Cumberland Pharmaceuticals (CPIX) AI Stock Analysis

• Market Cap: $45.47M
• Dividend Yield: N/A
• Average Volume (3M): 27.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: 12.21%
• EPS Growth: 69.91%
• Country: US
• Employees: 91
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.09
• Shares Outstanding: 14,956,627
• 10 Day Avg. Volume: 30,352
• 30 Day Avg. Volume: 27,288
• PEG Ratio: 0.36
• Price to Book (P/B): 2.39
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 12.31
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 1.17
• Enterprise Value/Ebitda: 17.72
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $3.00 ▼(-36.44% Downside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

CPIX scores as a cautious hold: improving fundamentals (deleveraging and a return to positive operating/free cash flow) and a constructive strategic/regulatory backdrop (Talicia JV, ifetroban Fast Track) are tempered by continued net losses/negative ROE and clearly bearish technical conditions (trading below key moving averages with weak momentum).

Positive Factors

High gross margins

Sustained gross margins near 78%–85% indicate strong product-level economics and pricing power. Durable margin structure gives Cumberland flexibility to fund commercialization, clinical development, and absorb pricing pressure, supporting long-term operating leverage as revenues scale.

Reduced leverage / stronger balance sheet

Material deleveraging cuts interest burden and improves financial flexibility. Lower debt-to-equity (~0.41) strengthens resilience to shocks, supports strategic spend (R&D, JV investment) and reduces refinancing risk, durable benefits that improve funding optionality over months.

Regulatory progress for ifetroban (Fast Track)

Fast Track designation is a structural regulatory benefit that can accelerate development and review, improving the probability and timeline for approval in DMD-related cardiology. This strengthens Cumberland's pipeline value and long-term growth optionality in a rare-disease niche.

Negative Factors

Persistent net losses / negative ROE

Chronic accounting losses and negative ROE undermine capital accumulation and limit internally funded growth. Even with margin improvement, sustained losses may force external financing or constrain R&D/commercial investments, pressuring long-term shareholder returns if not reversed.

Product competition (Kristalose generics)

Escalating generic substitution weakens durable revenue for branded products. For a small specialty portfolio, loss of market share and pricing pressure on key products can materially reduce predictable cash flow and impair the company's ability to leverage fixed costs.

Cash flow volatility

Return to positive operating and free cash flow is encouraging, but notable year-over-year swings (free cash flow down ~28%) signal inconsistent cash conversion. Volatility complicates planning, increases reliance on external funding during dips, and raises execution risk over months.

Cumberland Pharmaceuticals Business Overview & Revenue Model

Company Description

Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription products for hospital acute care, gastroenterology, rheumatology, and oncology in the United States and internationally. The company offers Acetadote, an injection for the treatment of acetaminophen poisoning; Caldolor, an injection for the treatment of pain and fever; Kristalose, a prescription laxative oral solution for the treatment of chronic and acute constipation; Omeclamox-Pak for the treatment of Helicobacter pylori infection and duodenal ulcer disease; Vaprisol, an injection for treating euvolemic and hypervolemic hyponatremia; and Vibativ, an injection for the treatment of certain serious bacterial infections, including hospital-acquired and ventilator-associated bacterial pneumonia, as well as complicated skin and skin structure infections. It also develops RediTrex injection for the treatment of active rheumatoid, juvenile idiopathic, and severe psoriatic arthritis, as well as disabling psoriasis. In addition, the company is developing ifetroban, a product candidate that is in phase II clinical trial for the treatment of aspirin-exacerbated respiratory disease, systemic sclerosis, and duchenne muscular dystrophy; and has completed phase II clinical trial for the treatment of hepatorenal syndrome and portal hypertension. Further, it develops a clinical program for the use of ifetroban to treat progressive fibrosing interstitial lung diseases; and a product candidate that is in Phase II clinical trial for cholesterol reducing agent to use in the hospital setting. The company was incorporated in 1999 and is headquartered in Nashville, Tennessee.

How the Company Makes Money

Cumberland primarily makes money by selling its branded prescription pharmaceuticals. Revenue is generated from product sales to customers such as wholesalers and distributors (and, depending on the product and channel, hospitals, specialty pharmacies, and other healthcare supply-chain participants). The company’s earnings are driven by (1) net sales of its marketed products, where reported revenue reflects gross product shipments net of typical pharmaceutical selling deductions (e.g., returns, chargebacks, rebates, and other allowances) where applicable, and (2) commercialization economics tied to products it in-licenses or acquires, in which Cumberland pays royalties and/or milestone payments to licensors and retains the remaining gross profit from sales. When Cumberland collaborates with third parties for manufacturing, distribution, or product rights, those arrangements can affect profitability through transfer prices, supply agreements, and royalty obligations; however, specific partner names, product-by-product revenue contribution, and contract terms are null.

