Biofrontera (BFRI) AI Stock Analysis

• Market Cap: $10.84M
• Dividend Yield: N/A
• Average Volume (3M): 120.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: 5.11%
• EPS Growth: 19.78%
• Country: US
• Employees: 92
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.62
• Shares Outstanding: 11,648,323
• 10 Day Avg. Volume: 72,915
• 30 Day Avg. Volume: 120,486
• PEG Ratio: <0.01
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -0.58
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 0.50
• Enterprise Value/Ebitda: -0.76
• 1Y Price Target: $6.00
• Price Target Upside: 710.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $0.91 ▲(22.57% Upside)

The score is held down primarily by weak financial performance—persistent operating losses, continued cash burn, and negative equity. Technicals are mixed and do not provide strong confirmation of a durable uptrend, while valuation is difficult to support given negative earnings and no dividend. Offsetting factors include earnings-call guidance targeting FY2026 cash-flow breakeven and margin improvement from acquiring U.S. rights, but near-term listing/compliance risk remains a notable headwind.

Positive Factors

Strong product-level margins

A ~66% gross margin indicates robust unit economics for Ameluz and related devices, providing a durable cushion to absorb SG&A and R&D. If revenue scales, these margins can drive sustainable operating leverage and faster path to profitability once fixed costs are aligned.

Control of U.S. commercialization

Owning U.S. rights centralizes commercialization, enabling higher realized margins, streamlined pricing and channel decisions, and better capture of downstream device and consumable revenue. This structural change can materially improve long-term cash conversion and margin sustainability.

Extended patent protection

A new formulation patent stretching protection to 2043 strengthens the IP moat around Ameluz, supporting pricing power and deterring generic entrants. It underpins longer-term return on R&D and makes investment in new indications more strategically attractive.

Negative Factors

Ongoing cash burn and weak equity

Sustained negative operating and free cash flow with negative equity constrains liquidity and financing flexibility. Absent sustained EBITDA improvement or new capital, the balance sheet limits strategic optionality and raises dilution or covenant risk over the medium term.

Recent revenue softness

A weakened recent revenue trajectory reduces operating leverage and makes high fixed SG&A and legal costs more acute. Slower top-line growth increases dependence on non-core asset sales or financing to reach cash-flow breakeven and delays durable margin recovery.

Nasdaq listing compliance risk

A formal Nasdaq noncompliance notice introduces structural listing and governance risk that can hinder capital raises, attract remediation actions (reverse split) and distract management. Listing uncertainty materially affects long-term access to public capital and strategic flexibility.

Biofrontera Business Overview & Revenue Model

Company Description

Biofrontera Inc., a biopharmaceutical company, engages in the commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company offers Ameluz, which is a prescription drug approved for use in combination with the company's licensor's medical device; and the RhodoLED lamp series for photodynamic therapy for the lesion-directed and field-directed treatment of actinic keratosis of mild-to-moderate severity on the face and scalp. It also Xepi, a prescription cream for the treatment of impetigo. The company was incorporated in 2015 and is headquartered in Woburn, Massachusetts.

How the Company Makes Money

Biofrontera generates revenue primarily through the sale of its pharmaceutical products, particularly Ameluz, which is marketed in various regions including Europe and the United States. The company operates a direct sales model in certain markets while also leveraging partnerships with distributors to reach a broader audience. Key revenue streams include product sales, royalties from licensing agreements, and potential milestone payments from collaborations with other pharmaceutical companies. The company may also benefit from strategic partnerships that enhance its market presence and expand its product offerings, thus contributing to its overall earnings.

Biofrontera Financial Statement Overview

Summary

Financial profile is weak: despite strong gross margin (~66%) and longer-term revenue scaling, the company remains deeply unprofitable (TTM operating margin ~-46%, net margin ~-47%) with ongoing cash burn (TTM operating and free cash flow about -$12M). Balance sheet risk is elevated with negative stockholders’ equity (about -$2.6M) and a shrinking asset base, limiting financial flexibility.

Income Statement

Revenue scale improved materially versus 2020 (about $18.8M to $37.2M in TTM (Trailing-Twelve-Months)), but the growth trajectory has weakened recently (TTM revenue down ~5% vs. the prior annual period). Profitability remains the key issue: TTM gross margin is strong (~66%), yet operating losses are substantial (TTM operating margin around -46%) and net margin is deeply negative (~-47%), indicating costs are not aligned with the current revenue base. Overall, the business shows decent product-level economics but has not translated that into sustainable operating profitability.

Balance Sheet

Balance sheet pressure is elevated: stockholders’ equity is negative in TTM (about -$2.6M), which is a major financial flexibility red flag and can constrain access to capital. Total debt is modest in absolute terms (~$4.9M), but leverage metrics become distorted with negative equity and suggest heightened balance sheet risk. Total assets have also declined meaningfully versus earlier years (about $50.9M in 2022 to $15.4M in TTM), reinforcing a weakening capital base despite relatively limited debt.

