NovaBay Pharma (NBY) AI Stock Analysis

• Market Cap: $1.60B
• Dividend Yield: N/A
• Average Volume (3M): 2.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: -74.73%
• EPS Growth: 95.81%
• Country: US
• Employees: 13
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.23
• Shares Outstanding: 126,010,750
• 10 Day Avg. Volume: 2,279,291
• 30 Day Avg. Volume: 2,443,033
• PEG Ratio: <0.01
• Price to Book (P/B): -15.82
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -0.39
• Enterprise Value/Market Cap: <0.01
• Enterprise Value/Revenue: 3.71
• Enterprise Value/Gross Profit: 6.97
• Enterprise Value/Ebitda: -1.36
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.38
• Revenue Forecast (FY): $15.80M

• Rating: 54 Neutral
• Price Target: $13.00 ▲(340.68% Upside)

The score is held back primarily by weak financial performance (shrinking revenue, very large operating losses, and heavy cash burn). Technicals are the main offset with strong price momentum above key moving averages and a positive MACD. The recent large financing improves liquidity but raises dilution and strategy-risk, while valuation remains hard to justify due to a negative P/E and no dividend yield support.

Positive Factors

Established product franchise (Avenova)

An established consumer and HCP-facing Avenova franchise with distributor and retail pharmacy partnerships provides a durable revenue base and route-to-market. A recognized branded product in eyelid hygiene supports repeat sales and expansion into adjacent ophthalmology and dermatology indications.

High gross margin

A ~63% gross margin indicates favorable unit economics for NovaBay's product portfolio. Strong product-level margins create room for operating leverage as sales recover, enabling profitability improvements without requiring proportional increases in revenue, assuming SG&A is controlled.

Modest reported leverage

Reported low absolute debt and a debt/equity of ~0.25 provide financial flexibility versus many small biotech peers. Modest leverage reduces near-term interest burden and bankruptcy risk, giving management room to pursue partnerships or licensing before needing material external financing.

Negative Factors

Shrinking revenue and deep operating losses

A ~40% TTM revenue decline combined with deeply negative operating margins (~-161%) signals structural demand or execution issues. Core operations are unprofitable, requiring sustained revenue recovery or significant cost restructuring to restore durable operational profitability.

Persistent negative cash flow

Sustained negative operating and free cash flow (~-$7M TTM) indicates the business burns cash and cannot self-fund growth or enterprise needs. Ongoing cash deficits raise reliance on external capital, increasing dilution risk and limiting investment in R&D, commercialization, or new indications.

Concentrated ownership and leadership upheaval

A securities purchase that would leave parties owning ~90% and reported board/CEO changes plus a reverse split represent material governance shifts. Concentrated control and management turnover can lead to strategic redirection, minority investor sidelining, and execution uncertainty over the medium term.

NovaBay Pharma Business Overview & Revenue Model

Company Description

NovaBay Pharmaceuticals, Inc., a pharmaceutical company, develops and sells eyecare and skincare products in the United States and internationally. It offers Avenova, a solution for removing foreign materials, including microorganisms and debris from skin around the eye, such as the eyelid; and wound care products under the NeutroPhase and PhaseOne brands. The company also provides dermatological solutions to address skincare concerns comprising keratosis pilaris, rosacea and eczema, anti-aging, SPF, hyperhidrosis, excessive hair, and acne under the DERMAdoctor brand. It sells its products through retailers, digital beauty channels, and distributors, as well as online. The company was formerly known as NovaCal Pharmaceuticals, Inc. and changed its name to NovaBay Pharmaceuticals, Inc. in February 2007. NovaBay Pharmaceuticals, Inc. was incorporated in 2000 and is headquartered in Emeryville, California.

How the Company Makes Money

NovaBay generates revenue primarily through the sale of its Avenova product, which is marketed directly to consumers and healthcare providers. The company has established partnerships with various distributors and retail pharmacies to enhance product availability and sales. Additionally, NovaBay may explore licensing opportunities or collaborations with other pharmaceutical companies to expand its product offerings and reach in the market. Key revenue streams include direct product sales, potential royalties from partnerships, and any future product launches that align with its therapeutic focus.

NovaBay Pharma Financial Statement Overview

Summary

NovaBay Pharma is facing significant financial challenges, with declining revenues, negative profit margins, and a deteriorating balance sheet. The cash flow situation is concerning, with negative free cash flow and limited financing activities, suggesting liquidity issues. The company needs to address its operational inefficiencies and explore financing options to stabilize its financial position.

