Breaking Down Phio Pharmaceuticals Corp. (PHIO) Financial Health: Key Insights for Investors

You're looking at Phio Pharmaceuticals Corp. (PHIO) and seeing the classic biotech tightrope walk: significant clinical promise against a backdrop of rising burn rate. Honestly, the latest Q3 2025 report shows the net loss widened to $2.4 million, up from $1.5 million a year ago, which is a direct consequence of ramping up R&D spending to $1.2 million to push the PH-762 program forward. But here's the quick math that changes the near-term picture: the recent warrant inducement financing is expected to bring in approximately $12.1 million in net proceeds, which, combined with the September 30 cash balance of $10.7 million, gives them an estimated $21.3 million cash runway projected into the first half of 2027-defintely buying them critical time. That runway is crucial because the Phase 1b trial for their INTASYL PH-762 compound just delivered a huge opportunity, showing 100% tumor clearance in one patient in the maximum dose cohort, a clinical win that materially affects the company's valuation story, but still leaves the risk of future dilution looming.

Revenue Analysis

You're looking at Phio Pharmaceuticals Corp. (PHIO)'s revenue, and the first thing you need to understand is the simple, yet critical, number: their revenue from operations for the first three quarters of 2025 was $0.00. That's the reality of a clinical-stage biopharmaceutical company; their primary focus is on research and development (R&D), not commercial sales. They are pre-product, and that's defintely the biggest factor in their financial health.

This means the traditional metrics of revenue growth and segment contribution are essentially moot. The company's entire business model is currently centered on advancing its proprietary INTASYL® siRNA gene silencing technology, with the lead candidate, PH-762, in a Phase 1b clinical trial for skin cancer. Your focus as an investor should shift from revenue to their cash runway and burn rate-how long they can fund their R&D until a potential licensing deal or market approval.

Here's the quick math on their funding situation, which acts as their de facto revenue stream:

• Primary Revenue Source: $0.00 from product sales or services.
• Year-over-Year Revenue Growth: 0%, as there is no commercial revenue to compare.
• Funding Source (Q4 2025): Warrant inducement financing is expected to bring in approximately $12.1 million in net proceeds, which is the real lifeline.

The good news is that this financing, completed in November 2025, is projected to extend their cash runway into the first half of 2027. This capital raise is the most significant financial event of the year, far outweighing any operational 'revenue.' The company's financial health is entirely dependent on its ability to manage its expenses and execute on its clinical trials, like the positive pathology results for PH-762 reported in Q3 2025.

To be fair, you need to track the cash outflows, not the inflows from sales. The table below shows the key financial movement for the three months ended September 30, 2025, compared to the prior year. This is where the action is for Phio Pharmaceuticals Corp. (PHIO) right now.

The jump in R&D expenses to $1.2 million for Q3 2025, up from $0.6 million in Q3 2024, is actually a positive signal, showing they are accelerating their clinical trial costs and manufacturing controls for the PH-762 program. That's what you want to see from a development-stage company: money going into the pipeline. If you want a deeper dive into the full picture, check out the full post on Breaking Down Phio Pharmaceuticals Corp. (PHIO) Financial Health: Key Insights for Investors.

Profitability Metrics

When we break down the financial health of Phio Pharmaceuticals Corp. (PHIO), the first thing to understand is that traditional profitability metrics don't apply, and that's defintely by design. As a clinical-stage biopharmaceutical company focused on its proprietary INTASYL® siRNA gene silencing technology, Phio Pharmaceuticals Corp. has not yet commercialized a product. So, for the 2025 fiscal year, its revenue and cost of goods sold are effectively zero.

This means the core profitability ratios-Gross Profit Margin, Operating Profit Margin, and Net Profit Margin-are all 0% or deeply negative. This isn't a sign of poor management; it's the financial reality of a company in the high-risk, high-reward drug development phase. Your investment thesis here must center on the potential of the pipeline, not current earnings. If you want to dive deeper into the company's long-term goals, check out their Mission Statement, Vision, & Core Values of Phio Pharmaceuticals Corp. (PHIO).

