Equillium (EQ) AI Stock Analysis

• Market Cap: $85.68M
• Dividend Yield: N/A
• Average Volume (3M): 883.61K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.32
• 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: 59,503,223
• 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: <0.01
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: >-0.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $1.00 ▲(16.28% Upside)

Equillium's overall score is primarily impacted by its financial performance, which shows strong revenue growth but significant profitability challenges. Technical indicators suggest a bearish trend with potential for a rebound, while valuation metrics highlight ongoing financial struggles.

Positive Factors

Revenue Growth

Consistent revenue growth indicates successful product development and market penetration, which is crucial for long-term sustainability in the biotech industry.

Balance Sheet Health

A stable balance sheet with low leverage provides financial flexibility, enabling the company to invest in R&D and withstand market fluctuations.

Cash Flow Management

Effective cash flow management supports operational stability and reduces reliance on external financing, enhancing long-term financial health.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies and may hinder the company's ability to reinvest in growth and innovation.

Operational Cash Flow

Negative operating cash flow suggests that the company is not generating enough cash from its core activities, which could impact its ability to sustain operations without external funding.

Equity Ratio Decline

A declining equity ratio indicates rising liabilities, which could limit financial flexibility and increase risk if not addressed.

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

Equillium shows strong revenue growth but struggles with profitability and operational cash flows. The balance sheet is stable with low leverage, but operational inefficiencies need addressing for long-term sustainability.

Income Statement

Equillium has shown a consistent increase in revenue from 2020 to 2024, with significant growth from 2022 to 2023. However, despite the revenue growth, the company remains unprofitable with negative net income and EBIT margins, indicating ongoing operational challenges. The gross profit margin is stable at 100%, as all revenue translates to gross profit, an indication of low variable costs.

Balance Sheet

The balance sheet shows moderate strength with positive stockholders' equity and a low debt-to-equity ratio, indicating relatively low leverage. However, the declining equity ratio over the years suggests increasing liabilities relative to assets. The company maintains a solid cash position, although total assets have been decreasing.

Cash Flow

Operating cash flow has been negative, indicating cash outflows from core operations, which is concerning. However, the company has managed free cash flow relatively well, with improvements in free cash flow growth in the recent year. The reliance on financing activities in earlier years has decreased, suggesting a move towards more self-sustained cash operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.39M	41.09M	36.08M	15.76M	0.00	0.00
Gross Profit	4.30M	41.09M	36.08M	15.76M	-72.00K	-45.00K
EBITDA	-24.63M	-7.57M	-12.14M	-61.26M	-37.91M	-28.67M
Net Income	-24.42M	-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	-22.92M	-19.11M	-21.83M	-9.01M	-32.14M	-24.83M
Operating Cash Flow	-22.91M	-19.03M	-21.78M	-8.73M	-32.08M	-24.62M
Investing Cash Flow	10.49M	13.81M	-4.76M	18.68M	27.41M	-18.59M
Financing Cash Flow	30.22M	164.00K	-9.23M	-1.22M	31.06M	53.95M

Equillium Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQ, the sentiment is Negative. The current price of 0.86 is below the 20-day moving average (MA) of 1.05, below the 50-day MA of 1.26, and above the 200-day MA of 0.84, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 35.61 is Neutral, neither overbought nor oversold. The STOCH value of 22.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQ.

Equillium 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%
HYFT	50 Neutral	$95.08M	―	-110.94%	―	-9.61%	20.36%
NRXP	45 Neutral	$65.13M	-1.22	―	―	―	-9.32%
EQ	41 Neutral	$85.68M	-2.54	-90.24%	―	-90.43%	-382.07%
STRO	40 Neutral	$86.47M	-0.40	-1810.01%	―	-34.36%	-59.97%
PRLD	35 Underperform	$99.61M	-0.99	-103.99%	―	250.00%	15.15%

Equillium Corporate Events

Equillium Reports Q3 Loss Amid Strategic Focus

Equillium, Inc. is a biotechnology company focused on developing novel therapies for severe autoimmune and inflammatory disorders, with its primary goal being the advancement of EQ504, a novel aryl hydrocarbon receptor modulator. In its latest earnings report, Equillium disclosed a net loss of $4.23 million for the third quarter of 2025, with no revenue generated during this period. The company’s financial position showed an increase in cash and cash equivalents to $33.1 million, primarily due to a recent equity financing that raised approximately $30 million. Key financial metrics revealed a significant reduction in operating expenses compared to the previous year, with research and development expenses decreasing from $9.56 million to $1.3 million. Despite the losses, Equillium’s management remains optimistic about its financial stability, supported by the recent financing and a strategic focus on advancing its clinical programs. Looking ahead, Equillium aims to continue its research and development efforts while managing its resources effectively to achieve its long-term objectives.

Equillium Announces Board Restructuring and Biocon Agreement Termination

On September 30, 2025, Equillium announced significant changes in its board and executive structure. Stephen Connelly, Ph.D., and Bala Manian, Ph.D., resigned from the board, effective October 1, 2025, leading to a reduction in board size from nine to seven members. Charles McDermott and Mark Pruzanski, M.D., were appointed to key committee roles, and Daniel M. Bradbury transitioned to Chairman of the Board. Dr. Connelly was appointed as the company’s President, while Bruce Steel continued as CEO. Simultaneously, Equillium terminated its collaboration and license agreements with Biocon Limited, with all licenses, including those for itolizumab, reverting to Biocon. Equillium will receive a technical service fee of $363,000 from Biocon, offset against amounts owed by Equillium.

The most recent analyst rating on (EQ) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Equillium stock, see the EQ Stock Forecast page.

Equillium Files Prospectus for $75 Million Stock Sale

On September 19, 2025, Equillium, Inc. announced the filing of a prospectus supplement with the SEC for the offer and sale of up to $75 million in common stock under an amended sales agreement with LifeSci Capital LLC. This move follows previous sales of shares that generated $0.96 million, indicating a strategic effort to raise capital and potentially expand its market presence.

The most recent analyst rating on (EQ) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Equillium stock, see the EQ Stock Forecast page.

Equillium Regains Nasdaq Compliance with Bid Price Rule

On August 29, 2025, Equillium, Inc. announced that it has regained compliance with Nasdaq’s minimum bid price requirement, ensuring its continued inclusion on The Nasdaq Capital Market. The company had previously been notified of non-compliance on December 13, 2024, and was granted an additional 180-day period on June 12, 2025, to meet the requirement. Equillium successfully met the bid price rule by maintaining a closing bid price of $1.00 per share or more for at least 10 consecutive business days, achieving this on August 28, 2025.

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