Cash Flow

Cash generation remains weak: TTM operating cash flow is negative (about -$12.0M) and free cash flow is also negative (about -$12.0M), implying ongoing cash burn to fund operations. There is improvement versus 2023 (when operating cash flow was roughly -$24.9M), but the company still is not self-funding and will likely require continued financing support if losses persist. Overall cash flow trends are moving in the right direction, but not yet to a sustainable level.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.16M	37.30M	34.07M	28.67M	24.10M	18.85M
Gross Profit	24.52M	18.70M	16.63M	13.49M	11.36M	9.78M
EBITDA	-16.29M	-14.44M	-18.45M	934.00K	-36.76M	-7.46M
Net Income	-17.57M	-17.76M	-20.13M	-640.00K	-37.71M	-10.99M
Balance Sheet
Total Assets	15.41M	22.10M	27.93M	50.88M	53.22M	24.14M
Cash, Cash Equivalents and Short-Term Investments	3.42M	5.91M	1.42M	27.76M	24.55M	8.08M
Total Debt	4.91M	4.92M	5.40M	1.35M	0.00	0.00
Total Liabilities	18.00M	17.67M	23.14M	27.01M	41.88M	18.31M
Stockholders Equity	-2.58M	4.43M	4.79M	23.88M	11.34M	5.83M
Cash Flow
Free Cash Flow	-12.01M	-10.33M	-24.90M	-16.24M	-26.73M	-12.37M
Operating Cash Flow	-12.00M	-10.27M	-24.89M	-16.20M	-26.71M	-12.37M
Investing Cash Flow	-4.00K	-3.00K	619.00K	-5.16M	-11.00K	0.00
Financing Cash Flow	12.55M	14.84M	8.41M	14.02M	43.19M	13.19M

Biofrontera Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFRI, the sentiment is Positive. The current price of 0.74 is below the 20-day moving average (MA) of 0.88, below the 50-day MA of 0.81, and below the 200-day MA of 0.84, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 57.33 is Neutral, neither overbought nor oversold. The STOCH value of 79.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BFRI.

Biofrontera Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TXMD	52 Neutral	$25.00M	82.76	0.27%	―	75.19%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
RDHL	47 Neutral	$6.21M	―	―	―	―	―
BFRI	45 Neutral	$10.84M	-0.51	-1191.73%	―	5.11%	19.78%
PRPH	42 Neutral	$1.47M	-0.01	―	―	―	―
COSM	40 Underperform	$17.98M	-0.68	-63.82%	―	―	―

Biofrontera Corporate Events

Biofrontera Receives Nasdaq Notice on Bid Price Noncompliance

On December 31, 2025, Biofrontera Inc., a Delaware corporation listed on the Nasdaq Capital Market, was notified by Nasdaq that its common stock had fallen out of compliance with the exchange’s minimum bid price requirement after trading below $1.00 for 34 consecutive business days. While the notice does not immediately affect the trading or listing of the shares, the company has until June 30, 2026, to lift its closing bid price to at least $1.00 for 10 consecutive business days or potentially secure an additional compliance period, failing which it could face delisting, appeal processes, or the need for measures such as a reverse stock split as it seeks to preserve its Nasdaq listing and reassure stakeholders about ongoing compliance risks.

The most recent analyst rating on (BFRI) stock is a Hold with a $0.79 price target. To see the full list of analyst forecasts on Biofrontera stock, see the BFRI Stock Forecast page.

Biofrontera Regains Nasdaq Compliance in November 2025

Biofrontera Inc. has announced that it has regained compliance with Nasdaq’s continued listing requirements under Listing Rules 5550(b)(1) and 5550(a)(2) as of November 4 and November 6, 2025, respectively. This compliance follows previous notifications of non-compliance due to the company’s stockholders’ equity and stock price falling below required thresholds earlier in 2025, impacting its market positioning and potentially averting delisting threats.

The most recent analyst rating on (BFRI) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Biofrontera stock, see the BFRI Stock Forecast page.

Biofrontera Completes Sale of Xepi US License

On November 6, 2025, Biofrontera Inc. completed the sale of its US license for Xepi® (ozenoxacin) Cream to Pelthos Therapeutics Inc. for up to $10 million. The transaction, which includes an initial $3 million payment and potential milestone payments, aims to strengthen Biofrontera’s cash position and support the growth of its photodynamic therapy platform, particularly the expansion of Ameluz® into additional indications. This strategic move is expected to fund the company to profitability and allows Biofrontera to focus on its core PDT franchise.

The most recent analyst rating on (BFRI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Biofrontera stock, see the BFRI Stock Forecast page.