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Beta Bionics, Inc. (BBNX)
NASDAQ:BBNX
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Beta Bionics, Inc.
(NASDAQ:BBNX)
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Rating:50Neutral
Price Target:
$17.50
▲(1.33% Upside)
The score is mainly constrained by weak financial performance (ongoing losses and negative free cash flow) and bearish technicals (below major moving averages and negative MACD). These are partially offset by a constructive earnings call with raised guidance, strong sales growth, and improving gross margin, while valuation support is limited due to losses and no dividend.
Positive Factors
Revenue Growth
Strong revenue growth indicates successful market penetration and increasing demand for the iLet Bionic Pancreas, supporting long-term business expansion.
Gross Margin Improvement
Improved gross margins suggest better cost management and pricing power, enhancing profitability potential and financial health over time.
Expanded Coverage
Expanded insurance coverage through PBMs increases accessibility and affordability, potentially boosting sales and market share.
Negative Factors
Operating Expense Increase
Rising operating expenses may pressure margins and profitability, necessitating careful cost management to sustain financial stability.
FDA Regulatory Challenges
Regulatory challenges with the FDA could delay product approvals and affect market credibility, impacting future growth and operations.
Negative Cash Flow
Negative cash flow reflects operational inefficiencies and may limit investment in growth initiatives, posing a risk to long-term sustainability.
Beta Bionics, Inc. (BBNX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$777.03M
Dividend YieldN/A
Average Volume (3M)917.05K
Price to Earnings (P/E)―
Beta (1Y)1.18
Revenue Growth67.01%
EPS Growth-39.19%
CountryUS
Employees352
SectorHealthcare
Sector Strength45
IndustryMedical - Equipment & Services
Share Statistics
EPS (TTM)-0.33
Shares Outstanding44,024,630
10 Day Avg. Volume410,323
30 Day Avg. Volume917,055
Financial Highlights & Ratios
PEG Ratio-0.79
Price to Book (P/B)1.98
Price to Sales (P/S)2.31
P/FCF Ratio-2.91
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue9.44
Enterprise Value/Gross Profit17.32
Enterprise Value/Ebitda-12.79
Forecast
1Y Price Target
$32.00Price Target Upside85.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Beta Bionics, Inc. Business Overview & Revenue Model
Company DescriptionBeta Bionics, Inc., a commercial-stage medical device company, engages in the design, development, and commercialization of solutions to enhance the health and quality of life of insulin-requiring people with diabetes. It offers iLet Bionic Pancreas, an insulin delivery device for the treatment of type 1 diabetes in adults and children six years of age and older. The company is also developing Patch Pump, an insulin pump that is designed to adhere directly to the skin and administer insulin without the need for tubing; Bihormonal iLet, which combines automated delivery of insulin and glucagon; and iLet to treat people with insulin-dependent type-2 diabetes. It has collaboration and license agreement with Xeris Pharmaceuticals, Inc. (Xeris) to develop and commercialize a pump-compatible glucagon formulation; and development and commercialization agreement with Abbott Diabetes Care Inc. to develop and commercialize an automated insulin delivery system. The company was incorporated in 2015 and is based in Irvine, California.
How the Company Makes MoneyBeta Bionics generates revenue primarily through the sales of its flagship product, the iLet Bionic Pancreas, which is expected to be marketed to hospitals, healthcare providers, and directly to consumers. The company may also explore partnerships with healthcare organizations and insurance companies to facilitate reimbursement models for their products. Additionally, Beta Bionics may pursue grants and funding from research institutions or government initiatives targeted at diabetes management solutions, contributing to their overall revenue streams.
Beta Bionics, Inc. Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 17, 2026
Earnings Call Sentiment Positive
The earnings call presented several positive developments, including strong revenue growth, an increase in new patient starts, and an expanded presence in the pharmacy channel. However, there were concerns about increased operating expenses, a notable churn rate, and potential uncertainties from CMS proposals. Overall, the positive aspects outweigh the negative, reflecting a strong quarter and optimistic future guidance.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue Growth
Beta Bionics reported $23.2 million in net sales for Q2 2025, indicating a 54% year-over-year growth.
Increase in New Patient Starts
The company saw 4,934 new patients adopt the iLet, a 57% increase compared to the previous year.
Expansion in Pharmacy Channel
A high 20s percentage of new patient starts were reimbursed through the pharmacy channel, up from a mid-single-digit percentage in Q2 2024.
Improvement in Gross Margin
Gross margin for Q2 was 53.8%, slightly up from 53.7% in Q2 2024.
Increased Full Year Guidance
The company raised its full-year 2025 revenue guidance to $88 million to $93 million, up from $82 million to $87 million.
Positive Feedback on Bionic Portal
The updated Bionic portal, which allows providers access to real-time clinical outcomes, received overwhelmingly positive feedback from prescribers.
Successful Investor and Analyst Day
The company highlighted the iLet's superior clinical outcomes and adaptability, setting a new standard for the industry.
