Despite maintaining gross margins consistently above 90%, the company struggles to achieve operating profitability, evidenced by an operating margin of -0.8% in 2026Q1.
| 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 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 |
|---|
| Sales/Revenue | 51M | 44.64M | 47.54M | 21.25M | 1.53M | 0 | 170K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 |
| Revenue Growth % | 64.98% | -6.09% | 123.69% | 1284.5% | - | -100% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | -100% | - | - |
| Cost of Goods Sold | 3.96M | 3.76M | 3.18M | 1.26M | 86K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -55.23K | -55.23K |
| COGS % of Revenue | - | 8.43% | 6.7% | 5.92% | 5.6% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | -8359602.34% | - |
| Gross Profit | 47.04M | 40.88M | 44.35M | 19.99M | 1.45M | 0 | 170K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 55.23K | 55.23K |
| Gross Margin % | 92.23% | 91.57% | 93.3% | 94.08% | 94.4% | - | 100% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 8359668.24% | - |
| Gross Profit Growth % | - | -7.84% | 121.85% | 1279.78% | - | -100% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | -100% | 0% | - |
| Operating Expenses | 52.67M | 47.22M | 41.88M | 33.05M | 24.19M | 17.22M | 18.05M | 13.31M | 10.41M | 6.95M | 2.87M | 1.89M | 2.88M | 1.93M | 3.62M | 3.44M | 4.6M | 2.83M | 13.89M | 14.19M | 19.06M | 18.35M | 9.42M | 6.74M | 4.04M | 2.7M | 2.7M |
| OpEx % of Revenue | - | 105.78% | 88.09% | 155.52% | 1575.7% | - | 10620.59% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 99999900% | - |
| Selling, General & Admin | 52.43M | 46.91M | 41.48M | 32.71M | 20.51M | 12.24M | 12.95M | 7.57M | 5.4M | 5.01M | 2.4M | 1.63M | 2.52M | 1.33M | 1.54M | 1.94M | 3.9M | 1.21M | 3.52M | 3.28M | 2.88M | 3.18M | 3.49M | 1.78M | 907.4K | 738.72K | 738.72K |
| SG&A % of Revenue | - | 105.08% | 87.25% | 153.91% | 1335.96% | - | 7617.65% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 99999900% | - |
| Research & Development | 205K | 250K | 307K | 56K | 3.53M | 4.98M | 5.11M | 5.74M | 5.01M | 1.94M | 472K | 256K | 357K | 597K | 2.08M | 1.49M | 708K | 2.11M | 10.37M | 10.91M | 14M | 12.44M | 3.59M | 3.55M | 3.13M | 1.91M | 1.91M |
| R&D % of Revenue | - | 0.56% | 0.65% | 0.26% | 230.03% | - | 3002.94% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 99999900% | - |
| Other Operating Expenses | 38K | 64K | 89K | 287K | 149K | 0 | 0 | 0 | 6K | -8K | -14K | 0 | 0 | -3K | -5K | 0 | 0 | 0 | 0 | 0 | 2.18M | 2.72M | 2.34M | 1.42M | 0 | 55.23K | 55.23K |
| Operating Income | -5.63M | -6.35M | 2.48M | -13.06M | -22.74M | -17.22M | -17.89M | -13.31M | -10.41M | -6.95M | -2.87M | -1.89M | -2.88M | -1.93M | -3.62M | -3.44M | -4.6M | -3.22M | -13.89M | -14.19M | -19.06M | -18.35M | -9.42M | -6.74M | -4.04M | -2.65M | -2.65M |
| Operating Margin % | -11.04% | -14.22% | 5.21% | -61.44% | -1481.3% | - | -10520.59% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | -99999900% | - |
| Operating Income Growth % | - | -355.99% | 118.98% | 42.57% | -32.02% | 3.7% | -34.36% | -27.88% | -49.75% | -142.11% | -51.9% | 34.31% | -48.99% | 46.66% | -5.29% | 25.33% | -43.16% | 76.84% | 2.14% | 25.56% | -3.91% | -94.72% | -39.69% | -66.91% | -52.56% | 0% | - |
| EBITDA | -5.53M | -6.24M | 3.28M | -12.77M | -22.59M | -17.21M | -17.48M | -13.07M | 0 | 0 | 0 | -3.12M | -3.58M | -1.93M | -3.6M | -3.4M | -1.35M | -2.6M | -13.72M | -14M | -16.64M | -15.29M | -6.9M | -5.14M | -3.92M | -2.59M | -2.59M |
| EBITDA Margin % | -10.84% | -13.98% | 6.9% | -60.09% | -1471.6% | - | -10284.12% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | -99999900% | - |
| EBITDA Growth % | 53.69% | -290.39% | 125.68% | 43.46% | -31.28% | 1.58% | -33.74% | - | - | - | 100% | 12.81% | -85.09% | 46.33% | -6.04% | -150.92% | 47.98% | 81.05% | 1.97% | 15.85% | -8.79% | -121.5% | -34.34% | -31.19% | -51.03% | 0% | - |
| D&A (Non-Cash Add-back) | 103K | 103K | 800K | 287K | 149K | 16K | 402K | 0 | 10.41M | 6.95M | 2.87M | -1.23M | -699K | -1K | 20K | 43K | 3.25M | 615K | 164K | 192K | 2.43M | 3.06M | 2.52M | 1.61M | 123.76K | 55.23K | 55.23K |
