Tempest Therapeutics, Inc.

Tempest Therapeutics operates with a highly leveraged equity structure relative to its asset base, holding $1.8 million in cash and equivalents against $9.9 million in total liabilities, resulting in a current ratio of 0.74. The company carries no long-term or short-term debt, but its total equity stands at just $0.8 million, yielding a price-to-book ratio of 13.04. Operating cash flow for Q1 2026 was negative $7.6 million, indicating a heavy reliance on external capital to sustain operations. The balance sheet reflects a precarious liquidity position, with current liabilities exceeding current assets, a condition explicitly flagged in recent filings.

Profitability metrics are deeply negative, with a net income of -$27.7 million and an operating income of -$27.7 million in Q1 2026. Return on equity is -33.69%, and return on assets is -2.58%, reflecting the pre-revenue, high-burn nature of the business. The company has incurred operating losses since inception, and there is no near-term path to positive earnings without significant revenue generation or cost restructuring. The negative EV/EBITDA of -0.32 further underscores the lack of current earnings power.

Revenue mix and geographic exposure data are not explicitly detailed in the provided segments, but the company’s operations are centered in the United States, with filings referencing Brisbane, California, as a key location. The absence of disclosed revenue segments suggests that the company is still in the pre-commercial phase, with no significant product sales contributing to the top line. The focus remains on advancing clinical-stage programs rather than generating commercial revenue.

Growth trajectory is characterized by consistent cash burn and increasing reliance on equity financing. The company has executed multiple registered direct offerings and private placements, including a June 2025 offering and a March 2026 private placement involving pre-funded warrants. These transactions indicate a pattern of dilutive financing to extend the cash runway. The share count has fluctuated, with 14.3 million basic shares outstanding and 10.9 million diluted shares, reflecting the impact of warrants and options.

Risk factors are elevated, with high liquidity risk and medium dilution risk. Filings reference going-concern or substantial-doubt language, highlighting the uncertainty of the company’s ability to continue operations without additional capital. The current ratio below 1.0 and the negative operating cash flow exacerbate these concerns. Additionally, the company faces regulatory and clinical development risks, including the possibility of unexpected safety or efficacy data in trials.

Recent events include a price drop below $1.00, triggering a US continued-listing minimum-bid threshold alert. The company has also engaged in strategic reviews and asset acquisitions, such as the Erigen Assets purchase, to advance its clinical programs. Analyst estimates show a mean price target of $11.00, with a single buy recommendation, suggesting potential upside if clinical milestones are met. However, the current market price of $0.98 reflects significant skepticism about the company’s near-term prospects.

Operating income -$27.7M.

• ▍Operating income -$27.7M

Operating income -$22.5M.

• ▍Operating income -$22.5M

Operating income -$18.9M.

• ▍Operating income -$18.9M

Operating income -$26.6M.

• ▍Operating income -$26.6M

Operating income -$42.0M.

• ▍Operating income -$42.0M

Operating income -$42.0M.

• ▍Operating income -$42.0M

Operating income -$29.2M.

• ▍Operating income -$29.2M

Operating income -$29.2M.

• ▍Operating income -$29.2M