Breaking Down XTL Biopharmaceuticals Ltd. (XTLB) Financial Health: Key Insights for Investors

You're looking at XTL Biopharmaceuticals Ltd. (XTLB) and trying to map the risk against the potential upside of its Phase II-ready asset, hCDR1, but the financial picture is defintely a mixed bag of early-stage biotech reality and capital pressure.

The core takeaway is that this is a pure-play development story with a low cash burn but no revenue, which is why the Trailing Twelve Months (TTM) P/E ratio sits at a negative -4.20 as of November 2025, reflecting its lack of profits. Here's the quick math: the company's TTM Free Cash Flow is a negative -$1.67 million, which isn't a massive burn for a biotech, but the Current Ratio of just 0.61 signals a tight liquidity position-they don't have enough short-term assets to cover short-term liabilities.

Still, the balance sheet shows a very low Debt/Equity ratio of 0.03, which is a significant positive for future financing, and the small team of 10 employees keeps operational costs contained. But, with the stock price down -55.37% over the last 52 weeks and a high TTM Price/Sales (P/S) ratio of 18.60, you have to ask if the current market capitalization of roughly $8.39 million fully discounts the clinical risk, or if the market is simply waiting for the next catalyst before the estimated December 29, 2025, earnings report.

Revenue Analysis

You need to know where the money is coming from, and for XTL Biopharmaceuticals Ltd. (XTLB), the revenue picture is volatile, which is common for a development-stage biotech. The full 2025 fiscal year data isn't out yet-we're still waiting on the report scheduled for late December 2025-so we must focus on the last complete annual data for 2024 to map the near-term trend.

The core takeaway is that XTL Biopharmaceuticals Ltd. moved from essentially zero revenue in 2023 to a small, but notable, figure in 2024. This signals a change in their financial structure, but not yet a commercial breakthrough.

The latest reported annual revenue for 2024 was $451.00K. This total revenue is classified under the broad segment of Drug Development, which typically includes collaboration payments, licensing fees, or service revenue, not product sales, given their pipeline focus on hCDR1 for autoimmune diseases. To be fair, a biopharma company's true value is in its pipeline, not its current top-line revenue, but cash flow still matters.

Here's the quick math on the year-over-year (YoY) change. The company reported $0.00 in Total Revenue for the 2023 fiscal year. So, the jump to $451.00K in 2024 represents a massive, technically infinite, percentage increase. This isn't sustainable growth, but it's a critical shift from a purely expense-based model to one that generates some cash flow.

This revenue is not high-margin. Here is the segment contribution breakdown for 2024, showing how little of that revenue actually becomes profit:

This breakdown shows that nearly all the revenue, $448.00K, was immediately consumed by the Cost of Revenue, leaving a negligible gross profit of just $3.00K. What this estimate hides is that the company is still deep in the red overall due to high operating expenses like Research and Development (R&D) and General & Administrative (G&A). If you want to dive deeper into the strategic direction driving these figures, you should check out the Mission Statement, Vision, & Core Values of XTL Biopharmaceuticals Ltd. (XTLB).

The significant change in revenue streams is the acquisition of The Social Proxy, which was completed in the latter half of the prior year. This deal was a major catalyst, shifting XTL Biopharmaceuticals Ltd. from a pure-play biopharma to a company with a dual focus, and this new revenue is defintely a result of that strategic move.

• Monitor for 2025 revenue forecasts from analysts.
• Track the source of the 2025 revenue: Is it Drug Development or the new segment?
• Watch the Cost of Revenue ratio; it needs to drop dramatically.

Your action here is simple: wait for the 2025 earnings report to confirm if the $451.00K revenue is a one-off event or the start of a new, albeit small, income stream.

Profitability Metrics

When you look at XTL Biopharmaceuticals Ltd. (XTLB), the immediate takeaway is that this is a clinical-stage biotech company, not a commercial one. That means their profitability metrics are going to look dramatically different from a mature pharmaceutical giant like Pfizer or a diversified asset manager like BlackRock. You must focus on the burn rate and gross margin quality, not the bottom line.