| EBIT | -6.78M | -7.55M | 4M | -12.65M | -22.74M | -17.22M | -18.1M | -13.07M | -9.38M | -7.3M | -2.76M | -606.94K | -2.07M | 1.79M | -5.18M | 4.55M | -8.11M | -3.28M | -11.76M | -14.53M | -20.11M | -22.33M | -17.78M | 0 | 0 | 0 | -2.65M |
| Net Interest Income | -625.18K | -1.29M | -2.48M | -2.95M | -783K | -72K | 91.59K | 322.32K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 350K | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 892.82K | 787K | 1.59M | 441K | 195K | 54K | 91.59K | 322.32K | 0 | 0 | 0 | 3K | 2K | 2K | 25K | 43K | 32K | 47K | 286K | 833K | 0 | 361K | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.52M | 2.08M | 4.07M | 3.39M | 978K | 126K | 0 | 0 | 0 | 0 | 0 | 0 | 2K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3K | 11K | -444K | 0 | 0 | 0 | 0 |
| Other Income/Expense | -2.64M | -3.29M | -2.55M | -2.99M | -976K | -123K | -224K | 239.44K | 521K | -95K | 82K | 1.28M | 701K | 3.78M | -1.54M | 8.12M | -3.51M | 204K | 0 | 905.96K | -1.54M | -3.99M | -227K | 79.44K | 321.36K | 194.17K | 2.65M |
| Pretax Income | -8.27M | -9.63M | -71K | -16.05M | -23.71M | -17.35M | -18.11M | -13.07M | -9.89M | -7.05M | -2.79M | -659K | -2.18M | 1.84M | -5.16M | 4.68M | -7.82M | -3.01M | -13.6M | -13.36M | -20.64M | -21.54M | -9.59M | -6.67M | -3.72M | -2.45M | 0 |
| Pretax Margin % | -16.22% | -21.58% | -0.15% | -75.5% | -1544.89% | - | -10652.35% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | -99999900% | - |
| Income Tax | 106K | 106K | 365K | 0 | 0 | 0 | 0 | 0 | -348K | -47K | -8K | -3K | -2K | -2K | 25K | -43K | 7.82M | 3.01M | 13.6M | 13.36M | -1.53M | -2.29M | -854.68K | -518.2K | 0 | 0 | 0 |
| Effective Tax Rate % | -1.28% | -1.1% | -514.08% | 0% | 0% | 0% | 0% | 0% | 3.52% | 0.67% | 0.29% | 0.46% | 0.09% | -0.11% | -0.48% | -0.92% | -100% | -100% | -100% | -100% | 7.44% | 10.63% | 8.91% | 7.77% | 0% | 0% | - |
| Net Income | -8.38M | -9.74M | -436K | -16.05M | -23.71M | -17.35M | -18.11M | -13.07M | -9.89M | -7.05M | -2.79M | -659K | -2.18M | 1.84M | -5.16M | 4.68M | -7.82M | -3.01M | -13.6M | -13.36M | -19.1M | -19.25M | -8.74M | -6.15M | -3.72M | -2.45M | -2.45M |
| Net Margin % | -16.42% | -21.82% | -0.92% | -75.5% | -1544.89% | - | -10652.35% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | -99999900% | - |
| Net Income Growth % | 41.99% | -2134.17% | 97.28% | 32.34% | -36.71% | 4.21% | -38.53% | -32.2% | -40.33% | -152.64% | -323.22% | 69.72% | -217.94% | 135.74% | -210.2% | 159.89% | -159.73% | 77.85% | -1.82% | 30.08% | 0.74% | -120.27% | -42.13% | -65.26% | -51.53% | 0% | - |
| Net Income (Continuing) | -8.38M | -9.74M | -436K | -16.05M | -23.71M | -17.35M | -18.11M | -13.07M | -9.38M | -7.3M | -2.76M | -606.95K | -2.07M | 1.79M | -5.18M | 4.55M | -8.11M | -3.28M | -11.76M | -14.53M | -18.62M | -19.96M | -16.83M | -6.15M | -3.72M | -2.45M | -2.45M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.24 | -0.36 | -0.02 | -0.60 | -0.95 | -0.67 | -0.76 | -0.63 | -0.52 | -0.47 | -0.22 | -0.06 | -0.22 | 0.17 | -0.62 | 0.58 | -1.11 | -0.98 | -4.43 | -4.78 | -16.72 | -12.99 | -15.04 | -19.85 | -3.86 | -4.04 | -2.98 |
| EPS Growth % | 39.69% | -2150% | 97.33% | 36.84% | -41.79% | 11.84% | -20.63% | -21.15% | -10.64% | -113.64% | -261.25% | 72.32% | -229.41% | 127.42% | -206.9% | 152.25% | -13.27% | 77.88% | 7.32% | 71.41% | -28.71% | 13.63% | 24.23% | -414.25% | 4.46% | -35.57% | - |
| EPS (Basic) | - | -0.36 | -0.02 | -0.60 | -0.95 | -0.67 | -0.76 | -0.63 | -0.52 | -0.47 | -0.22 | -0.06 | -0.22 | 0.19 | -0.63 | 0.59 | -1.11 | -0.98 | -4.43 | -4.78 | -16.72 | -13.20 | -15.04 | -19.85 | -19.32 | -3.13 | -2.98 |
| Diluted Shares Outstanding | 35.55M | 28.58M | 27.29M | 26.57M | 26.27M | 26.01M | 23.7M | 19.9M | 19.02M | 15.01M | 12.77M | 10.83M | 9.87M | 10.57M | 8.39M | 8.02M | 7.08M | 3.07M | 3.07M | 2.79M | 1.48M | 1.48M | 580.75K | 309.64K | 962.54K | 607.09K | 536.64K |
| Basic Shares Outstanding | 34.34M | 28.58M | 27.29M | 26.57M | 26.27M | 26.01M | 23.7M | 19.9M | 18.94M | 14.99M | 12.68M | 10.83M | 9.87M | 9.72M | 8.2M | 7.99M | 7.08M | 3.07M | 3.07M | 2.79M | 1.46M | 1.46M | 580.75K | 309.64K | 192.51K | 783.08K | 536.64K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Limited liquidity and dilution
