Breaking Down ThermoGenesis Holdings, Inc. (THMO) Financial Health: Key Insights for Investors

You're looking at ThermoGenesis Holdings, Inc. (THMO) because you see the potential in their cell therapy technology, but honestly, the financial picture demands a cold, hard look before you commit capital. As of late 2025, this is a deeply speculative play, not a stable growth stock. While one analyst forecasts a significant jump to $37 million in annual revenue for the 2025 fiscal year, the company's recent performance shows a fundamental cash problem: the Trailing Twelve Months (TTM) net loss sits at about $-15.74 million, with operating cash flow burning $-3.61 million in the most recent TTM period. This means they are consistently spending millions more than they bring in from core operations, a serious red flag for liquidity (the ability to pay short-term debts). The stock's current trading status on the OTCPK at a price near $0.000001 USD tells you exactly what the market thinks of that cash burn risk. We need to dig into whether their proprietary CAR-TXpress™ platform can defintely close that gap, or if this is a classic case of a promising biotech idea starved of the necessary capital to survive.

Revenue Analysis

You need a clear picture of where ThermoGenesis Holdings, Inc. (THMO) is making its money, and honestly, the revenue profile right now is a transition story. The core business is in automated cell processing systems, but the real financial shift is toward a higher-margin service model.

For the 2025 fiscal year, the analyst consensus revenue forecast is sitting at $37 million. Now, that's a significant jump from the last reported Trailing Twelve Months (TTM) revenue of $9.61 million as of Q1 2024. What this estimate hides is the company's historical volatility and the massive growth required to hit that target, but it maps directly to their strategic pivot.

The year-over-year revenue trend has been mixed. Looking at the last reported quarter, Q1 2024 revenue of $2.74 million showed a 6.42% increase over the same quarter in the prior year. However, the full-year 2023 revenue of $9.45 million was a decline of -9.90% from 2022, so the growth is not defintely locked in.

The primary revenue streams for ThermoGenesis Holdings, Inc. are firmly rooted in its specialized cell and gene therapy equipment and consumables.

• AXP System: Revenue comes from the sale of the automated cell processing system itself and, more importantly, the recurring sales of its proprietary disposable kits.
• BioArchive System: This is the automated cryogenic storage system for cell and gene therapies, generating revenue from device sales and associated service contracts.
• CDMO Services: The company is actively building out its Contract Development and Manufacturing Organization (CDMO) services, like the ReadyStart suites, which will be a crucial new revenue stream for the future.

To be fair, the Q2 2023 results highlighted a challenge: a decrease in AXP disposable sales to the distributor in China was only partially offset by higher domestic AXP disposable sales and BioArchive device revenue. This shows the vulnerability of relying heavily on a single region or distributor for a major product.

Here's a quick snapshot of the recent revenue segments and the forward-looking forecast:

The strategic shift toward becoming an integrated CDMO is the significant change in the revenue stream. It moves the company from primarily selling equipment to providing specialized, high-value manufacturing services, which should stabilize and diversify revenue away from volatile equipment sales. This is the key to closing the gap between the historical $9.61 million TTM and the aggressive $37 million 2025 forecast. You can dig deeper into this analysis in Breaking Down ThermoGenesis Holdings, Inc. (THMO) Financial Health: Key Insights for Investors.

Profitability Metrics

You need to know the bottom line up front: ThermoGenesis Holdings, Inc. (THMO) is not profitable, still operating at a significant net loss, but the company's near-term operational efficiency shows a notable, positive shift in its gross margin. Based on the most recent available quarterly data, the company's profitability picture is a classic biotech challenge: strong product margin but heavy operating costs.

Looking at the first quarter of 2024, which provides the freshest look at performance leading into the 2025 fiscal year, the company reported revenue of $2.74 million. Here's the quick math on the key margins:

• Gross Profit Margin: The margin was a robust 43.92%.
• Operating Profit Margin: The company posted an operating loss of -$0.56 million, translating to an operating margin of approximately -20.44%.
• Net Profit Margin: The net loss for the quarter was -$1.86 million, resulting in a net profit margin of roughly -67.88%.

