Exchange: NASDAQ | Sector: Healthcare | Industry: Medical Devices
Q2 2025
Published: Nov 27, 2024
Earnings Highlights
EPS of $-0.14 increased by 26.3% from previous year
Net income of -4.96M
"" -
Modular Medical Inc (MODD) QQ2 2025 Results – Insulin Pump Developer Faces Early-Stage Burn and Limited Revenue Despite Solid Liquidity
Executive Summary
Modular Medical Inc (MODD) reported QQ2 2025 results characterized by ongoing operating losses and an absence of disclosed revenue. The company posted an operating loss of 4.996 million and a net loss of 4.956 million for the quarter, with an EPS of -0.14. EBITDA came in at -4.736 million, highlighting the burn typical of a development-stage medical device company pursuing a go-to-market strategy for insulin pump technology. R&D expenses of 3.702 million and G&A expenses of 1.294 million drove the loss, while depreciation and amortization added 0.26 million of non-cash cost. The lack of reported revenue in QQ2 2025 complicates an assessment of unit economics and implies dependence on external funding to sustain operations.
From a liquidity perspective, MODD finished the quarter with approximately 3.893 million in cash, up modestly from 5.052 million at the start of the period, driven by net financing activity of 2.768 million and offset by a cash burn from operations of 3.766 million. Free cash flow remained negative at -3.927 million. Importantly, MODD maintains a strong current ratio of 3.36 and a cash ratio of roughly 3.13, suggesting ample near-term liquidity to fund development efforts while awaiting commercialization catalysts. Net debt is reported as negative (net cash) at roughly -2.884 million, reflecting a modest cash cushion despite ongoing losses.
Management commentary is not captured in the provided transcript data for QQ2 2025, limiting the ability to quote specific statements. However, the lack of revenue alongside persistent losses underscores the high-risk, high-variance profile of MODD at this stage. The investment thesis hinges on upcoming milestones—clinical readouts, regulatory progress, partnerships, or potential licensing deals—that could unlock near-term value. Absent visible revenue generation or a clear path to profitability, the stock remains highly speculative and sensitive to fundraising needs and clinical development progress.
Key Performance Indicators
Operating Income
-5.00M
QoQ: -18.39% | YoY:-19.24%
Net Income
-4.96M
QoQ: -19.80% | YoY:-18.48%
EPS
-0.14
QoQ: -16.67% | YoY:26.32%
Revenue Trend
Margin Analysis
Key Insights
Operating income: -4.996 million, YoY change not disclosed for this period, QoQ change not disclosed due to missing prior quarter revenue mix but the reported figure indicates continued burn.
Net income: -4.956 million, YoY change listed as -18.48% in the dataset; QoQ change not provided due to data structure.
EBITDA: -4.736 million.
EPS: -0.14, with a YoY improvement of +26.32% but still negative due to the loss position and share count dynamics (weighted average shares out: 34.338 million).
Cash and cash equivalents: 3.893 million at period end; 5.052 million at the beginning of the period.
Financial Highlights
Revenue: Not disclosed for QQ2 2025. No quarter revenue figure available in the data set.
Profitability:
- Operating income: -4.996 million, YoY change not disclosed for this period, QoQ change not disclosed due to missing prior quarter revenue mix but the reported figure indicates continued burn.
- Net income: -4.956 million, YoY change listed as -18.48% in the dataset; QoQ change not provided due to data structure.
- EBITDA: -4.736 million.
- EPS: -0.14, with a YoY improvement of +26.32% but still negative due to the loss position and share count dynamics (weighted average shares out: 34.338 million).
Liquidity and Cash Flow:
- Cash and cash equivalents: 3.893 million at period end; 5.052 million at the beginning of the period.
- Net cash provided by operating activities: -3.766 million.
- Free cash flow: -3.927 million.
- Net cash used/provided by financing activities: +2.768 million; net change in cash: -1.159 million.
- Capital expenditures: -0.161 million; depreciation & amortization: 0.26 million.
Balance Sheet Health:
- Total assets: 8.771 million.
- Total liabilities: 1.855 million; current liabilities: 1.244 million; long-term debt: 0.611 million; short-term debt: 0.398 million; total debt: 1.009 million.
- Total stockholders’ equity: 6.916 million; retained earnings: -75.022 million; accumulated other comprehensive income/stockholder equity: +81.904 million.
- Liquidity ratios: current ratio 3.36; quick ratio 3.36; cash ratio 3.13. These indicate substantial liquidity headroom relative to current obligations, albeit within a development-stage business context.
Notes on Comparability: The revenue line is not disclosed for QQ2 2025 in the provided data, which constrains margin and unit economics analysis. The company’s broadly negative profitability metrics are common among early-stage medical device developers, though peers and industry benchmarks show a wide dispersion in profitability depending on stage and commercial progress.
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-5.00M
-19.24%
-18.39%
Net Income
-4.96M
-18.48%
-19.80%
EPS
-0.14
26.32%
-16.67%
Key Financial Ratios
currentRatio
3.36
returnOnAssets
-56.5%
returnOnEquity
-71.7%
debtEquityRatio
0.15
operatingCashFlowPerShare
$-0.11
freeCashFlowPerShare
$-0.11
priceToBookRatio
11.17
priceEarningsRatio
-3.9
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Management commentary from the QQ2 2025 earnings call is not included in the provided dataset. No transcript content was available to extract quotes or theme-by-theme insights. The following highlights reflect the data available from the SEC filing and related disclosures:
- Focus remains on product development and near-term milestones rather than near-term profitability, given the lack of revenue in QQ2 2025.
