Emmaus Life Sciences (EMMA) AI Stock Analysis

• Market Cap: $894.12K
• Dividend Yield: N/A
• Average Volume (3M): 112.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 60.30
• Revenue Growth: -41.78%
• EPS Growth: -101.59%
• Country: US
• Employees: 34
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.03
• Shares Outstanding: 63,865,570
• 10 Day Avg. Volume: 152,781
• 30 Day Avg. Volume: 112,453
• PEG Ratio: >-0.01
• Price to Book (P/B): >-0.01
• Price to Sales (P/S): 0.03
• P/FCF Ratio: -0.23
• Enterprise Value/Market Cap: 36.11
• Enterprise Value/Revenue: 2.71
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: -28.88
• 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: 42 Neutral
• Price Target: $0.01 ▲(20.00% Upside)
• Action: Upgraded Date: 01/13/26
• Date: Action: Upgraded 01/13/26

The score is primarily constrained by weak financial performance (declining revenue, ongoing losses, negative cash flow, and a stressed balance sheet with negative equity). Technicals are mixed with weak momentum and MACD negative, and valuation is limited by loss-making status and no dividend. A positive offset is the Endari distribution/licensing agreement, though it carries execution and conditionality risk.

Positive Factors

High Gross Margin

A high gross margin indicates efficient cost management, allowing the company to retain a significant portion of revenue as profit, which is crucial for sustaining operations and funding future growth initiatives.

Exclusive Distribution Agreement

The agreement enhances market reach and could increase revenue through upfront payments and royalties, leveraging NeoImmuneTech's infrastructure to expand Endari's presence in North America.

Strategic Focus on Rare Diseases

Focusing on rare diseases, where competition is limited and demand is high, positions Emmaus to capture niche markets with significant unmet needs, supporting long-term revenue potential.

Negative Factors

Declining Revenue

A significant revenue decline indicates challenges in maintaining market share or product demand, which can hinder growth and strain financial resources needed for future investments.

Negative Cash Flow

Persistent negative cash flow suggests ongoing cash burn, limiting the company's ability to invest in growth opportunities and increasing reliance on external financing, which can be costly and dilutive.

High Leverage and Negative Equity

High leverage and negative equity pose solvency risks, reducing financial flexibility and increasing vulnerability to economic downturns, potentially impacting long-term viability.

Emmaus Life Sciences Business Overview & Revenue Model

Company Description

Emmaus Life Sciences, Inc., a commercial-stage biopharmaceutical company, discovers, develops, markets, and sells treatments and therapies primarily for rare and orphan diseases in the United States and internationally. The company's lead candidate is Endari, an L-glutamine oral powder to reduce the acute complications of sickle cell disease in adult and pediatric patients five years of age and older. It has a collaboration agreement with Kainos Medicine, Inc. for the preclinical development of Kainos' patented IRAK4 inhibitor (KM10544) as an anti-cancer drug. The company was formerly known as Emmaus Holdings, Inc. and changed its name to Emmaus Life Sciences, Inc. in September 2011. Emmaus Life Sciences, Inc. was founded in 2000 and is headquartered in Torrance, California.

How the Company Makes Money

Emmaus Life Sciences generates revenue primarily through the sales of its flagship product, Endari. The company earns money by marketing and distributing this medication to healthcare providers, pharmacies, and patients. Revenue is also supplemented by potential partnerships with other pharmaceutical companies for research and development collaborations, as well as possible licensing agreements that could provide additional income streams. Furthermore, EMMA may benefit from grants or government funding focused on research initiatives aimed at rare diseases.

Emmaus Life Sciences Financial Statement Overview

Summary

Financial health is weak: TTM revenue declined ~15%, profitability is negative with a large net loss, cash flow remains persistently negative, and the balance sheet is highly stressed with negative stockholders’ equity and sizable debt relative to assets. A key offset is very high gross margin (low-90% range), but operating costs and financing risk dominate.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined about 15% versus the prior year, and profitability remains weak with negative operating profit and a large net loss. A key positive is consistently very high gross margin (roughly low-90% range), indicating strong product-level economics, but operating expenses and other costs are overwhelming that advantage. Results have also been volatile over time (profitable in 2020, positive operating profit in 2023, then back to meaningful losses in 2024 and TTM).

