Revenue has collapsed to a nominal $59K in Q4 2025 (down 86.6% YoY), while R&D expenses nearly tripled from $8.2M in Q4 2024 to $23.4M in Q2 2026, driving operating losses to -$31.5M and confirming a pre-revenue, escalating-cost profile.
Avalo Therapeutics, Inc. (AVTX) annual income statement — 14-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 59K | 59K | 441K | 1.92M | 18.05M | 5.4M | 6.7M | 6.75M | 18.33M | 27.81M | 1.15M | 0 | 0 | 0 | 82.76K |
| Revenue Growth % | -86.62% | -86.62% | -77.08% | -89.34% | 234.4% | -19.42% | -0.76% | -63.17% | -34.11% | 2312.24% | - | - | - | -100% | - |
| Cost of Goods Sold | 10.01M | 0 | -366K | 1.28M | 3.43M | 1.49M | 300K | -566.52K | 7.48M | 635.65K | 8.24M | 23.51K | 9.5M | 0 | 8.48M |
| COGS % of Revenue | - | - | -82.99% | 66.74% | 19.02% | 27.62% | 4.48% | -8.39% | 40.81% | 2.29% | 714.57% | - | - | - | 10242.39% |
| Gross Profit | -9.95M | 59K | 807K | 640K | 14.62M | 3.91M | 6.4M | 7.32M | 10.85M | 27.18M | -7.09M | -23.51K | -9.5M | 0 | -8.39M |
| Gross Margin % | -16861.02% | 100% | 182.99% | 33.26% | 80.98% | 72.38% | 95.52% | 108.39% | 59.19% | 97.71% | -614.57% | - | - | - | -10142.39% |
| Gross Profit Growth % | - | -92.69% | 26.09% | -95.62% | 274.12% | -38.94% | -12.54% | -32.55% | -60.08% | 483.54% | -30042.93% | 99.75% | - | 100% | - |
| Operating Expenses | 81.41M | 72.98M | 69.32M | 27.99M | 52.06M | 86.04M | 6.4M | 23.45M | 29.52M | 13.29M | 17.23M | 11.01M | 17.12M | 12.93M | 2.1M |
| OpEx % of Revenue | - | 123701.69% | 15718.59% | 1454.83% | 288.39% | 1593.94% | 95.52% | 347.45% | 161.07% | 47.77% | 1494.62% | - | - | - | 2533.96% |
| Selling, General & Admin | 27.05M | 22.9M | 17.24M | 10.3M | 20.71M | 24.66M | 19.76M | 11.61M | 19.2M | 8.91M | 7.08M | 4.42M | 4.88M | 4.02M | 2.1M |
| SG&A % of Revenue | - | 38813.56% | 3909.52% | 535.34% | 114.74% | 456.8% | 294.95% | 171.95% | 104.76% | 32.05% | 614.31% | - | - | - | 2533.96% |
| Research & Development | 64.35M | 50.08M | 52.08M | 13.78M | 31.31M | 59.84M | 32.19M | 11.76M | 5.79M | 4.37M | 10.15M | 6.59M | 12.24M | 8.91M | 8.48M |
| R&D % of Revenue | - | 84888.14% | 11809.07% | 716.42% | 173.44% | 1108.47% | 480.56% | 174.27% | 31.57% | 15.72% | 880.31% | - | - | - | 10242.39% |
| Other Operating Expenses | -1000K | 0 | 0 | 3.91M | 38K | 1.55M | -45.55M | 83.11K | 13.66K | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -91.36M | -72.92M | -68.51M | -27.35M | -37.44M | -82.13M | 0 | -16.14M | -39.31M | 13.89M | -16.08M | -11.01M | -17.12M | -12.93M | -10.49M |
| Operating Margin % | -154844.07% | -123601.69% | -15535.6% | -1421.57% | -207.41% | -1521.56% | - | -239.06% | -214.52% | 49.94% | -1394.62% | - | - | - | -12676.35% |
| Operating Income Growth % | - | -6.44% | -150.49% | 26.95% | 54.42% | - | 100% | 58.95% | -383.04% | 186.38% | -46.05% | 35.67% | -32.33% | -23.29% | - |
| EBITDA | -91.23M | -72.58M | -68.34M | -27.19M | -37.27M | -80.48M | -45.45M | -12.25M | -37.46M | 14.32M | -16.05M | -10.99M | -17.09M | -12.91M | -10.48M |
| EBITDA Margin % | -154630.51% | -123018.64% | -15497.28% | -1413.36% | -206.49% | -1490.87% | -678.47% | -181.53% | -204.41% | 51.47% | -1392.29% | - | - | - | -12658.22% |
| EBITDA Growth % | -52.6% | -6.2% | -151.33% | 27.05% | 53.68% | -77.06% | -270.91% | 67.29% | -361.69% | 189.18% | -46.12% | 35.7% | -32.31% | -23.28% | - |
