📊 DAWN Key Takeaways
Is Day One Biopharmaceuticals, Inc. (DAWN) a Good Investment?
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.
Day One Biopharmaceuticals shows credible top-line momentum with 20.6% revenue growth and a very strong liquidity position, including $197.08M in cash, no meaningful leverage, and an 8.02x current ratio. However, the business remains deeply unprofitable, with a -80.8% operating margin, -67.8% net margin, and more than $104M of negative free cash flow, so the core fundamental question is whether revenue can scale faster than operating losses.
Why Buy Day One Biopharmaceuticals, Inc. Stock? DAWN 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
- 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
- Revenue is growing at a solid 20.6% year over year, indicating commercial traction.
- Balance sheet strength is high, with $441.16M of equity, $197.08M of cash, and effectively no long-term debt.
- Liquidity is excellent, with current and quick ratios above 7.9x, reducing near-term financing pressure.
DAWN Stock Risks: Day One Biopharmaceuticals, Inc. Investment Risks
- 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
- Operating and net losses remain very large, indicating the company has not yet reached a sustainable cost structure.
- Free cash flow is deeply negative at -$104.08M, which could erode the cash cushion if improvement stalls.
- Profitability quality is weak, with negative ROE and ROA showing poor current returns on capital and assets.
Key Metrics to Watch
- Operating cash flow trend and path to operating profitability
- Revenue growth sustainability and gross margin expansion as product mix matures
- Cash burn rate and months of cash runway remaining
- Operating expense ratio relative to revenue and cost control improvements
- Operating cash burn and free cash flow trend
- Revenue growth relative to operating expense growth
Day One Biopharmaceuticals, Inc. (DAWN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 8.02x current ratio provides a solid financial cushion.
DAWN Profit Margin, ROE & Profitability Analysis
DAWN vs Healthcare Sector: How Day One Biopharmaceuticals, Inc. Compares
How Day One Biopharmaceuticals, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Day One Biopharmaceuticals, Inc. Stock Overvalued? DAWN Valuation Analysis 2026
Based on fundamental analysis, Day One Biopharmaceuticals, 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.
Day One Biopharmaceuticals, Inc. Balance Sheet: DAWN Debt, Cash & Liquidity
DAWN Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
DAWN Quarterly Earnings & Performance
| 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.
Day One Biopharmaceuticals, Inc. Dividends, Buybacks & Capital Allocation
DAWN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Day One Biopharmaceuticals, Inc. (CIK: 0001845337)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DAWN
What is the AI rating for DAWN?
Day One Biopharmaceuticals, Inc. (DAWN) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DAWN's key 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. ChatGPT: Revenue is growing at a solid 20.6% year over year, indicating commercial traction.. Balance sheet strength is high, with $441.16M of equity, $197.08M of cash, and effectively no long-term debt..
What are the risks of investing in DAWN?
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. ChatGPT: Operating and net losses remain very large, indicating the company has not yet reached a sustainable cost structure.. Free cash flow is deeply negative at -$104.08M, which could erode the cash cushion if improvement stalls..
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?
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 DAWN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Day One Biopharmaceuticals, Inc. has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DAWN stock overvalued or undervalued?
Valuation metrics for DAWN: ROE of -24.3% (sector avg: 15%), net margin of -67.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy DAWN stock in 2026?
Our dual AI analysis gives Day One Biopharmaceuticals, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DAWN's free cash flow?
Day One Biopharmaceuticals, Inc.'s operating cash flow is $-103.8M, with capital expenditures of $320.0K. FCF margin is -65.8%.
How does DAWN compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -67.8% (avg: 12%), ROE -24.3% (avg: 15%), current ratio 8.02 (avg: 2).