Share count
57Mpeak FY2020
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OMER, Omeros Corporation
Omeros Corporation is an innovative, commercial-stage biotechnology company that discovers and develops first-in-class protein and small-molecule therapeutics for large-market and orphan indications, with particular emphasis on complement-mediated diseases, cancers, and addictive or compulsive disorders.
Our complement-targeted product, product candidates, and therapeutic programs are primarily focused on diseases and disorders associated with the lectin and/or alternative pathways of complement.
A marketing authorization application ("MAA") for YARTEMLEA in TA-TMA has been submitted to the European Medicines Agency ("EMA") and is being reviewed under EMA's centralized review procedure, which allows review of a single marketing authorization application.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$74M
−34.0% YoY · 40% 5-yr CAGR
Vital signs · FY2025
Cash & investments $172M
Cash burn · annual $116M
Runway 1.5 yrs
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. 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 −527% through the cycle on a 98% 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 39% 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 −213%, above 15% in 0 of 9 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, 2011–2020
realized figures from each filing · older years to the left| 2011’11 | 2012’12 | 2013’13 | 2014’14 | 2015’15 | 2016’16 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| $5M | $6M | $2M | $539K | $14M | $42M | $65M | $30M | $112M | $74M | RevenueRevenue |
| — | — | 100% | — | 92% | 97% | 98% | 98% | 99% | 99% | Gross marginGross mgn |
| 182% | 182% | 989% | n/m | 262% | 105% | 80% | 173% | 36% | 67% | SG&A / revenueSG&A/rev |
| 524% | 530% | n/m | n/m | 358% | 122% | 86% | 301% | 95% | 146% | R&D / revenueR&D/rev |
| ($27M) | ($37M) | ($51M) | ($70M) | ($71M) | ($54M) | ($44M) | ($112M) | ($146M) | ($157M) | Operating incomeOp. inc. |
| −605.9% | −612.5% | n/m | n/m | −527.3% | −130.4% | −67.7% | −375.7% | −130.6% | −212.6% | Operating marginOp. mgn |
| ($29M) | ($38M) | ($40M) | ($74M) | ($75M) | ($67M) | ($53M) | ($127M) | ($84M) | ($138M) | Net incomeNet inc. |
| Cash flow & returns | ||||||||||
| ($26M) | ($35M) | ($30M) | ($58M) | ($65M) | ($52M) | ($36M) | ($104M) | ($60M) | ($100M) | Operating cash flowOp. cash |
| $435K | $320K | $302K | $317K | $209K | $300K | $551K | $962K | $2M | $2M | DepreciationDeprec. |
| $516K | ($708K) | $4M | $6M | $97K | $1M | $4M | $10M | $9M | $21M | Working capital & otherWC & other |
| $1M | $642K | $204K | $28K | $240K | $126K | $350K | $567K | $334K | $283K | CapexCapex |
| 27.4% | 10.7% | 12.8% | 5.2% | 1.8% | 0.3% | 0.5% | 1.9% | 0.3% | 0.4% | Capex / revenueCapex/rev |
| ($26M) | ($35M) | ($30M) | ($58M) | ($65M) | ($52M) | ($37M) | ($104M) | ($60M) | ($100M) | Owner earningsOwner earn. |
| −577.0% | −579.1% | n/m | n/m | −484.5% | −124.1% | −56.4% | −349.2% | −54.0% | −136.0% | Owner earnings marginOE mgn |
| ($27M) | ($35M) | ($30M) | ($58M) | ($65M) | ($52M) | ($37M) | ($104M) | ($60M) | ($100M) | Free cash flowFCF |
| −594.8% | −584.4% | n/m | n/m | −484.5% | −124.1% | −56.4% | −349.2% | −54.0% | −136.0% | Free cash flow marginFCF mgn |
| -219% | -242% | -5467% | — | -213% | -94% | -42% | -206% | -250% | -118% | ROICROIC |
| Balance sheet | ||||||||||
| $4M | $2M | $1M | $354K | $1M | $2M | $3M | $60M | $61M | $135M | Cash & investmentsCash+inv |
| $876K | $2M | $379K | $392K | $7M | $12M | $17M | $23M | $35M | $4M | ReceivablesReceiv. |
| — | — | $0 | $568K | $472K | $1M | $443K | $88K | $1M | $1M | InventoryInvent. |
| $2M | $3M | $2M | $5M | $6M | $3M | $7M | $6M | $5M | $4M | Accounts payablePayables |
| ($1M) | ($698K) | ($2M) | ($4M) | $561K | $11M | $11M | $17M | $31M | $997K | Operating working capitalOper. WC |
