanyl.

For the fiscal year ended January 31, 2025 (FY2025), Nutriband Inc. reported a substantial net loss of $10.5 million. This loss is primarily driven by significant operating expenses, especially research and development (R&D) costs for its AVERSA technology, which is the engine for future growth. The company's current revenue stream comes mostly from its Pocono Pharmaceutical contract manufacturing division, which is a lower-margin business but provides essential cash flow.

Here's the quick math on the key profitability margins for the trailing twelve months (TTM) ending around mid-2025, which gives you a clearer annual run-rate view, plus the latest quarterly gross margin:

• Gross Profit Margin: The TTM margin was approximately 33.15%, but the latest quarterly gross margin (Q2 2025, ended July 31, 2025) dropped to 25.24%.
• Operating Profit Margin: The TTM operating profit margin was a deeply negative -264.04%.
• Net Profit Margin: The TTM net profit margin was also a significant negative at -398.30%, reflecting the full impact of R&D and administrative overhead.

The trend shows a high-cost structure relative to current revenue, which is typical for a company with a high-potential, abuse-deterrent transdermal patch (AVERSA Fentanyl) in late-stage development. The drop in the gross margin to 25.24% in Q2 2025 suggests operational efficiency in the contract manufacturing segment is under pressure, or that product mix shifted to lower-margin offerings. You can see more about the underlying investor sentiment by Exploring Nutriband Inc. (NTRB) Investor Profile: Who's Buying and Why?

To be fair, these margins are not a fair comparison to a mature, profitable pharmaceutical company. The general pharmaceutical industry enjoys a much higher net profit margin, averaging nearly 23%, with branded drug companies often seeing net margins between 10% to 30%. Nutriband Inc. is operating at a loss because it's spending to build a future product, not managing a mature one. The high negative margins are essentially the cost of developing their intellectual property (IP).

The operational efficiency of the existing business, Pocono Pharmaceutical, is best measured by the gross margin. While the TTM gross margin of 33.15% is respectable for a third-party manufacturer (where margins are often 10% to 30%), the quarterly volatility is a risk. Their ability to manage the cost of goods sold (COGS) in the Pocono division is defintely crucial to funding the R&D burn rate.

Debt vs. Equity Structure

The clear takeaway for Nutriband Inc. (NTRB)'s balance sheet is simple: they are a cash-rich, debt-light company, which is typical for a clinical-stage pharmaceutical firm. As of mid-2025, the company's financial structure is overwhelmingly funded by equity, not debt, giving them significant financial flexibility as they push their lead product, AVERSA Fentanyl, toward a New Drug Application (NDA) filing.

When you look at the company's liabilities, the debt levels are minimal. For the quarter ending July 2025, the total debt-which includes both short-term and long-term obligations-was approximately $270,000. Here's the quick math on how that breaks down:

• Short-Term Debt & Capital Lease Obligation: $0.16 million
• Long-Term Debt & Capital Lease Obligation: $0.11 million

This is a tiny fraction of their total stockholders' equity (the book value of the company owned by shareholders), which stood at a much more substantial $8.5 million as of July 31, 2025. They just don't carry much leverage.

The Debt-to-Equity (D/E) ratio is the best measure of this balance, and for Nutriband Inc., it's an incredibly low 0.03. To be fair, this is a massive difference compared to the industry average for Drug Manufacturers-Specialty & Generic, which is around 0.49. A D/E of 0.03 means that for every dollar of equity, the company uses only three cents of debt to finance its assets. That's defintely a low-risk profile from a leverage standpoint.

The company's financing strategy is a clear preference for equity funding to fuel its research and development (R&D) pipeline. You haven't seen any major debt issuances, credit rating changes, or refinancing activity in 2025 because they don't need it. Instead, they've focused on equity and equity-linked capital. For example, a private placement in April 2024 raised $8.4 million, specifically earmarked for the clinical development of AVERSA Fentanyl and its Q1 2025 NDA submission target.

