XBiotech Inc. Common Stock (XBIT)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

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

As a Buffett-and-Graham-style investor, I start with the business, not the story. XBiotech has 87 employees and is pursuing True Human monoclonal antibodies and interleukin-1 alpha therapies for inflammatory and infectious diseases, including cancer, stroke, heart attack, and arthritis. That is promising science, but science is not the same as a durable franchise. In the filed figures, revenue is n/a across fiscal 2023, 2024, 2025, and the quarters I can see in 2026. Net loss was $24.6 million in fiscal 2023, $38.5 million in fiscal 2024, and $45.5 million in fiscal 2025, with diluted EPS of -$0.81, -$1.26, and -$1.49. The bleeding continued: in fiscal Q1 2026, the quarter ended 2026-03-31, net loss was $5.5 million, or -$0.18 per diluted share; in fiscal Q2 2026, the quarter ended 2026-06-30, net loss was $6.7 million, or -$0.22. Trailing free cash flow was -$40.8 million, a FairStock-calculated FCF yield of -62.0%. On 2026-10-13, the close was $2.16, market cap $65.9 million, P/B 0.51, and P/E -1.46. The low P/B may attract asset-minded investors, and the FairStock Altman Z-Score of 7.02 suggests balance-sheet solvency by that measure. But the FairStock Piotroski F-Score is 1/9, ROE is -29.94%, and the Lynch category is none because of losses in each of the last four years. Without revenue, profits, or a revealed commercial moat, this remains a speculative pipeline story, not a Graham-style bargain. I would want evidence of commercial validation and declining cash burn before calling the business strong.

In plain English: XBiotech is a small biotech company that is trying to develop antibody medicines for diseases linked to inflammation and infection. It reports no revenue and is losing money, and the losses have grown over the past few years. The stock price is low compared with its accounting book value, but because the company keeps burning cash and has no profits, it is not clearly a bargain.

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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