NovaBay Pharma (NBY) AI Stock Analysis

• Market Cap: $128.53M
• Dividend Yield: N/A
• Average Volume (3M): 258.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• 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: 140,413
• 30 Day Avg. Volume: 258,029
• 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: 0.08
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $3.00 ▲(6.76% Upside)

The overall stock score is primarily impacted by NovaBay Pharma's weak financial performance, characterized by declining revenues and negative margins. Despite strong technical indicators suggesting bullish momentum, the stock's valuation remains poor with a negative P/E ratio. The special cash dividend is a positive corporate event but does not significantly alter the overall financial outlook.

Positive Factors

Leadership Changes

The appointment of a new CEO and Chairman can bring fresh strategic direction and potentially improve operational efficiencies, impacting long-term business performance.

Strategic Partnerships

The agreement with new investors could provide strategic support and financial resources, enhancing the company's ability to innovate and expand its market presence.

Product Focus

A focused product strategy on Avenova, a known brand in eyelid hygiene, can drive consistent revenue and strengthen market position in the eye care segment.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in market demand or competitive pressures, which can hinder long-term growth and financial stability.

Negative Cash Flow

Negative free cash flow limits the company's ability to invest in growth opportunities and may necessitate external financing, impacting financial health.

Financial Instability

Negative equity suggests liabilities exceed assets, posing a risk to financial sustainability and limiting the company's ability to secure additional financing.

NovaBay Pharma Business Overview & Revenue Model

Company Description

NovaBay Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on developing and commercializing innovative anti-infective products for the treatment of eye care and other healthcare needs. The company operates primarily in the pharmaceutical sector and is known for its proprietary Avenova product, which is designed to manage eyelid hygiene and address conditions like blepharitis. NovaBay is also exploring additional indications for its products in both ophthalmology and dermatology.

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: 2.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2.81 is above the 20-day moving average (MA) of 1.26, above the 50-day MA of 1.21, and above the 200-day MA of 0.75, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 88.10 is Negative, neither overbought nor oversold. The STOCH value of 94.04 is Negative, 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	$40.24M	―	―	―	4455.07%	77.31%
NBY	56 Neutral	$128.53M	―	-587.58%	―	-74.73%	95.81%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
JAGX	43 Neutral	$4.37M	―	-370.95%	―	12.45%	87.08%
SXTP	40 Underperform	$5.17M	-0.11	-152.19%	―	192.72%	83.61%
SNGX	39 Underperform	$14.83M	―	-169.32%	―	―	53.13%

NovaBay Pharma Corporate Events

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.

NovaBay Pharma Enters Securities Purchase Agreement

On October 9, 2025, NovaBay Pharma entered into a Securities Purchase Agreement with R01 Fund LP and Framework Ventures IV L.P. to transfer shares of Series D and Series E Preferred Stock previously acquired by David Lazar. This transaction is contingent on stockholder approval at the company’s annual meeting on October 16, 2025, and upon completion, the purchasers are expected to collectively own approximately 90% of the outstanding common stock, significantly impacting the company’s ownership structure.

NovaBay Pharma Announces Special Cash Dividend

On September 18, 2025, NovaBay Pharmaceuticals announced a one-time special cash dividend of $0.80 per share for its common stock, payable on September 29, 2025. Due to the dividend’s size, NYSE American advised that the company’s stock will trade with ‘due bills’ during the Dividend Right Period, affecting stockholders’ rights to the dividend. The company also plans to hold its 2025 Annual Meeting on October 16, 2025, to discuss strategic proposals, with CEO David Lazar expressing optimism about future strategic alternatives.