Breaking Down Genfit S.A. (GNFT) Financial Health: Key Insights for Investors

You're looking at Genfit S.A. (GNFT) and seeing a biotech company in a pivotal, high-risk transition, so you need to cut through the noise and see the true financial picture. The good news is the balance sheet is solid, with cash and cash equivalents hitting €119.0 million as of September 30, 2025, which extends their cash runway beyond the end of 2028. But that runway is now critical because the first-half of 2025 saw a net loss of €10.0 million, a sharp reversal from the previous year, and the company recently discontinued its high-profile VS-01 program in Acute-on-Chronic Liver Failure (ACLF). This shift means their financial health now hinges almost entirely on the Ipsen partnership, which delivered a crucial €26.5 million milestone payment in July 2025, and on two critical clinical data readouts-GNS561 in Cholangiocarcinoma (CCA) and G1090N in ACLF-expected by year-end. It's a classic biotech story: a defintely strong cash position buys time, but the clock is ticking for the pipeline to deliver.

Revenue Analysis

You need a clear picture of where Genfit S.A. (GNFT) gets its money, and the short answer is: almost entirely from its partnership with Ipsen. For the first nine months of 2025, Genfit S.A.'s total revenue was €39.2 million, and virtually all of it came from the Licensing and Collaboration Agreement tied to the drug Iqirvo® (elafibranor), a treatment for Primary Biliary Cholangitis (PBC).

Primary Revenue Sources: The Ipsen Partnership

Genfit S.A. is not a traditional product-sales company; it's a biopharmaceutical company focused on research and development (R&D), so its revenue structure is based on milestones and royalties from its key asset, Iqirvo®. This structure means revenue can be lumpy, heavily dependent on regulatory and commercial achievements. The business is managed as a single segment-R&D-so there are no separate product lines to analyze.

The €39.2 million in revenue for the first nine months of 2025 breaks down into two main components, which is crucial for forecasting:

• Milestone Revenue: A one-time payment of €26.5 million following the pricing and reimbursement approval of Iqirvo® in three major European markets (UK, Germany, and Italy).
• Royalty Revenue: €12.6 million from worldwide sales (excluding Greater China) of Iqirvo®. This is the true recurring revenue stream.

Here's the quick math on the contribution for the first nine months of 2025. Milestone payments accounted for about 67.6% of the revenue, while royalties made up the remaining 32.4%. You can see how one-off payments still dominate the top line. Still, the growth in royalty revenue is what we watch closely for long-term health. Before you dive deeper into the pipeline, it's worth reviewing the Mission Statement, Vision, & Core Values of Genfit S.A. (GNFT).

Year-over-Year Revenue Shift and Trends

The year-over-year comparison shows a significant decline, but you need to understand the context. For the first nine months of 2025, revenue of €39.2 million was down from €59.7 million in the same period of 2024. This is a decline of about 34.3%. Honsetly, that looks bad on paper, but it's a direct result of a past, larger milestone payment.

In 2024, Genfit S.A. received a substantial €48.7 million milestone payment upon the first sale of Iqirvo® in the U.S. Since that was a one-time event, the 2025 revenue baseline is much lower, even with the €26.5 million European milestone payment. The revenue composition has changed from being heavily weighted towards large, non-recurring milestones to a mix of smaller milestones and an increasing, but still relatively modest, royalty stream.

The shift is evident when looking at the half-year data:

What this table shows is a massive, over 4,300% increase in royalty revenue, from €154 thousand to €6.871 million in the first half of 2025. That's the real story: the commercial launch of Iqirvo® is finally starting to generate meaningful recurring revenue, even as the overall top line drops due to the absence of the 2024 U.S. milestone. Your clear action here is to monitor the royalty line-that's the defintely sign of commercial success for the partnership.

Profitability Metrics

You need a clear picture of Genfit S.A. (GNFT)'s financial engine, and the 2025 numbers show a significant shift from the brief profitability seen in the prior year. The direct takeaway is that while the company's revenue structure ensures an excellent gross margin, its aggressive Research & Development (R&D) spending and financial costs have pushed it back into a net loss position in the first half of the year.

The core of Genfit S.A.'s profitability story lies in its transition from a pure R&D company to one with commercial revenue. Since the revenue is primarily derived from royalties and milestone payments from its licensing agreement with Ipsen for Iqirvo® (elafibranor), the company's Cost of Goods Sold (COGS) is nearly zero. This means the Gross Profit Margin is effectively close to 100%, which is defintely a strong structural advantage.

