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BBIO, BridgeBio Pharma Inc.

Pharmaceuticals consumer brand UnprofitableDistress / turnaround

BridgeBio Pharma, Inc. is a commercial-stage, multi-product biopharmaceutical company organized around a portfolio operating model to discover, develop, and deliver medicines for patients with genetic diseases.

Food and Drug Administration (the "FDA") approval for three products.

Our largest commercial product, acoramidis, was approved by the FDA in November 2024 for the treatment of transthyretin amyloid cardiomyopathy and is being commercialized by BridgeBio in the United States (under the brand name Attruby ).

Latest annual: FY2025 10-K

BBIO · BridgeBio Pharma Inc.

The business

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

Revenue · FY2025

$502M

+126.3% YoY · 127% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $580M 5-yr avg $176M

Operating margin −90.5% 5-yr avg −1677.4%

Owner-earnings margin −77% 5-yr avg −1456%

Free cash flow margin −77% 5-yr avg −1458%

The business in brief

read the 10-K →

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

What it is: Revenue is Products (72%), License and Service (26%) and Royalty (2%).
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. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
What moves the needle: Operating margin has run around −660% through the cycle on a 96% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. Stock-based pay runs about 118% 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.

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

Where the money comes from

read the 10-K →

Products is 72% of revenue, with License and Service the other meaningful line at 26%.

Revenue by product line, FY2025

Products72%$362M
License and Service26%$128M
Royalty2%$11M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2019–2025

realized figures from each filing · older years to the left

2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
								Income statement
$41M	$8M	$70M	$78M	$9M	$222M	$502M	$580M	RevenueRevenue
—	—	96%	96%	74%	98%	96%	95%	Gross marginGross mgn
233%	n/m	276%	184%	n/m	130%	106%	102%	SG&A / revenueSG&A/rev
518%	n/m	647%	514%	n/m	228%	90%	81%	R&D / revenueR&D/rev
($266M)	($474M)	($577M)	($512M)	($607M)	($593M)	($523M)	($525M)	Operating incomeOp. inc.
−656.4%	n/m	−827.1%	−659.6%	n/m	−267.2%	−104.2%	−90.5%	Operating marginOp. mgn
($261M)	($449M)	($563M)	($481M)	($643M)	($536M)	($725M)	($722M)	Net incomeNet inc.
								Cash flow & returns
($254M)	($400M)	($498M)	($419M)	($528M)	($521M)	($446M)	($444M)	Operating cash flowOp. cash
$859K	$1M	$6M	$7M	$6M	$6M	$5M	$5M	DepreciationDeprec.
($15M)	($11M)	($41M)	($37M)	$278K	($87M)	$141M	$132M	Working capital & otherWC & other
$3M	$8M	$13M	$5M	$1M	$933K	$1M	$1M	CapexCapex
6.5%	91.1%	19.0%	6.2%	14.0%	0.4%	0.2%	0.2%	Capex / revenueCapex/rev
($254M)	($401M)	($504M)	($424M)	($529M)	($522M)	($447M)	($445M)	Owner earningsOwner earn.
−627.3%	n/m	−722.6%	−546.5%	n/m	−235.1%	−89.0%	−76.8%	Owner earnings marginOE mgn
($256M)	($407M)	($511M)	($424M)	($529M)	($522M)	($447M)	($445M)	Free cash flowFCF
−631.7%	n/m	−733.2%	−546.5%	n/m	−235.1%	−89.0%	−76.8%	Free cash flow marginFCF mgn
—	$75M	$200M	$0	$0	$0	$48M	—	BuybacksBuybacks
								Balance sheet
$577M	$607M	$788M	$428M	$376M	$681M	$570M	$949M	Cash & investmentsCash+inv
—	—	—	—	$2M	$5M	$139M	$205M	ReceivablesReceiv.
—	—	—	—	—	$0	$27M	$33M	InventoryInvent.
$9M	$9M	$12M	$12M	$11M	$10M	$36M	$29M	Accounts payablePayables
—	—	—	—	($9M)	($5M)	$130M	$209M	Operating working capitalOper. WC
$569M	$643M	$889M	$549M	$478M	$721M	$798M	$1.2B	Current assetsCur. assets
$60M	$96M	$135M	$121M	$144M	$154M	$288M	$816M	Current liabilitiesCur. liab.
9.4×	6.7×	6.6×	4.5×	3.3×	4.7×	2.8×	1.5×	Current ratioCurr. ratio
$632M	$704M	$1.0B	$623M	$546M	$919M	$936M	$1.4B	Total assetsAssets
$92M	$94M	$431M	$431M	$446M	$437M	$2.0B	$2.7B	Total debtDebt
($485M)	($513M)	($357M)	$3M	$71M	($244M)	$1.4B	$1.7B	Net debt / (cash)Net debt
-30.4×	-12.9×	-12.3×	-6.4×	-7.5×	-6.5×	-9.9×	-11.0×	Interest coverageInt. cov.
$408M	$58M	($870M)	($1.3B)	($1.4B)	($1.5B)	($2.1B)	($2.3B)	Shareholders’ equityEquity
52.7%	708.7%	142.7%	117.9%	n/m	43.2%	26.5%	24.2%	Stock comp / revenueSBC/rev
								Per share
105M	118M	144M	147M	163M	186M	192M	195M	Shares out (diluted)Shares
$0.39	$0.07	$0.48	$0.53	$0.06	$1.19	$2.62	$2.98	Revenue / shareRev/sh
$-2.48	$-3.80	$-3.90	$-3.26	$-3.95	$-2.88	$-3.78	$-3.70	EPS (diluted)EPS
$-2.42	$-3.40	$-3.49	$-2.88	$-3.25	$-2.80	$-2.33	$-2.29	Owner earnings / shareOE/sh
$-2.44	$-3.45	$-3.54	$-2.88	$-3.25	$-2.80	$-2.33	$-2.29	Free cash flow / shareFCF/sh
$0.03	$0.06	$0.09	$0.03	$0.01	$0.01	$0.01	$0.01	Cap. spending / shareCapex/sh
$3.89	$0.49	$-6.03	$-8.51	$-8.32	$-7.89	$-10.89	$-11.70	Book value / shareBVPS

