NovaBay Pharma (NBY) AI Stock Analysis

• Market Cap: $13.15M
• Dividend Yield: N/A
• Average Volume (3M): 14.60M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: -60.49%
• EPS Growth: 96.12%
• Country: US
• Employees: 13
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.33
• Shares Outstanding: 6,005,749
• 10 Day Avg. Volume: 1,152,918
• 30 Day Avg. Volume: 14,603,156
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.08
• Enterprise Value/Revenue: -0.22
• Enterprise Value/Gross Profit: -0.35
• Enterprise Value/Ebitda: 0.14
• 1Y Price Target: $1.50
• Price Target Upside: -31.51% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: $1.50 ▼(-31.51% Downside)

NovaBay Pharma's overall stock score reflects significant financial challenges, with declining revenues and negative profit margins being the most impactful factors. While technical indicators show some bullish momentum, the valuation remains unattractive due to unprofitability. Positive corporate events, including a strategic shift and special dividend, provide some optimism for future prospects.

Positive Factors

Strategic Shift

The appointment of a new CEO and strategic shift indicate a renewed focus on strategic investments and acquisitions, which could enhance long-term growth and stability.

Special Cash Dividend

The special cash dividend reflects a commitment to maximizing shareholder value and suggests financial flexibility, which can be positive for investor confidence.

New Investment

The $6 million investment provides NovaBay with additional capital to explore new opportunities, potentially strengthening its market position and financial health.

Negative Factors

Declining Revenues

The significant decline in revenues highlights challenges in maintaining market share and competitiveness, which could impact long-term growth prospects.

Negative Profit Margins

Persistent negative profit margins indicate operational inefficiencies and financial instability, which could hinder sustainable growth and profitability.

Deteriorating Balance Sheet

A deteriorating balance sheet with negative equity suggests financial distress, limiting the company's ability to invest in growth and manage liabilities effectively.

NovaBay Pharma Business Overview & Revenue Model

Company Description

NovaBay Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing and commercializing innovative anti-infective products for the eye care and wound care markets. The company leverages its proprietary technology platform, which includes its lead product, Avenova, a hypochlorous acid solution designed for eyelid and eyelash hygiene. NovaBay operates primarily in the healthcare sector, with a strong emphasis on addressing unmet medical needs in the prevention and treatment of infections.

How the Company Makes Money

NovaBay Pharmaceuticals generates revenue primarily through the sale of its products, particularly Avenova, which is marketed to eye care professionals and consumers for the management of blepharitis and other eyelid conditions. The company also seeks to expand its revenue through strategic partnerships and collaborations with other healthcare firms, which may include licensing agreements and co-marketing arrangements. Additionally, NovaBay may explore opportunities to develop and commercialize new products based on its proprietary technology platform, further diversifying its revenue streams.

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	4.75M	9.78M	10.46M	14.40M	8.42M	9.93M
Gross Profit	3.00M	6.48M	6.08M	7.78M	5.64M	5.96M
EBITDA	-7.38M	-5.92M	-4.80M	-7.20M	-8.74M	-6.38M
Net Income	3.32M	-7.22M	-9.64M	-16.27M	-6.56M	-11.04M
Balance Sheet
Total Assets	6.91M	3.42M	9.03M	16.40M	23.98M	15.24M
Cash, Cash Equivalents and Short-Term Investments	5.34M	430.00K	3.13M	5.36M	7.50M	11.95M
Total Debt	1.04M	1.67M	2.74M	2.04M	551.00K	503.00K
Total Liabilities	2.67M	3.55M	5.72M	5.84M	13.81M	2.92M
Stockholders Equity	4.25M	-129.00K	3.31M	10.55M	10.17M	12.32M
Cash Flow
Free Cash Flow	-7.24M	-5.19M	-4.15M	-6.77M	-9.24M	-4.75M
Operating Cash Flow	-7.23M	-5.18M	-4.13M	-6.65M	-9.19M	-4.72M
Investing Cash Flow	-1.07M	1.06M	-19.00K	-112.00K	-12.04M	-26.00K
Financing Cash Flow	707.00K	1.50M	1.91M	4.63M	16.79M	9.76M

NovaBay Pharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2.19 is below the 20-day moving average (MA) of 2.44, above the 50-day MA of 1.42, and above the 200-day MA of 0.81, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 53.27 is Neutral, neither overbought nor oversold. The STOCH value of 42.95 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
NBY	51 Neutral	$13.15M	―	-431.59%	―	-60.49%	96.12%
EVAX	47 Neutral	$25.52M	-0.43	639.65%	―	4455.07%	77.31%
JAGX	42 Neutral	$4.68M	-0.03	-393.98%	―	15.95%	92.33%
SXTP	41 Neutral	$5.58M	-0.12	-196.93%	―	120.67%	-456.33%
SNGX	39 Underperform	$5.14M	-0.31	―	―	―	59.81%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

NovaBay Pharma Corporate Events

NovaBay Pharma Announces Special Cash Dividend

On August 26, 2025, NovaBay Pharmaceuticals announced a special cash dividend of $0.80 per share, payable on September 29, 2025, to stockholders of record as of September 15, 2025. This decision follows an investment agreement with David E. Lazar, who has committed up to $6 million in exchange for preferred stock. The dividend aims to maximize shareholder value after the sale of NovaBay’s eye care products to PRN Physician Recommended Nutriceuticals, LLC earlier in the year. The NYSE American has advised that the company’s stock will trade with ‘due bills’ during the dividend right period, affecting stockholders who sell their shares during this time.

NovaBay Pharma Appoints New CEO Amid Strategic Shift

NovaBay Pharmaceuticals announced a significant strategic shift following the sale of its eyecare products. On August 19, 2025, the company entered into a $6 million securities purchase agreement with investor David E. Lazar, who was appointed as the new CEO. This move, which includes issuing non-voting convertible preferred stock, is aimed at maintaining NovaBay’s public listing and exploring strategic investment opportunities, rather than pursuing liquidation. The transaction is expected to provide funds for future acquisitions and a special cash dividend for stockholders, marking a new direction for the company.