| D&A (Non-Cash Add-back) | 126K | 344K | 169K | 158K | 166K | 1.66M | 1.84M | 3.88M | 1.85M | 425.48K | 26.86K | 23.51K | 28.94K | 20.03K | 15K |
| EBIT | -100.16M | -78.09M | -35.02M | -23.44M | -37.46M | -82.15M | -47.29M | -17.39M | -14.9M | 13.89M | -16.08M | -10.48M | -17.12M | -12.93M | -10.49M |
| Net Interest Income | 5.67M | 4.35M | 3.32M | -3.42M | -4.17M | -2.39M | 49K | 121.33K | 16.26K | -24.02K | -464.18K | -793.21K | -1.21M | 0 | 0 |
| Interest Income | 5.67M | 4.35M | 3.32M | 0 | 0 | 0 | 49K | 121.33K | 16.26K | 0 | 0 | 0 | 0 | 0 | 1.35K |
| Interest Expense | 0 | 0 | 0 | 3.42M | 4.17M | 2.39M | 0 | 0 | 0 | 24.02K | 464.18K | 793.21K | 1.21M | 10.55K | 0 |
| Other Income/Expense | -8.8M | -5.17M | 33.5M | -4.18M | -4.19M | -2.41M | -67.18M | 147.29K | 54.93K | -53.64K | -391.56K | 519.84K | 1.06M | -110.56K | 1.35K |
| Pretax Income | -100.16M | -78.09M | -35.02M | -31.53M | -41.63M | -84.55M | -67.18M | -15.99M | -40.09M | 13.84M | -16.47M | -10.49M | -16.06M | -13.05M | -10.49M |
| Pretax Margin % | -169766.1% | -132362.71% | -7939.91% | -1638.77% | -230.62% | -1566.23% | -1002.79% | -236.88% | -218.73% | 49.75% | -1428.53% | - | - | - | -12674.72% |
| Income Tax | 171K | 165K | 114K | 14K | 28K | -196K | -2.79M | 280.32K | -33.91K | 1.97M | 364.14K | -543.51K | 0 | 110.56K | 0 |
| Effective Tax Rate % | -0.17% | -0.21% | -0.33% | -0.04% | -0.07% | 0.23% | 4.16% | -1.75% | 0.08% | 14.21% | -2.21% | 5.18% | 0% | -0.85% | 0% |
| Net Income | -100.33M | -78.26M | -35.13M | -31.54M | -41.66M | -84.38M | -63.5M | -16.07M | -40.05M | 11.87M | -16.47M | -10.49M | -16.06M | -13.05M | -10.49M |
| Net Margin % | -170055.93% | -132642.37% | -7965.76% | -1639.5% | -230.78% | -1563.1% | -947.9% | -238.1% | -218.55% | 42.68% | -1428.53% | - | - | - | -12674.72% |
| Net Income Growth % | -117.1% | -122.78% | -11.37% | 24.28% | 50.63% | -32.88% | -295.08% | 59.87% | -437.43% | 172.06% | -57.02% | 34.66% | -23.08% | -24.36% | - |
| Net Income (Continuing) | -100.33M | -78.26M | -35.13M | -31.54M | -41.66M | -84.35M | -64.38M | -16.27M | -35.27M | 11.87M | -16.47M | -10.49M | -16.06M | -13.05M | -10.49M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | -27K | 884K | 198.21K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.30 | -5.84 | -3.26 | -113.58 | -1062.65 | -2330.66 | -2523.77 | -819.74 | -3317.28 | 1822.74 | -21.93 | -16.21 | -41.61 | -43.12 | -199.77 |
| EPS Growth % | -150.21% | -79.14% | 97.13% | 89.31% | 54.41% | 7.65% | -207.87% | 75.29% | -281.99% | 8411.63% | -35.29% | 61.04% | 3.5% | 78.42% | - |
| EPS (Basic) | - | -5.84 | -4.32 | -113.58 | -1062.65 | -2330.66 | -2523.77 | -819.74 | -3317.28 | 1856.88 | -21.93 | -16.21 | -41.61 | -43.12 | -199.77 |
| Diluted Shares Outstanding | 43.6M | 13.4M | 10.78M | 277.73K | 39.2K | 36.19K | 25.51K | 19.85K | 12.07K | 6.51K | 3.07K | 773 | 385.85K | 302.55K | 52.51K |
| Basic Shares Outstanding | 43.6M | 13.4M | 8.13M | 277.73K | 39.2K | 36.19K | 25.51K | 19.85K | 12.07K | 6.39K | 3.07K | 773 | 385.85K | 302.55K | 52.51K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying AVTX stock.
For fiscal year 2025, Avalo Therapeutics, Inc. (AVTX) reported total revenue of $0.1M. This represents a 28.7% decline compared to $0.1M in 2012.