Here's the quick math on the near-term performance, based on the first half (H1) of the 2025 fiscal year:

• Total Revenues and Other Income (H1 2025): €35.7 million.
• Operating Expenses (H1 2025): €35.6 million.
• Operating Profit (H1 2025): €0.1 million.
• Operating Margin (H1 2025): 0.28%.

What this estimate hides is the volatility. The €35.7 million in H1 2025 revenue included a substantial €26.5 million milestone payment received in July 2025, following pricing and reimbursement approvals for Iqirvo® in three major European markets. This type of one-off payment can skew the margins, but it's crucial for cash flow.

Trend in Profitability and Operational Efficiency

The trend shows a sharp contraction in profitability from 2024. In the full fiscal year 2024, Genfit S.A. achieved a notable €3.3 million in operating income and a €1.5 million net profit on €67.0 million in revenue, largely due to a major €48.7 million milestone payment. That was a significant turnaround from the prior year's losses. However, the first half of 2025 shows the challenge of sustaining that profit without continuous, large milestone payments.

The operational efficiency analysis points directly to R&D. Operating expenses increased to €35.6 million in H1 2025, up from €30.0 million in H1 2024, with R&D expenses alone rising to €25.1 million from €19.0 million. This is the cost of advancing their pipeline in Acute-on-Chronic Liver Failure (ACLF). The near-zero operating margin of 0.28% tells you that every dollar of revenue is being immediately cycled back into the pipeline, which is typical for a growth-focused biopharma, but it's a tight wire act.

The Net Profit Margin for H1 2025 is a loss of -28.3% (a €-10.1 million net loss on €35.7 million revenue). This is primarily due to a substantial financial loss of €10.2 million in H1 2025, a massive jump from the €0.9 million financial loss in the same period in 2024. This financial loss is likely tied to interest expense from the royalty financing agreement completed in early 2025, a trade-off for extending their cash runway beyond 2028.

Industry Comparison: A Biotech Reality Check

When you stack Genfit S.A.'s profitability against the broader US Biotechnology industry, you see a clear distinction between commercial leaders and development-stage companies. While the largest, most established life sciences companies have historically averaged operating margins around 25.7%, Genfit S.A.'s 0.28% operating margin for H1 2025 is a stark contrast [cite: 4, search 2].

The reality is that many development-stage biotechs operate at a net loss for years. Genfit S.A.'s brief net profit in 2024 was an anomaly driven by milestone revenue. The current negative net margin of -28.3% is a return to the norm for a company heavily investing in R&D, but it's still a headwind. The market is expecting margin expansions in 2025, and Genfit S.A. is currently moving the other way [cite: 2, search 2].

Next Step: Review the full analysis of the company's financial health, including its balance sheet and cash flow, in our full post: Breaking Down Genfit S.A. (GNFT) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You're looking at Genfit S.A. (GNFT)'s balance sheet to understand how they fund their research and development, and honestly, the biggest story in 2025 isn't the ratio itself, but the massive, strategic shift in their debt structure. They've substantially cleaned up their convertible debt while securing a large, non-dilutive capital injection to extend their cash runway. That's a smart move for a biopharma company.

The company's capital structure underwent a significant transformation in the first half of 2025, moving away from a traditional convertible bond (OCEANE) structure toward a royalty financing model. This shift is defintely a key point for any investor. The old debt is nearly gone, replaced by a liability tied to future product sales.

The Royalty Financing and Debt Extinguishment

Genfit S.A. (GNFT) executed a major de-risking and funding transaction in early 2025, which fundamentally changed its financing mix. This was a dual action that reduced the risk of shareholder dilution while injecting substantial capital.

• Debt Repurchase: Genfit S.A. repurchased 1,882,891 of its 2025 OCEANEs (convertible bonds) for a total of €61.7 million in Q1 2025, effectively extinguishing 99% of this convertible debt.
• Remaining Debt: The nominal amount of the remaining convertible debt was reduced to a negligible €586 thousand as of May 2025.
• New Funding: A non-dilutive Royalty Financing agreement with HCRx provided an upfront payment of €130.0 million in the first quarter of 2025, with eligibility for up to an additional €55 million based on sales milestones for Iqirvo® (elafibranor).