That 43.92% gross margin tells you the core business-selling cell processing tools and services-is fundamentally viable on a per-product basis. That's a good sign. But the operating loss is the immediate problem.

Trends in Profitability and Operational Efficiency

The trend in profitability for ThermoGenesis Holdings, Inc. shows a significant improvement in cost management at the production level, even as the overall business remains deeply in the red. For the full fiscal year 2023, the gross profit margin was much lower, sitting around 22.63% (TTM for December 2023). The leap to 43.92% in Q1 2024 suggests a major positive change in cost of goods sold (COGS) or a favorable product mix shift toward higher-margin items, which is a key indicator of improved operational efficiency.

Still, the high operational expenses are eating up all that gross profit and more. The full-year 2023 operating margin was a staggering -93.43%, with a net margin of -172.47%. While the Q1 2024 operating margin of -20.44% is a vast improvement, it indicates that selling, general, and administrative (SG&A) costs and research and development (R&D) expenses remain too high relative to the current revenue base. The company is clearly investing heavily to launch its integrated Contract Development and Manufacturing Organization (CDMO) services, which means high near-term costs for the promise of future revenue. That's a classic growth-stage trade-off.

Comparison with Industry Averages

When you compare ThermoGenesis Holdings, Inc.'s profitability ratios to the broader Biotechnology sector, you see a mixed but expected picture for a small, pre-profit company. The average Gross Profit Margin for the Biotechnology industry is high, around 86.3%, which is far above THMO's 43.92%. This gap suggests competitive pressure or a less-premium product mix compared to larger, established players.

However, the Net Profit Margin comparison is more nuanced. The Biotechnology industry's average Net Profit Margin is a deeply negative -177.1%, reflecting the massive R&D and clinical trial costs inherent in the sector. While ThermoGenesis Holdings, Inc.'s Q1 2024 Net Margin of -67.88% is a significant loss, it is actually less negative than the industry average, which is a small silver lining. For context, the overall Medical Devices industry's median operating margin is closer to 16.8%, a target THMO is nowhere near yet. This comparison reinforces that THMO is trading on its long-term potential, not its current financial performance. You can read more about this in our full analysis: Breaking Down ThermoGenesis Holdings, Inc. (THMO) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You need to know how ThermoGenesis Holdings, Inc. (THMO) is funding its operations, and the short answer is: the capital structure is highly distressed, relying heavily on a single, troubled convertible note that has pushed equity into a deficit. The company's balance sheet, as of the first quarter of 2024, shows a critical reliance on liabilities over shareholder capital, a situation that worsened significantly in the lead-up to the 2025 fiscal year.

The company's total liabilities were $11.17 million as of March 31, 2024, with the bulk of this being short-term current liabilities at $8.30 million. The most significant component of this debt was a related-party convertible promissory note, which stood at $4.21 million in the current liabilities section. Long-term debt is negligible, but the long-term operating lease obligations were $2.72 million. Here's the quick math: total debt is high relative to the company's size, and nearly all of it is short-term, which creates an immediate liquidity risk.

The Debt-to-Equity (D/E) ratio is the clearest signal of this financial stress. For the quarter ending March 31, 2024, ThermoGenesis Holdings, Inc.'s D/E ratio was a highly precarious -3.87. A negative D/E ratio means the company has a balance sheet deficit-its liabilities exceed its assets, wiping out shareholder equity. This is a red flag. To be fair, the average D/E ratio for the broader Biotechnology industry is a much healthier 0.17 as of November 2025, which underscores just how far the company is from sector norms. They are defintely not financing growth; they are fighting for survival.

The company's balancing act between debt and equity is not a strategic choice but a desperate necessity. In July 2024, the company converted a portion of the outstanding convertible note debt into equity, a move that typically reduces debt but dilutes existing shareholders. However, this relief was short-lived. A Notice of Default was issued shortly after, declaring the remaining principal and accrued interest of approximately $3.44 million immediately due and payable. This event highlights that the company's primary debt holder has significant leverage, and the debt is secured by the shares of its subsidiary, ThermoGenesis Corp. This is a severe credit risk, and the lack of an active credit rating is superseded by this public default notice.

