Owner Scorecard


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EYPT, EyePoint Inc.

Life Sciences Tools & Services capital-intensive UnprofitableDistress / turnaroundNet current asset value

EyePoint is headquartered in Watertown, Massachusetts with a commercial manufacturing facility in Northbridge, Massachusetts.

Our pipeline leverages its proprietary bioerodible Durasert E technology (Durasert E ) for sustained intraocular drug delivery.

Our lead product candidate, DURAVYU 1 , is an investigational sustained delivery treatment for vascular endothelial growth factor (VEGF) mediated retinal diseases combining vorolanib, a selective and patent-protected tyrosine kinase inhibitor (TKI) with our bioerodible Durasert E drug delivery technology.

Latest annual: FY2025 10-K
EYPT · EyePoint Inc.
I

The business

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

Revenue · FY2025
$31M
−27.5% YoY · −2% 5-yr CAGR
Vital signs · TTM
Cash & investments $223M
Cash burn · annual $268M
Runway 10 mo

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 led by License and Collaboration Agreement (53%) and Royalty (42%), with 2 more lines behind.
Situation
Unprofitable. No meaningful revenue yet; the record is the cash on hand against the burn. 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. Net current asset value. Current assets alone exceed every liability combined, and the surplus is most of the balance sheet: the shape Graham called a net-net.
What moves the needle
Operating margin has run around −246% through the cycle, the operating line deeply negative — so the lever is the path to a margin at all: revenue growth against the cost curve and the cash runway, not the level of a margin that isn't there yet. Stock-based pay runs about 33% of sales, a real and recurring claim on owners that the GAAP margin understates. Read this kind of business on the installed base and the upgrade cycle. 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 −161%, above 15% in 0 of 8 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.

Where the money comes from

read the 10-K →

Revenue spreads across 4 lines, the largest License and Collaboration Agreement at 53%.

Revenue by product line, FY2025
  • License and Collaboration Agreement53%$17M
  • Royalty42%$13M
  • YUTIQ5%$2M
  • Products5%$2M
By geographyUnited States96%China4%United Kingdom0%

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.

II

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left
2016’162017’172018’182019’192020’202021’212022’222023’232024’242025’25TTMTTMMar 2026
Income statement
$2M$8M$3M$20M$34M$37M$41M$46M$43M$31M$8MRevenueRevenue
556%149%390%88%60%69%84%87%121%165%696%SG&A / revenueSG&A/rev
888%197%546%75%51%77%120%141%307%705%n/mR&D / revenueR&D/rev
($22M)($19M)($26M)($48M)($37M)($55M)($100M)($75M)($146M)($243M)($282M)Operating incomeOp. inc.
n/m−246.4%−887.3%−235.0%−108.3%−149.6%−240.6%−163.1%−337.1%−776.0%n/mOperating marginOp. mgn
($22M)($18M)($53M)($57M)($45M)($58M)($102M)($71M)($131M)($232M)($272M)Net incomeNet inc.
Cash flow & returns
($16M)($20M)($22M)($57M)($14M)($50M)($65M)$2M($126M)($240M)($268M)Operating cash flowOp. cash
$152K$91K$167K$144K$189K$311K$396K$464K$2M$2M$2MDepreciationDeprec.
$3M($5M)$28M($5M)$25M$562K$23M$60M($34M)($38M)($30M)Working capital & otherWC & other
$113K$147K$108K$213K$362K$156K$2M$3M$4M$3M$4MCapexCapex
7.0%1.9%3.6%1.0%1.1%0.4%5.2%7.6%9.4%10.5%52.5%Capex / revenueCapex/rev
($16M)($21M)($22M)($57M)($15M)($50M)($65M)$1M($128M)($242M)($270M)Owner earningsOwner earn.
n/m−273.0%−743.5%−279.1%−42.5%−136.0%−158.0%3.1%−295.3%−772.7%n/mOwner earnings marginOE mgn
($16M)($21M)($22M)($57M)($15M)($50M)($67M)($2M)($130M)($243M)($272M)Free cash flowFCF
n/m−273.7%−743.5%−279.5%−43.0%−136.0%−162.2%−3.5%−301.1%−775.8%n/mFree cash flow marginFCF mgn
$0$0$17M$17MAcquisitionsAcquis.
-309%-208%-113%-254%-103%-262%-49%-94%-146%ROICROIC
-103%-139%-141%-682%-245%-32%-106%-27%-39%-76%-118%Return on equityROE
−103%−139%−141%−682%−245%−32%−106%−27%−39%−76%−118%Retained to equityRetained/eq
Balance sheet
$29M$17M$45M$22M$45M$212M$145M$331M$371M$306M$223MCash & investmentsCash+inv
$0$279K$2M$5M$4M$3M$4M$2M$2M$1MInventoryInvent.
$1M$1M$3M$4M$5M$7M$6M$7M$12M$10M$19MAccounts payablePayables
($1M)($2M)($2M)$526K($4M)($3M)($3M)($9M)($9M)($18M)Operating working capitalOper. WC
$30M$18M$48M$42M$63M$238M$173M$345M$383M$329M$250MCurrent assetsCur. assets
$5M$5M$21M$12M$15M$24M$35M$63M$49M$37M$37MCurrent liabilitiesCur. liab.
5.9×3.4×2.2×3.6×4.2×10.0×5.0×5.5×7.8×8.9×6.7×Current ratioCurr. ratio
$32M$19M$78M$73M$92M$263M$180M$355M$418M$364M$288MTotal assetsAssets
$0$18M$47M$38M$37M$29M$0Total debtDebt
($17M)($28M)$25M($7M)($175M)($115M)($223M)Net debt / (cash)Net debt
-36.5×-7.7×-5.1×-10.1×-31.2×-60.2×-10418.1×-7376.8×-8540.1×Interest coverageInt. cov.
$21M$13M$38M$8M$19M$184M$96M$266M$337M$306M$230MShareholders’ equityEquity
133.5%32.6%91.3%22.4%16.1%20.2%34.2%26.2%84.9%88.8%416.2%Stock comp / revenueSBC/rev
Per share
47.4M53.0M69.3M15.6M19.3M43.1M56.0M58.4M56.3M73.3M86KShares out (diluted)Shares
$0.03$0.14$0.04$1.30$1.79$0.86$0.74$0.79$0.77$0.43$88.54Revenue / shareRev/sh
$-0.45$-0.35$-0.77$-3.63$-2.36$-1.35$-1.83$-1.21$-2.32$-3.17$-3158.16EPS (diluted)EPS
$-0.35$-0.39$-0.32$-3.63$-0.76$-1.16$-1.17$0.02$-2.27$-3.31$-3139.42Owner earnings / shareOE/sh
$-0.35$-0.39$-0.32$-3.64$-0.77$-1.16$-1.20$-0.03$-2.31$-3.32$-3157.48Free cash flow / shareFCF/sh
$0.00$0.00$0.00$0.01$0.02$0.00$0.04$0.06$0.07$0.04$46.52Cap. spending / shareCapex/sh
$0.44$0.25$0.54$0.53$0.96$4.27$1.72$4.56$5.98$4.18$2679.94Book value / shareBVPS