Here's the quick math: they traded a convertible debt that could have diluted shareholders for a new liability that is repaid through future royalty streams. The new financing is a debt-like obligation, but one that is directly serviced by product revenue, not by issuing new equity or relying on a general corporate repayment schedule. Total debt issuance costs of €4.0 million were recognized in the first half of 2025 related to this new Royalty Financing, which shows the cost of securing this capital.

Debt-to-Equity and Industry Context

The Debt-to-Equity (D/E) ratio measures how much a company is financing its operations with debt versus shareholder funding (equity). While the precise D/E ratio for Genfit S.A. as of June 30, 2025, is complex due to the accounting for the Royalty Financing, the structure is clearly designed to minimize reliance on pure equity funding for R&D. For context, the average D/E ratio for the Biotechnology industry is typically low, around 0.17, because early-stage companies often rely heavily on equity raises and grants due to the high risk and long timelines of drug development.

A biopharma company like Genfit S.A. (GNFT) must balance the need for capital with the risk of diluting its existing shareholders. This is why the non-dilutive nature of the €130.0 million upfront royalty financing is so important. It extends their cash runway beyond the end of 2028, enabling them to focus on their pipeline assets like G1090N in Acute-on-Chronic Liver Failure (ACLF) and GNS561 in cholangiocarcinoma.

To be fair, the Royalty Financing creates a significant long-term liability on the balance sheet, but it's a liability that is tied to the success of an approved product, Iqirvo® (elafibranor), which is a much cleaner financial risk than general corporate debt. This strategy lets them fund high-risk, high-reward R&D without constantly tapping the equity market. You can review the strategic rationale for their pipeline focus in their Mission Statement, Vision, & Core Values of Genfit S.A. (GNFT).

The key action for you is to watch the €55 million in additional installments under the Royalty Financing-those payments are contingent on Ipsen meeting near-term sales targets for Iqirvo®, which is a direct measure of commercial success translating into more capital for Genfit S.A.

Liquidity and Solvency

Genfit S.A. (GNFT) shows a strong liquidity position as of the third quarter of 2025, primarily driven by a significant non-dilutive financing deal. The company's cash runway is now projected to extend comfortably beyond the end of 2028, which is a critical buffer for a biopharma firm focused on R&D.

Assessing Genfit S.A. (GNFT)'s Liquidity Ratios

You can look at the Current Ratio and the Quick Ratio (acid-test ratio) to see how easily Genfit S.A. can cover its short-term debts. The trailing twelve months (TTM) Current Ratio as of November 2025 stands at a robust 3.74.

Here's the quick math: a ratio of 3.74 means the company has €3.74 in current assets for every €1.00 in current liabilities. For a biopharmaceutical company with minimal inventory, the Quick Ratio-which strips out inventory-is defintely going to be very close to that 3.74 figure. This is an excellent signal; anything above 1.0 is generally considered safe, and this level provides a substantial cushion.

Working Capital and Cash Flow Trends

The working capital trend for Genfit S.A. in 2025 has been strongly positive, moving from a cash and cash equivalents balance of €81.8 million at the close of 2024 to €119.0 million as of September 30, 2025.

This increase is not due to organic profitability yet, but rather strategic financing, which is a common and necessary move for development-stage biotechs. The key drivers for this trend are clearly visible in the cash flow statement overview:

• Operating Cash Flow (OCF) Trends: While the company is still in a cash-utilization phase due to research and development (R&D) efforts, the OCF is being significantly offset by revenue. For the first nine months of 2025, total revenue was €39.2 million. This includes €12.6 million in royalties from Ipsen's sales of Iqirvo® (elafibranor) and a €26.5 million milestone payment received in July 2025. Operating expenses for the first half of 2025 were around €35.6 million.
• Investing Cash Flow (ICF) Trends: Capital expenditure remains low, as is typical for a company whose main investment is R&D, which is largely accounted for in OCF.
• Financing Cash Flow (FCF) Trends: This is where the major action is. The FCF was overwhelmingly positive in Q1 2025 due to the non-dilutive Royalty Financing agreement with HCRx, which provided an upfront payment of €130.0 million. This inflow was partially offset by a significant outflow of €61.7 million used to repurchase 2025 OCEANEs (convertible bonds) in the same quarter, which proactively manages future debt obligations.

Liquidity Strengths and Near-Term Actions

The primary strength is the massive extension of the company's financial runway. The Royalty Financing deal, plus the expected future milestone payments from Ipsen, has pushed the cash runway out beyond the end of 2028. This gives Genfit S.A. a long period of financial certainty to focus on its pipeline, especially the Acute-on-Chronic Liver Failure (ACLF) programs like G1090N. This long runway essentially removes near-term liquidity concerns from the investment thesis.

