Willow Biosciences Inc (ATLE) AI Stock Analysis

• Market Cap: C$54.59M
• Dividend Yield: N/A
• Average Volume (3M): 26.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: 26.91%
• EPS Growth: 81.01%
• Country: CA
• Employees: 19
• Sector: General
• Sector Strength: N/A
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): >-0.01
• Shares Outstanding: 352,222,660
• 10 Day Avg. Volume: 47,704
• 30 Day Avg. Volume: 26,236
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 50 Neutral
• Price Target: C$0.15 ▼(-16.67% Downside)

The overall stock score is primarily impacted by significant financial challenges, including negative equity and ongoing losses, which are major concerns. However, positive technical indicators and favorable corporate events provide some optimism for future performance.

Positive Factors

Rapid Revenue Growth

A nearly 300% revenue increase signifies accelerating product adoption and expanding customer traction for Willow's fermentation-derived ingredients. This durable top-line momentum supports scale effects, improves leverage on fixed costs, and strengthens the case for continued commercial expansion over the next several months.

Defensible Precision Fermentation Model

Willow's core capability in microbial strain engineering, fermentation and downstream processing is a structural competitive advantage. Precision fermentation addresses sustainability and purity trends in consumer goods, enabling long-term demand, potential premium pricing, and partnership opportunities with CPG and industrial customers.

Improving Free Cash Flow

A substantial reduction in free cash outflow reflects better cost control and operational progress. This durable improvement lengthens runway, reduces near-term financing pressure, and provides management more flexibility to prioritize commercialization and margin expansion over the coming months if the trend continues.

Negative Factors

Negative Shareholders' Equity

Negative equity indicates solvency strain and weak balance sheet resilience. This structural weakness limits borrowing capacity, raises creditor and investor concerns, and increases the likelihood of dilutive financing or onerous terms—factors that materially affect strategic flexibility for months ahead.

Ongoing Negative Operating Cash Flow

Persistent negative operating cash flow shows the business is not yet self-sustaining and remains reliant on external capital. Continued cash burn constrains investment in scale-up and commercialization, heightens refinancing risk, and can force short-term tradeoffs that impair long-term execution.

Sustained Net Losses

Despite revenue growth and gross margin improvement, net losses and negative EBIT margins persist, driven by operating expenses. This structural profitability gap must be closed to achieve durable cash generation; until then, profitability remains a multi-quarter risk to financial stability and scaling plans.

Willow Biosciences Inc Business Overview & Revenue Model

Company Description

Willow Biosciences Inc., a biotechnology company, develops, produces, and sells plant derived ingredients for consumer care, food and beverage, and pharmaceutical product industries in Canada. The company also produces cannabidiol, cannabigerol, and varin cannabinoids, such as cannabigerovarin, cannabidivarin, and tetrahydrocannabivarin. Willow Biosciences Inc. was incorporated in 1981 and is headquartered in Calgary, Canada.

How the Company Makes Money

Willow Biosciences Inc. generates revenue through several key streams. Primarily, the company monetizes its proprietary biosynthesis technology by entering into partnerships and licensing agreements with other companies in the pharmaceutical and nutraceutical sectors. These partnerships often involve co-development agreements where Willow provides its expertise in synthetic biology to help partners create and manufacture bioactive compounds. Additionally, Willow may sell its proprietary products directly to manufacturers looking for high-quality cannabinoids or other bioactive ingredients. The company may also earn revenue through research and development funding from collaborations with academic institutions or larger corporations seeking to innovate in the field of biosynthesis. Factors contributing to its earnings include the increasing demand for sustainable and efficient production methods in the biotech industry, as well as the growing acceptance and legalization of cannabinoids in various markets.

Willow Biosciences Inc Financial Statement Overview

Summary

Willow Biosciences Inc shows strong revenue growth, yet continues to grapple with significant financial challenges, including sustained losses, negative equity, and cash flow constraints. While there are glimmers of operational improvement, substantial efforts are required to achieve financial stability.

Income Statement

Willow Biosciences Inc has shown a significant increase in revenue from $1,172,000 in 2023 to $4,662,000 in 2024, representing a strong revenue growth rate of 297.8%. However, the company continues to experience substantial losses reflected in negative net profit margins and EBIT margins. The recent gross profit margin of 100% in 2024 is an improvement, indicating better cost management, though overall profitability remains a major concern.

Balance Sheet

The balance sheet highlights a concerning negative stockholders' equity of -$505,000 in 2024, a sharp decline from $3,436,000 in 2023, indicating solvency issues. The debt-to-equity ratio is not applicable due to negative equity, and the equity ratio has shifted unfavorably. These factors point to high financial risk and instability.

Cash Flow

Operating cash flow remains negative, with a slight improvement in free cash flow from -$11,539,000 in 2023 to -$3,743,000 in 2024. Despite this improvement, the free cash flow to net income ratio remains unfavorable, highlighting ongoing liquidity challenges.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Willow Biosciences Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATLE, the sentiment is Negative. The current price of 0.18 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.17, and above the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.00 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ATLE.

Willow Biosciences Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DB	64 Neutral	C$54.81M	3.78	21.77%	―	15.11%	―
VEXT	59 Neutral	C$69.35M	-2.46	-21.73%	―	43.56%	-349.41%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ATLE	50 Neutral	C$54.59M	-2.71	-19.76%	―	26.91%	81.01%
IAN	44 Neutral	C$34.09M	20.00	―	―	-6.05%	―
BNXT	42 Neutral	C$70.65M	-10.86	―	―	-62.34%	9.80%

Willow Biosciences Inc Corporate Events

Atlas Energy Corp. Expands Deal Pipeline Amid Favorable Market Conditions

Atlas Energy Corp. has released its unaudited consolidated interim financial statements for the third quarter of 2025, highlighting a favorable market environment for disciplined capital deployment due to moderated global oil prices and potential oversupply forecasts for 2026. This situation has expanded Atlas’s deal pipeline and improved the visibility of near-term opportunities, as the company continues to focus on acquiring high-quality assets operated by industry leaders to ensure robust cash flow and long-term value creation.

The most recent analyst rating on (TSE:ATLE) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Willow Biosciences Inc stock, see the TSE:ATLE Stock Forecast page.