The diluted share count moved ×1/4.43 into 2019 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×2.24 into 2021 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Share counts before 2024 are restated ×1.5 for a stock split, so per-share figures sit on one basis.

The diluted share count moved ×1/851.77 into TTM — shares retired, 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-yr5-yr
Revenue / share+32.4%/yr−24.9%/yr
Capital spending / share+38.5%/yr+19.0%/yr
Book value / share+28.4%/yr+34.1%/yr

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

  • License and Collaboration Agreement-56.5%
    “License and collaboration agreement revenues decreased by $21.8 million, to $16.7 million in 2025 compared to $38.5 million for 2024. This decrease was primarily attributable to recognition of remaining deferred revenue related to the Company’s 2023 agreement for the license of YUTIQ® product rights in the second quarter of 2025.”
    ✓ figure matches the filed record

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked. Share counts on the current split basis.

Share count
73Mpeak FY2025
ROIC
−94%low FY2016

Owner earnings vs. net income

Owner earningsNet income

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

($242M)owner earningsvs.($232M)net incomelow FY2025

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 earned ($242M) of owner earnings, the operating cash left after the $2M it takes just to hold its position. It put $971K more into growth; free cash flow, after that spending, was ($243M).

FY2025FY2024FY2023FY2022FY2021
Reported net income($232M)($131M)($71M)($102M)($58M)
Depreciation & amortizationnon-cash charge added back+$2M+$2M+$464K+$396K+$311K
Stock-based compensationreal costnon-cash, but a real cost+$28M+$37M+$12M+$14M+$7M
Working capital & othertiming of cash in and out, other non-cash items−$38M−$34M+$60M+$23M+$562K
Cash from operations($240M)($126M)$2M($65M)($50M)
Maintenance capital expenditurethe spending needed just to hold position and volume−$2M−$2M−$464K−$396K−$156K
Owner earnings($242M)($128M)$1M($65M)($50M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still−$971K−$3M−$3M−$2M
Free cash flow($243M)($130M)($2M)($67M)($50M)
Owner-earnings marginowner earnings ÷ revenue-773%-295%3%-158%-136%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $2M, roughly its depreciation, the rate its assets wear out). The other $971K of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. 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 $28M), owner earnings is nearer ($270M).

