Spruce Biosciences (SPRB) AI Stock Analysis

• Market Cap: $4.36M
• Dividend Yield: N/A
• Average Volume (3M): 11.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: -86.43%
• EPS Growth: -8.91%
• Country: US
• Employees: 20
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -3.50
• Shares Outstanding: 563,042
• 10 Day Avg. Volume: 18,736
• 30 Day Avg. Volume: 11,280
• PEG Ratio: >-0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.04
• P/FCF Ratio: >-0.01
• Enterprise Value/Market Cap: -2.60
• Enterprise Value/Revenue: -8.74
• Enterprise Value/Gross Profit: -8.74
• Enterprise Value/Ebitda: 0.24
• 1Y Price Target: $10.00
• Price Target Upside: 29.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 35 Underperform
• Price Target: ―

Spruce Biosciences faces substantial financial challenges with declining revenues and persistent losses. Bearish technical indicators and unfavorable valuation metrics further weigh on the stock. The strategic acquisition of TA-ERT offers potential growth, but the financial instability remains a critical concern.

Positive Factors

Strategic Acquisition

The acquisition of TA-ERT represents a strategic shift towards rare diseases, potentially opening new growth avenues and diversifying the product pipeline, which could enhance long-term revenue prospects and market position.

Low Leverage

A low leverage position provides financial flexibility, reducing the risk of financial distress and allowing the company to invest in growth opportunities without significant debt burden.

Cash Reserves

Having substantial cash reserves supports operational needs and strategic investments, providing a buffer against financial challenges and enabling continued development efforts.

Negative Factors

Revenue Decline

The sharp decline in revenue highlights challenges in maintaining market share and product adoption, which could impact long-term growth and financial stability if not addressed.

Negative Cash Flow

Deteriorating cash flow position indicates financial strain, limiting the company's ability to fund operations and strategic initiatives, potentially affecting long-term viability.

Persistent Losses

Ongoing losses and negative profit margins suggest operational inefficiencies and challenges in achieving profitability, which may hinder sustainable growth and investor confidence.

Spruce Biosciences Business Overview & Revenue Model

Company Description

Spruce Biosciences, Inc., a biopharmaceutical company, focuses on developing and commercializing novel therapies for rare endocrine disorders. The company engages in developing tildacerfont, a non-steroidal therapy to enhance disease control and reduce steroid burden for adult patients suffering from congenital adrenal hyperplasia (CAH), which is in Phase 2b clinical trial; and to evaluate glucocorticoid reduction and clinical consequences in adult patients with classic CAH that is Phase 2b clinical trial. It is also developing tildacerfont for the treatment of pediatric classic congenital adrenal hyperplasia in children that is in Phase 2 clinical trial; and for females with polycystic ovary syndrome, which is in Phase 2 clinical trial. The company has a license agreement with Eli Lilly and Company to research, develop, and commercialize compounds for various pharmaceutical uses. Spruce Biosciences, Inc. was incorporated in 2014 and is headquartered in Daly City, California.

How the Company Makes Money

Spruce Biosciences primarily makes money through the development and commercialization of its pharmaceutical products. The company's revenue model is centered around advancing its lead product candidate, tildacerfont, through clinical trials and ultimately obtaining regulatory approval and commercializing the drug. Revenue streams may include sales of the approved drug, milestone payments, and royalties from partnerships or licensing agreements with larger pharmaceutical companies. Significant partnerships with research institutions or other biotech firms can also contribute to its revenue through collaborative research and potential co-development agreements.

Spruce Biosciences Financial Statement Overview

Summary

Spruce Biosciences is facing significant financial challenges, with declining revenues and persistent losses affecting its financial stability. Despite a low leverage position, the negative cash flow trend is concerning, necessitating strategic adjustments.

Income Statement

Spruce Biosciences shows a limited revenue base with a Total Revenue of $4.91 million in 2024, significantly down from $10.09 million in 2023, indicating a revenue decline. The company has consistently reported negative net income, with a Net Profit Margin of -1080% in 2024, reflecting persistent unprofitability. The EBIT and EBITDA margins are also negative, at -1144% and -1144%, respectively, due to high operating expenses relative to revenue.

