📊 HRTX Key Takeaways
Is Heron Therapeutics, Inc.. /DE/ (HRTX) a Good Investment?
Heron Therapeutics is an early-stage pharmaceutical company with a strong gross margin (69.4%) but deteriorating profitability, with net income declining 48.7% YoY despite modest 7.4% revenue growth. The company is burning cash operationally (-$1.5M) and has minimal shareholders' equity ($9.1M) relative to total liabilities ($237.1M), creating unsustainable financial dynamics. Without near-term profitability or significant revenue acceleration, the company faces mounting dilution risk.
High 73% gross margin and modest 7% revenue growth show product traction and improving operating leverage near breakeven. Yet persistent net losses, negative free cash flow, and a razor‑thin equity base create elevated financing/dilution risk unless operating cash flow turns sustainably positive soon.
Heron Therapeutics, Inc.. /DE/ Key Strengths (HRTX)
- Strong gross margin of 69.4% indicates product pricing power and low manufacturing costs
- Positive revenue growth of 7.4% YoY demonstrates some market traction
- Solid short-term liquidity with current ratio of 2.53x and $26.1M cash position
- Strong gross margin indicating pricing power
- Operating margin near breakeven suggests improving cost control
- Solid near-term liquidity with a 2.5x current ratio
HRTX Stock Risks: Heron Therapeutics, Inc.. /DE/ Investment Risks
- Deteriorating profitability with net income declining 48.7% YoY despite revenue growth
- Negative operating cash flow of -$1.5M indicates business is not operationally sustainable
- Critically low shareholders' equity ($9.1M) relative to liabilities ($237.1M) creates severe financial distress risk
- Operating losses of -$4.8M and negative operating margin of -13.7% show lack of near-term path to profitability
- Negative free cash flow and OCF imply ongoing cash burn
- Very thin equity and severe negative ROE highlight balance-sheet fragility
- Negative interest coverage and high liabilities relative to assets raise solvency risk
Key Metrics to Watch
- Operating cash flow trajectory toward breakeven
- Revenue acceleration rate and sales traction metrics
- Operating margin improvement and path to operating profitability
- Cash burn rate and estimated runway
- Shareholder dilution from equity financing rounds
- Operating cash flow and cash runway (cash/FCF)
- Operating margin progression toward sustained profitability
Heron Therapeutics, Inc.. /DE/ (HRTX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.53x current ratio provides a solid financial cushion.
HRTX Profit Margin, ROE & Profitability Analysis
HRTX vs Healthcare Sector: How Heron Therapeutics, Inc.. /DE/ Compares
How Heron Therapeutics, Inc.. /DE/ compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Heron Therapeutics, Inc.. /DE/ Stock Overvalued? HRTX Valuation Analysis 2026
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.
Heron Therapeutics, Inc.. /DE/ Balance Sheet: HRTX Debt, Cash & Liquidity
HRTX Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
HRTX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $34.7M | $2.6M | $0.01 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Heron Therapeutics, Inc.. /DE/ Dividends, Buybacks & Capital Allocation
HRTX SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HRTX's key strengths?
Claude: Strong gross margin of 69.4% indicates product pricing power and low manufacturing costs. Positive revenue growth of 7.4% YoY demonstrates some market traction. ChatGPT: Strong gross margin indicating pricing power. Operating margin near breakeven suggests improving cost control.
What are the risks of investing in HRTX?
Claude: Deteriorating profitability with net income declining 48.7% YoY despite revenue growth. Negative operating cash flow of -$1.5M indicates business is not operationally sustainable. ChatGPT: Negative free cash flow and OCF imply ongoing cash burn. Very thin equity and severe negative ROE highlight balance-sheet fragility.
What is HRTX's revenue and growth?
Heron Therapeutics, Inc.. /DE/ reported revenue of $34.7M.
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 $-0.04.
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 grade reflects both perspectives for balanced insights.
What is HRTX's fundamental grade?
Based on our AI fundamental analysis in June 2026, Heron Therapeutics, Inc.. /DE/ has a C grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is HRTX stock overvalued or undervalued?
Valuation metrics for HRTX: ROE of -88.8% (sector avg: 15%), net margin of -23.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is HRTX's AI grade for 2026?
Our dual AI analysis gives Heron Therapeutics, Inc.. /DE/ a combined C grade 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 $-1.5M, with capital expenditures of $391.0K. FCF margin is -5.6%.
How does HRTX compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -23.4% (avg: 12%), ROE -88.8% (avg: 15%), current ratio 2.53 (avg: 2).