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Allurion Technologies (ALUR)
NYSE:ALUR
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Allurion Technologies
(NYSE:ALUR)
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Rating:38Underperform
Price Target:
$2.00
▼(-6.10% Downside)
Allurion Technologies is currently facing significant financial difficulties, with declining revenues, persistent losses, and high leverage. The technical analysis indicates bearish momentum, and the valuation is unattractive due to a negative P/E ratio and no dividend yield. While the earnings call suggests potential for future growth through strategic pivots, the current financial and market conditions present substantial risks.
Positive Factors
Strategic Pivot
The strategic pivot to combine the Allurion Program with GLP-1 therapy aims to enhance treatment efficacy and expand market reach, potentially establishing a new standard in obesity management.
R&D and Clinical Pipeline Advances
Advancements in R&D and clinical pipeline, including a novel GLP-1 drug-eluting balloon, could lead to innovative product offerings and strengthen competitive positioning.
Reduction in Operating Expenses
Significant reduction in operating expenses enhances financial efficiency, potentially improving profitability and cash flow sustainability over the long term.
Negative Factors
Significant Revenue Decline
The substantial revenue decline highlights challenges in maintaining sales momentum, which could impact long-term growth and financial stability.
High Leverage
High leverage and negative equity pose risks to financial stability, limiting flexibility and increasing vulnerability to economic downturns.
Negative Cash Flows
Persistent negative cash flows indicate liquidity challenges, which could hinder the company's ability to invest in growth and manage debt obligations.
Allurion Technologies (ALUR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.00M
Dividend YieldN/A
Average Volume (3M)57.34K
Price to Earnings (P/E)―
Beta (1Y)2.45
Revenue Growth-58.15%
EPS Growth93.84%
CountryUS
Employees134
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.28
Shares Outstanding7,762,681
10 Day Avg. Volume30,848
30 Day Avg. Volume57,341
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.09
Enterprise Value/Revenue1.78
Enterprise Value/Gross Profit2.89
Enterprise Value/Ebitda-1.19
Forecast
1Y Price Target
$11.00Price Target Upside416.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Allurion Technologies Business Overview & Revenue Model
Company DescriptionAllurion Technologies Inc. focuses on ending obesity with a weight loss platform to treat people who are overweight. Its platform, the Allurion Program, features swallowable and procedure-less intragastric balloon for weight loss (the Allurion Balloon) and offers access to AI-powered remote patient monitoring tools, a proprietary behavior change program, secure messaging, and video telehealth that are delivered by the Allurion Virtual Care Suite. The company is headquartered in Natick, Massachusetts.
How the Company Makes MoneyAllurion Technologies generates revenue primarily through the sale of its Allurion Balloon and related services. The company partners with healthcare providers and clinics to distribute its product to patients seeking weight loss solutions. Revenue is driven by the sale of the balloon itself, as well as ancillary services such as digital monitoring and coaching, which are part of the company's holistic weight loss program. Strategic partnerships with medical professionals and clinics are critical to Allurion's business model, as they facilitate access to a broader patient base and enhance the credibility and reach of its weight management solutions.
Allurion Technologies Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company undergoing a significant strategic pivot with promising long-term potential. While the strategic changes and R&D advancements show promise, the company faces short-term challenges, including a substantial revenue decline and expected disruptions due to restructuring. The sentiment balances between optimism for future growth and the current financial hurdles.Q2-2025 Updates
Positive Updates
Successful Strategic Pivot
Allurion has shifted its focus towards metabolically healthy weight loss, combining their Allurion Program with low-dose GLP-1 therapy, which has resulted in a 20% growth in high-performing accounts.
R&D and Clinical Pipeline Advances
Allurion has signed a term sheet with a strategic partner to expand manufacturing capabilities and explore the development of a novel GLP-1 drug-eluting intragastric balloon. They have also submitted the fourth and final module of their PMA submission to the FDA, strengthening their data with additional analyses.
Reduction in Operating Expenses
Operating expenses for the second quarter decreased by 48% compared to the prior year, leading to a 26% improvement in operating loss.
Negative Updates
Significant Revenue Decline
Revenue for the second quarter was $3.4 million, a notable decrease from $11.8 million for the same period in 2024, primarily due to distributor transitions and a temporary suspension of sales in France.
Short-Term Disruptions Expected
The new strategic direction is expected to cause short-term disruptions, particularly with ongoing distributor transitions and restructuring efforts.