Income Statement

NovaBay Pharma has experienced a decline in revenue from $14.73M in 2023 to $9.75M in 2024, indicating a negative revenue growth rate. The company shows a negative gross profit margin and net profit margin due to consistent net losses, with a net income of -$8.61M in 2024. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

NovaBay Pharma's balance sheet reveals financial instability with negative stockholders' equity in 2024, indicating liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity. A low equity ratio reflects poor asset financing and potential financial distress.

Cash Flow

The cash flow statement shows a negative free cash flow of -$5.19M in 2024, with no growth compared to 2023. Operating cash flow is negative, exceeding net income, indicating challenges in generating cash from operations. The company has also seen no significant financing activities, limiting its ability to raise funds.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.83M	9.78M	10.46M	14.40M	10.20M	9.93M
Gross Profit	1.51M	6.48M	6.08M	7.78M	6.51M	5.96M
EBITDA	-7.73M	-5.92M	-4.09M	-7.20M	-8.74M	-6.38M
Net Income	3.24M	-7.22M	-9.64M	-10.61M	-5.82M	-11.04M
Balance Sheet
Total Assets	3.49M	3.42M	9.03M	16.40M	23.98M	15.24M
Cash, Cash Equivalents and Short-Term Investments	2.31M	430.00K	3.13M	5.36M	7.50M	11.95M
Total Debt	970.00K	1.67M	2.74M	2.04M	551.00K	503.00K
Total Liabilities	1.85M	3.55M	5.72M	5.84M	13.81M	2.92M
Stockholders Equity	1.63M	-129.00K	3.31M	10.55M	10.17M	12.32M
Cash Flow
Free Cash Flow	-6.97M	-5.19M	-4.28M	-6.77M	-9.24M	-4.75M
Operating Cash Flow	-6.97M	-5.18M	-4.26M	-6.65M	-9.19M	-4.72M
Investing Cash Flow	0.00	1.06M	-19.00K	-112.00K	-12.04M	-26.00K
Financing Cash Flow	-2.82M	1.50M	1.91M	4.63M	16.79M	9.76M

NovaBay Pharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBY, the sentiment is Positive. The current price of 2.95 is below the 20-day moving average (MA) of 8.52, below the 50-day MA of 4.29, and above the 200-day MA of 1.61, indicating a bullish trend. The MACD of 2.99 indicates Negative momentum. The RSI at 67.89 is Neutral, neither overbought nor oversold. The STOCH value of 54.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NBY.

NovaBay Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVAX	58 Neutral	$30.26M	-0.49	―	―	4455.07%	77.31%
NBY	54 Neutral	$1.60B	―	-587.58%	―	-74.73%	95.81%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
JAGX	45 Neutral	$2.86M	-0.04	-370.95%	―	12.45%	-544.23%
SXTP	45 Neutral	$1.97M	-0.08	-152.19%	―	192.72%	83.61%
SNGX	43 Neutral	$13.52M	-0.39	-169.32%	―	―	53.13%

NovaBay Pharma Corporate Events

NovaBay Pharma Secures Crypto-Focused Financing, Shifts Strategy

On January 16, 2026, NovaBay Pharmaceuticals entered into a Securities Purchase Agreement with a group of accredited digital-asset-focused investors, issuing pre-funded warrants for 837.7 million common shares at $0.17 per warrant for gross proceeds of roughly $134 million, paid in a mix of $25 million cash and about $109 million in SKY tokens and stablecoins. The pre-funded warrants, exercisable at $0.01 per share on a tiered schedule over 6–12 months subject to shareholder approval, give the investors significant future equity exposure while, in parallel, an Investors’ Rights Agreement grants them registration rights and board nomination rights, and consent rights over any material change in NovaBay’s digital asset strategy for two years. These transactions solidify NovaBay’s pivot toward a digital asset treasury model, leaving SKY as its initial core holding with more than 943 million SKY tokens acquired, and position the company to seek long-term participation in protocol-level economics of the Sky network, while concentrating strategic influence among a small group of crypto-native investors and increasing the company’s exposure to digital asset market, regulatory, and governance risks.

The most recent analyst rating on (NBY) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on NovaBay Pharma stock, see the NBY Stock Forecast page.

NovaBay Pharma Announces Leadership Changes and Reverse Stock Split

NovaBay Pharma held its Annual Meeting of Stockholders on October 16, 2025, where several key decisions were made. The stockholders approved a reverse stock split, which will reduce the number of outstanding shares and potentially affect voting rights and future share issuances. Additionally, significant changes in the company’s leadership were announced, with the resignation of several board members and the appointment of Michael Kazley as the new CEO and Chairman. The company also filed a Certificate of Amendment to increase its authorized shares of common stock, while a proposal to increase preferred stock was not approved.

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