For the trailing twelve months (TTM) closest to the 2025 fiscal year end, XTL Biopharmaceuticals Ltd.'s profitability picture is starkly negative, which is honestly typical for a company with a Phase II-ready asset like hCDR1. Here's the quick math on the key margins:

• Gross Profit Margin: A razor-thin 0.67%.
• Operating Profit Margin: A massive loss at approximately -481.15%.
• Net Profit Margin: A loss of about -227.72%.

The company generated only $3,000 in Gross Profit on $451,000 in revenue, which suggests their cost of revenue nearly eats up all sales. The real story, however, is in the operating loss, which ballooned to -$2.17 million. That's the cost of staying in the drug development game. It's a cash furnace.

Operational Efficiency and Cost Management

The operational efficiency of XTL Biopharmaceuticals Ltd. is defined by its cost structure, not its sales volume. The gross margin is negligible, but the operating loss is driven almost entirely by the overhead needed to run a biopharma company. Total Operating Expenses for the TTM period were around $2.18 million, with Selling, General, and Administrative (SG&A) expenses at $2.077 million and Research and Development (R&D) at a comparatively modest $98,000. The R&D spend is low for a Phase II company, which might signal a reliance on licensing or a lean approach to clinical trials.

What this estimate hides is the high fixed cost base. The company is spending over $2 million just to keep the lights on and manage the business, regardless of its minimal revenue. This is a classic biotech risk: you have to fund the SG&A and R&D for years before a potential product launch can flip the script. The question for you is whether the $98,000 R&D spend is enough to move the needle on hCDR1.

Industry Comparison and Profitability Trends

To be fair, XTL Biopharmaceuticals Ltd.'s negative margins aren't an outlier in the broader Biotechnology sector, but their gross margin is a serious red flag. The industry average Gross Profit Margin is a healthy 86.3%, reflecting high-margin intellectual property and low cost of goods sold for many drug products. XTLB's 0.67% is a defintely poor sign of their current revenue source's quality or cost control. Still, the average Net Profit Margin for the sector is also deeply negative, sitting at -177.1%, which shows how common heavy losses are for R&D-intensive firms.

Here is how XTL Biopharmaceuticals Ltd. stacks up against the industry average profitability ratios for the Biotechnology sector as of late 2025:

The trend is clear: XTLB's gross profitability is significantly underperforming the sector, while its net loss is slightly worse than the already-negative industry average. This suggests a dual problem: a poor revenue stream and the high fixed costs common to early-stage biopharma. Your action here is to dig into the source of that $451,000 in revenue and its associated costs. You can read more in-depth analysis on this company at Breaking Down XTL Biopharmaceuticals Ltd. (XTLB) Financial Health: Key Insights for Investors.

Finance: Analyze the Cost of Revenue for the TTM period to understand why Gross Profit is only $3,000 by Friday.

Debt vs. Equity Structure

The short answer is that XTL Biopharmaceuticals Ltd. (XTLB) is an equity-driven company with a remarkably light debt load, which is a common but risky profile for a clinical-stage biotech firm. Your primary risk here isn't crushing interest payments; it's dilution.

Looking at the most recent data, XTL Biopharmaceuticals Ltd.'s total debt is minimal at roughly $138.0 thousand. This is a tiny fraction of its total shareholder equity, which stands at approximately $5.4 million. The company's liabilities structure is more weighted toward short-term obligations, with short-term liabilities at about $2.2 million and long-term liabilities at around $908.0 thousand. This means the bulk of their immediate financial pressure comes from operational needs, not long-term borrowing.

Here's the quick math on their leverage: XTL Biopharmaceuticals Ltd.'s Debt-to-Equity (D/E) ratio is approximately 0.025 (or 2.5%). That's incredibly low. To put that into perspective, the average Debt-to-Equity ratio for the US Biotechnology industry is closer to 0.17 as of November 2025. XTL Biopharmaceuticals Ltd. is using almost no debt to finance its operations and development pipeline.

This capital structure is a clear signal: XTL Biopharmaceuticals Ltd. relies almost exclusively on equity funding-selling shares-to fuel its growth and research. They defintely prefer to raise capital through the public markets rather than taking on bank loans or issuing corporate bonds.

• Low D/E Ratio (0.025): Minimal financial risk from debt.
• No Recent Debt Issuance: No significant 2025 activity suggests no immediate need for major debt financing.
• Equity-Heavy: Growth is funded by shareholders, increasing dilution risk.

