Investment Thesis
Alector is a pre-revenue stage biotech company with severe operational losses (-$142.9M net loss on only $21.0M revenue) and dramatically negative profitability metrics (net margin of -679.2%). The company is burning cash at an unsustainable rate (-$184.1M operating cash flow) with only 3.6 years of cash runway at current burn, indicating imminent financing risk or liquidation pressure.
ALEC Strengths
- Strong liquidity position with $65.8M cash and 3.83x current ratio providing near-term operational flexibility
- Modest long-term debt burden with 0.33x debt-to-equity ratio limiting financial leverage risk
- Recent insider activity (8 Form 4 filings in 90 days) suggests active management engagement
ALEC Risks
- Catastrophic cash burn rate of $184M annually with only $65.8M cash remaining - company faces critical funding necessity within 4 quarters
- Revenue generation appears minimal ($21M) and flat YoY, insufficient to offset R&D/operating expenses in biotech development stage
- Operating losses of $156M with net margin of -679% indicate no clear path to profitability without significant revenue inflection or major asset sale
- Negative free cash flow of -$184.1M demonstrates company cannot fund operations from internal operations and is entirely dependent on external financing
Key Metrics to Watch
- Cash balance depletion rate and runway until next financing event
- Clinical trial progress and pipeline advancement toward revenue-generating approvals
- Quarterly revenue growth trajectory and any evidence of commercial traction
- Operating expense burn rate and management's cost control actions
ALEC Financial Metrics
ALEC Profitability Ratios
ALEC Balance Sheet & Liquidity
ALEC 5-Year Financial Trend
5-Year Trend Summary: Alector, Inc.'s revenue has declined by 51% over the 5-year period, indicating business contraction. The most recent EPS of $-1.23 indicates the company is currently unprofitable.
ALEC Growth Metrics (YoY)
ALEC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.3M | -$30.5M | $-0.34 |
| Q2 2025 | $7.9M | -$30.5M | $-0.30 |
| Q1 2025 | $3.7M | -$36.1M | $-0.38 |
| Q3 2024 | $9.1M | $1.4M | $-0.43 |
| Q2 2024 | $15.1M | $1.4M | $0.02 |
| Q1 2024 | $15.9M | -$36.1M | $-0.38 |
| Q3 2023 | $9.1M | $1.4M | $-0.53 |
| Q2 2023 | $56.2M | $1.4M | $0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ALEC Capital Allocation
ALEC SEC Filings
Access official SEC EDGAR filings for Alector, Inc. (CIK: 0001653087)