Gross, Operating, and Net Margins: A Clinical-Stage View

For the nine months ended September 30, 2025, Phio Pharmaceuticals Corp. reported a total operating loss of approximately $6.686 million and a total net loss of approximately $6.361 million. This is the real story of their profitability right now. Here's the quick math on their Q3 2025 performance:

• Gross Profit Margin: 0% (Due to no product revenue).
• Operating Loss (Q3 2025): ($2.505 million).
• Net Loss (Q3 2025): ($2.392 million).

The net loss is slightly lower than the operating loss because of a small amount of other income, which is typical for cash-rich biotechs earning interest on their capital. But the big takeaway is the burn rate. This is what you should be tracking.

Profitability Trends and Operational Efficiency

The trend in profitability for Phio Pharmaceuticals Corp. in 2025 is toward increasing losses, but this is a deliberate, necessary action. The net loss for Q3 2025 was $2.4 million, up significantly from $1.5 million in the same quarter in 2024. The main driver is a massive increase in Research and Development (R&D) expenses, which jumped to $1.2 million in Q3 2025 from $0.6 million a year prior.

This tells you that Phio Pharmaceuticals Corp. is successfully executing its clinical strategy. They are spending more on clinical trial costs, chemistry, manufacturing and controls (CMC), and R&D personnel to advance their lead compound, PH-762, which is now in the fifth and final cohort of its Phase 1b trial.

The table below shows the quarterly progression of their operational spending in 2025, illustrating the increasing investment:

Industry Comparison: The Ultimate Contrast

Comparing Phio Pharmaceuticals Corp.'s profitability to the industry average is a study in two different worlds. For a mature, commercial-stage pharmaceutical giant, the median Gross Profit Margin is typically around 77%, with a median Net Income Margin of about 13.8% to as high as 30% for branded drug companies. That's the promised land of high margins that patent-protected drugs deliver.

Phio Pharmaceuticals Corp. is currently at the opposite end of that spectrum, with 0% margins and a negative net income. But to be fair, that's the norm for a pre-revenue biotech. The true comparison isn't to a Pfizer or Merck, but to other clinical-stage companies. The key is that their losses are directly tied to R&D progress, which is what drives their future valuation. You need to focus on clinical milestones-like the positive pathology results for PH-762-not the red ink on the income statement.

Debt vs. Equity Structure

If you're looking at Phio Pharmaceuticals Corp. (PHIO), the first thing to understand is that their balance sheet is a study in financial conservatism, especially for a clinical-stage biotech firm. They are defintely not relying on debt to fund their operations. The direct takeaway is that Phio Pharmaceuticals Corp. (PHIO) is virtually debt-free, choosing to finance its research and development entirely through equity raises, which minimizes long-term solvency risk but exposes shareholders to dilution.

As of the most recent 2025 fiscal year data, Phio Pharmaceuticals Corp. (PHIO) reports $0.0 in total interest-bearing debt. This means they carry no long-term debt and no significant short-term debt that accrues interest. Their total liabilities, which are mostly current obligations like accounts payable and accrued expenses, stood at around $1.666 million as of September 30, 2025. This is tiny compared to their total shareholder equity of approximately $10.1 million.

Here's the quick math on their leverage posture, comparing them to the industry average:

Their Debt-to-Equity (D/E) ratio is 0.00, which is far below the Biotechnology industry average of roughly 0.17. A zero D/E ratio is rare and tells you the company has no financial leverage risk from borrowing, but it also signals a heavy reliance on equity funding (selling new shares) for cash flow. You can see this pattern clearly when Exploring Phio Pharmaceuticals Corp. (PHIO) Investor Profile: Who's Buying and Why?

