Breaking Down Compass Therapeutics, Inc. (CMPX) Financial Health: Key Insights for Investors

You're looking at Compass Therapeutics, Inc. (CMPX) and wondering if their clinical progress can outrun the burn rate, a classic biotech investor dilemma. Honestly, the financials from the nine months ended September 30, 2025, show the company is defintely pushing the gas, which is exactly what you want to see in a clinical-stage firm, but it comes with a cost. The net loss for the first nine months of 2025 hit $50.8 million, driven largely by a 44% increase in Research and Development (R&D) expenses to $42.3 million as they move candidates like tovecimig and CTX-10726 forward. The good news is their cash position is strong: they reported $220 million in cash and marketable securities as of September 30, 2025, which management anticipates will fund operations through 2028. That runway buys them time to deliver on key milestones, but with the consensus full-year 2025 loss per share estimated at ($0.36), you need to map the clinical catalysts-like the late Q1 2026 data readout for tovecimig-to the valuation, especially since the average analyst price target sits at a bullish $12.90. We'll break down what this all means for your investment thesis.

Revenue Analysis

You need to understand that Compass Therapeutics, Inc. (CMPX) is a clinical-stage biopharmaceutical company. This means their revenue picture is fundamentally different from a company selling a commercial product. They are not generating sales from approved drugs yet, so their current revenue is not from product volume, but from strategic agreements.

For the 2024 fiscal year, the company recorded an annual revenue of approximately $850,000.00. This income stems almost entirely from their 'biotechnology startup segment,' which is industry jargon for collaboration agreements, research grants, and licensing fees-money paid to fund the development of their pipeline, not from drug sales. The fact that their gross margin is reported at a clean 100% tells you everything you need to know: there is no Cost of Goods Sold (COGS) because they aren't manufacturing and selling a physical product yet.

Here's the quick math on the near-term opportunity: analysts are forecasting a huge jump in revenue for 2025, projecting a year-over-year growth rate of around 72.4%. This is not a sales forecast; it's a bet on the company securing more significant upfront or milestone payments from new or existing partners.

The core of Compass Therapeutics, Inc.'s financial strategy is pipeline advancement, not current sales.

• Primary Source: Collaboration/Grant Revenue (Non-product sales).
• 2024 Annual Revenue: $850,000.00.
• Forecasted 2025 Growth: 72.4% year-over-year.
• Segment Contribution: Essentially 100% from development activities.

What this estimate hides is the high-risk, high-reward nature of this business model. That 72.4% growth is defintely not guaranteed; it hinges on hitting key clinical milestones for candidates like tovecimig, CTX-8371, and CTX-10726, which then trigger those lucrative payments. The financial health is tied to the clinical progress.

A significant change in their financial profile is the aggressive spending to fuel this growth. Research and Development (R&D) expenses jumped by 49% in Q3 2025 compared to the previous year, driven by manufacturing and IND-enabling costs for new candidates. This spending is the investment that will hopefully convert to massive future product revenue, but for now, it widens the net loss. For a deeper look at the long-term vision driving this spending, check out their Mission Statement, Vision, & Core Values of Compass Therapeutics, Inc. (CMPX).

To be fair, you should track their revenue not just for the amount, but for the source. Any shift to a new, large collaboration payment would be a far more meaningful indicator than a small increase in grant funding.

Profitability Metrics

You're looking at Compass Therapeutics, Inc. (CMPX) and trying to figure out if it's a good investment. The direct takeaway on profitability is simple: there is none. As a clinical-stage biopharmaceutical company, Compass Therapeutics, Inc. is pre-commercial, meaning its financial health is measured by its cash runway and burn rate, not by traditional profit margins.

For the 2025 fiscal year, the consensus revenue forecast from Wall Street analysts is $0.00. This means the company's Gross Profit is also $0.00, resulting in a 0% Gross Profit Margin. This is a critical distinction from a mature pharmaceutical company, where Gross Profit Margins typically range from 60% to 80%.

The real metric to track here is the Net Loss, which is a proxy for the cash burn needed to fund their drug pipeline. For the nine months ended September 30, 2025, the Net Loss was $50.8 million. Analysts project the full-year 2025 Net Loss to be around -$98.09 million. That's the cost of doing business in clinical oncology right now.

Margins and Industry Contrast

Because there is no revenue, Compass Therapeutics, Inc.'s profitability margins are not only negative but also not meaningful in the traditional sense. Both the Operating Profit Margin and Net Profit Margin are deeply negative, reflecting the high costs of research and development (R&D) without any product sales to offset them.