- Cash runway is supported by financing activity, with a net positive financing impact during the quarter, but ongoing operating cash burn requires external funding or strategic partnerships to reach commercialization.
- The balance sheet shows strong liquidity relative to current liabilities but a historically large negative retained earnings balance, highlighting the company’s development-stage capital structure and need for continued external capital to fund ongoing R&D and regulatory progress.
—
—
Forward Guidance
No formal numeric guidance appears in the provided data for QQ2 2025. Given the company’s development-stage status and absence of reported revenue in QQ2 2025, near-term guidance would logically focus on milestones rather than financial targets. Investors should monitor:
- Clinical and regulatory milestones for insulin pump technology, including any readouts that could de-risk the platform and attract commercial partners or licensing opportunities.
- Timelines for potential pilot programs, early adopter arrangements, or reimbursement pathway progress that could unlock initial revenue streams.
- Fundraising activity and dilution risk: the company has conducted financing activity in the quarter; ongoing capital needs could lead to equity or convertible financings that affect ownership and earnings per share.
- Manufacturing readiness and scale-up plans, including any partnerships with contract manufacturers or suppliers that could impact unit costs and time-to-market.
Assessment: In the absence of explicit revenue targets, the achievability of any forward guidance will be driven by the rate of clinical and regulatory progress, the ability to secure strategic partnerships, and the availability of financing to sustain operations until commercialization milestones are met.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
MODD Focus
0.00%
0.00%
-71.70%
-3.90%
NPCE
73.40%
-32.40%
-76.00%
-7.03%
NXL
-10.73%
-48.32%
-95.10%
-2.42%
SSKN
58.50%
-5.76%
-1.04%
-26.65%
NMRD
0.00%
0.00%
7.58%
-1.89%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
MODD remains a high-risk, high-uncertainty investment at this stage. The QQ2 2025 results show meaningful operating losses with no disclosed quarterly revenue, but liquidity is supported by financing activity and a net cash position. The key to any favorable investment outcome will be the progression of development milestones, successful fundraising without excessive dilution, and the initiation of strategic partnerships or licensing deals that can convert development-stage value into revenue and, eventually, profitability. Absent clear near-term catalysts, investors should approach MODD as a long-duration speculative position with exposure to clinical and fundraising risks. A watchlist approach is warranted, focusing on upcoming milestones, capital-structure disclosures, and any material updates on partnerships or regulatory progress.
Key Investment Factors
Growth Potential
MODD operates in a large diabetes device market with a clear long-run growth potential if insulin pump adoption accelerates and MODD can execute a successful go-to-market strategy. The growth potential hinges on achieving regulatory clearance, obtaining clinical milestones, and establishing partnerships that can accelerate revenue generation or licensing opportunities.
Profitability Risk
Key risks include (1) continued negative net income and lack of disclosed revenue in QQ2 2025, (2) dependence on external funding to sustain development and commercialization plans, (3) potential delays in clinical milestones or regulatory approvals, and (4) execution risk in scaling manufacturing, securing payor coverage, and achieving unit economics as a pre-revenue company. These risks are amplified by a sizable negative retained earnings balance and the need for ongoing capital raises, which can dilute existing shareholders.
Financial Position
Liquidity remains adequate on a quarterly basis with a current ratio above 3.0 and cash on hand of 3.893 million at quarter-end. Net debt is negative (net cash position), reflecting financing flexibility but also the necessity for ongoing funding. The balance sheet shows a modest debt load (total debt 1.009 million) against a relatively small asset base, with a substantial negative retained earnings figure offset by large accumulated stockholders’ equity components. Investors should monitor cash burn rate, runway length based on current expense levels, and any changes to equity structure from future financing.
SWOT Analysis
Strengths
Healthy near-term liquidity metrics: current ratio 3.36 and cash ratio 3.13 imply sufficient liquidity to fund ongoing development without immediate liquidity stress.
Net cash position (net debt approx. -2.884 million) provides optionality for strategic financing or partnerships without immediate debt burden.
Development-stage company with a focused insulin pump program that, if milestones are met, could unlock strategic partnerships or licensing opportunities.
Weaknesses
No disclosed revenue for QQ2 2025, with ongoing operating losses and negative net income, highlighting reliance on external funding.
Very large negative retained earnings balance, suggesting accumulated losses and potential equity dilution risk in future financing.
Limited visibility into path to profitability or near-term commercial milestones without revenue or partnerships disclosed.
Opportunities
Potential partnerships or licensing arrangements with larger medical device or diabetes technology players to accelerate commercialization.
Milestones related to insulin pump technology could unlock reimbursement and early adopter opportunities, improving revenue visibility.
Yield from strategic collaborations to scale manufacturing or reduce unit costs once commercialization begins.
Threats
Funding risk and dilution if additional capital is required, affecting existing shareholders.
Clinical/regulatory delays could push back time-to-market and increase cash burn.
Competitive pressure in the insulin pump/diabetes device space from established players and emerging startups.