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

	6-yr	5-yr
Revenue / share	+37.6%/yr	+106.4%/yr
Capital spending / share	−21.8%/yr	−38.2%/yr

The record, charted

FY2019–2025

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

Share count

192Mpeak FY2025

Gross margin

96%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.

($447M)owner earningsvs.($725M)net incomelow FY2023

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 $725M loss into ($447M) 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	($725M)	($536M)	($643M)	($481M)	($563M)
Depreciation & amortizationnon-cash charge added back	+$5M	+$6M	+$6M	+$7M	+$6M
Stock-based compensationreal costnon-cash, but a real cost	+$133M	+$96M	+$109M	+$92M	+$100M
Working capital & othertiming of cash in and out, other non-cash items	+$141M	−$87M	+$278K	−$37M	−$41M
Cash from operations	($446M)	($521M)	($528M)	($419M)	($498M)
Maintenance capital expenditurethe spending needed just to hold position and volume	−$1M	−$933K	−$1M	−$5M	−$6M
Owner earnings	($447M)	($522M)	($529M)	($424M)	($504M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	—	—	−$7M
Free cash flow	($447M)	($522M)	($529M)	($424M)	($511M)
Owner-earnings marginowner earnings ÷ revenue	-89%	-235%	-5687%	-546%	-723%

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 $133M), owner earnings is nearer ($580M).

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? -9.9×

Does not cover its interest

Operating income ($523M) ÷ interest expense $53M

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? $1.4B

Net debt against an operating loss

Cash $570M − debt $2.0B

What this means
Netting $570M of cash and short-term investments against $2.0B of debt leaves $1.4B owed, with no operating profit this year to measure it against — understand that combination before anything else about the company. It also holds $31M in longer-dated marketable securities; counting those, it sits at $1.4B of net debt. 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? -64d

Negative, funded by others

DSO 101 + DIO 466 − DPO 631 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. A negative cycle is a quiet moat: suppliers and customers fund the operation (Buffett's “float”), the company grows on other people's money.

Is it a good business?

Return on invested capital —

Not meaningful here

Invested capital ($648M) = debt $2.0B + equity ($2.1B) − cash

Industry peers: median -35%

What this means
Invested capital is near zero or negative, usually years of buybacks pulling equity down. ROIC explodes or flips sign and stops meaning anything. Judge this one on Owner Earnings instead.
Owner-earnings margin -627%

Consumes cash through the cycle

7-yr median margin, range -5687%–-89%; latest ($447M) = operating cash ($446M) − maintenance capex $1M

Industry peers: median -20%

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 -89% of revenue this year, a -627% median across 7 years. Treating stock comp as the real expense it is (less $133M of SBC) leaves ($580M).
Are earnings backed by cash? ($446M)

Loss, and burning cash

Net income ($725M) · cash from operations ($446M)

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 not.