Also, in July 2025, the board declared a 25% preferred stock dividend. This is a smart move: it rewards current shareholders but also links the conversion of those preferred shares into common stock directly to a major milestone-FDA approval of AVERSA Fentanyl. It's a way to create shareholder value and manage capital structure without incurring new debt risk. You can learn more about the implications of this approach in Exploring Nutriband Inc. (NTRB) Investor Profile: Who's Buying and Why?

The balance is simple: Nutriband Inc. is funding its growth through shareholder capital, which keeps its balance sheet clean but also means future dilution is a constant risk if R&D costs continue to outpace revenue. The table below summarizes the core debt metrics:

Liquidity and Solvency

You need to know if Nutriband Inc. (NTRB) has enough cash and liquid assets to cover its near-term bills, especially as they move their lead product, AVERSA Fentanyl, toward a New Drug Application (NDA). The direct takeaway is that their current liquidity position is exceptionally strong, but this strength is fueled by financing, not operations-a common but critical distinction for a development-stage biotech company.

Looking at the trailing twelve months (TTM) ended in Q2 2025, Nutriband's liquidity ratios are impressive. The Current Ratio is a very healthy 4.78, meaning the company has $4.78 in current assets for every $1.00 in current liabilities. The Quick Ratio (or acid-test ratio), which strips out inventory-a less liquid asset-is nearly as high at 4.70. This tells you they can defintely cover their short-term obligations with their most liquid assets, like cash and accounts receivable. That's a huge cushion.

Here's the quick math on their working capital (Current Assets minus Current Liabilities), which is the lifeblood for day-to-day operations: Based on the TTM Current Ratio of 4.78 and the most recent Total Current Liabilities of approximately $1.6 million (as of Q3 2025), the estimated working capital is around $6.05 million. This trend shows a strong capacity to manage short-term obligations, a clear strength. The real question is how they got there.

• Current Ratio (TTM/Q2 2025): 4.78
• Quick Ratio (TTM/Q2 2025): 4.70
• Working Capital (Est. Q3 2025): Approx. $6.05 million

The cash flow statement overview reveals the true nature of their financial health. For the TTM ended July 31, 2025, Nutriband's Cash Flow from Operations (CFO) was negative, sitting at about $-3.12 million. This negative number is expected for a pre-commercial pharmaceutical company; they are burning cash to fund research and development (R&D) and clinical trials. Investing cash flow is likely also negative as they invest in their core asset, Mission Statement, Vision, & Core Values of Nutriband Inc. (NTRB).

The strength in the balance sheet is coming from the financing side. The cash balance jumped from $4.3 million at the end of FY2025 (January 31, 2025) to a robust $6.9 million as of July 31, 2025. This $2.6 million increase in six months points directly to successful financing activities, like the exercise of warrants or other equity raises, which injects capital to offset the operating burn. The company is successfully funding its development pipeline, but it's still reliant on the capital markets.

The primary potential liquidity concern isn't the current cash on hand-that's strong-but the sustained negative operating cash flow. They are in the classic biotech funding cycle: raise money, burn money on R&D, raise more money. The opportunity is that the high cash balance of $6.9 million gives them a long runway to complete the NDA submission for AVERSA Fentanyl, which is the key value driver. The risk is simply the need for future capital raises if the NDA timeline extends significantly.

Valuation Analysis

You're looking for a clear signal on Nutriband Inc. (NTRB), and honestly, the valuation metrics are a mixed bag, which is typical for a clinical-stage biotech company. The direct takeaway is this: Nutriband Inc. is technically undervalued based on the consensus price target, but its traditional Price-to-Earnings (P/E) ratio signals high risk due to unprofitability.

As of November 2025, the stock trades around the $5.11 to $5.38 range. The market is pricing in the potential of its AVERSA™ abuse-deterrent technology, not current earnings. You need to treat this as a growth-stage investment, so standard ratios are less useful, but still essential for context.

Is Nutriband Inc. Overvalued or Undervalued?

The standard valuation ratios for Nutriband Inc. (NTRB) reflect its pre-commercialization stage. The negative earnings mean you can't use a meaningful P/E ratio, but other metrics show a premium on its assets and potential.

