Heron Therapeutics (HRTX) AI Stock Analysis

• Market Cap: $273.21M
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 12.60%
• EPS Growth: 58.23%
• Country: US
• Employees: 122
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.10
• Shares Outstanding: 183,362,520
• 10 Day Avg. Volume: 1,383,193
• 30 Day Avg. Volume: 1,716,029
• PEG Ratio: 0.19
• Price to Book (P/B): -6.93
• Price to Sales (P/S): 1.62
• P/FCF Ratio: -9.62
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 2.77
• Enterprise Value/Ebitda: -119.77
• 1Y Price Target: $4.50
• Price Target Upside: 202.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $1.50 ▲(0.67% Upside)

The score is held back primarily by weak financial fundamentals—thin/negative profitability and elevated leverage—despite modest revenue and free-cash-flow improvement. Earnings call and recent corporate updates point to improving commercial momentum and reaffirmed outlook, but technicals remain mixed and valuation is not supported by earnings due to losses.

Positive Factors

Product Revenue Growth

Sustained double-digit growth in ZYNRELEF and rapid APONVIE expansion indicate successful product-market fit and scalable commercial execution. Durable uptake across hospital channels supports recurring revenue, portfolio diversification, and higher long-term revenue visibility versus single-product firms.

Durable Reimbursement Position

A permanent J-code materially reduces reimbursement friction for hospital-administered drugs, lowering adoption barriers and billing complexity. This structural reimbursement improvement supports steady uptake, predictable hospital purchasing behavior, and revenue durability over multiple quarters.

Financing Resolved Overhang

Completing financing removed a persistent capital overhang and gives management capacity to prioritize commercial investments. Improved access to capital and reduced near-term dilution risk enable multi-quarter execution on sales force expansion and growth initiatives critical for scaling revenues.

Negative Factors

High Financial Leverage

A materially negative debt-to-equity indicates heavy leverage relative to a low equity base, limiting financial flexibility. Elevated debt raises refinancing and interest-rate risks, constrains strategic options, and can force near-term cash conservation that undermines sustained commercial investment.

Negative Profitability

Persistent net losses and thin margins mean revenue gains have not yet produced sustainable profitability. This pressure limits internal funding for R&D and commercial expansion, increases reliance on external capital, and makes multi-quarter progress toward durable EBITDA generation uncertain.

Cash Flow Strain

Despite modest FCF improvement, negative operating cash flow relative to net income signals weak cash conversion. Reliance on cash from financing or one-time items to cover operations is not durable and heightens risk to funding product launches, inventory management, and debt service over the coming months.

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 levels of a range of short-acting pharmacological agents over a period from days to weeks with a single administration. It offers SUSTOL (granisetron), an extended-release injection for the prevention of acute and delayed nausea and vomiting associated with moderately emetogenic chemotherapy, or anthracycline and cyclophosphamide combination chemotherapy regimens; and CINVANTI, an intravenous formulation of aprepitant, a substance P/neurokinin-1 receptor antagonist for the prevention of acute and delayed nausea and vomiting associated with highly emetogenic cancer chemotherapy, as well as nausea and vomiting associated with moderately emetogenic cancer chemotherapy. The company is also developing ZYNRELEF, a dual-acting local anesthetic that delivers a fixed-dose combination of the local anesthetic bupivacaine and a low dose of the nonsteroidal anti-inflammatory drug meloxicam; HTX-019, an investigational agent for the prevention of postoperative nausea and vomiting; and HTX-034 for postoperative pain management, as well as is in Phase Ib/II clinical study in patients undergoing bunionectomy. The company was formerly known as A.P. Pharma, Inc. and changed its name to Heron Therapeutics, Inc. in January 2014. Heron Therapeutics, Inc. was founded in 1983 and is headquartered in San Diego, California.

How the Company Makes Money

Heron Therapeutics generates revenue primarily through the sales of its pharmaceutical products, particularly its branded medications. The company has established a revenue model that includes direct sales to healthcare providers and institutions, as well as distribution partnerships with wholesalers. Key revenue streams include sales from its flagship products, which are marketed directly to hospitals and clinics. Additionally, Heron may receive milestone payments and royalties from collaborations with other pharmaceutical companies as part of strategic partnerships aimed at co-developing or commercializing new therapies. The company also benefits from reimbursement agreements with insurance providers, which facilitate access to its products for patients.

Heron Therapeutics Financial Statement Overview

Summary

Heron Therapeutics is experiencing modest revenue growth but faces significant profitability and cash flow challenges. The high leverage and negative net profit margins highlight financial risks. While there are some positive signs in cash flow growth, the company needs to focus on improving operational efficiency and managing debt to enhance financial health.