Because their debt is so small, we haven't seen any major news about credit ratings or refinancing activity in 2025. There's simply no significant debt to service or restructure. This balance sheet approach is typical for a company whose value is tied up in intangible assets like drug candidates (hCDR1, Erythropoietin) and intellectual property, which lenders are often hesitant to use as collateral. The trade-off for this low debt risk is the persistent risk of shareholder dilution, as the company needs to issue new shares to raise cash for its costly clinical trials.

For a deeper dive into the company's overall financial health, you should check out Breaking Down XTL Biopharmaceuticals Ltd. (XTLB) Financial Health: Key Insights for Investors.

To summarize the capital structure:

Liquidity and Solvency

You need to know if XTL Biopharmaceuticals Ltd. (XTLB) has enough near-term cash to cover its bills, especially for a biotech company with a clinical-stage pipeline. The direct takeaway is that XTLB's liquidity position is a significant concern, with its current assets failing to cover its short-term liabilities, a situation largely funded by recent financing activity.

As of the fiscal year ending December 2024, the company's liquidity ratios are flashing red. The Current Ratio, which measures current assets against current liabilities, sits at a low 0.61. You want to see this number at 1.0 or higher; a 0.61 means XTL Biopharmaceuticals Ltd. only holds about 61 cents in current assets for every dollar of current liabilities. The Quick Ratio (or acid-test ratio), which excludes less-liquid assets like inventory, is even tighter at 0.56, confirming a genuine shortfall in immediately available funds.

Here's the quick math on their working capital (Current Assets minus Current Liabilities): With current assets of approximately $1.34 million and current liabilities of $2.21 million, XTL Biopharmaceuticals Ltd. is operating with a negative working capital of roughly -$0.87 million. This trend is a sharp drop from the prior year and signals a reliance on external funding or a need to liquidate non-core assets quickly to avoid a default on short-term obligations. What this estimate hides is the timing of their payables versus their receivables, but the gap is too large to ignore.

The cash flow statement overview for the same period maps out where the money is actually moving:

• Operating Cash Flow: A net outflow of -$1.62 million. This is normal for a development-stage biotech, as they burn cash on research and development (R&D) without significant product revenue.
• Investing Cash Flow: An outflow of -$844.0 thousand. This negative number is primarily due to investments, which is a positive sign of putting capital to work, but it adds to the overall cash burn.
• Financing Cash Flow: A significant inflow of $1.45 million. This is the crucial lifeline, showing the company raised capital, likely through a stock offering, to cover the operating and investing shortfalls.

The critical liquidity concern is the persistent, negative operating cash flow. The company is defintely dependent on the capital markets to sustain operations and fund its clinical trials. While the $1.45 million financing inflow helped shore up the balance sheet, it's a temporary fix. You should monitor their cash runway, which is the time until their current cash holdings are depleted, especially since their cash and short-term investments stood at only $1.14 million at the end of 2024. For a deeper understanding of the company's long-term strategy, you can review their Mission Statement, Vision, & Core Values of XTL Biopharmaceuticals Ltd. (XTLB).

Here is a summary of the key liquidity metrics:

The clear action for you is to keep a close eye on any announcements regarding new financing rounds or significant clinical milestones that could change the cash flow picture. Without a product generating revenue, the financing cash flow must remain robust.

Valuation Analysis

The short answer on whether XTL Biopharmaceuticals Ltd. (XTLB) is overvalued or undervalued is that traditional metrics point to a stock that is deeply out of favor, but the market is clearly pricing in significant development risk for a clinical-stage biopharma company. You're looking at a classic biotech scenario where valuation is less about current earnings and more about the probability of future drug success.

Based on the latest numbers from November 2025, the stock is trading near its 52-week low, suggesting the market has defintely lowered its expectations. The key is to understand what the valuation ratios are actually telling us in this context, which is often counterintuitive in the drug development space.

Is XTL Biopharmaceuticals Ltd. (XTLB) Overvalued or Undervalued?