Balance Sheet

The company's balance sheet reveals a moderate equity base with Stockholders' Equity at $28.82 million in 2024. The Debt-to-Equity Ratio is 0.08, indicating relatively low leverage. However, the Return on Equity (ROE) is negative due to the negative net income. The Equity Ratio stands at 63.73%, suggesting a strong equity position relative to total assets.

Cash Flow

Spruce Biosciences has shown a substantial decrease in Free Cash Flow from -$33.28 million in 2023 to -$55.96 million in 2024, highlighting a deteriorating cash flow position. The Operating Cash Flow to Net Income Ratio is close to 1, reflecting that operating cash outflows closely match the net losses. The Free Cash Flow to Net Income Ratio further confirms the cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.30M	4.91M	10.09M	0.00	0.00	0.00
Gross Profit	1.30M	4.91M	10.09M	-429.00K	-381.00K	-102.00K
EBITDA	-48.11M	-52.68M	-47.37M	-45.33M	-41.57M	-29.11M
Net Income	-48.34M	-53.04M	-47.92M	-46.18M	-42.69M	-30.03M
Balance Sheet
Total Assets	21.82M	45.21M	103.95M	85.65M	126.49M	162.88M
Cash, Cash Equivalents and Short-Term Investments	16.39M	38.75M	96.34M	79.08M	88.97M	157.15M
Total Debt	1.82M	2.77M	4.61M	6.18M	6.17M	6.13M
Total Liabilities	8.64M	16.39M	27.44M	17.16M	15.12M	13.46M
Stockholders Equity	13.18M	28.82M	76.51M	68.49M	111.37M	149.43M
Cash Flow
Free Cash Flow	-51.45M	-55.96M	-33.28M	-41.69M	-35.97M	-27.59M
Operating Cash Flow	-51.45M	-55.96M	-33.27M	-41.68M	-35.88M	-27.52M
Investing Cash Flow	0.00	0.00	55.78M	23.69M	-79.17M	-74.00K
Financing Cash Flow	-1.84M	-1.62M	49.14M	-241.00K	643.00K	181.03M

Spruce Biosciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRB, the sentiment is Negative. The current price of 7.75 is below the 20-day moving average (MA) of 8.85, below the 50-day MA of 8.82, and below the 200-day MA of 16.05, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 10.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPRB.

Spruce Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XBIO	43 Neutral	$4.78M	-1.55	―	―	-2.94%	34.52%
SPRB	35 Underperform	$4.36M	―	-133.62%	―	-86.43%	-8.91%
KZIA	31 Underperform	$9.97M	-0.25	―	―	―	-32.63%
WINT	28 Underperform	$2.20M	―	―	―	―	85.35%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Spruce Biosciences Corporate Events

Spruce Biosciences Acquires TA-ERT for Rare Disease Focus

On April 15, 2025, Spruce Biosciences announced a new corporate strategy and the acquisition of tralesinidase alfa enzyme replacement therapy (TA-ERT) for treating Sanfilippo Syndrome Type B (MPS IIIB). The company plans to seek accelerated approval from the U.S. FDA for TA-ERT, aiming to submit a Biologics License Application in the first half of 2026. This acquisition marks a significant shift in Spruce’s focus towards rare diseases, with TA-ERT showing promising results in clinical studies. The company intends to commercialize TA-ERT globally, establishing a specialized commercial organization in the U.S. and collaborating with regional partners internationally. Financially, Spruce reported $38.8 million in cash and cash equivalents as of December 31, 2024, which is expected to support operations through the end of 2025.

Spark’s Take on SPRB Stock

According to Spark, TipRanks’ AI Analyst, SPRB is a Underperform.

Spruce Biosciences faces severe financial challenges, with negative profitability and cash flow issues being the most significant concerns. Technical indicators suggest bearish market sentiment, and valuation metrics are unfavorable due to ongoing losses. The lack of earnings guidance or significant corporate events further contributes to the low overall score.

To see Spark’s full report on SPRB stock, click here.