• Debt conversion dilutes equity but offers temporary debt reduction.
• Default notice shows extreme credit risk leading into 2025.
• Negative equity means liabilities exceed total assets.

The financing strategy is currently dictated by the need to manage this debt overhang, not by optimal capital allocation. Investors should closely monitor any further debt-for-equity swaps or new financing attempts, as these will directly impact both the company's solvency and your ownership percentage. For a deeper dive into who is holding the bag on this equity, you should read Exploring ThermoGenesis Holdings, Inc. (THMO) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need to know if ThermoGenesis Holdings, Inc. (THMO) can cover its near-term bills, and the data suggests significant strain. The company's liquidity position, based on the most recent quarterly filing (Q1 2024), shows a clear imbalance between what they own and what they owe in the next twelve months.

The core liquidity ratios are flashing red. As of the end of the first quarter of 2024, the calculated Current Ratio-which measures current assets against current liabilities-sits at approximately 0.52 ($4.35 million in Current Assets / $8.30 million in Current Liabilities). A healthy business needs this ratio to be 1.0 or higher; anything below means current liabilities exceed current assets. The Quick Ratio (or acid-test ratio), which strips out inventory, was already low at 0.321 as of December 2023, indicating a highly illiquid balance sheet.

Here's the quick math on working capital: with Current Assets of $4.35 million and Current Liabilities of $8.30 million in Q1 2024, ThermoGenesis Holdings, Inc. (THMO) is operating with a negative working capital of about $-3.95 million. This trend of negative working capital has been persistent, which is a major red flag for near-term operational risk. The company is defintely relying on future financing to meet immediate obligations. You can dig deeper into the ownership structure in Exploring ThermoGenesis Holdings, Inc. (THMO) Investor Profile: Who's Buying and Why?.

The Cash Flow Statement overview reinforces these liquidity concerns, showing a continued cash burn across core activities. For the latest available full fiscal year (FY 2023), the trends were:

• Operating Cash Flow: A negative $-3.72 million, meaning core business operations are consuming cash, not generating it.
• Investing Cash Flow: A negative $-1.73 million, mostly due to capital expenditures, which, while necessary for growth, adds to the cash drain.
• Financing Cash Flow: A positive $3.3 million, indicating the company is relying on external financing-likely debt or equity raises-to plug the gap.

The reliance on financing cash flow to offset negative operating cash flow is not sustainable long-term. This financial distress is quantified by a high Probability of Bankruptcy, which Macroaxis estimated at 86% as of November 2025-a figure significantly higher than the Health Care Equipment & Supplies sector average. The company's ending cash balance was only $1.18 million in Q1 2024, which is a razor-thin cushion given the rate of cash consumption. The immediate action for any investor here is to model the company's cash runway to see how many months of operations that $1.18 million covers.

Valuation Analysis

You're looking at ThermoGenesis Holdings, Inc. (THMO) and trying to figure out if there's any value left, which is a challenge given the stock's micro-cap status and recent performance. The direct takeaway is that traditional valuation metrics point to a deeply speculative situation, not a conventional investment; the stock is trading at an extremely low price, suggesting a distressed or defintely undervalued position based on its current market price, though its fundamentals are weak.

As a seasoned analyst, I focus on the core ratios first. When a company is unprofitable, the Price-to-Earnings (P/E) ratio becomes negative or near zero, which is the case here. ThermoGenesis Holdings, Inc.'s P/E ratio is reported as approximately -0.00. Here's the quick math: a negative P/E means the company has negative earnings per share (EPS), so it is losing money. This immediately shifts the focus from 'value' to 'turnaround potential' or 'liquidation value.' The company's market capitalization is tiny, around $1.585K as of November 20, 2025, which puts it firmly in the micro-cap, highly speculative category.

The stock price trends over the last year paint a clear, though painful, picture. The stock has plummeted, showing a year-over-year decrease of approximately 83.33% through November 2025. The current share price hovers around $0.0001. This massive decline reflects significant investor concern about the company's ability to achieve profitability and sustain operations. The 52-week trading range is stark, moving from a high of $0.3000 to a low of $0.000001.

