Investment Thesis
Akebia demonstrates strong revenue growth (+47.5% YoY) and robust cash generation (FCF margin of 28.7%), but profitability remains challenged with negative net income despite positive operating income. The company maintains adequate liquidity with a 1.55x current ratio and substantial cash reserves ($184.8M), though elevated leverage (1.48x Debt/Equity) and negative returns on equity (-16.4%) signal ongoing operational pressures.
AKBA Strengths
- Strong topline growth of 47.5% YoY indicating robust commercial execution
- Exceptional free cash flow generation at $67.7M with 28.7% FCF margin showing strong cash conversion
- Solid liquidity position with $184.8M cash and 1.55x current ratio providing financial flexibility
AKBA Risks
- Persistent net losses (-$5.3M) and negative net margin (-2.3%) despite revenue growth suggests margin pressure or one-time charges
- Elevated leverage at 1.48x Debt/Equity with long-term debt of $48.2M relative to small equity base of $32.6M
- Negative returns on equity (-16.4%) and ROA (-1.4%) indicate inefficient asset utilization and value destruction for shareholders
Key Metrics to Watch
- Path to net profitability and net margin expansion
- Debt reduction trajectory and leverage normalization
- Gross margin sustainability as revenue scales
AKBA Financial Metrics
AKBA Profitability Ratios
AKBA Balance Sheet & Liquidity
AKBA 5-Year Financial Trend
5-Year Trend Summary: Akebia Therapeutics, Inc.'s revenue has declined by 29% over the 5-year period, indicating business contraction. The most recent EPS of $-0.28 indicates the company is currently unprofitable.
AKBA Growth Metrics (YoY)
AKBA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $37.4M | $247.0K | $0.00 |
| Q2 2025 | $43.6M | $247.0K | $0.00 |
| Q1 2025 | $32.6M | $6.1M | $0.03 |
| Q3 2024 | $37.4M | -$8.6M | $-0.08 |
| Q2 2024 | $43.6M | -$8.6M | $-0.04 |
| Q1 2024 | $32.6M | -$18.0M | $-0.09 |
| Q3 2023 | $42.0M | -$11.2M | $-0.08 |
| Q2 2023 | $56.4M | -$11.2M | $-0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AKBA Capital Allocation
AKBA SEC Filings
Access official SEC EDGAR filings for Akebia Therapeutics, Inc. (CIK: 0001517022)