The company's financing strategy in 2025 has been all about equity. They haven't had any debt issuances or refinancing activity because they have no debt to refinance. Instead, they've been very active on the equity side, which is typical for a clinical-stage company with no product revenue. They raised approximately $9.2 million from registered direct offerings and private placements in late 2024 and early 2025, plus an additional $2.9 million from warrant exercises.

Most recently, in November 2025, they completed warrant inducement financings expected to bring in approximately $12.1 million in net proceeds. This constant equity funding is the lifeblood of their operations, and it's what gives them a projected cash runway into the first half of 2027. The trade-off is clear: zero debt risk, but substantial share dilution for existing investors. That's the cost of keeping the lights on in early-stage drug development.

• Zero debt means zero interest expense.
• Equity funding ensures a long cash runway.
• Dilution is the primary financing risk here.

Liquidity and Solvency

You need to know if Phio Pharmaceuticals Corp. (PHIO) can cover its near-term bills, plain and simple. For a clinical-stage biotech company with no product revenue, liquidity is defintely a matter of cash on hand versus the burn rate. The good news is the company's liquidity ratios are exceptionally strong, but you have to look at why they are so high.

As of the most recent trailing twelve months (TTM) data, the Current Ratio sits at a robust 9.36. The Quick Ratio is identical at 9.36. This means that for every dollar of current liabilities, Phio Pharmaceuticals Corp. has $9.36 in current assets. Since the Quick Ratio (which excludes inventory) matches the Current Ratio, it confirms the company holds minimal to no inventory, which is standard for a research-focused firm. A ratio this high signals a massive buffer against short-term obligations-it's a sign of capital preservation, not operational efficiency, because they aren't generating revenue yet.

The working capital trend is a clear reflection of this cash-heavy balance sheet. The TTM Net Current Asset Value, a direct measure of working capital, is approximately $9.83 million. This value is substantial, but it's crucial to understand it's fueled by capital raises, not by positive operating income. Here's a quick look at the core liquidity metrics:

When you look at the cash flow statements, the picture shifts from a static balance sheet number to a dynamic operational reality. The company has a consistent, recurring history of negative Operating Cash Flow (OCF). For the TTM period ending in mid-2025, OCF was approximately $-7.14 million. This is the cash burn-the money going out the door to fund research and general business operations. The company is spending money to advance its clinical programs, and that's the nature of a biotech firm.

The cash flow trends map out clearly:

• Operating Cash Flow: Consistently negative, showing a burn rate for R&D and G&A expenses.
• Investing Cash Flow: Near zero, as expected from a company not heavily investing in property, plant, or equipment.
• Financing Cash Flow: Highly positive and the primary source of funding. Net cash provided by financing activities for the nine months ended September 30, 2025, was $11.2 million. This is up significantly from the prior year, driven by stock and warrant issuances.

So, what's the near-term risk? The company has historically faced a going concern issue, which is standard jargon for having enough cash to operate for the next 12 months. But the financing activities have been very successful. Following a November 2025 warrant inducement financing, which is expected to raise approximately $12.1 million, Phio Pharmaceuticals Corp. estimated its cash and cash equivalents to be about $21.3 million. This cash injection is projected to sustain operations into the first half of 2027. That's a clear, actionable runway for investors to monitor. The liquidity strength is a function of investor confidence in the pipeline, not current sales. You can get a deeper understanding of who is funding this by reading Exploring Phio Pharmaceuticals Corp. (PHIO) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at Phio Pharmaceuticals Corp. (PHIO) and wondering if the market has it right. The direct takeaway is that, based on traditional metrics, the stock is technically undervalued, trading below its net cash position, but this is a high-risk/high-reward biotech play where cash runway is the real valuation driver.

As a clinical-stage biopharmaceutical company, Phio Pharmaceuticals Corp. (PHIO) is not profitable yet, so you have to look past the Price-to-Earnings (P/E) ratio. The trailing twelve-month (TTM) P/E is a negative -0.61, which is typical for a company deep in research and development (R&D) like this. For the 2025 fiscal year, the consensus Earnings Per Share (EPS) estimate is a loss of approximately ($8.54) per share, reflecting their continued investment in the INTASYL platform.

