Heron Therapeutics (HRTX)
NASDAQ:HRTX
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Heron Therapeutics
(NASDAQ:HRTX)
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Rating:45Neutral
Price Target:
$0.80
▼(-0.38% Downside)
Action:ReiteratedDate:03/21/26
The score is held down primarily by balance-sheet leverage and ongoing cash burn despite major profitability improvement, alongside a clearly bearish technical trend. Offsetting these, management’s 2026 guidance and Q4 Acute Care sales acceleration support a better forward outlook, but valuation remains difficult to assess given negative earnings and no dividend.
Positive Factors
High gross margin & improved profitability
Sustained high gross margins (~72–73%) coupled with a materially narrowed TTM net loss and EBIT near breakeven indicate the business has improved unit economics and operating leverage. This durable margin profile supports reinvestment and makes sustained profitability achievable if revenue stabilizes or resumes growth.
Negative Factors
Elevated financial leverage
Very high leverage relative to a thin equity base constrains strategic flexibility and amplifies downside if revenues disappoint. Elevated debt loads increase interest and refinancing risk, force prioritization of cash to servicing obligations, and make multi-quarter execution more vulnerable to adverse shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margin & improved profitability
Sustained high gross margins (~72–73%) coupled with a materially narrowed TTM net loss and EBIT near breakeven indicate the business has improved unit economics and operating leverage. This durable margin profile supports reinvestment and makes sustained profitability achievable if revenue stabilizes or resumes growth.
Read all positive factors
Heron Therapeutics (HRTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$150.75M
Dividend YieldN/A
Average Volume (3M)1.90M
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth12.60%
EPS Growth58.23%
CountryUS
Employees122
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.02
Shares Outstanding188,537,140
10 Day Avg. Volume1,641,666
30 Day Avg. Volume1,902,302
Financial Highlights & Ratios
PEG Ratio-0.31
Price to Book (P/B)15.12
Price to Sales (P/S)1.40
P/FCF Ratio-7.77
Enterprise Value/Market Cap1.58
Enterprise Value/Revenue1.53
Enterprise Value/Gross Profit2.09
Enterprise Value/Ebitda-19.66
Forecast
1Y Price Target
$4.50Price Target Upside462.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.02
Revenue Forecast (FY)$171.73M
Heron Therapeutics Business Overview & Revenue Model
Company Description
Heron Therapeutics, Inc., a biotechnology company, engages in developing treatments to address unmet patient needs. The company's product candidates utilize its proprietary Biochronomer, a drug delivery technology, which delivers therapeutic level...
How the Company Makes Money
Heron Therapeutics primarily makes money by selling its prescription pharmaceutical products in the United States. Revenue is generated when hospitals, outpatient surgical centers, oncology clinics, wholesalers, and other healthcare channel partne...
Heron Therapeutics Key Performance Indicators (KPIs)
Any
Net Sales by Segment
Breaks down Heron’s revenue by product line, therapeutic area, or geography to show which drugs and markets are driving growth or creating concentration risk. For a company with a small commercial portfolio, segment-level sales reveal whether recent launches, pricing, and reimbursement are gaining traction, highlight dependence on any single product or region, and flag where weaker demand or payer pressure could meaningfully affect top-line growth and margins.
Breaks down Heron’s revenue by product line, therapeutic area, or geography to show which drugs and markets are driving growth or creating concentration risk. For a company with a small commercial portfolio, segment-level sales reveal whether recent launches, pricing, and reimbursement are gaining traction, highlight dependence on any single product or region, and flag where weaker demand or payer pressure could meaningfully affect top-line growth and margins.
Data provided by:
The Fly
The FlyHeron Therapeutics Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call communicated strong commercial inflection and financial progress: record annual revenue (~$155M), improved gross margin (~73%), and adjusted EBITDA of $14.7M, alongside clear Q4 momentum in Acute Care driven by ZYNRELEF (+48% YoY) and APONVIE (+97% YoY). Operational wins (financing completion, J-codes, VAN rollout, CrossLink IGNITE, guideline inclusion) support continued growth. Key risks include ongoing Oncology headwinds from the SUSTOL wind-down (7.8% YoY decline in Oncology revenue), pricing pressure and competition for CINVANTI, the multi-year timeline for ZYNRELEF PFS approval, the need to educate providers on the NOPAIN Act, and litigation uncertainty. Management expects to remain EBITDA positive in 2026 while making targeted commercial investments that may temporarily moderate near-term EBITDA but aim to accelerate longer-term revenue and value creation.Positive Updates
Record Annual Revenue and Improved Profitability
Full year 2025 net product sales of $154.9 million and adjusted EBITDA of $14.7 million (more than doubling prior year performance), beating prior guidance of $9M–$13M. Gross margin approximately 73%, reflecting improved cost discipline and favorable product mix.