Avalo Therapeutics, Inc. (AVTX) reported a net loss of $78.3M for the fiscal year ending 2025.
Avalo Therapeutics, Inc. (AVTX) reported an operating income of $-72.9M, resulting in an operating profit margin of -123601.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Avalo Therapeutics, Inc. (AVTX) generated $0.1M in gross profit for the year, representing a gross profit margin of 100.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Cash runway and dilution
Metrics are mathematically derived from official filings.
Revenue Collapse to Negligible Levels
Avalo's revenue has dwindled to a nominal $59,000 in Q4 2025, down 86.6% year-over-year, reflecting a complete absence of commercial activity and reliance on legacy agreements.
The reported revenue figures are immaterial, with the most recent quarter showing zero revenue and a 100% decline in growth. This trajectory underscores the company's pre-commercial status, where valuation hinges on pipeline milestones rather than top-line performance. The sharp drop from $192,000 in Q4 2024 to $59,000 in Q4 2025 suggests the winding down of any residual licensing or grant income, leaving the company entirely dependent on external financing.
Gross Margin Artifact of Pre-Revenue Stage
Gross margin is a mathematical artifact, swinging from 100% to negative values due to negligible revenue and occasional COGS adjustments, providing no insight into operational efficiency.
The gross margin figures are meaningless in a pre-revenue context, as they reflect accounting quirks rather than pricing power or cost structure. For instance, Q4 2025 shows a 100% gross margin on $59,000 revenue, while Q1 2026 shows a negative gross profit due to a $17,000 COGS entry. Investors should disregard these metrics and focus on the cash burn and R&D efficiency, which are the true drivers of value creation at this stage.
Operating Leverage Absent as R&D Scales
Operating losses have widened from $13.3 million in Q4 2024 to $31.5 million in Q2 2026, with R&D expenses nearly tripling, indicating no operating leverage and escalating clinical costs.
The company's operating leverage is deeply negative, as R&D expenses have surged from $8.2 million in Q4 2024 to $23.4 million in Q2 2026, while SG&A has grown more modestly. This divergence suggests that the company is investing heavily in late-stage trials, particularly the Phase 3 program for abdakibart, which is capital-intensive. The lack of revenue means that every dollar of expense directly widens the operating loss, and the trend shows no sign of abating.
Net Income Distorted by Non-Operating Items
Reported net income swings from a $98.5 million gain in Q2 2024 to a $121.3 million loss in Q1 2024, driven by non-operating items like changes in fair value of warrants, obscuring underlying burn.
The net income figures are heavily influenced by non-operating items, such as the $98.5 million gain in Q2 2024 likely from a change in fair value of derivative liabilities, and the $121.3 million loss in Q1 2024 possibly from impairment charges. These items mask the true operating burn, which is consistently around $20 million per quarter. Investors should adjust for these non-cash items to assess the company's cash consumption and the sustainability of its financing.
R&D Dominates Cost Structure
R&D expenses have grown from $8.2 million in Q4 2024 to $23.4 million in Q2 2026, representing over 70% of total operating costs, reflecting the capital-intensive nature of clinical development.
The cost structure is overwhelmingly dominated by R&D, which is typical for a clinical-stage biotech. The increase in R&D spending aligns with the advancement of AVTX-002 into Phase 3 and the addition of new pipeline assets like AVTX-010. SG&A has remained relatively stable, indicating disciplined overhead management, but the overall expense base is expanding as the company scales its clinical operations. This trend is expected to continue as the Phase 3 program progresses.
Phase 2 Success Marks Potential Turning Point
The positive Phase 2 LOTUS results for abdakibart in hidradenitis suppurativa, announced in 2026, represent a potential inflection point, de-risking the lead asset and enabling a transition to registrational trials.
The positive topline data from the Phase 2 LOTUS trial is a critical inflection point, as it validates the anti-LIGHT mechanism and provides a pathway to commercialization. Management has indicated that capital has been secured to advance into Phase 3, which suggests a reduction in near-term financing risk. However, the transition to Phase 3 will require substantial additional investment, and the company's ability to execute on a larger trial will be a key test. The lasting impact of this inflection will depend on the successful execution of the Phase 3 program and the eventual regulatory approval.
Cash Burn Threatens Going Concern
With only $15.8 million in cash and quarterly operating losses exceeding $30 million, Avalo faces a severe cash crunch that may force dilutive financing or asset sales before Phase 3 completion.
The company's cash position is critically low relative to its burn rate, which has accelerated to over $30 million per quarter in Q2 2026. Even with the recent capital raise, the runway appears limited to less than a year, assuming no additional expenses. This could force the company to issue shares at depressed prices, diluting existing shareholders, or to seek partnerships that may cede significant value. The positive Phase 2 data may attract strategic interest, but the company's weak balance sheet remains a significant overhang.