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ANAB, AnaptysBio Inc.

Pharmaceuticals consumer brand Unprofitable

We are a clinical-stage biotechnology company focused on delivering innovative immunology therapeutics for autoimmune and inflammatory diseases.

We currently recognize revenue from milestones and royalties achieved under our immuno-oncology collaboration with GSK and license and transition services revenue from our collaboration with Vanda.

Latest annual: FY2025 10-K

ANAB · AnaptysBio Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$235M

+157.0% YoY · 26% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $232M 5-yr avg $83M

Operating margin 17.6% 5-yr avg −454.6%

Owner-earnings margin 2% 5-yr avg −328%

Free cash flow margin 2% 5-yr avg −329%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand.
What moves the needle: Operating margin has reached 20% at its best but run negative through the cycle (median −288%) — so the question is which reading is truer: whether the median was pulled below zero by one-off charges, by the cycle, or by spending it is still growing into, and whether it settles back at a profit. Stock-based pay runs about 37% of sales, a real and recurring claim on owners that the GAAP margin understates. Read this kind of business on the pipeline against the patent cliff, and pricing. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −25%, above 15% in 0 of 6 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$17M	$10M	$5M	$8M	$75M	$63M	$10M	$17M	$91M	$235M	$232M	RevenueRevenue
26%	93%	311%	201%	25%	34%	356%	244%	46%	22%	27%	SG&A / revenueSG&A/rev
92%	294%	n/m	n/m	107%	156%	863%	771%	179%	58%	55%	R&D / revenueR&D/rev
($3M)	($29M)	($67M)	($107M)	($24M)	($57M)	($115M)	($164M)	($115M)	$48M	$41M	Operating incomeOp. inc.
−18.1%	−287.8%	n/m	n/m	−31.8%	−89.9%	n/m	−958.3%	−125.9%	20.4%	17.6%	Operating marginOp. mgn
($4M)	($30M)	($62M)	($97M)	($20M)	($58M)	($129M)	($164M)	($145M)	($13M)	($27M)	Net incomeNet inc.
											Cash flow & returns
($9M)	($19M)	($49M)	($70M)	($14M)	($46M)	($74M)	($121M)	($135M)	$20M	$4M	Operating cash flowOp. cash
$233K	$183K	$315K	$514K	$559K	$619K	$675K	$652K	$606K	$559K	$543K	DepreciationDeprec.
($6M)	$6M	$13M	$27M	$5M	($4M)	$27M	$9M	($25M)	($4M)	($10M)	Working capital & otherWC & other
$50K	$290K	$1M	$805K	$569K	$1M	$358K	$807K	$358K	$87K	$69K	CapexCapex
0.3%	2.9%	21.3%	10.1%	0.8%	2.2%	3.5%	4.7%	0.4%	0.0%	0.0%	Capex / revenueCapex/rev
($9M)	($20M)	($49M)	($70M)	($15M)	($47M)	($74M)	($122M)	($136M)	$20M	$4M	Owner earningsOwner earn.
−54.4%	−196.2%	−976.4%	−875.4%	−19.6%	−73.7%	−718.9%	−708.8%	−148.7%	8.4%	1.9%	Owner earnings marginOE mgn
($9M)	($20M)	($50M)	($70M)	($15M)	($47M)	($74M)	($122M)	($136M)	$20M	$4M	Free cash flowFCF
−54.4%	−197.3%	−991.4%	−879.0%	−19.6%	−74.8%	−718.9%	−708.8%	−148.7%	8.4%	1.9%	Free cash flow marginFCF mgn
$1K	$0	$0	—	—	$0	$0	$50M	$456K	$69M	—	BuybacksBuybacks
—	-10%	-14%	-36%	-13%	—	-48%	-249%	—	—	—	ROICROIC
—	-10%	-13%	-24%	-5%	-16%	-49%	-186%	-205%	-36%	-210%	Return on equityROE
—	−10%	−13%	−24%	−5%	−16%	−49%	−186%	−205%	−36%	−210%	Retained to equityRetained/eq
											Balance sheet
$51M	$81M	$114M	$171M	$250M	$496M	$71M	$36M	$123M	$238M	$248M	Cash & investmentsCash+inv
$1M	$0	—	—	$0	$876K	$1M	$7M	$41M	$34M	$26M	ReceivablesReceiv.
$2M	$2M	$5M	$16M	$4M	$2M	$3M	$5M	$4M	$4M	$8M	Accounts payablePayables
($1M)	($2M)	—	—	($4M)	($865K)	($1M)	$2M	$37M	$30M	$18M	Operating working capitalOper. WC
$58M	$253M	$434M	$378M	$397M	$554M	$447M	$407M	$432M	$350M	$316M	Current assetsCur. assets
$6M	$14M	$22M	$30M	$20M	$16M	$26M	$37M	$45M	$39M	$42M	Current liabilitiesCur. liab.
10.2×	17.9×	19.9×	12.8×	20.0×	34.4×	17.2×	10.9×	9.5×	9.1×	7.6×	Current ratioCurr. ratio
$62M	$329M	$509M	$435M	$417M	$643M	$610M	$452M	$484M	$364M	$330M	Total assetsAssets
($51M)	($81M)	($114M)	($171M)	($250M)	($496M)	($71M)	($36M)	($123M)	($238M)	($248M)	Net debt / (cash)Net debt
-6.6×	-16.2×	-40.4×	-103.2×	—	—	—	—	—	—	—	Interest coverageInt. cov.
($38M)	$308M	$486M	$405M	$397M	$356M	$262M	$88M	$71M	$37M	$13M	Shareholders’ equityEquity
7.0%	43.8%	—	—	—	24.3%	265.9%	193.5%	37.3%	15.4%	17.7%	Stock comp / revenueSBC/rev
											Per share
2.6M	19.8M	24.7M	27.1M	27.3M	27.4M	28.2M	26.9M	28.4M	28.8M	28.7M	Shares out (diluted)Shares
$6.33	$0.51	$0.20	$0.30	$2.75	$2.30	$0.37	$0.64	$3.22	$8.16	$8.10	Revenue / shareRev/sh
$-1.62	$-1.52	$-2.50	$-3.60	$-0.73	$-2.11	$-4.57	$-6.08	$-5.12	$-0.46	$-0.93	EPS (diluted)EPS
$-3.44	$-0.99	$-1.98	$-2.59	$-0.54	$-1.70	$-2.63	$-4.52	$-4.78	$0.68	$0.15	Owner earnings / shareOE/sh
$-3.44	$-1.00	$-2.01	$-2.60	$-0.54	$-1.72	$-2.63	$-4.52	$-4.78	$0.68	$0.15	Free cash flow / shareFCF/sh
$0.02	$0.01	$0.04	$0.03	$0.02	$0.05	$0.01	$0.03	$0.01	$0.00	$0.00	Cap. spending / shareCapex/sh
$-14.50	$15.55	$19.71	$14.97	$14.53	$12.99	$9.31	$3.27	$2.50	$1.29	$0.44	Book value / shareBVPS