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?

  • Does not cover its interest
    Operating income ($243M) ÷ interest expense $33K
    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.

  • Net cash
    Cash $102M + ST investments $204M − debt $29M
    What this means

    Cash and short-term investments exceed every dollar of debt by $277M, 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.

  • Not enough data
    What this means

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

Is it a good business?

  • Below average through the cycle
    8-yr median, range -309%–-49%; -82% latest = NOPAT ($192M) ÷ invested capital $234M
    Industry peers: median -16%
    What this means

    The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 8 years (it ran -82% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.

  • Consumes cash through the cycle
    10-yr median margin, range -1014%–3%; latest ($242M) = operating cash ($240M) − maintenance capex $2M
    Industry peers: median -43%
    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 -773% of revenue this year, a -279% median across 10 years. Treating stock comp as the real expense it is (less $28M of SBC) leaves ($270M).

  • Loss, and burning cash
    Net income ($232M) · cash from operations ($240M)
    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?

  • Not enough data
    What this means

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

  • Investing or harvesting? 1.42×
    Expanding
    Capex $3M ÷ depreciation $2M
    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 · 2 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 · $31M
    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× · 8.88×
    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 Pass
    Debt ≤ working capital · $29M vs $292M 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 (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 $-1.72/share (latest year $-2.77), the averaged base the calculator's gate runs on, and book value is $3.65/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, 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.

  • Return on capital ≥ 15% 0 of 5 yrs
    What this means

    A moat shows up as a high return on invested capital that holds year after year, not one good vintage.

  • Operating margin −826% → −425% (3-yr avg ends)
    What this means

    Through the cycle the operating margin widened — about −826% early to −425% lately, median −246% — pricing power intact or improving.

  • Reinvestment, incremental ROIC
    What this means

    The reinvested base moved too little against the change in profit to read a reliable return on it here — the figure would be a small-denominator artifact, not a moat. Judge this one on the owner-earnings record and the cash it returns instead.

  • Worst year 2016 · −1344.1% op. margin
    What this means

    Operations went underwater in 2016, understand why before trusting the good years.

  • How management talks about it Promotional
    What this means

    The record is compounding, but the filing leans on a promoter’s vocabulary rather than the per-share, return-on-capital terms an owner uses. The results back the talk here; the register is still worth noting.

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$250M
  • Cash & short-term investments$223M
  • Inventory$1M
  • Other current assets$26M
Current liabilities$37M
  • Accounts payable$19M
  • Other current liabilities$19M
Current ratio6.66×all current assets ÷ what's due · Graham looked for 2×
Quick ratio6.63×stricter: inventory excluded
Cash ratio5.94×strictest: cash alone against what's due
Working capital$212Mthe cushion left after near-term bills
Cash runway0.8 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate
Revenue, latest quarter vs. a year ago−97.2%the freshest read on whether the business is still growing
Current ratio, recent quarters4.7× → 6.7×
Deeper floors
Tangible book value$230Mequity stripped of goodwill & intangibles
Net current asset value$192MGraham's net-net: current assets less all liabilities
Debt incl. operating leases$22M$22M 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 yearPay, as filed“Actually paid”Owner earnings
2023$3.7M$23.2M$1M
2023$2.9M$12.9M$1M
2024$6.0M−$3.6M($128M)
2025$5.6M$14.0M($242M)
2025$5.6M$14.0M($242M)

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 ownership5.1%

    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$28M

    The slice of the business handed to employees in shares this year, 89% 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, 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, Life Sciences Tools & Services

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.

CompanyRevenueGross marginOp. marginROICOwner earn. margin
PACBPacific Biosciences of California Inc.$160M38%-146.8%-51%-88%
LABStandard BioTools Inc.$85M50%-63.7%-28%-43%
FEIMFrequency Electronics Inc.$63M26%-8.6%-6%2%
AEHRAehr Test Systems$59M39%-11.0%-13%-13%
SIShoulder Innovations Inc.$47M77%-55.6%-16%-67%
SSIISS Innovations International Inc.$42M27%-149.0%-86%-156%
EYPTEyePoint Inc.$31M-243.5%-161%-276%
OPTXSyntec Optics Holdings Inc.$28M23%-1.9%-3%1%
Group median-59.6%-22%-55%
IV

The price

What a price has to assume.

What the price implies

reverse-DCF

EyePoint 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.

$
The assumptions

Revenue, delivered0%/yr’20→’25

Enter a price to run it.

Owner earnings it must reach
Margin the price demands
Owner-earnings margin today−3566%

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.

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

Manual order: ← EYE its page in the Manual EZPW →

Industry order: ← EXAS the Life Sciences Tools & Services chapter FLGT →