📊 APLS Key Takeaways
Is Apellis Pharmaceuticals, Inc. (APLS) a Good Investment?
Apellis demonstrates strong revenue growth (+28.5% YoY) and maintains an excellent balance sheet with $405M cash and conservative leverage (0.22x debt/equity). However, the company exhibits negative operating cash flow (-$61M) despite positive net income, indicating poor cash conversion quality and unsustainable fundamentals that contradict earnings reports.
Apellis shows a meaningful step-up in scale, with revenue up 28.5% to $1.00B and the business now producing positive operating income, net income, and free cash flow. The balance sheet is a clear strength, with $466.23M in cash, strong liquidity, low leverage, and high interest coverage, which supports execution flexibility. The main constraint is that profitability remains thin, so the fundamental case depends on converting current growth into more durable margin expansion.
Apellis Pharmaceuticals, Inc. Key Strengths (APLS)
- Strong revenue growth of 28.5% YoY indicating market traction and demand
- Exceptional liquidity with 3.63x current ratio and $405.2M cash reserves
- Conservative capital structure with low leverage (0.22x debt/equity) and strong interest coverage (9.9x)
- Revenue growth is strong at 28.5% YoY, indicating continued commercial momentum
- Financial health is solid, with $466.23M in cash, a 3.14x current ratio, and only 0.25x debt-to-equity
- The company is now generating positive operating income, operating cash flow, and free cash flow, improving growth quality
APLS Stock Risks: Apellis Pharmaceuticals, Inc. Investment Risks
- Negative operating cash flow of -$61M despite positive net income signals poor earnings quality and working capital management issues
- Extremely low returns on equity (4.5%) and assets (1.7%) indicate inefficient capital deployment
- Persistent negative free cash flow at -22.8% margin is unsustainable and erodes cash reserves despite positive profitability
- Profitability is still fragile, with only 5.5% operating margin and 2.2% net margin
- Net income was essentially flat YoY, suggesting revenue growth has not yet translated into strong bottom-line scaling
- As a pharmaceutical company, results remain exposed to product concentration, regulatory risk, and commercialization execution
Key Metrics to Watch
- Operating cash flow trajectory - critical to return to positive to validate earnings quality
- Working capital changes and days sales outstanding - understand cash conversion breakdown
- Cash runway and burn rate - monitor depletion of $405M cash reserves at current burn rate
- Operating margin and net margin progression
- Operating cash flow and free cash flow consistency
Apellis Pharmaceuticals, Inc. (APLS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.63x current ratio provides a solid financial cushion.
APLS Profit Margin, ROE & Profitability Analysis
APLS vs Healthcare Sector: How Apellis Pharmaceuticals, Inc. Compares
How Apellis Pharmaceuticals, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Apellis Pharmaceuticals, Inc. Stock Overvalued? APLS Valuation Analysis 2026
Based on fundamental analysis, Apellis Pharmaceuticals, Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Apellis Pharmaceuticals, Inc. Balance Sheet: APLS Debt, Cash & Liquidity
APLS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Apellis Pharmaceuticals, Inc.'s revenue has grown significantly by 300% over the 5-year period, indicating strong business expansion. The most recent EPS of $-4.45 indicates the company is currently unprofitable.
APLS Revenue Growth, EPS Growth & YoY Performance
APLS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $166.8M | $18.7M | $0.15 |
| Q3 2025 | $196.8M | -$37.7M | $-0.46 |
| Q2 2025 | $178.5M | -$37.7M | $-0.30 |
| Q1 2025 | $166.8M | -$66.4M | $-0.54 |
| Q3 2024 | $110.4M | -$37.7M | $-0.46 |
| Q2 2024 | $95.0M | -$37.7M | $-0.30 |
| Q1 2024 | $44.8M | -$66.4M | $-0.54 |
| Q3 2023 | $22.1M | -$122.0M | $-1.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Apellis Pharmaceuticals, Inc. Dividends, Buybacks & Capital Allocation
APLS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Apellis Pharmaceuticals, Inc. (CIK: 0001492422)
📋 Recent SEC Filings
❓ Frequently Asked Questions about APLS
What is the AI rating for APLS?
Apellis Pharmaceuticals, Inc. (APLS) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 67% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are APLS's key strengths?
Claude: Strong revenue growth of 28.5% YoY indicating market traction and demand. Exceptional liquidity with 3.63x current ratio and $405.2M cash reserves. ChatGPT: Revenue growth is strong at 28.5% YoY, indicating continued commercial momentum. Financial health is solid, with $466.23M in cash, a 3.14x current ratio, and only 0.25x debt-to-equity.
What are the risks of investing in APLS?
Claude: Negative operating cash flow of -$61M despite positive net income signals poor earnings quality and working capital management issues. Extremely low returns on equity (4.5%) and assets (1.7%) indicate inefficient capital deployment. ChatGPT: Profitability is still fragile, with only 5.5% operating margin and 2.2% net margin. Net income was essentially flat YoY, suggesting revenue growth has not yet translated into strong bottom-line scaling.
What is APLS's revenue and growth?
Apellis Pharmaceuticals, Inc. reported revenue of $268.3M.
Does APLS pay dividends?
Apellis Pharmaceuticals, Inc. does not currently pay dividends.
Where can I find APLS SEC filings?
Official SEC filings for Apellis Pharmaceuticals, Inc. (CIK: 0001492422) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is APLS's EPS?
Apellis Pharmaceuticals, Inc. has a diluted EPS of $0.15.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is APLS's fundamental grade?
Based on our AI fundamental analysis in June 2026, Apellis Pharmaceuticals, Inc. has a A grade with 67% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is APLS stock overvalued or undervalued?
Valuation metrics for APLS: ROE of 4.5% (sector avg: 15%), net margin of 7.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is APLS's AI grade for 2026?
Our dual AI analysis gives Apellis Pharmaceuticals, Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is APLS's free cash flow?
Apellis Pharmaceuticals, Inc.'s operating cash flow is $-61.0M, with capital expenditures of $313.0K. FCF margin is -22.8%.
How does APLS compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 7.0% (avg: 12%), ROE 4.5% (avg: 15%), current ratio 3.63 (avg: 2).