When you look at XTL Biopharmaceuticals Ltd.'s core valuation multiples, you see the profile of a pre-commercial company. The Price-to-Earnings (P/E) ratio, which compares the stock price to per-share earnings, is a negative -8.83 as of November 7, 2025. This is typical because the company is not yet profitable, as it's spending heavily on research and development (R&D) for its lead asset, hCDR1, a Phase II-ready compound for autoimmune diseases.

However, the Price-to-Book (P/B) ratio, which compares the stock price to the company's book value (assets minus liabilities), is a relatively low 1.54. For a biotech, a P/B this low can suggest the market is valuing the company close to its liquidation value, not its potential drug pipeline value. The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is essentially 0.00, which again reflects minimal or negative earnings before interest, taxes, depreciation, and amortization (EBITDA) against an Enterprise Value of approximately $7.26 million. Here's the quick math on the key ratios:

• P/E Ratio: -8.83 (Negative earnings)
• P/B Ratio: 1.54 (Near book value)
• EV/EBITDA: 0.00 (Minimal operating profit)

Stock Performance and Analyst Sentiment

The stock price trend over the last 12 months tells a clear story of decline and investor pessimism. The 52-week price range for XTL Biopharmaceuticals Ltd. (XTLB) has been volatile, spanning from a low of $0.771 to a high of $2.570. As of November 21, 2025, the stock is trading at the low end of this range, at approximately $0.771, representing a massive 52-week price change decrease of -55.37%. This persistent downtrend suggests a significant de-rating by the market, possibly due to a lack of near-term clinical catalysts or general market sentiment toward micro-cap biotechs.

The analyst consensus reflects this bearish reality. As of November 2025, the sentiment is overwhelmingly Bearish, with one analysis indicating 26 bearish signals and zero bullish ones. Some technical analyses even signal a 'Strong Sell.' The average annualized price prediction for the end of 2025 is around $0.7809, which is only marginally above the current price, indicating very little expected upside for the near term. You can dig deeper into who is holding the bag by Exploring XTL Biopharmaceuticals Ltd. (XTLB) Investor Profile: Who's Buying and Why?

Dividend Policy and Next Steps

As is common for a company focused on R&D, XTL Biopharmaceuticals Ltd. (XTLB) does not pay a dividend. The trailing twelve-month (TTM) dividend payout is $0.00, resulting in a dividend yield of 0.00%. This means all available capital is being reinvested into the business, specifically the drug pipeline, which is what you want to see at this stage.

The table below summarizes the key valuation data points for your quick reference:

Your action here is to monitor the clinical trial updates for hCDR1, because that's the real driver of value. The stock is cheap on a book-value basis, but it needs a clinical win to move the needle.

Risk Factors

You need to look past the recent stock surge-a 38.57 percent jump following promising clinical trial news in October 2025-and focus on XTL Biopharmaceuticals Ltd. (XTLB)'s core financial reality. The direct takeaway is that XTLB is a clinical-stage biopharma company with significant funding and operational risks that outweigh its modest revenue. Your primary concern should be cash burn and the long, uncertain road to commercialization.

The biggest near-term risk is simply running out of cash. The company's latest reported revenue is a slim $451,000, but its operations are deeply in the red, with a net loss of -$1.027 million. This means XTLB is using funds, not generating them, which is typical for a biotech, but still a critical risk. Here's the quick math: with only $1.14 million in cash and short-term investments, and a projected cash burn rate of up to $1.5 million per period, the runway is incredibly short without new financing.

This is a classic biotech challenge: you're funding research with a negative Return on Assets (ROA) of -14.29%, hoping for a huge payoff.

Operational and Clinical Risks

The strategic risk is concentrated in the success of its drug pipeline. XTLB is essentially a single-asset story right now, with its lead candidate, hCDR1, a Phase II-ready asset for autoimmune diseases like systemic lupus erythematosus. Clinical trials are a coin flip, and any delay or negative result in the next phase could instantly wipe out the company's enterprise value, currently pegged around $11.53 million.

Plus, the regulatory environment is a constant external threat. The Food and Drug Administration (FDA) approval process is notoriously stringent and lengthy. A minor setback in a trial protocol or a new competitor's drug getting fast-tracked could severely impact XTLB's market position, even if the science is defintely sound. You must also consider the competitive landscape; the autoimmune space is crowded with giants like AbbVie and Johnson & Johnson.