• Price-to-Earnings (P/E): The P/E ratio is negative, reported at approximately -1.87 as of November 2025, because the company reported a quarterly Earnings Per Share (EPS) of ($2.12), missing analyst consensus. You can't value an unprofitable company on P/E.
• Price-to-Book (P/B): The P/B ratio is high at about 7.78. This tells you the market values the company at nearly eight times its net asset value (book value). That premium is for the intellectual property (IP)-the AVERSA™ technology-and the pipeline, not just the physical assets.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio is often reported as 0.00 or n/a for the trailing twelve months (TTM) because Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is negative. Here's the quick math: negative EBITDA means the company isn't generating enough cash flow from operations to cover its core expenses, so the ratio is functionally irrelevant for a value assessment right now.

The high P/B ratio is the clearest sign of market optimism, but that optimism is fragile. If the AVERSA Fentanyl development hits a snag, that 7.78 P/B ratio will deflate fast.

Stock Performance and Analyst Outlook

The stock price trend over the last year has been volatile, but net positive. Over the last 12 months, the stock price has increased by approximately 17.26%, despite a recent sharp decline of over 23% in the past month leading up to November 2025.

The 52-week range is wide, spanning from a low of $3.72 to a high of $11.78, which shows the high degree of speculation around clinical milestones. The volatility is a feature, not a bug, of pre-revenue biotech stocks.

Analyst consensus is mixed but leans positive on future potential. While some firms, like Zacks Research, recently upgraded the stock to a 'Hold' from a 'Strong Sell,' other firms maintain a 'Sell' or 'Buy' rating. The average analyst price target is consistently set around $13.00, representing a potential upside of over 100% from the current price, which is why some still rate it a 'Buy.'

Dividend Structure and Payout

Nutriband Inc. does not pay a regular cash dividend on its common stock, which is standard for a company focused on R&D. However, in July 2025, the Board of Directors declared a 25% preferred stock dividend.

This was a strategic move to reward shareholders and tie value directly to the core asset. Shareholders of record on July 25, 2025, received one preferred share for every four common shares. These preferred shares are convertible to one common share following FDA approval of AVERSA Fentanyl. If unconverted, they are entitled to an annual cash dividend paid from company profits. This dividend is a bet on the FDA approval, not a payout from current cash flow.

For a deeper dive into the company's long-term strategy, you should review the Mission Statement, Vision, & Core Values of Nutriband Inc. (NTRB).

Risk Factors

You're looking at Nutriband Inc. (NTRB) and seeing the massive potential of AVERSA™ Fentanyl, but we need to be real about the risks. This is a high-risk, high-reward biotech play, and the near-term future is tied to two core factors: regulatory success and cash runway. Your main takeaway is that while the company has made smart moves to extend its financial life, the primary risk remains the FDA approval process for their lead product.

For the fiscal year ended January 31, 2025, Nutriband reported a significant net loss of $10.5 million, or ($0.99) per share. This is what we call a 'burn rate'-it shows how much cash the company needs to keep operating before its main product can generate revenue. The financial health is improving, but it's still fragile. Honestly, every pre-revenue pharmaceutical company lives this way.

Operational and Financial Risks: The Cash Burn

The biggest near-term risk is financial. As a developing company, Nutriband Inc. is fundamentally undercapitalized, relying on external financing to fund its clinical testing and operations. This is a constant pressure point. As of July 31, 2025, the company's cash reserves stood at $6.9 million. That's a decent cushion, but it's not endless.

Here's the quick math: The company's net loss for the full FY 2025 was over $10 million. While they've boosted their cash position, they are still losing money quarter-to-quarter, with a Q2 2025 loss of $2.12 per share. This means they need to keep raising capital until AVERSA™ Fentanyl is approved and generating sales.

Mitigation strategies are in place, which is a good sign. The company is actively expanding its Pocono Pharmaceutical contract manufacturing division, which saw revenue for the six months ended July 31, 2025, jump 50.87% to $1,289,884. Plus, warrant exercises earlier in September 2025 brought in $5.306 million in gross proceeds, which defintely helps extend the cash runway toward the NDA filing.