Negative Updates
Operating Expenses Increase
Total operating expenses increased by 63% to $32.4 million compared to $19.9 million in Q2 2024.
Churn Rate Concerns
The reported churn rate was approximately 5% for the quarter, which some analysts noted as a concern.
CMS Proposal Uncertainty
The proposed CMS rule for a competitive bidding program and a shift to a pay-as-you-go rental model introduces uncertainty regarding the potential impact on Medicare fee-for-service beneficiaries.
Company Guidance
During the Beta Bionics Second Quarter 2025 Earnings Conference Call, the company provided an optimistic outlook for the fiscal year. They reported $23.2 million in net sales for the second quarter, marking a 54% year-over-year increase, and 4,934 new patient starts, growing 57% from the previous year. The company saw high 20s percentage of new patient starts reimbursed through the pharmacy channel, a significant increase from the mid-single-digit percentage in the same quarter last year. Gross margin slightly improved to 53.8% from 53.7% the previous year, reflecting the company's cost discipline and manufacturing efficiency. Operating expenses for the quarter were $32.4 million, representing a 63% increase due to sales force expansion and R&D investments. Beta Bionics raised its full-year 2025 guidance, projecting net sales between $88 million and $93 million, with 25% to 28% of new patient starts expected through the pharmacy channel. The guidance reflects confidence in their growing pharmacy presence and operational efficiencies.Beta Bionics, Inc. Financial Statement Overview
Summary
Beta Bionics, Inc. shows strong revenue growth but struggles with profitability and cash flow management. The balance sheet is stable with low leverage, but ongoing losses and negative cash flows pose risks.Income Statement
Beta Bionics, Inc. shows strong revenue growth with a significant increase from previous years. However, the company is currently unprofitable, with negative EBIT, EBITDA, and net profit margins, indicating challenges in achieving operational efficiency and cost control.Balance Sheet
The company's balance sheet reflects moderate leverage with a low debt-to-equity ratio and a healthy equity ratio, showcasing financial stability. However, the negative net income impacts the return on equity, which remains a concern for investors seeking profitability.Cash Flow
Beta Bionics, Inc. faces challenges with negative free cash flow, indicative of high operational costs. Although there is a positive financing cash flow, indicating external funding, the operating cash flow to net income and free cash flow ratios are unfavorable, highlighting cash management issues.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 88.57M | 65.12M | 11.99M | 179.00K |
| Gross Profit | 48.28M | 35.89M | 6.31M | 179.00K |
| EBITDA | -65.36M | -44.10M | -34.62M | -63.40M |
| Net Income | -77.84M | -54.76M | -44.10M | -64.75M |
Balance Sheet | ||||
| Total Assets | 330.05M | 149.65M | 110.04M | 35.53M |
| Cash, Cash Equivalents and Short-Term Investments | 228.69M | 103.58M | 96.75M | 27.68M |
| Total Debt | 7.69M | 7.25M | 4.22M | 4.13M |
| Total Liabilities | 35.29M | 73.63M | 51.43M | 22.53M |
| Stockholders Equity | 294.76M | 76.01M | 58.61M | 13.00M |
Cash Flow | ||||
| Free Cash Flow | -60.53M | -51.67M | -32.85M | -60.98M |
| Operating Cash Flow | -56.58M | -48.27M | -32.45M | -60.21M |
| Investing Cash Flow | -193.13M | -3.48M | -69.69M | -769.00K |
| Financing Cash Flow | 270.71M | 55.62M | 101.03M | 56.78M |
Beta Bionics, Inc. Technical Analysis
Positive
17.27
Price Trends
23.34
Positive
19.39
Positive
Market Momentum
1.55
Negative
55.71
Neutral
64.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBNX, the sentiment is Positive. The current price of 17.27 is below the 20-day moving average (MA) of 24.82, below the 50-day MA of 23.34, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 1.55 indicates Negative momentum. The RSI at 55.71 is Neutral, neither overbought nor oversold. The STOCH value of 64.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBNX.
Beta Bionics, Inc. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $20.76B | 24.94 | 10.14% | 1.14% | 8.28% | 97.24% | |
69 Neutral | $3.84B | 277.87 | 0.50% | ― | 4.73% | ― | |
61 Neutral | $1.45B | -6.85 | -109.73% | ― | 17.87% | -57.03% | |
56 Neutral | $1.70B | -1.54 | -98.13% | ― | -0.54% | -259.57% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $1.22B | -4.84 | -96.11% | ― | ― | 31.16% | |
50 Neutral | $777.03M | -9.64 | -47.52% | ― | 67.01% | -39.19% |
* Healthcare Sector Average
BBNX
Beta Bionics, Inc.
17.27
-6.54
-27.47%
LH
Labcorp Holdings
253.98
19.28
8.21%
TNDM
Tandem Diabetes Care
20.90
-15.05
-41.86%
NVST
Envista Holdings
23.23
4.05
21.12%
SANA
Sana Biotechnology
4.70
0.84
21.76%
FTRE
Fortrea Holdings Inc.
17.37
-0.45
-2.53%
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.