• Gross Profit Margin: 0% (No revenue)
• Operating Profit Margin: Not calculable (Deeply negative)
• Net Profit Margin: Not calculable (Deeply negative)

To put this in perspective, the average Net Profit Margin for the broader Biotechnology industry is also negative, sitting at approximately -169.5%. So, while Compass Therapeutics, Inc. is unprofitable, it is defintely not an outlier in its sector. The entire clinical-stage biotech space is designed to operate at a loss until a drug is approved and commercialized. For a look at the capital backing this R&D, you should check out Exploring Compass Therapeutics, Inc. (CMPX) Investor Profile: Who's Buying and Why?.

Operational Efficiency and Cost Trends

Operational efficiency for a company like Compass Therapeutics, Inc. is about managing its burn rate-the speed at which it consumes cash-while advancing its clinical trials. The key trend for 2025 is the significant increase in operating expenses, which signals an acceleration in pipeline development.

Here's the quick math: The approximate Operating Loss for Q1 2025 was around $18.0 million ($13.1 million in R&D plus $4.9 million in G&A). The sharp rise in both R&D (37%) and G&A (51%) expenses year-over-year shows the company is aggressively investing in its clinical programs, particularly the Phase 2/3 COMPANION-002 study for tovecimig, which reported positive results in Q1 2025. This is a good sign for pipeline progress, but it also means the cash burn is accelerating. Your focus should be on their cash position of $220 million as of Q3 2025, which management expects to fund operations into 2028.

Debt vs. Equity Structure

The financial health of Compass Therapeutics, Inc. (CMPX) is characterized by a deliberate, equity-centric funding strategy, which is common for a clinical-stage biopharmaceutical company. You don't have to worry about debt servicing risk here; the company is essentially debt-free.

As of the third quarter of 2025, Compass Therapeutics, Inc. reported $0 in total debt-meaning both its long-term and short-term debt levels are negligible. This is a significant point of strength, especially when you look at the biotech sector, where funding needs are massive but revenue generation is often years away. They're running a clean balance sheet to maximize flexibility.

Here's the quick math on their capital structure as of late September 2025:

• Total Debt: $0
• Total Shareholder Equity: $209.6 million
• Debt-to-Equity Ratio: 0%

The company's Debt-to-Equity (D/E) ratio is 0%, which tells you they are not using any financial leverage (debt) to fund their assets. To be fair, this is a massive outlier even in their industry. The average D/E ratio for the Biotechnology industry in 2025 is around 0.17, though some broader health care segments can range up to 1.377. A 0% ratio means no interest payments are draining their cash, but it also means they aren't using the potential tax benefits of debt, which is a minor point for a pre-revenue company.

Compass Therapeutics, Inc. has defintely leaned into equity funding to fuel its growth and clinical pipeline. In August 2025, they completed an upsized, oversubscribed public offering of common stock and pre-funded warrants, which was expected to raise approximately $120 million in gross proceeds. This is how they keep their cash position strong. In fact, as of September 30, 2025, the company held $220 million in cash and marketable securities, which management projects will provide a cash runway into 2028. This strong cash position, built through equity, is the main story here.

The company's approach is clear: use equity to fund high-risk, high-reward drug development, avoiding the fixed obligations and restrictive covenants that typically come with debt. This strategy is critical for a company focused on clinical milestones, as you can read more about in their Mission Statement, Vision, & Core Values of Compass Therapeutics, Inc. (CMPX).

The financing balance is entirely skewed toward shareholder capital, which is the right move for a company prioritizing research and development (R&D) over immediate profitability. The trade-off is potential shareholder dilution, but in the biotech world, a successful drug candidate makes that dilution a distant memory. This table summarizes their capital structure:

The action for you is to monitor their cash burn rate against that $220 million war chest. If R&D expenses accelerate faster than expected, a new equity raise could come sooner than the projected 2028 runway. That's the main financial risk to track.

Liquidity and Solvency

You want to know if Compass Therapeutics, Inc. (CMPX) has the cash to keep the lights on and fund its pipeline, and the short answer is yes, they have a strong liquidity position, but it's entirely dependent on their ability to raise capital. Their near-term financial health is excellent, largely due to a significant equity raise in 2025.

A quick look at their liquidity ratios confirms this strength. The Current Ratio-which measures current assets against current liabilities-stands at a remarkable 17.82 as of the most recent quarter. This means Compass Therapeutics, Inc. has nearly $18 in liquid assets for every dollar of short-term debt. The Quick Ratio (or acid-test ratio), which excludes inventory (a negligible factor for a biotech like this), is almost identical at 17.72. Simply put, they have virtually no immediate liquidity concerns. This is defintely a key strength for a clinical-stage company.

• Current Ratio: 17.82 (Strongest indicator of short-term health).
• Quick Ratio: 17.72 (Indicates high quality of current assets).
• Cash and Marketable Securities: $220 million (As of September 30, 2025).