Cumberland Pharmaceuticals Financial Statement Overview

Summary

Financials show meaningful improvement but remain constrained by profitability. Revenue growth turned positive in 2025 (+7.9%) with very strong gross margins (about 78%–85%), debt declined materially (about $20.6M to $10.2M), and operating/free cash flow returned positive (~$4.9M/~$4.8M). The key drag is persistent net losses and negative ROE, with free cash flow also showing year-to-year volatility.

Income Statement

Revenue growth improved materially in 2025 (+7.9% vs. -4.3% in 2024), and gross margins remain very strong (roughly 78%–85% over the period). However, profitability is still the key weakness: EBIT and net income have been negative every year shown, though 2025 shows a notable loss reduction (net margin -6.4% vs. -17.1% in 2024) and a return to positive EBITDA (5.6% margin). Overall, strong product-level economics are being offset by operating cost structure and/or non-operating headwinds.

Balance Sheet

Leverage improved significantly in 2025 as total debt declined (about $20.6M in 2024 to $10.2M in 2025), bringing debt relative to equity down to ~0.41 from ~0.90. The company maintains a meaningful equity base, supporting balance-sheet resilience. The main weakness is ongoing losses translating into negative returns on equity across all years, which can pressure capital over time if profitability does not sustainably improve.

Cash Flow

Cash generation rebounded in 2025 with positive operating cash flow (~$4.9M) and positive free cash flow (~$4.8M), a sharp improvement from negative operating and free cash flow in 2024. Free cash flow was roughly in line with the net loss in 2025, indicating cash performance is better than accounting earnings, but free cash flow growth was down materially year-over-year (about -28%), highlighting volatility. Overall cash flow quality looks better than earnings, but consistency remains a watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	44.52M	37.87M	39.55M	42.01M	35.99M
Gross Profit	37.85M	31.28M	33.49M	32.89M	27.17M
EBITDA	2.49M	182.42K	2.49M	332.92K	-857.83K
Net Income	-2.84M	-6.48M	-6.28M	-5.57M	-3.51M
Balance Sheet
Total Assets	76.82M	75.58M	81.78M	92.93M	84.46M
Cash, Cash Equivalents and Short-Term Investments	11.44M	17.96M	18.32M	19.76M	27.04M
Total Debt	10.18M	20.57M	18.43M	20.96M	16.06M
Total Liabilities	52.28M	53.04M	52.52M	56.95M	41.86M
Stockholders Equity	24.88M	22.85M	29.60M	36.27M	42.81M
Cash Flow
Free Cash Flow	4.83M	-791.90K	5.64M	6.38M	5.99M
Operating Cash Flow	4.93M	-612.19K	6.09M	8.45M	6.34M
Investing Cash Flow	-4.71M	57.84K	-105.69K	-13.67M	-501.89K
Financing Cash Flow	-6.75M	196.90K	-7.42M	-2.06M	-3.55M

Cumberland Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPIX, the sentiment is Negative. The current price of 4.72 is above the 20-day moving average (MA) of 3.87, above the 50-day MA of 4.06, and above the 200-day MA of 3.57, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 33.76 is Neutral, neither overbought nor oversold. The STOCH value of 2.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPIX.

Cumberland Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASRT	53 Neutral	$74.05M	1.85	-26.99%	―	9.21%	58.12%
CPIX	52 Neutral	$45.47M	-10.54	-13.08%	―	12.21%	69.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SCYX	50 Neutral	$38.36M	-3.67	-19.05%	―	-65.77%	38.61%
IXHL	47 Neutral	$38.82M	-4.80	-199.09%	―	-86.05%	24.17%
RMTI	42 Neutral	$35.31M	-6.17	-16.77%	―	-23.60%	-179.33%
KALA	40 Underperform	$255.17M	-0.36	―	―	―	52.39%

Cumberland Pharmaceuticals Corporate Events

Cumberland Pharmaceuticals Wins Fast Track for Ifetroban

On February 4, 2026, Cumberland Pharmaceuticals announced that the U.S. Food and Drug Administration granted Fast Track Designation to its oral thromboxane receptor antagonist ifetroban, which targets a fatal form of heart disease in Duchenne muscular dystrophy patients. The designation, which follows prior Orphan Drug and Rare Pediatric Disease status for ifetroban and is supported by positive Phase 2 data showing a 5.4% improvement in left ventricular ejection fraction over 12 months, is expected to accelerate regulatory interactions and review, potentially strengthening Cumberland’s position in rare disease cardiology and offering new hope in an area where no approved therapies currently exist for DMD-related heart disease.

The most recent analyst rating on (CPIX) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Cumberland Pharmaceuticals stock, see the CPIX Stock Forecast page.