What this estimate hides, though, is the dependency on achieving future milestones to unlock the remaining €55 million in additional installments under the royalty financing agreement. Still, the current cash balance of €119.0 million is a huge strength.

If you are looking for a deeper dive into the company's strategic positioning, check out our full report: Breaking Down Genfit S.A. (GNFT) Financial Health: Key Insights for Investors.

Next Step: Portfolio Manager: Model the impact of a one-year delay in the next Ipsen milestone payment to stress-test the beyond 2028 runway by next Tuesday.

Valuation Analysis

You want to know if Genfit S.A. (GNFT) is overvalued or undervalued, and the short answer is that traditional metrics suggest it's an expensive bet on future growth, which is typical for a clinical-stage biopharma company. You can't just look at today's numbers; you have to look at the pipeline's potential.

As of November 2025, Genfit S.A. (GNFT) trades around $4.26 per share. Over the last 12 months, the stock has actually decreased by 5.44%, which might feel like a headwind, but the year-to-date return is up, showing recent volatility. The market is constantly adjusting to clinical trial news and partnership milestones, like the €26.5 million milestone payment received in July 2025 from Ipsen for Iqirvo® (elafibranor) pricing and reimbursement approvals in three major European markets.

Here's the quick math on the key valuation ratios:

• Price-to-Earnings (P/E) Ratio: The forward P/E ratio for the 2025 fiscal year is projected at -8.45x. This negative number is the most important signal: the company is currently losing money, which is expected for a biotech focused on research and development (R&D). You are buying a company's potential, not its present profit.
• Price-to-Book (P/B) Ratio: The P/B ratio is approximately 3.36 based on the second quarter 2025 financial report. This means the stock is trading at more than three times its net tangible asset value. For a biotech, this premium reflects the market assigning significant value to its intellectual property and drug pipeline, like the programs targeting Acute-on-Chronic Liver Failure (ACLF) and cholangiocarcinoma (CCA).
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio is not a meaningful metric right now. Since the company is incurring substantial R&D expenses-like the 1H 2025 R&D spend of €25.1 million-its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is negative. You simply cannot use this for comparison until they reach consistent profitability.

What this estimate hides is the high-risk, high-reward nature of their pipeline. The company does not pay a dividend, with both the dividend yield and payout ratio standing at 0.00% as of November 2025, meaning all available cash is reinvested into R&D to drive future product approvals. You can read more about their strategic focus here: Mission Statement, Vision, & Core Values of Genfit S.A. (GNFT).

When we look at the analyst consensus, there is a clear split, which shows the inherent risk. Two analysts have a 'Strong Buy' rating with an average 12-month price target of $10.00, suggesting an upside of over 100% from the current price. However, another set of two analysts have a 'Hold' consensus with an average target of $7.00. The difference between the two views is defintely based on the perceived probability of success for their clinical assets, particularly the programs in ACLF and CCA, which have key data readouts expected by the end of 2025.

Risk Factors

You need to see the full risk picture for Genfit S.A. (GNFT), and honestly, it boils down to the binary nature of drug development. The company is strategically focused on Acute-on-Chronic Liver Failure (ACLF)-a high-risk, high-reward area-which means success or failure hinges on a few key clinical data readouts. This is a speculative investment, defintely not for the faint of heart.

The core internal risk is the concentration of your pipeline. Genfit S.A. is now heavily reliant on its ACLF franchise, a move solidified after the discontinuation of the VS-01 program in September 2025 due to a Serious Adverse Event (SAE) reported during a clinical trial. This forced a strategic reprioritization, making G1090N the new lead asset in ACLF, but it also underscores the inherent volatility of clinical-stage biopharma.

Financially, the company is still operating at a loss, as indicated by its 'At Loss' P/E Ratio as of November 22, 2025. While the cash position is strong, the revenue stream is highly dependent on a single, out-licensed product, Iqirvo (elafibranor), which is marketed by Ipsen. Any hiccup in Ipsen's commercialization or competition from other drugs, like Gilead's Livdelzi, could immediately impact Genfit S.A.'s royalty income.

• Clinical trial failure means a massive loss of capital.
• Regulatory hurdles can delay or stop commercialization.
• Market competition limits peak sales potential.