| $26M | $25M | $15M | $9M | $37M | $60M | $108M | $90M | $104M | $151M | Current assetsCur. assets |
| $19M | $8M | $12M | $18M | $16M | $16M | $26M | $37M | $55M | $37M | Current liabilitiesCur. liab. |
| 1.4× | 3.0× | 1.2× | 0.5× | 2.3× | 3.7× | 4.1× | 2.4× | 1.9× | 4.1× | Current ratioCurr. ratio |
| $27M | $27M | $17M | $11M | $49M | $67M | $116M | $96M | $137M | $181M | Total assetsAssets |
| $19M | $20M | $20M | $32M | $54M | $85M | $89M | $149M | $158M | $236M | Total debtDebt |
| $15M | $19M | $19M | $32M | $53M | $83M | $86M | $88M | $97M | $101M | Net debt / (cash)Net debt |
| -14.5× | -21.3× | -21.4× | -20.2× | -19.9× | -6.9× | -4.0× | -6.9× | -6.4× | -5.9× | Interest coverageInt. cov. |
| ($6M) | ($7M) | ($18M) | ($43M) | ($26M) | ($37M) | ($3M) | ($100M) | ($109M) | ($121M) | Shareholders’ equityEquity |
| 42.6% | 71.1% | 390.8% | n/m | 70.9% | 32.6% | 19.6% | 39.2% | 12.3% | 20.2% | Stock comp / revenueSBC/rev |
| Per share | ||||||||||
| 22.2M | 24.2M | 28.6M | 33.2M | 37.6M | 40.4M | 45.5M | 48.6M | 49.5M | 57.2M | Shares out (diluted)Shares |
| $0.20 | $0.25 | $0.06 | $0.02 | $0.36 | $1.03 | $1.42 | $0.61 | $2.26 | $1.29 | Revenue / shareRev/sh |
| $-1.29 | $-1.59 | $-1.39 | $-2.22 | $-2.00 | $-1.65 | $-1.17 | $-2.61 | $-1.71 | $-2.41 | EPS (diluted)EPS |
| $-1.18 | $-1.44 | $-1.05 | $-1.75 | $-1.74 | $-1.28 | $-0.80 | $-2.15 | $-1.22 | $-1.76 | Owner earnings / shareOE/sh |
| $-1.21 | $-1.46 | $-1.05 | $-1.75 | $-1.74 | $-1.28 | $-0.80 | $-2.15 | $-1.22 | $-1.76 | Free cash flow / shareFCF/sh |
| $0.06 | $0.03 | $0.01 | $0.00 | $0.01 | $0.00 | $0.01 | $0.01 | $0.01 | $0.00 | Cap. spending / shareCapex/sh |
| $-0.25 | $-0.27 | $-0.64 | $-1.28 | $-0.70 | $-0.93 | $-0.06 | $-2.06 | $-2.20 | $-2.11 | Book value / shareBVPS |
Per-share growththe realized rate an owner's share compounded
| 9-yr | 5-yr | |
|---|---|---|
| Revenue / share | +22.8%/yr | +29.1%/yr |
| Capital spending / share | −23.6%/yr | −5.0%/yr |
The record, charted
FY2011–2020Each measure over its full record; the current point and the worst year marked.
ROIC
−118%low FY2013
Gross margin
99%low FY2015
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
($100M)owner earningsvs.($138M)net incomelow FY2018
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 2020 the business turned a $138M loss into ($100M) of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.
| FY2020 | FY2019 | FY2018 | FY2017 | FY2016 | |
|---|---|---|---|---|---|
| Reported net income | ($138M) | ($84M) | ($127M) | ($53M) | ($67M) |
| Depreciation & amortizationnon-cash charge added back | +$2M | +$2M | +$962K | +$551K | +$300K |
| Stock-based compensationreal costnon-cash, but a real cost | +$15M | +$14M | +$12M | +$13M | +$14M |
| Working capital & othertiming of cash in and out, other non-cash items | +$21M | +$9M | +$10M | +$4M | +$1M |
| Cash from operations | ($100M) | ($60M) | ($104M) | ($36M) | ($52M) |
| Capital expenditurecash put back in to keep running and to grow | −$283K | −$334K | −$567K | −$350K | −$126K |
| Owner earnings | ($100M) | ($60M) | ($104M) | ($37M) | ($52M) |
| Owner-earnings marginowner earnings ÷ revenue | -136% | -54% | -349% | -56% | -124% |
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 $15M), owner earnings is nearer ($115M).
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.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Will it survive?
- No meaningful interest burdenLittle or no interest expense reported
What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
- Net cashCash $10M + ST investments $162M − debt $89M
What this means
Cash and short-term investments exceed every dollar of debt by $82M, 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? -1325dNegative, funded by othersDSO 54 + DIO 548 − DPO 1928 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?