The diluted share count moved ×7.5 into 2017 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+2.9%/yr	+24.3%/yr
Capital spending / share	−18.4%/yr	−32.0%/yr
Book value / share	—	−38.4%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

29Mpeak FY2025

ROIC

−249%low FY2023

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$20Mowner earningsvs.($13M)net incomelow FY2024

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned a $13M loss into $20M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($13M)	($145M)	($164M)	($129M)	($58M)
Depreciation & amortizationnon-cash charge added back	+$559K	+$606K	+$652K	+$675K	+$619K
Stock-based compensationreal costnon-cash, but a real cost	+$36M	+$34M	+$33M	+$27M	+$15M
Working capital & othertiming of cash in and out, other non-cash items	−$4M	−$25M	+$9M	+$27M	−$4M
Cash from operations	$20M	($135M)	($121M)	($74M)	($46M)
Maintenance capital expenditurethe spending needed just to hold position and volume	−$87K	−$358K	−$807K	−$358K	−$619K
Owner earnings	$20M	($136M)	($122M)	($74M)	($47M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	—	—	−$747K
Free cash flow	$20M	($136M)	($122M)	($74M)	($47M)
Owner-earnings marginowner earnings ÷ revenue	8%	-149%	-709%	-719%	-74%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $36M), owner earnings is nearer ($16M).