How is the cash used?

Where do the earnings go? —

No surplus to allocate

What this means
The business didn't generate positive Owner Earnings this year, so any distributions came from the balance sheet or borrowing, not from operations.
Investing or harvesting? 0.20×

Harvesting

Capex $1M ÷ depreciation $5M

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 5 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 · $502M

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× · 2.77×

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.
Conservative debt Miss

Debt ≤ working capital · $2.0B vs $510M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (7-yr record) · 7 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 · 1 of 7 yrs

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 $-3.24/share (latest year $-3.70), the averaged base the calculator's gate runs on, and book value is $-10.65/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, 2019–2025

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

Profitable years 0 of 7

What this means
Lost money in 7 year(s), look at what happened there before trusting the average.
Operating margin −2412% → −2300% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −2412% early to −2300% lately, median −660% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Worst year 2023 · −6528.8% op. margin

What this means
Operations went underwater in 2023, understand why before trusting the good years.
Dividend record paid

What this means
Paid a dividend in 1 of the years on record.

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.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product.

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$1.2B

Cash & short-term investments$888M
Receivables$205M
Inventory$33M
Other current assets$115M

Current liabilities$816M

Debt due within a year$4M
Accounts payable$29M
Other current liabilities$784M

Current ratio1.52×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.48×stricter: inventory excluded

Cash ratio1.09×strictest: cash alone against what's due

Working capital$425Mthe cushion left after near-term bills

Debt due this year vs. cash$4M due · $888M cash covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet

Cash runway2.0 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate

Revenue, latest quarter vs. a year ago+66.8%the freshest read on whether the business is still growing

Current ratio, recent quarters4.6× → 1.5×

Deeper floors

Tangible book value($2.3B)equity stripped of goodwill & intangibles

Net current asset value($2.4B)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$2.7B$19M of it operating leases

Deferred revenue$18Mcustomer cash collected before delivery; operating float

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
2021	Dr. Kumar	$25.6M	−$132.8M	($504M)
2022	Dr. Kumar	$6.7M	−$11.3M	($424M)
2023	Dr. Kumar	$12.2M	$70.1M	($529M)
2024	Dr. Kumar	$15.6M	−$2.7M	($522M)
2025	Dr. Kumar	$14.9M	$75.4M	($447M)

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 ownership14.2%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio37:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$133M
The slice of the business handed to employees in shares this year, 26% of revenue. 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 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
TGTXTG Therapeutics Inc.	$616M	88%	-29896.1%	-572%	-23443%
CPRXCatalyst Pharmaceuticals Inc.	$589M	86%	35.9%	48%	37%
MIRMMirum Pharmaceuticals Inc.	$521M	—	-58.6%	-61%	-38%
BBIOBridgeBio Pharma Inc.	$502M	96%	-659.6%	—	-627%
TVTXTravere Therapeutics	$491M	97%	-83.6%	-35%	-20%
NATRNature's Sunshine Products Inc.	$480M	73%	4.3%	12%	4%
ZLABZai Lab Limited	$457M	65%	-338.0%	-103%	-281%
INVAInnoviva Inc.	$411M	—	85.6%	44%	63%
Group median	—	87%	-71.1%	—	-29%

The price

What a price has to assume.

What the price implies

reverse-DCF

BridgeBio Pharma Inc. is profitable, but owner earnings are negative this year because capital spending currently outruns operating cash, a build-out, so the owner-earnings reverse-DCF has no positive base to grow. We read the price from both ends instead: type a price to see the steady-state profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.

Today’s price $

The assumptions Required return 9% Years to get there 10 Revenue growth 0%

Revenue, delivered87%/yr’20→’25

Mature owner-earnings margin 15%

Enter a price to run it.

Owner earnings it must reach—

Margin the price demands—

Owner-earnings margin today−77%

Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.

Weigh BBIO against another business →

The owners of BBIO: the meeting and the votes →

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

Manual order: ← BBCP its page in the Manual BBNX →

Industry order: ← AZN the Pharmaceuticals chapter BCYC →