Income Statement

Heron Therapeutics shows a modest revenue growth rate of 3.61% TTM, indicating some positive momentum. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -0.62% TTM. The gross profit margin is relatively healthy at 74.61% TTM, but the EBIT and EBITDA margins are low at 3.32% and 4.63% TTM, respectively, suggesting operational challenges.

Balance Sheet

The balance sheet reveals significant financial leverage with a high debt-to-equity ratio of -6.48 TTM, indicating potential risk. The return on equity is positive at 2.88% TTM, but the equity ratio is low, reflecting limited equity financing. The company needs to manage its debt levels to improve financial stability.

Cash Flow

Heron Therapeutics has shown a slight improvement in free cash flow growth at 5.45% TTM. However, the operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is above 1, suggesting that free cash flow is covering net losses, but overall cash flow management remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.10M	144.28M	127.04M	107.67M	86.35M	88.64M
Gross Profit	111.17M	105.64M	61.94M	52.80M	40.33M	52.45M
EBITDA	-2.57M	-5.06M	-103.79M	-176.66M	-215.25M	-222.53M
Net Income	-13.58M	-13.58M	-110.56M	-182.02M	-220.68M	-227.28M
Balance Sheet
Total Assets	248.95M	233.15M	222.51M	250.95M	305.71M	353.56M
Cash, Cash Equivalents and Short-Term Investments	55.49M	59.28M	80.41M	84.85M	157.58M	208.49M
Total Debt	140.44M	177.76M	179.63M	157.48M	159.50M	24.61M
Total Liabilities	234.06M	266.80M	256.48M	237.38M	228.14M	117.06M
Stockholders Equity	14.88M	-33.65M	-33.97M	13.57M	77.57M	236.49M
Cash Flow
Free Cash Flow	-31.14M	-24.23M	-60.33M	-148.74M	-206.38M	-191.63M
Operating Cash Flow	-30.19M	-22.53M	-58.79M	-146.91M	-203.35M	-184.82M
Investing Cash Flow	32.88M	18.71M	18.00M	-3.32M	32.73M	208.96M
Financing Cash Flow	14.63M	940.00K	54.11M	75.06M	156.03M	9.11M

Heron Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRTX, the sentiment is Positive. The current price of 1.49 is above the 20-day moving average (MA) of 1.32, above the 50-day MA of 1.23, and below the 200-day MA of 1.61, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 67.45 is Neutral, neither overbought nor oversold. The STOCH value of 69.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HRTX.

Heron Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OCGN	54 Neutral	$555.93M	-8.81	-289.93%	―	14.26%	-23.34%
KOD	54 Neutral	$1.71B	-6.88	-207.92%	―	―	-12.93%
NMRA	52 Neutral	$370.94M	-1.46	-104.35%	―	―	20.71%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HRTX	48 Neutral	$273.21M	-18.29	―	―	12.60%	58.23%
BNTC	48 Neutral	$400.93M	―	-43.71%	―	―	80.95%
SGMT	48 Neutral	$193.45M	-3.47	-39.78%	―	―	-38.23%

Heron Therapeutics Corporate Events

Heron Therapeutics Reports Strong Preliminary Q4 2025 Revenue

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 its acute care and oncology supportive care portfolio. Within Q4, CINVANTI remained the largest revenue contributor at roughly $22.9 million, while ZYNRELEF generated about $12.5 million and delivered the strongest quarter-over-quarter growth in the portfolio, rising around 35% versus the third quarter, with APONVIE and SUSTOL contributing approximately $3.8 million and $1.3 million, respectively; the solid top-line performance and particularly strong uptake of ZYNRELEF highlight progress in Heron’s acute care franchise and suggest strengthening commercial execution heading into the company’s final audited results.

The most recent analyst rating on (HRTX) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Heron Therapeutics stock, see the HRTX Stock Forecast page.

Heron Therapeutics Appoints Thomas Cusack to Board

On October 27, 2025, Heron Therapeutics appointed Thomas Cusack to its Board of Directors, following a Cooperation Agreement with Rubric Capital Management LP. With over 20 years of experience in investment management and corporate finance, Cusack’s expertise is expected to contribute significantly to Heron’s growth and corporate governance efforts.

The most recent analyst rating on (HRTX) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Heron Therapeutics stock, see the HRTX Stock Forecast page.

Heron Therapeutics Approves Stock Issuance Proposals

On October 13, 2025, Heron Therapeutics held a Special Stockholders’ Meeting where stockholders approved two proposals related to the issuance of common stock. The approvals, in accordance with Nasdaq Listing Rule 5635(d), allow for the issuance of shares exceeding 19.99% of the company’s outstanding stock under certain future circumstances, linked to the conversion of convertible senior unsecured promissory notes and Series A Convertible Preferred Stock.

The most recent analyst rating on (HRTX) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Heron Therapeutics stock, see the HRTX Stock Forecast page.