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? —

No meaningful interest burden

Little or no interest expense reported

What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
How heavy is the debt, net of cash? +$238M

Net cash, debt-free

Cash $238M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $238M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital —

Not enough data

Industry peers: median -37%

What this means
The filing data didn't include the inputs for this check.
Owner-earnings margin 8%

Positive this year, negative across the cycle

latest $20M = operating cash $20M − maintenance capex $87K (positive this year), after an earlier loss stretch (10-yr median -196%)

Industry peers: median -28%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 8% of revenue this year, a -196% median across 10 years. Treating stock comp as the real expense it is (less $36M of SBC) leaves ($16M).
Are earnings backed by cash? $20M

Loss, but cash-generative

Net income ($13M) · cash from operations $20M

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? 350%

Returned more than it generated

Dividends + buybacks $69M ÷ Owner Earnings $20M

What this means
The company returned more than it generated: against $20M of Owner Earnings, $69M (350%) went back to shareholders, $0 dividends, $69M buybacks — the excess came from the balance sheet or borrowing, not the year's operations. Net of $36M stock comp, the real buyback was about $33M. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? 0.16×

Harvesting

Capex $87K ÷ depreciation $559K

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 4 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $235M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 9.07×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Earnings stability Miss

A profit every year (10-yr record) · 10 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-3.69/share (latest year $-0.45), the averaged base the calculator's gate runs on, and book value is $1.28/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 0 of 10

What this means
Lost money in 10 year(s), look at what happened there before trusting the average.
Operating margin −547% → −355% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −547% early to −355% lately, median −288% — pricing power intact or improving.
Worst year 2019 · −1342.9% op. margin

What this means
Operations went underwater in 2019, understand why before trusting the good years.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$316M

Cash & short-term investments$248M
Receivables$26M
Other current assets$42M

Current liabilities$42M

Accounts payable$8M
Other current liabilities$34M

Current ratio7.58×all current assets ÷ what's due · Graham looked for 2×

Quick ratio—inventory untagged this quarter, so withheld rather than shown equal to the current ratio

Cash ratio5.96×strictest: cash alone against what's due

Working capital$274Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago−8.0%the freshest read on whether the business is still growing

Current ratio, recent quarters9.1× → 7.6×

Deeper floors

Tangible book value$13Mequity stripped of goodwill & intangibles

Debt incl. operating leases$14M$14M of it operating leases

From the company's latest filing.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2023	Daniel Faga	$7.5M	−$1.7M	($122M)
2024	Daniel Faga	$13.6M	$9.2M	($136M)
2025	Daniel Faga	$6.1M	$41.7M	$20M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership31.5%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$36M
The slice of the business handed to employees in shares this year, 15% of revenue, equal to 75% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Stock compensation as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Pharmaceuticals

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
ARVNArvinas Inc.	$263M	—	-306.3%	-37%	-118%
SDGRSchrodinger Inc.	$256M	57%	-80.8%	-38%	-53%
AKBAAkebia Therapeutics Inc.	$236M	62%	-63.9%	-116%	-28%
ANABAnaptysBio Inc.	$235M	—	-206.9%	-25%	-172%
PBYIPuma Biotechnology Inc	$228M	76%	0.5%	-59%	8%
IDYAIDEAYA Biosciences Inc.	$219M	—	-180.4%	-22%	-191%
VNDAVanda Pharmaceuticals Inc.	$216M	89%	-2.4%	-0%	9%
AMRNAmarin Corporation plc	$214M	77%	-24.3%	-15%	-18%
Group median	—	—	-72.3%	-31%	-41%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what AnaptysBio Inc. has delivered.

Today’s price $

Base Normalize · through-cycle (($79M)) Net of stock comp (−$41M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth, delivered—

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $4M on 29M shares outstanding, per the 10-Q cover, as of 2026-05-07; net cash $248M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh ANAB against another business →

The owners of ANAB: the meeting and the votes →

Cite: Owner Scorecard, "AnaptysBio Inc. (ANAB), the owner's record," https://ownerscorecard.com/c/ANAB, data as of 2026-07-09.

Manual order: ← AN its page in the Manual ANDE →

Industry order: ← AMRX the Pharmaceuticals chapter ANIP →