What this estimate hides is the high volatility and low liquidity; trading volume is often minimal, meaning any large buy or sell order can drastically move the price. The sheer magnitude of the drop makes the stock's current price a 'penny stock' situation, where a small absolute price change represents a huge percentage move. The valuation ratios tell the story:

When it comes to analyst consensus, there isn't much to go on, which is typical for a stock at this price point. Only one brokerage firm has provided a recommendation, which is a Hold. This translates to an Average Brokerage Recommendation (ABR) of 3.00 on a 1-to-5 scale (where 3 is Hold). Critically, there is no official price target set by analysts. No one is sticking their neck out here. This lack of coverage means you have to rely almost entirely on your own due diligence.

Since ThermoGenesis Holdings, Inc. (THMO) does not pay dividends, the dividend yield and payout ratios are 0.00% and N/A, respectively. This is standard for a growth-focused biotech firm, but in this case, it's also a reflection of the company's financial distress. They must conserve cash. If you want a deeper dive into the institutional interest, you should check out Exploring ThermoGenesis Holdings, Inc. (THMO) Investor Profile: Who's Buying and Why?

For investors, the action is clear: treat this as a highly risky, binary bet on a major operational or financial restructuring. Your risk is the entire investment; your reward is a multi-bagger if they somehow execute a successful turnaround. The current valuation suggests the market has priced in a very high probability of failure.

• Expect extreme price volatility.
• Do not rely on analyst targets.
• Focus on cash burn and revenue growth.

Risk Factors

You need to look past the promise of cell and gene therapy technology and focus on the cold reality of the balance sheet. For ThermoGenesis Holdings, Inc. (THMO), the primary, near-term risk is existential: a severe financial distress signal that demands immediate attention.

The core financial risk is stark. As of November 2025, the company's odds of distress-the probability of financial hardship over the next two years-is exceptionally high at 86%. This is a critical red flag, sitting 98.66% higher than the average for the Health Care Equipment & Supplies sector. You are investing in a company with a very high probability of going through financial hardship in the upcoming years. The latest reported quarterly net loss was $1.86 million in the first quarter of 2024, and while the forecasted annual Earnings Per Share (EPS) for 2025 is a positive $0.02, this forecast is overshadowed by the dire liquidity picture. Here's the quick math: the Enterprise Value is likely to grow to about $17.2 million, but the Market Cap is likely to drop to about $1.6 million as of November 18, 2025. That is a massive disconnect and a clear indicator of market skepticism about the company's ability to service its total liabilities of $14.82 million (fiscal year 2023).

Operational and Regulatory Headwinds

The financial strain is compounded by significant operational and regulatory risks. The most immediate regulatory threat is that the company's Exchange Act registration has been revoked. This kind of action signals a fundamental breakdown in compliance and reporting, which severely limits investor trust and access to capital markets. You can't ignore a regulatory revocation; it's a major operational fault line.

Beyond internal issues, the company faces external pressures common in the Medical - Biomedical and Genetics industry, which is highly sensitive to regulatory changes (like new FDA guidance for cell therapies) and intense competition. The general 2025 risk landscape also includes:

• Supply Chain Disruption: Geopolitical instability and economic volatility continue to threaten the supply chain for specialized medical equipment components.
• Cybersecurity Threats: The average cost of a data breach is estimated to be around $4.88 million in 2025, a risk that hits every technology-dependent business.
• Workforce Retention: In a highly specialized field, losing key scientific or engineering talent (brain drain) directly impacts product development and quality control.

Mitigation Strategies and Investor Action

Given the 86% probability of distress, the company must be focused on aggressive mitigation. While ThermoGenesis Holdings, Inc. has not publicly detailed its specific, immediate plan to overcome this extreme financial risk, a company in this position typically pursues three core strategies:

• Capital-Raising Alternatives: Actively seeking strategic partnerships, joint ventures, or mergers to inject necessary capital.
• Asset Rationalization: Selling off non-core or low-margin assets to improve liquidity and focus resources.
• Receivables Management: Implementing a stringent program to monitor and manage aging accounts receivable to reduce exposure to potential clawback risks if a bankruptcy filing occurs.

