Avalo Therapeutics (AVTX) AI Stock Analysis

• Market Cap: $249.92M
• Dividend Yield: N/A
• Average Volume (3M): 550.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: -76.59%
• EPS Growth: 94.03%
• Country: US
• Employees: 23
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 18,512,756
• 10 Day Avg. Volume: 637,276
• 30 Day Avg. Volume: 550,192
• PEG Ratio: -0.09
• Price to Book (P/B): 2.93
• Price to Sales (P/S): 4125.96
• P/FCF Ratio: -4.73
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: -653.65
• Enterprise Value/Gross Profit: -1.02K
• Enterprise Value/Ebitda: -1.87
• 1Y Price Target: $39.67
• Price Target Upside: 193.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $13.00 ▼(-3.70% Downside)
• Action: Reiterated Date: 03/23/26
• Date: Action: Reiterated 03/23/26

The score is primarily held down by very weak financial performance (minimal/declining revenue, large ongoing losses, and significant cash burn) and bearish technicals (below key moving averages with negative MACD). Valuation offers limited support due to negative earnings and no dividend.

Positive Factors

Clean balance sheet

Elimination of debt and positive equity provide durable financial flexibility for a clinical-stage biotech. With low leverage the company can fund trials, negotiate partnerships, or raise capital from a stronger balance-sheet position, reducing near-term default or covenant risks.

Lead asset progress

Completing Phase 2 enrollment and having topline readout timing materially de-risks the lead program versus earlier-stage peers. A positive readout could unlock partnerships, regulatory engagement, or accelerated development, and runway into 2028 supports reaching these milestones without immediate dilution.

Large addressable HS market

Focusing on HS and other immune-mediated inflammatory diseases taps a growing, under-served therapeutic area. If AVTX-009 shows differentiated efficacy/safety and dosing, the company could capture a meaningful niche and expand into adjacent indications, improving long-term commercial prospects.

Negative Factors

High cash burn

Persistent cash burn near $51M annually is a structural vulnerability for a non-revenue biotech. It shortens the time to next financing or partnership, increases dilution risk for equity holders, and leaves operations sensitive to trial delays or unexpected costs despite low debt levels.

Minimal revenue base

Revenue of roughly $59K and sharp contraction indicate no commercial cushion against R&D spending. Without product revenue or material partnership payments, the firm remains fully dependent on capital markets or milestone-based deals to fund development, raising execution risk.

Large operating losses

Deep and recurring operating losses reflect significant ongoing R&D and G&A spending with no offsetting income. Over time such losses can erode equity, force dilutive financings, and constrain strategic optionality if clinical results disappoint or timelines extend.

Avalo Therapeutics Business Overview & Revenue Model

Company Description

Avalo Therapeutics, Inc., a clinical-stage precision medicine company, discovers, develops, and commercializes targeted therapeutics for patients with unmet clinical need in immunology, immuno-oncology, and rare genetic diseases. It develops AVTX-002, a fully human anti-LIGHT monoclonal antibody, which is under Phase II clinical trial for the treatment of non-eosinophilic asthma, as well as inflammatory bowel disease, including moderate to severe Crohn's disease, and ulcerative colitis; and Phase III clinical trial for the treatment of COVID-19 acute respiratory distress syndrome. The company also engages in developing AVTX-007, a fully human Anti-IL-18 monoclonal antibody that is under Phase I clinical trial for the treatment of still's disease, including adult-onset still's disease and systemic juvenile idiopathic arthritis. Its products for rare genetic diseases in Phase III clinical trials include AVTX-801, a D-galactose substrate replacement therapy for the treatment of phosphoglucomutase 1 deficiency (PGM1), also known as PGM1-CDG; and AVTX-803, a L-fucose substrate replacement therapy for the treatment of LADII, also known as SLC35C1-CDG. The company was formerly known as Cerecor Inc. and changed its name to Avalo Therapeutics, Inc. in August 2021. Avalo Therapeutics, Inc. was incorporated in 2011 and is headquartered in Rockville, Maryland.

How the Company Makes Money

As a clinical-stage biotech, Avalo Therapeutics has historically not relied on recurring product sales; detailed, current revenue composition from commercial products is null. In general, companies at this stage fund operations primarily through capital raising (e.g., issuing equity and other financings) and, when applicable, through collaboration arrangements such as upfront payments, milestone payments, cost-sharing reimbursements, and royalties tied to partnered development or commercialization; Avalo-specific, material partnerships and their financial terms are null.