Here's the quick math on the balance sheet: the company's valuation is heavily anchored by its cash. As of a recent snapshot, the company had a net cash position of approximately $10.71 million, which translates to roughly $1.87 per share. With the stock trading around $1.27 as of November 18, 2025, the market capitalization of $7.27 million is less than its cash on hand, suggesting the market is assigning a negative value to the core drug pipeline and technology. The Price-to-Book (P/B) ratio is a low 0.78, which confirms the stock is trading below its book value.

The stock price trend over the last 12 months shows extreme volatility. The 52-week high was $9.79 and the 52-week low was $0.97. The stock has fallen sharply, decreasing by about -42.53% over the past year. That kind of drop is a clear red flag, but it also creates the deep discount you see now. The massive dilution from recent capital raises to fund the clinical trials is defintely a key factor in this decline.

The analyst consensus on Phio Pharmaceuticals Corp. (PHIO) is mixed but points to a massive potential upside. While the average rating is a 'Hold', the consensus price target is between $14.00 and $14.28, representing an upside of over 1,000% from the current price. That huge gap reflects the binary nature of clinical-stage biotech: either the drug works and the stock soars, or it fails and the value evaporates. The recent financing in November 2025, which is expected to net approximately $12.1 million, extends the cash runway into the first half of 2027. This is a critical action that buys time for their lead candidate, PH-762, to advance in trials.

What this estimate hides is the risk of a reverse stock split or further dilutive financing if clinical milestones are missed. If you want to dive deeper into the institutional interest, you can check out Exploring Phio Pharmaceuticals Corp. (PHIO) Investor Profile: Who's Buying and Why?

Risk Factors

You're looking at Phio Pharmaceuticals Corp. (PHIO) and seeing the promising clinical data, but for a clinical-stage biotech, the risks are the investment thesis. The primary takeaway is this: Phio's near-term financial risk is mitigated by a recent capital raise, but the core strategic risks-clinical failure and regulatory hurdles-remain paramount. It's a binary bet on the success of their lead compound, PH-762.

Internal and Strategic Risks: The Clinical Gauntlet

The most immediate and significant risks are tied to the success of their proprietary INTASYL® (self-delivering small interfering RNA) technology. As of the third quarter of 2025, the company is still deep in research and development (R&D), which is why their net loss for the three months ended September 30, 2025, was $2.392 million (or $2.4 million). This burn rate is a constant pressure.

Here's the quick math on their operational spend:

• R&D Expenses (Q3 2025): $1.181 million.
• General & Administrative (Q3 2025): $1.324 million.
• Total Operating Expenses: $2.505 million.

The biggest risk is that the Phase 1b trial for PH-762, which is now in its final dose cohort, could yield inconclusive results or fail to demonstrate efficacy in later, larger trials. This would instantly devalue their core asset. Also, securing and maintaining intellectual property (IP) rights for their INTASYL platform is defintely a high-stakes, ongoing legal and strategic risk.

Financial and Operational Risks: Managing the Burn

The financial health of Phio Pharmaceuticals Corp. is characterized by a high cash burn typical of a company with no product revenue. The financial risk centers on dilution and the need for future financing. However, they recently took clear action to address this.

The company completed a warrant inducement financing in November 2025, which is expected to bring in net proceeds of approximately $12.1 million. This is a critical mitigating step. This capital raise, combined with existing funds, means Phio Pharmaceuticals Corp. had an estimated cash and cash equivalents balance of approximately $21.3 million as of the date of the Q3 2025 report. This extends their projected cash runway into the first half of 2027. This buys them time, but it also means investors should anticipate future dilutive raises as they enter more expensive Phase 2 and Phase 3 trials.

What this estimate hides is the potential for a Nasdaq delisting risk if their stock price falls below the minimum bid requirement for a sustained period.

External Risks: Competition and Regulation

External risks are the macro forces that can derail even the best science. In the immuno-oncology space, competition is fierce. Phio Pharmaceuticals Corp. is competing against large pharmaceutical companies with significantly greater financial and R&D resources, which can develop competing therapies that may prove more effective or easier to administer.

Regulatory risk is another constant headwind. The timing and likelihood of Food and Drug Administration (FDA) approvals are unpredictable, and any delays can drain capital and push back the path to market. The entire drug development process is a highly regulated environment, and a shift in regulatory requirements could force costly and time-consuming changes to their clinical programs. For a deeper dive into their long-term vision, you can check out their Mission Statement, Vision, & Core Values of Phio Pharmaceuticals Corp. (PHIO).

Your action item is to track the next clinical milestone: the full data readout from the Phase 1b trial and the subsequent plan for Phase 2. That's the next catalyst that will change the risk equation.

Growth Opportunities

For a clinical-stage biopharmaceutical company like Phio Pharmaceuticals Corp. (PHIO), future growth hinges entirely on the success of its core technology and lead drug candidates. The direct takeaway is this: the company's proprietary INTASYL® technology, a self-delivering RNA interference (siRNA) platform, is the single most important growth driver, and its Phase 1b clinical data for PH-762 is the key near-term opportunity.

You need to look past the current financial picture-which shows a consensus revenue forecast of $0.00 for the full 2025 fiscal year, typical for a pre-commercial biotech-and focus on the pipeline. The market is pricing in the risk of clinical failure, but also the massive upside of success. The INTASYL platform is designed to silence the PD-1 gene directly in immune cells, essentially turning those cells into better cancer fighters. It's a compelling approach in the immuno-oncology space.

Here's the quick math on the financial outlook: analysts project a full-year 2025 consensus Earnings Per Share (EPS) of -$1.59, with a range from -$1.80 to -$1.38. Still, the expected growth from the prior year's EPS of ($8.54) to a projected $3.76 per share in the next fiscal year (2026) is a massive swing, reflecting the high-stakes, binary nature of drug development. This projection is defintely a high-end scenario, but it shows the potential. Mission Statement, Vision, & Core Values of Phio Pharmaceuticals Corp. (PHIO).

Product Innovation and Clinical Momentum

The primary growth driver is the advancement of the lead compound, PH-762, which is being evaluated for various skin cancers, including cutaneous squamous cell carcinoma (cSCC), melanoma, and Merkel cell carcinoma. This is where the rubber meets the road.

• PH-762 Phase 1b Results: The Phase 1b dose escalation trial has shown promising results in the final cohort, reported in Q3 2025. One patient with cSCC achieved 100% tumor clearance (a complete response), with others showing greater than 90% and 50% clearance.
• Technology Advantage: The INTASYL technology's self-delivering nature is a competitive edge, potentially simplifying administration and improving therapeutic index compared to other gene silencing methods.
• Pipeline Expansion: The company is also advancing other INTASYL compounds, such as PH-894, which broadens the potential market beyond the current lead indication.

The positive clinical data is the only thing that matters right now.

Strategic Actions and Financial Runway

Management is making moves to secure the financial footing necessary to push PH-762 through its next development stages. This is a critical risk mitigation step.

In July 2025, Phio Pharmaceuticals Corp. executed a comprehensive drug substance development services agreement with a U.S. manufacturing company. This partnership is crucial for ensuring a reliable supply of clinical-grade PH-762 for future trials, which is a common bottleneck for small biotechs. Also, the company's financial health is surprisingly strong for its stage, with a current ratio of 10.58 as of mid-2025, showing robust short-term liquidity.

The recent warrant inducement financing in November 2025 brought in approximately $12.1 million in net proceeds, boosting the cash and cash equivalents to an estimated $21.3 million. This extends the company's cash runway into the first half of 2027, giving them a clear path to continue the PH-762 trial without immediate financing pressure. This table summarizes the near-term financial stability: