Equillium (EQ) AI Stock Analysis

• Market Cap: $86.47M
• Dividend Yield: N/A
• Average Volume (3M): 883.61K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.13
• Revenue Growth: -90.43%
• EPS Growth: -382.07%
• Country: US
• Employees: 35
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.06
• Shares Outstanding: 60,893,284
• 10 Day Avg. Volume: 862,141
• 30 Day Avg. Volume: 883,611
• PEG Ratio: 0.08
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -1.38
• Enterprise Value/Market Cap: 0.21
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 2.11
• Enterprise Value/Ebitda: -0.31
• 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: 44 Neutral
• Price Target: $1.50 ▲(30.43% Upside)

The score is primarily held down by weak financial performance—sharp TTM revenue decline, expanding losses, and ongoing/worsening cash burn—despite a low-debt balance sheet. Technical indicators are mixed with limited momentum and a potentially oversold signal, while valuation is constrained by negative earnings and no dividend data.

Positive Factors

Low leverage / balance sheet flexibility

Very low debt provides durable financial flexibility for a cash-burning biotech. With debt-to-equity near 2%, the company has lower near-term solvency risk and greater optionality to raise capital, pursue partnerships, or fund R&D without immediate debt service constraints.

High gross profit margins

Consistently very high gross margins indicate attractive unit economics for the company’s therapeutic platform. If revenue stabilizes, high gross margins can underpin scalable profitability by allowing operating leverage to flow to the bottom line over time once R&D and SG&A are controlled.

Focused therapeutic pipeline and lead candidate

A clear focus on monoclonal antibodies and a defined lead candidate (Itolizumab) provides strategic clarity and deep domain expertise. This focused pipeline increases the likelihood of productive clinical development, targeted partnerships, and milestone-driven financing over the medium term.

Negative Factors

Sharp TTM revenue decline

A roughly 73% TTM revenue drop signals weak commercial traction and high top-line volatility. Such a large decline materially reduces the firm's ability to cover fixed R&D and SG&A, undermining runway and forcing reliance on external funding unless revenues recover sustainably.

Persistent negative cash flow and widening cash burn

Consistent negative operating and free cash flow, with worsening TTM cash burn, creates a structural funding need. This ongoing deficit pressures management to secure dilutive financing or partnerships, constraining strategic choices and increasing execution risk over the next several quarters.

Sizable losses and deteriorating margins

Expanding losses and deteriorating margins reflect operating expenses overwhelming revenue and gross profit. Persistent unprofitability reduces internal financing capacity, elevates dilution risk from future raises, and weakens long-term shareholder returns absent a clear path to margin improvement.

Equillium Business Overview & Revenue Model

Company Description

Equillium, Inc., a clinical-stage biotechnology company, develops and sells products to treat severe autoimmune and inflammatory, or immuno-inflammatory disorders with unmet medical need. The company's lead product candidate is itolizumab (EQ001), a clinical-stage monoclonal antibody that targets the novel immune checkpoint receptor CD6, which is in Phase III clinical trials for the treatment of acute graft-versus-host disease; completed Phase Ib clinical trial for the treatment of asthma disease; and Phase Ib clinical trial for the treatment of and lupus nephritis. It also develops EQ101 for treatment of cutaneous T cell lymphoma and alopecia areata; and EQ102 to treat various gastrointestinal diseases. The company was formerly known as Attenuate Biopharmaceuticals, Inc. and changed its name to Equillium, Inc. in May 2017. Equillium, Inc. was incorporated in 2017 and is headquartered in La Jolla, California.

How the Company Makes Money

Equillium generates revenue primarily through the development and commercialization of its therapeutic products. The company may receive funding through partnerships with larger pharmaceutical companies, which can include upfront payments, milestone payments based on the achievement of clinical development targets, and royalties on future sales. Additionally, Equillium may seek funding through strategic alliances that enhance its research capabilities or expand its market reach. Grants and public funding for research in biotechnology and healthcare can also contribute to its revenue streams, particularly during the early stages of product development.

Equillium Financial Statement Overview

Summary

Financials are weak overall: TTM revenue dropped sharply (~73%) and losses remain sizable with deteriorating TTM margins. The balance sheet is a relative positive with very low leverage, but persistent negative operating cash flow and free cash flow (worsening TTM cash burn) indicate continued reliance on external funding.

Income Statement

Revenue has been volatile: after strong growth in 2023 and modest growth in 2024, TTM (Trailing-Twelve-Months) revenue fell sharply (down ~73%), pointing to an unstable top line. Profitability remains weak with sizable losses in every period shown, and TTM (Trailing-Twelve-Months) margins deteriorated materially versus 2024 as losses expanded while revenue contracted. A positive offset is the consistently very high gross profit margin, but operating expenses continue to overwhelm gross profit, keeping the company firmly unprofitable.

Balance Sheet

Leverage is low, with debt consistently small relative to equity (debt-to-equity ~2% in 2024 and TTM (Trailing-Twelve-Months)), which reduces financial risk and provides flexibility. However, losses are pressuring shareholder returns, with return on equity deeply negative and worsening in TTM (Trailing-Twelve-Months). Equity has also moved meaningfully over time, highlighting that capital levels can shift while the business remains loss-making.

Cash Flow

Cash generation is a key weakness: operating cash flow and free cash flow are negative across all periods, indicating ongoing cash burn. TTM (Trailing-Twelve-Months) cash burn widened versus 2024 (more negative operating and free cash flow), despite a reported improvement in free cash flow growth. While free cash flow roughly tracks net losses (suggesting limited non-cash distortion), the business still requires funding to sustain operations absent a turnaround in profitability and cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.78M	41.09M	36.08M	15.76M	0.00	0.00
Gross Profit	8.54M	41.09M	36.08M	15.76M	-72.00K	-45.00K
EBITDA	-57.67M	-7.57M	-12.14M	-61.26M	-37.91M	-28.67M
Net Income	-57.29M	-8.07M	-13.34M	-62.43M	-38.98M	-29.81M
Balance Sheet
Total Assets	34.51M	25.60M	50.53M	78.42M	85.41M	85.43M
Cash, Cash Equivalents and Short-Term Investments	33.12M	22.57M	40.87M	71.02M	80.71M	82.16M
Total Debt	745.00K	384.00K	824.00K	10.19M	11.79M	9.94M
Total Liabilities	3.57M	6.54M	27.96M	46.48M	18.90M	15.57M
Stockholders Equity	30.94M	19.06M	22.57M	31.94M	66.50M	69.85M
Cash Flow
Free Cash Flow	-62.70M	-19.11M	-21.83M	-9.01M	-32.14M	-24.83M
Operating Cash Flow	-62.69M	-19.03M	-21.78M	-8.73M	-32.08M	-24.62M
Investing Cash Flow	20.98M	13.81M	-4.76M	18.68M	27.41M	-18.59M
Financing Cash Flow	120.57M	164.00K	-9.23M	-1.22M	31.06M	53.95M

Equillium Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQ, the sentiment is Positive. The current price of 1.15 is below the 20-day moving average (MA) of 1.25, below the 50-day MA of 1.17, and above the 200-day MA of 0.95, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.47 is Neutral, neither overbought nor oversold. The STOCH value of 90.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EQ.

Equillium Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HYFT	53 Neutral	$75.64M	-2.74	-121.76%	―	-17.94%	21.43%
STRO	52 Neutral	$127.36M	-0.58	-1810.01%	―	-34.36%	-59.98%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRLD	47 Neutral	$104.74M	-1.15	-103.99%	―	250.00%	15.15%
NRXP	46 Neutral	$62.17M	-0.89	―	―	―	-9.32%
EQ	44 Neutral	$86.47M	-2.25	-90.24%	―	-90.43%	-382.07%