📊 APLS Key Takeaways
Is Apellis Pharmaceuticals, Inc. (APLS) a Good Investment?
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.
Apellis shows a meaningful step-up in scale, with revenue up 28.5% to $1.00B and the business now producing positive operating income, net income, and free cash flow. The balance sheet is a clear strength, with $466.23M in cash, strong liquidity, low leverage, and high interest coverage, which supports execution flexibility. The main constraint is that profitability remains thin, so the fundamental case depends on converting current growth into more durable margin expansion.
Why Buy Apellis Pharmaceuticals, Inc. Stock? APLS Key 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
- Revenue growth is strong at 28.5% YoY, indicating continued commercial momentum
- Financial health is solid, with $466.23M in cash, a 3.14x current ratio, and only 0.25x debt-to-equity
- The company is now generating positive operating income, operating cash flow, and free cash flow, improving growth quality
APLS Stock Risks: Apellis Pharmaceuticals, Inc. Investment 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
- Profitability is still fragile, with only 5.5% operating margin and 2.2% net margin
- Net income was essentially flat YoY, suggesting revenue growth has not yet translated into strong bottom-line scaling
- As a pharmaceutical company, results remain exposed to product concentration, regulatory risk, and commercialization execution
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
- Operating margin and net margin progression
- Operating cash flow and free cash flow consistency
Apellis Pharmaceuticals, Inc. (APLS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.5% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.14x current ratio provides a solid financial cushion.
APLS Profit Margin, ROE & Profitability Analysis
APLS vs Healthcare Sector: How Apellis Pharmaceuticals, Inc. Compares
How Apellis Pharmaceuticals, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Apellis Pharmaceuticals, Inc. Stock Overvalued? APLS Valuation Analysis 2026
Based on fundamental analysis, Apellis Pharmaceuticals, Inc. 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.
Apellis Pharmaceuticals, Inc. Balance Sheet: APLS Debt, Cash & Liquidity
APLS Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
APLS Quarterly Earnings & 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.
Apellis Pharmaceuticals, Inc. Dividends, Buybacks & Capital Allocation
APLS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Apellis Pharmaceuticals, Inc. (CIK: 0001492422)
📋 Recent SEC Filings
❓ Frequently Asked Questions about APLS
What is the AI rating for APLS?
Apellis Pharmaceuticals, Inc. (APLS) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are APLS's key strengths?
Claude: 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. ChatGPT: Revenue growth is strong at 28.5% YoY, indicating continued commercial momentum. Financial health is solid, with $466.23M in cash, a 3.14x current ratio, and only 0.25x debt-to-equity.
What are the risks of investing in APLS?
Claude: 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. ChatGPT: Profitability is still fragile, with only 5.5% operating margin and 2.2% net margin. Net income was essentially flat YoY, suggesting revenue growth has not yet translated into strong bottom-line scaling.
What is APLS's revenue and growth?
Apellis Pharmaceuticals, Inc. reported revenue of $1.0B.
Does APLS pay dividends?
Apellis Pharmaceuticals, Inc. does not currently pay dividends.
Where can I find APLS SEC filings?
Official SEC filings for Apellis Pharmaceuticals, Inc. (CIK: 0001492422) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is APLS's EPS?
Apellis Pharmaceuticals, Inc. has a diluted EPS of $0.20.
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 APLS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Apellis Pharmaceuticals, Inc. has a BUY rating with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is APLS stock overvalued or undervalued?
Valuation metrics for APLS: ROE of 6.0% (sector avg: 15%), net margin of 2.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy APLS stock in 2026?
Our dual AI analysis gives Apellis Pharmaceuticals, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is APLS's free cash flow?
Apellis Pharmaceuticals, Inc.'s operating cash flow is $45.3M, with capital expenditures of $313.0K. FCF margin is 4.5%.
How does APLS compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 2.2% (avg: 12%), ROE 6.0% (avg: 15%), current ratio 3.14 (avg: 2).