Company Guidance
During the Allurion Second Quarter Earnings Conference Call, several key metrics and strategic initiatives were discussed. The company reported a revenue of $3.4 million for the second quarter of 2025, a significant decrease from $11.8 million in the same period of 2024, primarily due to distributor transitions and reduced sales in certain markets. Operating expenses decreased by 48% year-over-year, leading to a 26% improvement in operating loss. Allurion's new strategic direction focuses on combining its Allurion Program with low-dose GLP-1 therapy to address adherence challenges and promote metabolically healthy weight loss. This pivot resulted in a 20% growth in comprehensive obesity management program accounts compared to the first quarter of 2025. The company submitted the fourth module of its PMA to the FDA, with positive results from the AUDACITY Study highlighting a 4.34% mean difference in weight loss between treatment and control groups at 48 weeks. Allurion's cash and cash equivalents stood at $12.7 million as of June 30, 2025, with plans to further align operating expenses with its new strategic direction.Allurion Technologies Financial Statement Overview
Summary
Allurion Technologies faces significant financial challenges, characterized by declining revenue, persistent losses, high leverage, and negative cash flows. Strategic changes are necessary to stabilize and improve financial health in a highly competitive medical devices industry.Income Statement
Allurion Technologies has experienced significant revenue fluctuations, with a notable decline from 2022 to 2023. The company faces negative profit margins, including a negative gross profit margin in 2024, and sustained losses in net income, EBIT, and EBITDA, indicating ongoing challenges in achieving profitability.35
Negative
Balance Sheet
The balance sheet reveals a concerning financial structure, with negative stockholders' equity and high leverage as indicated by a high debt-to-equity ratio. The equity ratio is negative, reflecting a risk of insolvency, compounded by the decline in assets and insufficient equity to cover liabilities.25
Negative
Cash Flow
Cash flow analysis shows persistently negative operating and free cash flows, signaling liquidity issues. The company has relied heavily on financing activities to fund operations, which is unsustainable in the long term without improved financial performance.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.92M | 32.11M | 53.47M | 64.21M | 38.24M | 0.00 |
| Gross Profit | 12.30M | 21.50M | 41.50M | 50.73M | 29.19M | 0.00 |
| EBITDA | -29.83M | -22.17M | -69.03M | -32.28M | -8.01M | -5.17K |
| Net Income | -31.53M | -26.15M | -80.61M | -37.74M | -12.39M | -5.17K |
Balance Sheet | ||||||
| Total Assets | 28.17M | 32.81M | 71.71M | 51.37M | 39.35M | 329.96K |
| Cash, Cash Equivalents and Short-Term Investments | 12.72M | 15.38M | 38.04M | 7.68M | 25.84M | 47.09K |
| Total Debt | 30.52M | 37.92M | 41.86M | 59.53M | 26.14M | 170.00K |
| Total Liabilities | 92.14M | 110.79M | 142.20M | 122.81M | 73.64M | 310.13K |
| Stockholders Equity | -63.98M | -77.98M | -70.49M | -71.44M | -34.28M | 19.83K |
Cash Flow | ||||||
| Free Cash Flow | -41.89M | -42.91M | -65.59M | -48.53M | -15.24M | ― |
| Operating Cash Flow | -41.82M | -42.30M | -63.98M | -46.98M | -14.33M | ― |
| Investing Cash Flow | -72.00K | -611.00K | -1.61M | -1.55M | -912.00K | 0.00 |
| Financing Cash Flow | 35.31M | 20.21M | 95.99M | 30.54M | 28.95M | 47.13K |
Allurion Technologies Technical Analysis
Negative
2.13
Price Trends
2.56
Negative
2.57
Negative
3.89
Negative
Market Momentum
-0.10
Negative
40.16
Neutral
48.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALUR, the sentiment is Negative. The current price of 2.13 is below the 20-day moving average (MA) of 2.16, below the 50-day MA of 2.56, and below the 200-day MA of 3.89, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 40.16 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALUR.
Allurion Technologies Risk Analysis
Allurion Technologies disclosed 83 risk factors in its most recent earnings report. Allurion Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allurion Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
50 Neutral | 25.84M | -0.34 | -270.00% | ― | 15.00% | 71.57% | |
43 Neutral | 8.83M | -0.18 | 0.00% | ― | 4.96% | -13.09% | |
42 Neutral | 8.65M | 0.34 | 178.66% | ― | -73.36% | 0.00% | |
38 Underperform | $17.00M | ― | 38.80% | ― | -58.15% | 93.84% | |
35 Underperform | 29.97M | -1.96 | 0.00% | ― | 0.00% | 0.00% | |
23 Underperform | 5.04M | -0.17 | 0.00% | ― | 0.00% | 56.73% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
ALUR
Allurion Technologies
2.13
-13.89
-86.70%
LFWD
Lifeward
0.56
-2.62
-82.39%
PAVM
PAVmed
0.40
-1.23
-75.46%
ADGM
Adagio Medical Holdings
1.62
-2.64
-61.97%
MOVE
Movano
0.67
-4.73
-87.59%
IINN
Inspira Technologies Oxy BHN
1.15
-0.11
-8.73%
Allurion Technologies Corporate Events
Business Operations and StrategyFinancial Disclosures
Allurion Technologies Reports Q2 Results and Strategic Pivot
Neutral
Aug 13, 2025
On August 13, 2025, Allurion Technologies announced its second quarter financial results, revealing a strategic pivot towards low-dose GLP-1 combination therapy and U.S. market entry. The company reported a revenue of $3.4 million for the quarter, reflecting a decrease due to distributor transitions and reduced sales in certain markets. Despite this, Allurion is optimistic about long-term growth through new strategic partnerships and a focus on next-generation R&D, aiming to establish a new standard of care in obesity management.
Business Operations and Strategy
Allurion Technologies Announces Strategic Restructuring Plan
Neutral
Aug 7, 2025
On August 5, 2025, Allurion Technologies announced a strategic restructuring plan to focus on low-dose GLP-1 combination therapy, muscle mass maintenance, and U.S. market entry. This plan involves a significant workforce reduction and aims to enhance distribution and R&D capabilities, including a potential joint development of a novel GLP-1 drug-eluting balloon. The company is transitioning to distribution partners with access to physician networks and has observed growth in clinics adopting the combination therapy. Despite short-term disruptions, Allurion expects long-term growth and improved financial performance.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.