Balance Sheet

The balance sheet is heavily pressured by negative stockholders’ equity across all periods provided, which materially weakens financial flexibility and raises refinancing/dilution risk. Debt remains sizable (roughly $32M in TTM) relative to the company’s asset base (about $20.8M in TTM), and the negative equity makes leverage signals structurally concerning even if some ratios are not economically meaningful with a negative denominator. Overall, balance sheet risk is high.

Cash Flow

Cash generation is persistently negative: operating cash flow and free cash flow are both negative in TTM and have been negative in each year shown. While cash burn improved versus 2022, TTM free cash flow still deteriorated versus 2024 and remains a continuing funding need. Free cash flow roughly matches net losses (rather than being materially better), suggesting limited non-cash addbacks and little evidence of self-funding operations.

Breakdown	TTM	Mar 2025	Jun 2024	Dec 2022	Mar 2022	Dec 2020
Income Statement
Total Revenue	11.89M	16.65M	29.60M	18.39M	20.61M	23.17M
Gross Profit	10.96M	15.45M	28.25M	15.80M	17.30M	20.92M
EBITDA	-1.12M	-910.00K	3.62M	-5.50M	-12.76M	7.02M
Net Income	-7.29M	-6.45M	-3.73M	-10.63M	-15.95M	1.35M
Balance Sheet
Total Assets	20.76M	23.60M	35.18M	48.23M	56.73M	59.27M
Cash, Cash Equivalents and Short-Term Investments	293.00K	1.39M	2.55M	2.02M	2.28M	2.49M
Total Debt	31.69M	32.96M	32.65M	30.82M	29.91M	18.99M
Total Liabilities	80.24M	80.08M	82.94M	82.32M	78.18M	64.69M
Stockholders Equity	-59.49M	-56.48M	-47.76M	-34.09M	-21.45M	-5.42M
Cash Flow
Free Cash Flow	-1.88M	-2.30M	-1.52M	-5.10M	-1.33M	-28.63M
Operating Cash Flow	-1.88M	-2.29M	-1.50M	-5.07M	-1.25M	-2.45M
Investing Cash Flow	2.17M	2.50M	-432.00K	-2.39M	-6.38M	5.47M
Financing Cash Flow	-1.26M	-1.35M	2.48M	7.23M	7.41M	-2.31M

Emmaus Life Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 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 EMMA, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.01, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.31 is Neutral, neither overbought nor oversold. The STOCH value of -150.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EMMA.

Emmaus Life Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SCNI	49 Neutral	$732.72K	-0.07	―	―	178.82%	-4121.10%
DRMA	47 Neutral	$4.29M	-0.06	-203.36%	―	―	90.53%
EMMA	42 Neutral	$894.12K	-0.12	―	―	-41.78%	-101.59%

Emmaus Life Sciences Corporate Events

Emmaus Life Sciences grants NeoImmuneTech Endari distribution rights

On December 24, 2025, Emmaus Life Sciences entered into a License and Exclusive Distribution Agreement granting NeoImmuneTech an exclusive license to market, sell, and distribute Endari and any generic equivalents for sickle cell disease in the U.S., its territories and possessions, and Canada in exchange for an upfront payment and royalties on sales. The agreement, announced publicly on December 30, 2025, will be coupled with an exclusive supply arrangement under which Emmaus will manufacture Endari for NeoImmuneTech at cost plus margin, while Emmaus facilitates the transfer of selected U.S. sales staff to its partner and retains rights to Endari outside North America and outside sickle cell disease. The effective date of the deal is contingent on NeoImmuneTech securing required regulatory approvals and meeting other conditions, with the contract allowing termination if these are not met by October 1, 2026 or if performance thresholds are missed later, underscoring both Emmaus’s strategy to redeploy resources toward higher-growth regions and NeoImmuneTech’s aim to leverage Endari’s U.S. commercial infrastructure to support its broader pipeline.

Emmaus Life Sciences restructures convertible debt via exchange

On December 17, 2025, Emmaus Life Sciences, Inc. entered into an exchange agreement with a single noteholder under which the company issued 6,332,692 shares of common stock valued at approximately $0.38 per share and a new $600,000 convertible promissory note in exchange for the cancellation and satisfaction of a $3 million outstanding convertible promissory note. The original note, which carried 10% interest and was convertible at $0.13 per share, was replaced by the new note, also bearing 10% interest, convertible initially at $0.01 per share with quarterly VWAP-based adjustments and due on demand, effectively restructuring the company’s debt obligations without additional cash consideration and altering its future equity conversion profile for this creditor.