📊 HRTX Key Takeaways
Is HRTX a Good Investment? Thesis Analysis
Heron Therapeutics exhibits a critical mismatch between revenue quality and expense structure, with strong 73.3% gross margins undermined by severe operating losses of -$2.5M and net losses of -$20.2M. The company is burning cash at -$27.6M annually with only ~12 months of financial runway at current burn rates, while maintaining a dangerously thin equity cushion of $14.3M against $241.5M in liabilities, creating acute solvency risk.
Why Buy HRTX? Key Strengths
- Strong gross margin of 73.3% demonstrates pricing power and product quality
- Positive revenue growth of 7.4% YoY shows market traction and commercial capability
- No long-term debt provides financial flexibility and eliminates refinancing risk
HRTX Investment Risks to Consider
- Negative operating cash flow of -$27.6M annually is unsustainable with only ~12 months cash runway remaining
- Dangerously thin stockholders equity of $14.3M vs $241.5M liabilities creates extreme solvency risk and limits strategic options
- Deeply unprofitable with net margin of -13.0% despite revenue generation, indicating uncontrollable cost structure
Key Metrics to Watch
- Operating cash flow trend and path to positive OCF
- Cash balance depletion rate and runway extension
- Operating expense reduction and path to operating profitability
HRTX Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.48x current ratio provides a solid financial cushion.
HRTX Profitability Ratios
HRTX vs Healthcare Sector
How HERON THERAPEUTICS, INC. /DE/ compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HRTX Overvalued or Undervalued?
Based on fundamental analysis, HERON THERAPEUTICS, INC. /DE/ has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
HRTX Balance Sheet & Liquidity
HRTX 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: HERON THERAPEUTICS, INC. /DE/'s revenue has shown modest growth of 6% over the 5-year period. The most recent EPS of $-0.80 indicates the company is currently unprofitable.
HRTX Growth Metrics (YoY)
HRTX Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $32.8M | -$2.4M | $-0.03 |
| Q2 2025 | $36.0M | $254.0K | $0.00 |
| Q1 2025 | $34.7M | $2.6M | $0.01 |
| Q3 2024 | $31.4M | -$3.2M | $-0.03 |
| Q2 2024 | $31.8M | -$3.2M | $-0.06 |
| Q1 2024 | $29.6M | -$3.2M | $-0.02 |
| Q3 2023 | $26.6M | -$25.0M | $-0.17 |
| Q2 2023 | $27.6M | -$32.8M | $-0.35 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
HRTX Capital Allocation
HRTX SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for HERON THERAPEUTICS, INC. /DE/ (CIK: 0000818033)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HRTX
What is the AI rating for HRTX?
HERON THERAPEUTICS, INC. /DE/ (HRTX) has an AI rating of STRONG SELL with 87% confidence, based on fundamental analysis of SEC EDGAR filings.
What are HRTX's key strengths?
Claude: Strong gross margin of 73.3% demonstrates pricing power and product quality. Positive revenue growth of 7.4% YoY shows market traction and commercial capability.
What are the risks of investing in HRTX?
Claude: Negative operating cash flow of -$27.6M annually is unsustainable with only ~12 months cash runway remaining. Dangerously thin stockholders equity of $14.3M vs $241.5M liabilities creates extreme solvency risk and limits strategic options.
What is HRTX's revenue and growth?
HERON THERAPEUTICS, INC. /DE/ reported revenue of $154.9M.
Does HRTX pay dividends?
HERON THERAPEUTICS, INC. /DE/ does not currently pay dividends.
Where can I find HRTX SEC filings?
Official SEC filings for HERON THERAPEUTICS, INC. /DE/ (CIK: 0000818033) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HRTX's EPS?
HERON THERAPEUTICS, INC. /DE/ has a diluted EPS of $-0.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HRTX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, HERON THERAPEUTICS, INC. /DE/ has a STRONG SELL rating with 87% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HRTX stock overvalued or undervalued?
Valuation metrics for HRTX: ROE of -140.9% (sector avg: 15%), net margin of -13.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HRTX stock in 2026?
Our dual AI analysis gives HERON THERAPEUTICS, INC. /DE/ a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HRTX's free cash flow?
HERON THERAPEUTICS, INC. /DE/'s operating cash flow is $-27.6M, with capital expenditures of $317.0K. FCF margin is -18.0%.
How does HRTX compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -13.0% (avg: 12%), ROE -140.9% (avg: 15%), current ratio 2.48 (avg: 2).