As reported in recent financial filings, Fennec's revenue trajectory remains highly inconsistent, with quarterly growth rates fluctuating wildly from a 65.5% decline in 2025Q1 to a 78.7% increase in 2025Q3, suggesting that the commercial launch of PEDMARK has yet to achieve a predictable, sustainable adoption curve.
The erratic revenue performance indicates that the company is likely struggling with lumpy procurement cycles and potential inventory stocking issues at the distributor level. Investors should monitor whether the recent negative year-over-year growth trend signals a plateau in the addressable pediatric oncology market or merely temporary timing mismatches in hospital purchasing.
Based on the company's reported figures, Fennec maintains a robust gross margin profile, consistently exceeding 90% in most periods, yet this structural advantage is entirely offset by the heavy commercial infrastructure costs required to support the niche PEDMARK product within the pediatric oncology space.
The disconnect between high gross margins and persistent operating losses suggests that the company's current revenue scale is insufficient to cover its fixed commercial overhead. Unless management can significantly expand the patient population or optimize the sales force footprint, the high gross margin may remain a theoretical benefit rather than a path to sustainable profitability.
According to historical income statements, Fennec has failed to demonstrate meaningful operating leverage, as SG&A expenses frequently track closely with or exceed gross profit, preventing the company from scaling its bottom line despite the high-margin nature of its sole commercial asset.
The inability to decouple SG&A growth from revenue suggests that the company is locked into a high-cost commercial model that does not benefit from economies of scale. This lack of operating leverage implies that any future revenue growth will likely require proportional increases in spending, keeping the company in a perpetual state of operational strain.
Analysis of the income statement reveals that stock-based compensation, which reached $2.5 million in 2025Q4, frequently exacerbates net losses and complicates the assessment of core operational performance, effectively masking the true cash-burn rate of the organization during periods of stagnant revenue growth.
The reliance on equity-based incentives in a loss-making environment suggests a potential misalignment between management compensation and shareholder value creation. Investors should adjust reported net income figures to account for these non-cash charges to better understand the underlying cash requirements of the business.
Based on the reported cash position of approximately $36.7 million and persistent quarterly operating losses, the company appears to face a significant liquidity risk that may necessitate further dilutive financing, challenging the narrative that the current commercial model is sufficient to reach self-sustaining operations.
Short-term observers might argue that the company's regulatory moat provides long-term value, but the financial data suggests that the runway is rapidly narrowing. The market may be underestimating the risk that the company will be forced to raise capital at unfavorable terms, which would significantly impair the value for existing equity holders.
Quick answers to the most common questions about buying FENC stock.
For fiscal year 2025, Fennec Pharmaceuticals Inc. (FENC) reported total revenue of $44.6M.
Fennec Pharmaceuticals Inc. (FENC) reported a net loss of $9.7M for the fiscal year ending 2025.
Fennec Pharmaceuticals Inc. (FENC) reported an operating income of $-6.3M, resulting in an operating profit margin of -14.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Fennec Pharmaceuticals Inc. (FENC) generated $40.9M in gross profit for the year, representing a gross profit margin of 91.6%. This demonstrates the company's core pricing power and production efficiency.