Equillium (EQ) AI Stock Analysis

• Market Cap: $35.01M
• Dividend Yield: N/A
• Average Volume (3M): 14.54M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.18
• Revenue Growth: -19.76%
• EPS Growth: -13.20%
• Country: US
• Employees: 35
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): -0.16
• Shares Outstanding: 35,719,320
• 10 Day Avg. Volume: 42,469,656
• 30 Day Avg. Volume: 14,541,290
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: >-0.01
• Enterprise Value/Revenue: >-0.01
• Enterprise Value/Gross Profit: >-0.01
• Enterprise Value/Ebitda: 0.02
• 1Y Price Target: $0.50
• Price Target Upside: -48.98% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: $0.50 ▼(-48.98% Downside)

Equillium's overall score is primarily impacted by its financial performance, with strong revenue growth but significant profitability challenges. The technical analysis shows some positive momentum, but valuation concerns due to unprofitability weigh heavily. The recent private placement is a positive corporate event, providing financial stability and strategic focus.

Positive Factors

Negative Factors

Clinical Trial Results

The EQUATOR trial failed to achieve its primary endpoint of complete response at Day 29 and both key secondary endpoints.

Financial Stability

There is significant uncertainty on the path forward for itolizumab, as well as the company's financing overhang.

Regulatory Approval

The FDA declined to support an accelerated approval pathway for itolizumab in first-line treatment of acute graft-versus-host disease.

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 drug candidates. The company focuses on advancing its clinical trials to obtain regulatory approvals, which can lead to product sales and licensing agreements. Key revenue streams include milestone payments from partnerships with larger pharmaceutical companies, as well as potential royalties from future sales of its approved therapies. Additionally, Equillium may receive funding from grants and collaborations that support its research and development efforts, contributing to its overall financial sustainability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.09M	36.08M	15.76M	0.00	0.00
Gross Profit	40.96M	35.96M	15.64M	-72.00K	-45.00K
EBITDA	-7.57M	-12.14M	-61.26M	-37.91M	-28.67M
Net Income	-8.07M	-13.34M	-107.71M	-38.98M	-29.77M
Balance Sheet
Total Assets	25.60M	50.53M	78.42M	85.41M	85.43M
Cash, Cash Equivalents and Short-Term Investments	22.57M	40.87M	71.02M	80.71M	82.16M
Total Debt	384.00K	824.00K	10.19M	9.98M	8.28M
Total Liabilities	6.54M	27.96M	46.48M	18.90M	15.57M
Stockholders Equity	19.06M	22.57M	31.94M	66.50M	69.85M
Cash Flow
Free Cash Flow	-19.11M	-21.83M	-9.01M	-32.14M	-24.83M
Operating Cash Flow	-19.03M	-21.78M	-8.73M	-32.08M	-24.62M
Investing Cash Flow	13.81M	-4.76M	18.68M	27.41M	-18.59M
Financing Cash Flow	164.00K	-9.23M	-1.22M	31.06M	53.95M

Equillium Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 0.98 is above the 20-day moving average (MA) of 0.56, above the 50-day MA of 0.43, and above the 200-day MA of 0.60, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 73.43 is Negative, neither overbought nor oversold. The STOCH value of 59.71 is Neutral, 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
Sector *	51 Neutral	$7.44B	-0.20	-46.00%	2.26%	22.80%	-2.27%
EQ	49 Neutral	$35.01M	―	-88.32%	―	-19.76%	-13.20%
CING	47 Neutral	$21.25M	―	-358.06%	―	―	96.46%
CLDI	37 Underperform	$14.50M	―	354.78%	―	―	91.46%
EDSA	35 Underperform	$15.91M	―	-69.64%	―	―	22.63%
LPTX	31 Underperform	$10.09M	―	-183.72%	―	―	28.76%
UNBX	31 Underperform	$1.35M	―	-231.27%	―	―	35.08%

Equillium Corporate Events

Equillium Secures $30 Million in Private Placement

On August 10, 2025, Equillium, Inc. entered into a Securities Purchase Agreement with institutional and accredited investors to raise approximately $30 million through the sale of common stock and pre-funded warrants, with a potential additional $20 million contingent on achieving certain milestones. The funds from this private placement are expected to extend Equillium’s cash runway through 2027 and will be used to support the development of EQ504 and other corporate purposes, reflecting the company’s strategic focus on advancing its clinical programs.

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

Equillium Announces Strategic Shift in Sales Agent

On August 3, 2025, Equillium announced a strategic shift by replacing Jefferies LLC with LifeSci Capital LLC as the sales agent under its Open Market Sale Agreement. The company also revealed its plans to integrate a cryptocurrency treasury reserve strategy to diversify its financial portfolio and support its biotech mission, including the development of EQ504, a novel aryl hydrocarbon receptor modulator. Equillium aims to provide updates on this strategy in the third quarter of 2025 and expects its current cash reserves to fund operations into the fourth quarter of 2025.

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

Equillium Granted Extension for Nasdaq Compliance

Equillium, Inc. received a notice from Nasdaq on December 13, 2024, indicating non-compliance with the Minimum Bid Price Requirement as its stock price had been below $1.00 for 30 consecutive business days. Initially given until June 11, 2025, to rectify this, the company was granted an extension until December 8, 2025. Failure to meet the requirement by this date could lead to delisting, though Equillium plans to monitor its stock price and consider options like a reverse stock split to regain compliance. The notification does not immediately affect the trading of its stock, which continues under the symbol ‘EQ.’

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

Equillium Holds Annual Stockholders Meeting on Key Proposals

On May 21, 2025, Equillium, Inc. held its Annual Meeting of Stockholders where several key proposals were voted upon. The stockholders elected three Class I directors, approved a reverse stock split amendment, ratified KPMG LLP as the independent auditor, and approved an amendment to the 2018 Equity Incentive Plan to increase the number of shares authorized for issuance.

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