Negative Updates
Oncology Franchise Pressure and SUSTOL Wind-down
Oncology franchise generated just over $105 million for full year 2025, a modest 7.8% decline versus 2024, largely attributable to the planned wind down of SUSTOL throughout 2026. Oncology Q4 net sales were $24.2 million and the decline creates a headwind to the franchise base.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Revenue and Improved Profitability
Full year 2025 net product sales of $154.9 million and adjusted EBITDA of $14.7 million (more than doubling prior year performance), beating prior guidance of $9M–$13M. Gross margin approximately 73%, reflecting improved cost discipline and favorable product mix.
Read all positive updates
Company Guidance
Heron guided 2026 net product sales of $173–$183 million and adjusted EBITDA of $10–$20 million, saying it expects to remain EBITDA‑positive while making targeted commercial investments that may moderate near‑term EBITDA but accelerate revenue and free‑cash‑flow generation in 2027; this follows FY2025 results of ~$154.9–$155 million in net product sales, adjusted EBITDA of $14.7 million (above prior guidance of $9–$13M) and ~73% gross margin. Management pointed to clear Q4 momentum in Acute Care—Q4 Acute Care net sales of $16.3M (Q3 $12.3M, +33% q/q), ZYNRELEF $12.5M (+48% y/y; Q3 $9.3M) and APONVIE $3.8M (+97% y/y; demand units +101% y/y)—and Oncology net sales of $24.2M (full‑year Oncology ≈$105M, down ~7.8% y/y largely due to SUSTOL wind‑down). They also reiterated a potential mid‑ to late‑2027 approval for a ZYNRELEF prefilled syringe pending 12 months of stability testing plus a 4–6 month regulatory review.Heron Therapeutics Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
28
Negative
Cash Flow
30
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 154.90M | 144.28M | 127.04M | 107.67M | 86.35M |
| Gross Profit | 113.56M | 105.64M | 61.94M | 52.80M | 40.33M |
| EBITDA | -17.88M | -5.06M | -103.79M | -176.66M | -215.25M |
| Net Income | -20.20M | -13.58M | -110.56M | -182.02M | -220.68M |
Balance Sheet | |||||
| Total Assets | 255.88M | 233.15M | 222.51M | 250.95M | 305.71M |
| Cash, Cash Equivalents and Short-Term Investments | 46.63M | 59.28M | 80.41M | 84.85M | 157.58M |
| Total Debt | 140.64M | 177.76M | 179.63M | 157.48M | 159.50M |
| Total Liabilities | 241.54M | 266.80M | 256.48M | 237.38M | 228.14M |
| Stockholders Equity | 14.33M | -33.65M | -33.97M | 13.57M | 77.57M |
Cash Flow | |||||
| Free Cash Flow | -27.91M | -24.23M | -60.33M | -148.74M | -206.38M |
| Operating Cash Flow | -27.59M | -22.53M | -58.79M | -146.91M | -203.35M |
| Investing Cash Flow | 16.01M | 18.71M | 18.00M | -3.32M | 32.73M |
| Financing Cash Flow | 14.43M | 940.00K | 54.11M | 75.06M | 156.03M |
Heron Therapeutics Technical Analysis
Negative
0.80
Price Trends
1.17
Negative
1.20
Negative
1.40
Negative
Market Momentum
-0.11
Positive
30.20
Neutral
14.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRTX, the sentiment is Negative. The current price of 0.8 is below the 20-day moving average (MA) of 0.96, below the 50-day MA of 1.17, and below the 200-day MA of 1.40, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 30.20 is Neutral, neither overbought nor oversold. The STOCH value of 14.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HRTX.
Heron Therapeutics Risk Analysis
Heron Therapeutics disclosed 55 risk factors in its most recent earnings report. Heron Therapeutics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Heron Therapeutics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $1.39B | -3.52 | -246.19% | ― | ― | -12.93% | |
52 Neutral | $639.40M | -5.95 | -2626.38% | ― | 14.26% | -23.34% | |
52 Neutral | $417.72M | -1.30 | -113.81% | ― | ― | 20.71% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $147.92M | ― | -40.85% | ― | ― | -38.23% | |
49 Neutral | $372.40M | -13.08 | -38.92% | ― | ― | 80.95% | |
45 Neutral | $150.75M | ― | 304.91% | ― | 12.60% | 58.23% |
* Healthcare Sector Average
HRTX
Heron Therapeutics
0.80
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-65.54%
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Heron Therapeutics Corporate Events
Business Operations and StrategyFinancial Disclosures
Heron Therapeutics Reports Strong Preliminary Q4 2025 Revenue
Positive
Jan 9, 2026
On January 9, 2026, Heron Therapeutics reported preliminary, unaudited net revenue of approximately $40.5 million for the fourth quarter ended December 31, 2025, and about $154.9 million for full-year 2025, underscoring continued momentum across i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.