Genelux Corp. (GNLX) AI Stock Analysis

• Market Cap: $92.81M
• Dividend Yield: N/A
• Average Volume (3M): 208.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: -95.29%
• EPS Growth: 12.79%
• Country: US
• Employees: 24
• Sector: Healthcare
• Sector Strength: 71
• Industry: Biotechnology
• EPS (TTM): -0.96
• Shares Outstanding: 37,728,140
• 10 Day Avg. Volume: 275,733
• 30 Day Avg. Volume: 208,420
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 16966.88
• Price to Cash Flow (P/CF): -5.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $18.25
• Price Target Upside: 641.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Genelux Corp. is struggling with significant financial weaknesses, reflected in its negative profitability and negative cash flows. The technical analysis shows bearish trends with oversold conditions, while the valuation is challenging due to negative earnings and no dividend yield. These factors collectively result in a low overall stock score, indicating high risk and substantial challenges ahead for the company.

Positive Factors

Clinical Trial Results

Positive initial data from the ongoing study evaluating Olvi-Vec with platinum chemotherapy in small cell lung cancer patients shows promising results.

Financial Stability

The equity financing of $10.5 million combined with existing cash provides financial runway into 2026, supporting ongoing and future trials.

Regulatory Milestones

The FDA recommended adding an interim overall survival analysis to the progression-free survival primary endpoint in the ovarian cancer trial, indicating potential for full approval.

Negative Factors

Future Expenses

Estimates for 2025 operating expenses are $41.3M, which assumes increased spending due to ongoing clinical trials including the Phase 3 ovarian cancer study and Phase 2 recurrent NSCLC study.

Net Loss

Genelux reported a net loss of $6.5M, but maintains $35.1M in cash, providing financial runway into 1Q26.

Operating Expenses

In 4Q24, the company reported operating expenses of $9.7M, which was higher than 3Q24, likely associated with costs related to initiating to recurrent NSCLC study in the US.

Genelux Corp. Business Overview & Revenue Model

Company Description

Genelux Corporation, a clinical-stage biopharmaceutical company, focuses on developing next-generation oncolytic viral immunotherapies for patients suffering from aggressive and/or difficult-to-treat solid tumor types. Its lead product candidate is Olvi-Vec, a proprietary, modified strain of the vaccinia virus for the treatment of ovarian cancer and non-small-cell lung cancer. The company is also developing V2ACT Immunotherapy for the treatment of pancreatic cancer; and V-VET1 to treat hematologic and solid cancer. The company was incorporated in 2001 and is headquartered in Westlake Village, California.

How the Company Makes Money

Genelux Corp. primarily generates revenue through the development and commercialization of its oncolytic viral therapies. The company earns money through partnerships and licensing agreements with larger pharmaceutical companies, research institutions, or healthcare providers interested in using their proprietary technologies. Additionally, Genelux may receive funding from government grants and research collaborations, as well as potential milestone payments and royalties from successful product commercialization. While the company is focused on advancing its core product Olvi-Vec through clinical trials, its revenue streams are significantly influenced by the progress of these trials and regulatory approvals.

Genelux Corp. Financial Statement Overview

Summary

Genelux Corp. is facing significant financial challenges, with persistent negative profitability and cash flow issues. Despite some improvements in equity, the company remains highly leveraged. The dependency on financing activities for cash flow sustainability is risky, especially given the volatile nature of the biotechnology industry. Strategic changes are necessary to improve operational efficiency and financial stability.

Income Statement

Genelux Corp. shows weak profitability with consistently negative net incomes over the years. The 2024 revenue growth is misleading due to the low base effect from previous years. Gross profit margin is positive due to costs being reported as negative, but net profit margin remains negative, indicating ongoing operational challenges. Both EBIT and EBITDA margins are negative, underscoring significant profitability issues.

Balance Sheet

The company has improved its equity position, transitioning from negative to positive stockholders' equity in recent years, which is a positive sign. However, the debt-to-equity ratio improved but remains concerning, reflecting high leverage. The equity ratio indicates a low percentage of assets financed by equity, limiting financial flexibility.

Cash Flow

Operating cash flows remain negative, indicating ongoing operational losses. Free cash flow is also negative, with no clear growth trajectory. The operating cash flow to net income ratio is not favorable, reflecting inefficiencies in converting income into cash. Financing activities are primarily sustaining the cash position, which poses risks if external financing becomes unavailable.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.47M	8.00K	170.00K	11.07M	0.00	0.00
	Gross Profit
819.00K	8.00K	-848.00K	10.10M	-895.00K	-658.00K
	EBIT
-28.95M	-31.70M	-24.16M	-3.01M	-14.61M	-12.42M
	EBITDA
-26.78M	-31.70M	-26.46M	-1.73M	-14.12M	-11.76M
	Net Income Common Stockholders
-27.66M	-29.87M	-28.30M	-5.21M	-17.80M	-14.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.84M	30.89M	23.19M	397.00K	4.50M	11.35M
	Total Assets
3.50M	34.72M	27.89M	5.53M	8.13M	14.01M
	Total Debt
6.32M	1.87M	2.52M	26.35M	25.31M	26.06M
	Net Debt
3.49M	-6.70M	-6.90M	25.96M	20.82M	14.71M
	Total Liabilities
9.17M	8.44M	8.42M	41.31M	41.24M	36.66M
	Stockholders Equity
-5.66M	26.27M	19.47M	-35.78M	-33.11M	-22.66M
Cash Flow		Free Cash Flow
-24.36M	-21.61M	-21.30M	-3.62M	-6.58M	-7.22M
	Operating Cash Flow
-23.84M	-21.23M	-20.27M	-3.57M	-6.58M	-7.21M
	Investing Cash Flow
-28.75M	-8.13M	-14.72M	-49.00K	0.00	-20.00K
	Financing Cash Flow
28.82M	28.51M	44.02M	-478.00K	-270.00K	18.15M

Genelux Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNLX, the sentiment is Negative. The current price of 2.46 is below the 20-day moving average (MA) of 2.94, below the 50-day MA of 3.77, and below the 200-day MA of 2.82, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 35.73 is Neutral, neither overbought nor oversold. The STOCH value of 45.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GNLX.

Genelux Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PGEN	50 Neutral	$411.66M	―	-136.30%	―	-36.95%	-22.68%
IOVA	48 Neutral	$1.08B	―	-57.48%	―	13698.99%	31.46%
Sector *	48 Neutral	$6.46B	1.17	-48.25%	2.67%	19.50%	0.61%
ADAP	46 Neutral	$56.90M	―	-273.36%	―	194.23%	45.50%
FATE	42 Neutral	$121.48M	―	-54.21%	―	-78.55%	-0.92%
REPL	40 Neutral	$578.38M	―	-50.50%	―	―	4.28%
GNLX	33 Underperform	$92.81M	―	-130.58%	―	-95.29%	12.79%

Genelux Corp. Corporate Events

Genelux Corp. Appoints New CFO Amid Leadership Change

Genelux Corporation announced the resignation of Lourie Zak as Chief Financial Officer on January 29, 2025. As part of her departure, Zak will serve as a non-employee advisor until August 29, 2025, and receive severance benefits including a cash payment, health insurance continuation, and eligibility for an annual bonus. Concurrently, Matt Pulisic was appointed as the new CFO, effective January 30, 2025. Pulisic, previously with Arrowhead Pharmaceuticals, will receive a base salary with a discretionary bonus, stock options, and severance benefits under certain conditions, strengthening the company’s financial leadership.