External and Regulatory Risks: The FDA Hurdle

The second major risk is regulatory. The entire valuation pivots on the Federal Food and Drug Administration (FDA) approval of AVERSA™ Fentanyl, the abuse-deterrent transdermal patch. Any delay in the New Drug Application (NDA) submission-expected toward 4Q25 or early 2026-or an outright rejection would be catastrophic to the stock price.

Also, the market for abuse-deterrent opioids is competitive, and regulatory changes could impact the landscape at any time. The company's strategy is to mitigate this risk by following a streamlined regulatory path, requiring only a single Phase 1 Human Abuse Potential study, which cuts down on time and cost compared to traditional drug development.

Key external risks to monitor:

• FDA Approval Risk: Failure to obtain approval for AVERSA™ Fentanyl.
• Intellectual Property: Maintaining and defending patent protection in all 46 countries where AVERSA™ is protected.
• Competition: Other companies developing abuse-deterrent technologies.
• Financing: The ability to secure necessary financing for future development and commercialization.

The partnership with Kindeva Drug Delivery, which involves shared development costs, is a smart way to manage the financial burden of the development process. For a deeper dive into the company's valuation, you should read the full analysis at Breaking Down Nutriband Inc. (NTRB) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking for a clear map of where Nutriband Inc. (NTRB) goes from here, and the answer is simple: it's all about the AVERSA™ platform. The company's future growth isn't just a gradual climb in contract manufacturing; it's a potential step-change driven by a single, innovative abuse-deterrent transdermal technology.

The core of the growth story is the proprietary, patented AVERSA™ technology, which integrates aversive agents into transdermal patches to prevent abuse, misuse, and accidental exposure. This is a crucial innovation because, while oral opioids have abuse-deterrent (AD) features, transdermal patches have been vulnerable. This multi-layered design gives Nutriband Inc. a first-mover advantage in a high-stakes market. They've already secured patents in 46 countries, setting the global stage for commercialization.

Here's the quick math on the potential uplift from the lead candidates:

• AVERSA™ Fentanyl: Analysts project peak annual U.S. sales between $80 million and $200 million.
• AVERSA™ Buprenorphine: This second application is projected to reach peak annual sales of up to $130 million.

What this estimate hides is the timeline risk, still, the potential is massive compared to their current scale. To be fair, this is a development-stage company, so the cash burn is expected. For the fiscal year ending January 31, 2025, Nutriband Inc. reported an annual revenue of $2.14 million and a net loss of $10.5 million, or ($0.99) per share. But the operational revenue is growing, with Q2 2025 revenue hitting $1,289,884, a strong 50.87% year-over-year increase.

The path to commercialization is being expedited through a few smart strategic moves. The company is leveraging the FDA's 505(b)(2) regulatory pathway for AVERSA™ Fentanyl, which allows them to reference existing safety data, potentially bypassing lengthy Phase 2 and 3 trials. They are targeting the New Drug Application (NDA) filing for AVERSA™ Fentanyl in the first half of 2025, which is the defintely most critical near-term milestone.

Strategic partnerships are also key to managing execution risk:

• Kindeva Drug Delivery: This exclusive partnership is with a leader in complex transdermal manufacturing, which reduces operational risk and accelerates readiness for commercialization.
• Pocono Pharma Subsidiary: This existing contract manufacturing business, which includes a collaboration with KT Tape, provides a growing, diversified revenue stream. Q1 2025 revenue for the company was $667,000, up 63% year-over-year, largely driven by this segment.

The company's competitive advantage isn't just the technology; it's the regulatory strategy and the partnership that make the commercialization plan credible. Their mission and vision, which you can read more about here: Mission Statement, Vision, & Core Values of Nutriband Inc. (NTRB), are clearly aligned with addressing a major public health crisis, which creates a strong tailwind for payer and provider adoption once approved.

If you're looking at the investment thesis, the value inflection point is the NDA filing and subsequent regulatory approval. That's the action that fundamentally changes the company's valuation from a development-stage biotech to a commercial-stage pharmaceutical company.

Near-Term Financial Snapshot (FY 2025 Focus)