Avalo Therapeutics Financial Statement Overview

Summary

Overall fundamentals are very weak: revenue is minimal and declining (~$59K in 2025) while losses remain large (EBIT about -$73M; net loss about -$78M). Cash burn is heavy and worsening (operating/free cash flow roughly -$51M in 2025). The main positive is a cleaner balance sheet with little-to-no debt and positive equity, but persistent losses keep financial risk elevated.

Income Statement

Operating performance remains very weak. Revenue has contracted sharply over time, culminating in only ~$59K in 2025 (annual) with a ~69% decline, indicating a shrinking revenue base. Profitability is deeply negative with large operating losses (EBIT of about -$73M in 2025 and -$69M in 2024) and sizeable net losses (about -$78M in 2025). While 2024 showed positive gross profit, the overall trajectory points to limited scale and continued heavy spending relative to revenue.

Balance Sheet

The balance sheet is mixed but has recently improved on leverage. Total debt is effectively eliminated in 2025 (annual) after being modest in 2024, and equity is positive and sizable in 2024–2025, supporting financial flexibility. However, results have been volatile historically (including negative equity in 2022), and persistent losses continue to pressure book value over time if not offset by financing or improved operations.

Cash Flow

Cash generation remains a key weakness. Operating cash flow and free cash flow are consistently negative, with cash burn worsening to roughly -$51M in 2025 (annual) from about -$49M in 2024. Free cash flow has been negative each year provided, and recent growth in free cash flow is also negative, suggesting the company has not yet demonstrated improving cash efficiency or a path to self-funding operations.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	59.00K	441.00K	1.92M	18.05M	5.40M
Gross Profit	0.00	807.00K	640.00K	14.62M	3.91M
EBITDA	-72.92M	-68.34M	-23.29M	-37.27M	-80.48M
Net Income	-78.26M	-35.13M	-31.54M	-41.66M	-84.38M
Balance Sheet
Total Assets	116.46M	150.73M	20.99M	33.37M	80.21M
Cash, Cash Equivalents and Short-Term Investments	98.34M	134.55M	7.42M	13.17M	54.59M
Total Debt	0.00	568.00K	537.00K	19.95M	33.32M
Total Liabilities	33.41M	17.70M	13.69M	44.28M	57.13M
Stockholders Equity	83.05M	133.03M	7.30M	-10.91M	23.08M
Cash Flow
Free Cash Flow	-51.46M	-49.06M	-30.84M	-26.85M	-71.00M
Operating Cash Flow	-51.46M	-49.06M	-30.68M	-26.75M	-70.89M
Investing Cash Flow	-81.72M	356.00K	-133.00K	-95.00K	-113.00K
Financing Cash Flow	14.59M	175.85M	25.04M	-14.70M	106.76M

Avalo Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVTX, the sentiment is Negative. The current price of 13.5 is below the 20-day moving average (MA) of 16.47, below the 50-day MA of 15.73, and above the 200-day MA of 12.90, indicating a neutral trend. The MACD of -0.52 indicates Positive momentum. The RSI at 33.58 is Neutral, neither overbought nor oversold. The STOCH value of 5.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVTX.

Avalo Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRBP	57 Neutral	$149.52M	-1.38	-65.76%	―	―	-17.43%
FBRX	56 Neutral	$320.81M	-3.77	-110.72%	―	―	77.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ELTX	50 Neutral	$200.70M	-3.95	-5657.87%	―	―	17.36%
GUTS	47 Neutral	$61.11M	-0.56	-3645.22%	―	-96.91%	63.11%
AVTX	44 Neutral	$249.92M	-1.45	-88.43%	―	-76.59%	94.03%
MIST	43 Neutral	$148.26M	―	-656.82%	―	―	3.70%

Avalo Therapeutics Corporate Events

Avalo Therapeutics Highlights AVTX-009 Progress in HS

Avalo Therapeutics has released an updated investor presentation in January 2026 detailing progress on AVTX-009, its lead anti-IL-1β monoclonal antibody candidate, which it is positioning as a potential best-in-class and best-in-disease therapy for hidradenitis suppurativa. The company reported that enrollment has been completed in its Phase 2 LOTUS trial in HS, with topline data expected in the second quarter of 2026, and emphasized clinical data suggesting AVTX-009’s high affinity, long half-life and favorable safety profile could enable strong efficacy and less frequent dosing relative to prior IL-1–targeting approaches; combined with a robust leadership team and funding runway into 2028, the update underscores Avalo’s bid to secure a leading role in the rapidly expanding HS treatment market and to extend AVTX-009 into additional immune-mediated inflammatory diseases.

The most recent analyst rating on (AVTX) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Avalo Therapeutics stock, see the AVTX Stock Forecast page.