- Not meaningful hereInvested capital ($42M) = debt $89M + equity ($121M) − cashIndustry peers: median -71%
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 -484%Consumes cash through the cycle10-yr median margin, range -10774%–-54%; latest ($116M) = operating cash ($116M) − maintenance capex $65KIndustry peers: median -130%
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 -157% of revenue this year, a -484% median across 10 years. Treating stock comp as the real expense it is (less $8M of SBC) leaves ($124M).
- Are earnings backed by cash? ($116M)Loss, and burning cashNet income ($3M) · cash from operations ($116M)
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?
- 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? 0.07×HarvestingCapex $65K ÷ depreciation $964K
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 MissRevenue ≥ $2B · $74M
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 PassCurrent ratio ≥ 2× · 2.76×
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 PassDebt ≤ working capital · $89M vs $138M 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 MissA 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 MissUninterrupted 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 $-1.61/share (latest year $-0.05), the averaged base the calculator's gate runs on, and book value is $-1.68/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, 2011–2020
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 9 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 −1459% → −240% (3-yr avg ends)
What this means
Through the cycle the operating margin widened — about −1459% early to −240% lately, median −527% — 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 2014 · −12988.5% op. margin
What this means
Operations went underwater in 2014, understand why before trusting the good years.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing A competitive risk, new this year
Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.
“If such data were improperly disclosed, accessed by unauthorized parties, incorporated into external AI training models, or otherwise misused, our intellectual property, competitive position, and reputation could be harmed.”
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, 2026Can 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$180M
- Cash & short-term investments$135M
- Receivables$7M
- Inventory$183K
- Other current assets$38M
Current liabilities$59M
- Debt due within a year$3M
- Accounts payable$5M
- Other current liabilities$52M
Current ratio3.03×all current assets ÷ what's due · Graham looked for 2×
Quick ratio3.03×stricter: inventory excluded
Cash ratio2.28×strictest: cash alone against what's due
Working capital$121Mthe cushion left after near-term bills
Debt due this year vs. cash$3M due · $135M cash
covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet
Current ratio, recent quarters3.4× → 3.0×
Deeper floors
Tangible book value($63M)equity stripped of goodwill & intangibles
Debt incl. operating leases$103M$12M of it operating leases
Deferred revenue$3Mcustomer 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 | Pay, as filed | “Actually paid” | Net income |
|---|---|---|---|
| 2023 | $7.7M | $8.7M | — |
| 2024 | $3.8M | $12.4M | — |
| 2025 | $4.2M | $17.6M | — |
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. Net income is the whole business's, as filed, for the same fiscal years.
- Insider ownership10.5%
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$8M
The slice of the business handed to employees in shares this year, 11% 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.
Inverting the record
Invert: instead of why Omeros Corporation is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2011–2020.
1 of the 3 tests turned up something to look into; the other 2 came back clean.
- Look hereDid debt outgrow the business?$19M → $236M
Debt rose from $19M to $236M while owner earnings went from about ($30M) to ($88M): the borrowing grew and the earnings that would carry it are not there now. Debt raised for buybacks or deals rather than growth is the kind that bites in a downturn.
And these came back clean
- Is it less profitable than it was?
- Did receivables and inventory outpace sales?
Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.
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 |
|---|---|---|---|---|---|
| ARCTArcturus Therapeutics Holdings Inc. | $82M | — | -107.8% | -71% | -65% |
| ADCTADC Therapeutics SA | $81M | 93% | -174.6% | — | -176% |
| ETONEton Pharmaceuticals Inc. | $80M | 60% | -6.8% | -108% | 2% |
| CTMXCytomX Therapeutics Inc. | $76M | — | -124.3% | -20% | -81% |
| OMEROmeros Corporation | $74M | 98% | -451.5% | -213% | -417% |
| BCYCBicycle Therapeutics plc | $73M | — | -561.0% | -1553% | -236% |
| ASMBAssembly Biosciences Inc. | $72M | — | -602.7% | -70% | -130% |
| VRDNViridian Therapeutics Inc. | $71M | 96% | -1815.9% | — | -1328% |
| Group median | — | 95% | -313.0% | -90% | -153% |
The price
What a price has to assume.
What the price implies
reverse-DCFOmeros Corporation 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, delivered36%/yr’15→’20
Enter a price to run it.
Owner earnings it must reach—
Margin the price demands—
Owner-earnings margin today−157%
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
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, "Omeros Corporation (OMER), the owner's record," https://ownerscorecard.com/c/OMER, data as of 2026-07-09.
Manual order: ← OMDA its page in the Manual OMF →
Industry order: ← OGN the Pharmaceuticals chapter ONC →