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DAWN Stock Analysis - Day One Biopharmaceuticals, Inc. AI Rating

DAWN Nasdaq Pharmaceutical Preparations DE CIK: 0001845337
Recently Updated • Analysis: Mar 23, 2026 • SEC Data: 2025-12-31
SELL
85%
Pending
Analysis scheduled

📊 DAWN Key Takeaways

Revenue: $158.2M
Net Margin: -67.8%
Free Cash Flow: $-104.1M
Current Ratio: 8.02x
Debt/Equity: 0.00x
EPS: $-1.04
AI Rating: SELL with 85% confidence

Investment Thesis

Claude

Day One Biopharmaceuticals is a pre-profitability biotech company with strong revenue growth (+20.6% YoY) but severely negative profitability metrics including -67.8% net margin and -$104.1M free cash flow. Despite solid liquidity (8.02x current ratio) and $197.1M cash, the company is burning cash rapidly and will need additional capital or significantly accelerated revenue growth to reach sustainability.

DAWN Strengths

Claude
  • + Strong revenue growth of 20.6% year-over-year demonstrates market traction and commercial progress
  • + Excellent liquidity position with 8.02x current ratio and $197.1M cash provides runway for operations
  • + Low leverage with 0.00x debt-to-equity ratio and minimal long-term debt reduces financial risk
  • + Significant stockholders' equity of $441.2M provides substantial cushion

DAWN Risks

Claude
  • ! Severe operating losses of -$127.8M with -80.8% operating margin indicate core business is not profitable at scale
  • ! Negative free cash flow of -$104.1M annually means cash runway is limited; at current burn rate, cash depletes within 1.9 years
  • ! Net losses widening with -$107.3M net income suggests inability to control costs despite revenue growth
  • ! Pre-profitability biotech model carries inherent R&D risk and requires sustained access to capital markets

Key Metrics to Watch

DAWN Financial Metrics

Revenue
$158.2M
Net Income
$-107.3M
EPS (Diluted)
$-1.04
Free Cash Flow
$-104.1M
Total Assets
$507.8M
Cash Position
$197.1M

💡 AI Analyst Insight

Strong liquidity with a 8.02x current ratio provides a solid financial cushion.

DAWN Profitability Ratios

Gross Margin N/A
Operating Margin -80.8%
Net Margin -67.8%
ROE -24.3%
ROA -21.1%
FCF Margin -65.8%

DAWN vs Healthcare Sector

How Day One Biopharmaceuticals, Inc. compares to Healthcare sector averages

Net Margin
DAWN -67.8%
vs
Sector Avg 12.0%
DAWN Sector
ROE
DAWN -24.3%
vs
Sector Avg 15.0%
DAWN Sector
Current Ratio
DAWN 8.0x
vs
Sector Avg 2.0x
DAWN Sector
Debt/Equity
DAWN 0.0x
vs
Sector Avg 0.6x
DAWN Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

DAWN Balance Sheet & Liquidity

Current Ratio
8.02x
Quick Ratio
7.91x
Debt/Equity
0.00x
Debt/Assets
13.1%
Interest Coverage
-6,723.68x
Long-term Debt
N/A

DAWN 5-Year Financial Trend

DAWN 5-year financial data: Year 2024: Revenue $131.2M, Net Income -$142.2M, EPS $-2.17. Year 2025: Revenue $158.2M, Net Income -$188.9M, EPS $-2.37.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Day One Biopharmaceuticals, Inc.'s revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.37 indicates the company is currently unprofitable.

DAWN Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-65.8%
Free cash flow / Revenue

DAWN Quarterly Performance

Quarterly financial performance data for Day One Biopharmaceuticals, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $39.8M -$4.4M $-0.19
Q2 2025 $8.2M -$4.4M $-0.05
Q1 2025 N/A -$36.0M $-0.35
Q3 2024 N/A -$4.4M $-0.33

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

DAWN Capital Allocation

Operating Cash Flow
-$103.8M
Cash generated from operations
Capital Expenditures
$320.0K
Investment in assets
Dividends
None
No dividend program

DAWN SEC Filings

Access official SEC EDGAR filings for Day One Biopharmaceuticals, Inc. (CIK: 0001845337)

📋 Recent SEC Filings

Date Form Document Action
Mar 6, 2026 8-K d108979d8k.htm View →
Mar 2, 2026 8-K d104816d8k.htm View →
Feb 24, 2026 10-K dawn-20251231.htm View →
Feb 24, 2026 8-K dawn-20260224.htm View →
Feb 18, 2026 4 xslF345X05/form4-02182026_100245.xml View →

Frequently Asked Questions about DAWN

What is the AI rating for DAWN?

Day One Biopharmaceuticals, Inc. (DAWN) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.

What are DAWN's key strengths?

Strong revenue growth of 20.6% year-over-year demonstrates market traction and commercial progress. Excellent liquidity position with 8.02x current ratio and $197.1M cash provides runway for operations.

What are the risks of investing in DAWN?

Severe operating losses of -$127.8M with -80.8% operating margin indicate core business is not profitable at scale. Negative free cash flow of -$104.1M annually means cash runway is limited; at current burn rate, cash depletes within 1.9 years.

What is DAWN's revenue and growth?

Day One Biopharmaceuticals, Inc. reported revenue of $158.2M.

Does DAWN pay dividends?

Day One Biopharmaceuticals, Inc. does not currently pay dividends.

Where can I find DAWN SEC filings?

Official SEC filings for Day One Biopharmaceuticals, Inc. (CIK: 0001845337) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is DAWN's EPS?

Day One Biopharmaceuticals, Inc. has a diluted EPS of $-1.04.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 23, 2026 | Data as of: 2025-12-31 | Powered by Claude AI