Analysis of Working Capital Trends

The working capital trend for Compass Therapeutics, Inc. is a classic biotech story: high cash burn offset by periodic, large equity financing. The working capital itself (Current Assets minus Current Liabilities) is very high because of the massive cash balance. However, the underlying trend is a steady depletion of cash due to research and development (R&D) expenses.

For the nine months ended September 30, 2025, the company reported a net cash used in operating activities of $35.9 million. This is the cash burn rate-the money going out the door to fund operations and clinical trials. This negative operating cash flow is the norm, but it's a trend you must monitor. The good news is that management projects their current cash and marketable securities balance of $220 million will provide a cash runway into 2028. That's a clear three-year window, which is a huge comfort for investors.

Cash Flow Statements Overview

Mapping the cash flow statement for the nine months ended September 30, 2025, shows exactly how they achieved that runway. Here's the quick math on the major components:

The $137.999 million in cash flow from financing activities is the game-changer. This figure includes the net proceeds of approximately $112.5 million from the August 2025 public stock offering. This is how Compass Therapeutics, Inc. replenished its coffers, moving its cash position from a lower amount in Q2 2025 to the current $220 million. This equity raise is the sole reason their cash runway is so long, but it also comes with shareholder dilution. If you want to dive deeper into who's buying that stock, check out Exploring Compass Therapeutics, Inc. (CMPX) Investor Profile: Who's Buying and Why?

Valuation Analysis

You want to know if Compass Therapeutics, Inc. (CMPX) is overvalued or undervalued right now. The quick answer is that traditional valuation metrics are largely non-meaningful for this clinical-stage biopharmaceutical company, but the market's enthusiasm suggests a strong belief in its pipeline, particularly its lead candidate, CTX-009.

As of November 2025, the stock is trading around the $4.89 mark. Your investment decision here won't be based on current earnings but on the net present value (NPV) of future drug approvals. It's a bet on clinical success, not today's profit.

Here's the quick math on the key valuation ratios, keeping in mind that negative figures are standard for a company focused on research and development (R&D):

• Price-to-Earnings (P/E) Ratio: The trailing twelve-month (TTM) P/E is a negative -10.87. This is because Compass Therapeutics, Inc. is not yet profitable, posting a TTM Earnings Per Share (EPS) of -$0.36. A negative P/E is typical for a biotech company that is burning cash to fund trials.
• Price-to-Book (P/B) Ratio: The TTM P/B stands at 4.09. This ratio is high, meaning the market is willing to pay over four times the company's book value. It signals that investors value the intangible assets-the drug pipeline and intellectual property-far more than the physical assets on the balance sheet.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio is also negative, sitting around -2.95 (TTM). Since Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is negative (a TTM EBITDA of -$54.87 million), the ratio is negative. It simply confirms the company is pre-commercial and incurring operating losses.

What this estimate hides is the potential for a massive re-rating upon positive Phase 3 trial data, which is the real driver for this stock.

Stock Performance and Analyst Outlook

The stock has seen significant momentum over the last year, reflecting positive clinical updates for its lead candidates. Over the 52 weeks leading up to November 2025, the stock price has ranged from a low of $1.27 to a high of $4.86, representing a roughly 130.27% increase in value. This strong upward trend shows the market is buying into the progress of their clinical pipeline.

The company does not pay a dividend; the TTM dividend payout is $0.00, and the dividend yield is 0.00%. This is expected, as all available capital is funneled back into R&D to accelerate drug development.

Wall Street analysts are overwhelmingly bullish, which is a key factor in a biotech's near-term valuation. The consensus rating is a Strong Buy or a Moderate Buy, depending on the source, based on ratings from multiple firms in late 2025.

The average 12-month price target is approximately $12.90, suggesting analysts see a potential upside of over 160% from the current price. This gap between the current price and the target is your measure of perceived undervaluation, driven by the anticipated success of their oncology programs, which you can read more about in their Mission Statement, Vision, & Core Values of Compass Therapeutics, Inc. (CMPX).

To be fair, the high price targets are contingent on successful clinical trial readouts, especially for the lead asset CTX-009, which is a defintely high-risk, high-reward proposition.

Next Step: Review the upcoming clinical trial milestones for CTX-009 and CTX-471 to gauge the timing of potential catalysts.

Risk Factors

You need to understand that even with a strong balance sheet, a clinical-stage biopharmaceutical company like Compass Therapeutics, Inc. (CMPX) is a high-stakes, event-driven investment. The biggest risk isn't a cash crunch right now, but the binary outcome of their drug pipeline.

The core challenge is the classic biotech risk: a substantial net loss driven by Research and Development (R&D) expenses, which totaled $12.8 million in Q3 2025, a 49% jump from the prior year's quarter. This is necessary spending, but it means the company is burning cash waiting for a breakthrough. Here's the quick math: the net loss for the nine months ended September 30, 2025, was $50.8 million.

• Clinical Data Failure: The most critical near-term risk.
• Regulatory Setbacks: Delays or non-approval by the FDA.
• Funding Dependency: Future capital raises are inevitable.

The financial risk is mitigated by the company's strong cash position. As of September 30, 2025, Compass Therapeutics, Inc. held $220 million in cash and marketable securities, which management projects provides a runway into 2028. This gives them a long leash, defintely.

Operationally, the focus is on their lead candidate, tovecimig, for biliary tract cancer (BTC). While it met the primary endpoint of Overall Response Rate (ORR) in the COMPANION-002 study, the market is waiting on the key secondary endpoints: Overall Survival (OS) and Progression-Free Survival (PFS).

The top-line pooled OS and PFS data are expected in late Q1 2026, triggered by an 80% pooled OS-event rate. If this data is not clinically meaningful, the entire program's value drops sharply, impacting the planned Biologics License Application (BLA) filing in the second half of 2026. That's a huge strategic risk.

Another strategic risk lies in the rest of the pipeline. The company is advancing CTX-10726, a PD-1 x VEGF-A bispecific antibody. They plan to file an Investigational New Drug (IND) application in Q4 2025. Any delay in this filing, or disappointing initial data expected in the second half of 2026, would put pressure on the stock.

The external risks are standard for oncology. Competition is fierce, even in the second-line BTC market, which currently has no approved therapeutic option for the estimated 25,000 US patients diagnosed annually. A competitor could quickly advance a similar or superior therapy.

Here's a snapshot of the key financial and operational risks:

The mitigation strategy is clear: the large cash cushion buys time to execute on the clinical readouts. Management is also exploring potential strategic collaborations, which could offset some of the R&D costs and validate the pipeline. You can read more about this in our full analysis on Breaking Down Compass Therapeutics, Inc. (CMPX) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking at a clinical-stage biopharmaceutical company, Compass Therapeutics, Inc. (CMPX), so traditional valuation metrics are less useful than pipeline milestones and cash runway. The near-term growth story here is less about revenue-analyst consensus for 2025 full-year revenue is effectively $0.00-and all about their lead drug candidate, tovecimig, and its path to market.

Honestly, the company's financial health, with a net loss widening to $50.77 million as of September 2025, is typical for a biotech firm pouring capital into research and development (R&D). Their R&D expenses alone hit $12.8 million in Q3 2025, up from $8.6 million in the same quarter last year. That spending is the real investment in future growth.

Key Growth Drivers: Tovecimig and Pipeline Innovation

The core growth driver is product innovation, specifically the advancement of their oncology pipeline. The lead candidate, tovecimig, is in a randomized trial for advanced Biliary Tract Cancer (BTC), a serious condition with limited approved options for many patients. Recent data showed a statistically significant overall response rate (ORR).

Here's the quick math on the opportunity: claims-based market research suggests roughly 25,000 patients are diagnosed with BTC annually in the United States alone. Tovecimig is aiming for this market, and the company expects to report crucial Overall Survival (OS) and Progression-Free Survival (PFS) data in the first quarter of 2026. This data is the bridge to their first Biologics License Application (BLA) filing, which they anticipate in the second half of 2026.

• CTX-10726: A tetravalent antibody that inhibits tumor angiogenesis (new blood vessel formation).
• CTX-471: A monoclonal antibody targeting CD137 for immune cell modulation.
• CTX-8371: Targets PD-1 and PD-L1, key immune checkpoints.

Future Revenue and Earnings Estimates

Since Compass Therapeutics, Inc. is pre-commercial, revenue estimates are negligible, but the loss per share (EPS) is the number to track. Analysts expect the full-year 2025 consensus EPS to be a loss of -$0.44 per share. To be fair, they recently beat estimates, reporting a Q3 2025 EPS of -$0.08, better than the consensus estimate of -$0.14. It was a good beat.

What this estimate hides is the potential for a sharp inflection point if tovecimig succeeds. The Street is betting on it, with analysts setting a wide target price range of $7.00 to $32.00, averaging $12.91.

Strategic Positioning and Competitive Edge

Compass Therapeutics, Inc.'s competitive advantage lies in its focus on proprietary, antibody-based therapeutics, particularly its work on bispecific antibodies. This approach allows their therapies to engage multiple biological pathways simultaneously, which is a big deal for complex diseases like cancer. They are targeting angiogenesis (the formation of new blood vessels), the immune system, and tumor growth evasion mechanisms.

A major strategic initiative was the upsized public offering in August 2025, which raised $120 million. This cash infusion is crucial for funding ongoing clinical development and, importantly, for initial preparations for commercial readiness. This move shows management is planning for success beyond the lab. For a deeper dive into the institutional interest, you should check out Exploring Compass Therapeutics, Inc. (CMPX) Investor Profile: Who's Buying and Why?