Heron Therapeutics Inc. Common Stock (HRTX)

FairStock Score: 10/100 — RISKY

Key Financials

AI Analysis

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

I look first for durable earnings and a margin of safety. Heron Therapeutics is a commercial-stage biotechnology company with a proprietary Biochronomer delivery platform and SUSTOL. Revenue has scaled from $127.0M in FY2023 to $144.3M in FY2024 and $154.9M in FY2025, which shows a real product base. But the bottom line remains poor: net loss was $110.6M in FY2023, $13.6M in FY2024, and $20.2M in FY2025. In the latest filed quarter, fiscal Q2 2026 (period ended 2026-06-30), revenue was $37.7M and net loss $5.5M, or diluted EPS -$0.03. Fiscal Q1 2026 had revenue $34.7M and net loss $8.1M. The company burned $12.1M of free cash flow over the trailing twelve months, a -16.4% FCF yield on a $74.0M market cap. FairStock’s ratios at the $0.39 close on 2026-10-13 show P/E -2.17 and P/B 13.00. The Piotroski F-Score is 3/9 and Altman Z-Score is -9.88, both pointing to weak financial health. Return on capital employed is -2.80%, and debt/equity is listed at 21.48. While a proprietary delivery technology can be a narrow moat, it has not produced sustainable profits in the last four years, so FairStock assigns no Peter Lynch category. The low share price may look tempting, but without positive earnings or cash flow, I see speculation, not a Graham-style bargain.

In plain English: Heron Therapeutics is a small drug company that sells medicines, including SUSTOL, using its own delivery technology. Revenue is slowly growing, but the company has been losing money for years and burns cash. At 39 cents a share, the price looks low, but because there are no profits and cash flow is negative, it does not look clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · 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