Financial and Market Stability

The market has already flagged major concerns about the company's stability. Recent updates highlight two major risks: Market cap size and Share price stability. The stock price, trading around $0.7705 as of November 2025, reflects this volatility and the inherent risk of a small-cap biotech. This low price point has historically led to Nasdaq notifications regarding minimum bid price deficiency, which is a constant threat of delisting.

The internal governance structure also warrants attention, as less than half of the directors are independent, which can raise questions about oversight and shareholder representation.

Mitigation is clear but difficult: XTL Biopharmaceuticals Ltd. must secure a new round of funding-either through a public offering or a strategic partnership-to extend its cash runway beyond the next few quarters. They also need to execute flawlessly on the hCDR1 Phase II trials. For a deeper look at the company's long-term goals, you can review their Mission Statement, Vision, & Core Values of XTL Biopharmaceuticals Ltd. (XTLB).

• Secure $3.0+ million in new capital.
• Advance hCDR1 to Phase II completion.
• Address Nasdaq minimum bid price issue.

Growth Opportunities

You're looking for a clear path forward for XTL Biopharmaceuticals Ltd. (XTLB), and the truth is, their growth story is less about current revenue and entirely about their intellectual property (IP) portfolio and strategic pivot. The direct takeaway is that XTLB's near-term opportunity hinges on advancing its Phase II-ready drug candidate, hCDR1, and successfully integrating its recent acquisition, which has shifted the company's focus beyond traditional biopharma.

Product Innovation: The hCDR1 Catalyst

The primary growth driver remains XTL Biopharmaceuticals Ltd.'s lead drug candidate, hCDR1. This is a Phase II-ready asset targeting two significant autoimmune diseases: Systemic Lupus Erythematosus (SLE) and Sjögren's Syndrome (SS). The company is an IP portfolio holder, meaning its value is tied to the successful development and commercialization of this asset, not current sales. This is a high-risk, high-reward model. The market has shown excitement, with the stock trading up by as much as 46.85% in October 2025 following promising clinical trial outcomes-a clear signal of investor anticipation for a breakthrough. That's a huge move on a positive whisper.

• Focus on hCDR1 for SLE and SS.
• Seeking partners for Phase II clinical trials.
• IP portfolio is the core competitive advantage.

Strategic Expansion and Partnerships

XTL Biopharmaceuticals Ltd. has been defintely proactive in expanding its asset base, evidenced by the acquisition of The Social Proxy Ltd., an AI web data company. This move, completed in 2024, was a strategic shift to add a high-potential asset outside of their core biopharma focus. The transaction involved issuing shares representing 44.6% of the company's outstanding share capital and a cash payment of $430,000 to the sellers. This diversification, while unconventional, gives them a second potential revenue stream and a technological edge, plus they are actively looking for strategic partners to help fund and execute the hCDR1 clinical trials. This is how a small biotech company manages capital risk-by leveraging collective strengths.

To understand the company's long-term vision, you should review their Mission Statement, Vision, & Core Values of XTL Biopharmaceuticals Ltd. (XTLB).

Financial Outlook and Market Anticipation

When we look at the 2025 fiscal data, we see why the market is pricing in future growth, not current performance. The company's revenue stands at a modest $451,000. Here's the quick math: with a Price-to-Sales (P/S) ratio of around 22.28, the market is valuing each dollar of sales at over 22 times its worth. That's a massive premium, but it reflects the expectation that one of their IP assets will yield a blockbuster drug or a significant technology exit. What this estimate hides is the lack of current analyst consensus; there is insufficient coverage to provide reliable future revenue or earnings growth projections.

Still, the market is giving us a trading range. For 2025, XTL Biopharmaceuticals Ltd.'s stock is anticipated to trade between $0.7142 and $0.8811, with an average annualized price of $0.7809. This forecast suggests a potential return on investment of 3.66% based on the stock's technical patterns, but remember, this is a technical prediction, not a fundamental earnings forecast. The next estimated earnings date to watch is Monday, December 29, 2025.

The company's current financial snapshot for the 2025 fiscal year underscores this speculative nature:

Your action here is to monitor news on the hCDR1 clinical trials and the strategic integration of the AI asset, because those are the only two things that will change the valuation dramatically.