Operational and External Pressures

The biggest external risk is the regulatory and market environment for rare liver diseases. The company's financial health relies on milestone payments tied to regulatory approvals and pricing/reimbursement decisions, like the €26.5 million milestone payment received in July 2025 following Iqirvo's approval in three major European markets. Plus, the company completed the voluntary delisting of its American Depositary Shares (ADSs) from the Nasdaq Global Select Market on November 20, 2025, which can reduce liquidity and visibility for US investors.

Here's the quick math on their recent financial position, which shows the heavy reliance on non-recurring milestones:

What this estimate hides is that the €119.0 million cash position, while strong, is projected to last beyond the end of 2028 only if they receive future commercial milestone revenues and draw down all additional installments under the Royalty Financing agreement. That's a big 'if' tied to future, uncertain success.

Mitigation Strategies and Next Steps

Genfit S.A. is actively mitigating its R&D risk by diversifying its approach to ACLF. They have six programs underway, including G1090N, SRT-015, and CLM-022, with two clinical data readouts expected by the end of 2025. This multi-asset strategy is their way of saying, 'We know one shot is too risky, so we're taking six.' Discontinuing the VS-01 program in ACLF, while a setback, was a decisive move to reduce operating expenses and extend the cash runway.

The company's focus is now on delivering safety and early efficacy data for G1090N in healthy volunteers by the end of 2025, which is the immediate, critical next step. You should monitor these data releases closely, as they will be the primary catalyst for the stock in the near term. For a deeper dive into the company's financial structure, you can read our full analysis at Breaking Down Genfit S.A. (GNFT) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking at Genfit S.A. (GNFT) and wondering where the real growth comes from now that the initial splash of their lead asset is in the rearview mirror. The takeaway is simple: the company has strategically de-risked its balance sheet and is hyper-focused on its pipeline for Acute-on-Chronic Liver Failure (ACLF), a critical area of unmet medical need. That's where the future value lies.

The financial foundation is defintely stronger. Genfit S.A. secured a non-dilutive capped royalty financing agreement with HealthCare Royalty (HCRx) in early 2025, providing up to €185 million in capital, with €130 million upfront. This, combined with the strategic decision to discontinue the VS-01 program in September 2025, has extended their cash runway beyond the end of 2028. That's a huge buffer for a biotech, buying time for the pipeline to mature. Here's the quick math: cash and cash equivalents stood at €107.5 million as of June 30, 2025, before factoring in a major milestone payment.

The near-term revenue story is all about their partnership with Ipsen for Iqirvo® (elafibranor) in Primary Biliary Cholangitis (PBC). Ipsen reported accelerated sales growth for Iqirvo® in the first half of 2025, and Genfit S.A. received a significant milestone payment of €26.5 million in July 2025 after the drug secured pricing and reimbursement in three major European markets (including Italy in May 2025). Plus, a key competitor's withdrawal from the U.S. market in September 2025 for PBC is a clear, immediate tailwind for Iqirvo® royalty revenue, which totaled €12.6 million in the first nine months of 2025. This is a solid, recurring revenue stream.

The real opportunity, though, is in product innovations, particularly the refocused pipeline. The company is now concentrating on other therapeutic assets for ACLF, a life-threatening condition. They have two major data readouts expected by the end of 2025, which are pivotal:

• G1090N in ACLF: Expect safety data and early markers of efficacy from the Phase 1 trial in healthy volunteers.
• GNS561 in Cholangiocarcinoma (CCA): Phase 1b data is due, which will inform the dose selection for a Phase 2 trial.

This focus on rare and life-threatening liver diseases is Genfit S.A.'s core competitive advantage. They have deep, specialized expertise in this niche. They also hold a diagnostic franchise, including the NIS4® technology, which is licensed to Labcorp for a next-generation MASH (Metabolic dysfunction-associated steatohepatitis) diagnostic test in the U.S. and Canada. That's a smart way to diversify. If you want a deeper dive into who is betting on this strategy, you should check out Exploring Genfit S.A. (GNFT) Investor Profile: Who's Buying and Why?

What this estimate hides is the inherent risk in drug development; the discontinuation of VS-01 shows that. Still, the extended cash runway and multiple shots on goal in the ACLF pipeline, combined with the stable royalty income from Ipsen, position Genfit S.A. for potential significant growth. The immediate action is to monitor those late-2025 data readouts for G1090N and GNS561. Those results will dictate the next 12 months of valuation.