Fortress Biotech Inc. 9.375% Series A Cumulative Redeemable Perpetual Preferred Stock (FBIOP)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach FBIOP as a preferred claim on a small biopharmaceutical business, not as a common-stock bargain. Fortress sells Emrosi, Qbrexza, Accutane, Amzeeq and related products with only 78 employees, and I see no evidence of a durable moat. Fiscal 2025 revenue was $61.2M, up from $55.1M in fiscal 2024, roughly 11%, and fiscal Q2 2026 revenue was $17.8M versus $15.0M in fiscal Q2 2025. The profit record is uneven: fiscal Q1 2026 net income was $110.4M, but fiscal Q2 2026 was a $468,000 net loss; fiscal 2025 net income was $6.8M after net losses of $46.0M in fiscal 2024 and $60.6M in fiscal 2023. That is why the computed Lynch category is TURNAROUND. The trailing $125.8M free cash flow and 174.6% FCF yield, both FairStock calculations, look extraordinary, but a Piotroski F-Score of 3/9 and Altman Z-Score of -1.72 warn that quality and solvency are not proven. The ROE of 115.98% sits alongside a ROCE of -7.76%, so I would not treat the headline return as proof of operating quality; debt/equity is 0.26. At the $16.20 close on 2026-10-26, the negative P/E of -18.84 and P/B of 3.29 do not offer a clear Graham margin of safety. The 9.375% cumulative coupon is attractive only if cash flow covers it; the data give no dividend yield and no coverage ratio. I would need durable operating cash flow, not one volatile quarter, before trusting the preferred dividend.

In plain English: Fortress Biotech sells prescription skin and other biopharma products. The business looks small and uneven rather than strong: fiscal 2025 revenue was $61.2M with $6.8M net income, but fiscal Q1 2026 had $110.4M net income and fiscal Q2 2026 had a $468,000 net loss. The preferred shares are priced at $16.20 and carry a stated 9.375% cumulative dividend, but the data do not show whether the dividend is well covered, so the price is not clearly cheap on the numbers given.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer