Allogene Therapeutics (ALLO) Financials

Allogene Therapeutics (NASDAQ: ALLO) showed persistent net losses across the last several quarters, indicating ongoing challenges in reaching profitability. The net income (loss) figures consistently reflect substantial negative values ranging from approximately -$59.9 million in Q4 2024 to as much as -$99.97 million in Q1 2023 and -$102.6 million in Q4 2022, indicating sustained operating expenditures exceeding revenues.

Revenue remains minimal, with little to no operating revenue recorded for most quarters, except for nominal amounts around $21,000 to $30,000, suggesting the company is either in early stages of commercialization or is largely pre-revenue. Cost control is a key factor as Total Operating Expenses regularly exceed $60 million per quarter, peaking at $85.13 million in Q4 2023.

Looking at earnings per share (EPS), the company has posted consistent negative figures, with diluted EPS deteriorating from -$0.72 in Q4 2022 to about -$0.27 in Q4 2024, indicating loss per share but some improvement over time.

Cash flow statements show consistent negative net cash from operating activities, implying ongoing cash usage to fund business operations. Although cash flow from investing activities is generally positive, driven by sales or maturity of investments, the company is making significant investments, evident in purchase of investments figures often tens to hundreds of millions spent each quarter. Financing activities include issuance of common equity, providing periodic cash inflows.

The balance sheet reveals a solid cash and short-term investment base, though total liabilities and retained earnings deficits are significant. Total common equity has fluctuated but remains positive, suggesting the company is funded primarily through equity rather than debt.

• Substantial cash and short-term investments position provides liquidity for upcoming R&D and operational needs.
• Some improvement in operating expenses and EPS from Q4 2022 through Q4 2024 suggests gradual cost management.
• Ongoing support from equity financing shows investor confidence and capital availability.
• Revenue remains minimal, implying commercial progress is limited or at a nascent stage.
• Cash flow from investing activities positive due to investment maturities, but significant investments are ongoing.
• Sustained quarterly net losses exceeding $50 million impact net income and shareholder value.
• High and fluctuating R&D expenses (up to $75 million quarterly in 2022) impact profitability heavily.
• Negative retained earnings and recurring net losses indicate losses accumulate and equity erosion risk.
• Negative cash flow from operating activities confirms dependence on external financing for cash needs.
• Lack of meaningful revenue growth raises concerns regarding commercial viability and timeline to profitability.

In summary, Allogene Therapeutics continues to operate with significant net losses and minimal revenue, typical of biotechnology companies in the development phase. The company's strong cash position and equity financing provide runway for ongoing R&D efforts, but investors should be cautious about the sustained losses and uncertain path to profitability over the last four years.