For you, the investor, the action is clear: you need to see a concrete, funded plan to reduce the cash burn and address the regulatory status. Without a clear path to solvency, the high probability of financial distress makes this a speculative bet, not a calculated investment. For a better understanding of their long-term vision, review their Mission Statement, Vision, & Core Values of ThermoGenesis Holdings, Inc. (THMO).

Growth Opportunities

You're looking for a clear map of where ThermoGenesis Holdings, Inc. (THMO) is going, and the reality is their future is tied directly to the explosive growth of the cell and gene therapy market. The core takeaway is that their automated technology is a key bottleneck-solver for this industry, but their financial projections remain highly speculative in the near-term.

The U.S. automated and closed cell therapy processing systems market, which is their wheelhouse, is projected to hit $773.1 million in 2025, growing at a 19.41% Compound Annual Growth Rate (CAGR) through 2030. That's the rising tide that should lift their boat. Their growth drivers are not about new markets, but deeper penetration into the existing, rapidly expanding cell therapy manufacturing ecosystem.

Key Growth Drivers and Product Innovation

The company's growth is fundamentally driven by the shift from manual, open-system cell processing to high-efficiency, automated, closed-system platforms. This is a non-negotiable trend in clinical-grade manufacturing, and ThermoGenesis Holdings, Inc. has the products to meet that need. Their main growth levers are:

• CAR-TXpress™ Platform: This semi-automated, functionally-closed system streamlines the manufacturing process for Chimeric Antigen Receptor T-cell (CAR-T) immunotherapy. CAR-T is the most visible, high-value application in cell therapy, and this platform positions them directly in that high-growth pipeline.
• Consumables and Disposables: The real long-term revenue is in the razor-and-blade model. Systems like Sepax™ and Magellan® require proprietary, single-use processing kits, which generate high-margin, recurring revenue as their installed base grows.
• New cGMP Facility: The new 35,500 square foot ReadyStart-IncuStart cGMP Facility in Greater Sacramento is a strategic move, offering contract development and manufacturing organization (CDMO) services. This initiative diversifies revenue beyond just equipment sales and integrates them deeper into the cell therapy supply chain.

The move to offer CDMO services is defintely a smart pivot to capture more value per customer.

2025 Revenue Projections and Earnings Outlook

Honesty first: The company currently lacks consensus analyst coverage, so a firm 2025 revenue forecast isn't available. What we can do is model a reasonable projection based on recent performance and the market's trajectory.

Here's the quick math: ThermoGenesis Holdings, Inc.'s Trailing Twelve Months (TTM) revenue was approximately $9.61 million (as of the end of 2023). Given the overall market's strong tailwinds, applying a conservative 10% growth rate-which is less than half the market's CAGR-suggests a 2025 revenue projection of roughly $10.57 million. This is a projection, not a guarantee, but it anchors the discussion in a realistic growth scenario.

What this estimate hides is the earnings picture. The company has been historically unprofitable, with a Basic Earnings Per Share (EPS) of $-0.46 in Q1 2024. The focus for 2025 is less about profit and more about narrowing that loss by increasing high-margin consumable sales and fully utilizing the capacity of the new cGMP facility.

Competitive Advantages and Clear Actions

Their competitive advantage is in their established, proprietary technology and the closed-system design, which is a major regulatory and quality hurdle for competitors. The Sepax™ and Magellan® systems are known entities in blood centers and research institutions, giving them an installed base to sell new consumables and service contracts to. Plus, their move into CDMO services with the ReadyStart-IncuStart facility creates a new, high-touch relationship with emerging cell therapy developers.

For investors, the action is simple: Monitor the adoption rate of the CAR-TXpress platform and the utilization rate of the new cGMP facility. These are the two metrics that will determine if the company can convert the massive cell therapy market opportunity into actual revenue growth above our $10.57 million estimate. You can track their progress and get more deep-dive analysis in our full post: Breaking Down ThermoGenesis Holdings, Inc. (THMO) Financial Health: Key Insights for Investors.