Investment Thesis
Apellis demonstrates solid revenue growth of 28.5% YoY with improving profitability and strong cash generation, supported by robust liquidity and low leverage. However, low net margins of 2.2% and modest ROE of 6.0% indicate profitability constraints typical of pharmaceutical companies in transition, requiring continued execution on revenue conversion.
APLS Strengths
- Strong revenue growth of 28.5% YoY indicating market demand and product traction
- Excellent liquidity position with 3.14x current ratio and $466.2M cash, providing substantial financial flexibility
- Conservative leverage with 0.25x debt-to-equity ratio and strong 20.6x interest coverage demonstrating financial stability
- Positive free cash flow of $45.0M with healthy 4.5% FCF margin supporting operational sustainability
- Diluted EPS growth of 112.5% YoY showing improving per-share value creation
APLS Risks
- Low net profit margin of 2.2% indicates narrow profitability and vulnerability to cost increases or revenue headwinds
- Modest returns on equity (6.0%) and assets (2.1%) suggest inefficient capital deployment relative to competitive industry standards
- Operating margin of 5.5% is thin, limiting cushion against operational challenges or pricing pressure
- Gross margin unavailable suggests potential reporting issues or integration challenges that warrant clarification
- High insider trading activity (45 Form 4 filings) may indicate potential concerns or stock compensation dependency
Key Metrics to Watch
- Gross margin trend and operating expense ratio to assess underlying profitability improvement
- Revenue growth sustainability and product mix to confirm market adoption beyond initial uptake
- Free cash flow conversion rate and cash burn relative to runway to ensure long-term viability
- Operating margin expansion pathway as revenue scales to gauge operational leverage benefits
- Return on equity trajectory to demonstrate improving capital efficiency and shareholder value creation
APLS Financial Metrics
APLS Profitability Ratios
APLS Balance Sheet & Liquidity
APLS 5-Year Financial Trend
5-Year Trend Summary: Apellis Pharmaceuticals, Inc.'s revenue has grown significantly by 300% over the 5-year period, indicating strong business expansion. The most recent EPS of $-4.45 indicates the company is currently unprofitable.
APLS Growth Metrics (YoY)
APLS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $196.8M | -$37.7M | $-0.46 |
| Q2 2025 | $178.5M | -$37.7M | $-0.30 |
| Q1 2025 | $166.8M | -$66.4M | $-0.54 |
| Q3 2024 | $110.4M | -$37.7M | $-0.46 |
| Q2 2024 | $95.0M | -$37.7M | $-0.30 |
| Q1 2024 | $44.8M | -$66.4M | $-0.54 |
| Q3 2023 | $22.1M | -$122.0M | $-1.17 |
| Q2 2023 | $16.3M | -$122.0M | $-1.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
APLS Capital Allocation
APLS SEC Filings
Access official SEC EDGAR filings for Apellis Pharmaceuticals, Inc. (CIK: 0001492422)