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ALLO, Allogene Therapeutics Inc.

Biotechnology consumer brand Unprofitable

A pharmaceutical business, where patents grant a temporary monopoly the pipeline must keep refilling.

Latest annual: FY2025 10-K

ALLO · Allogene Therapeutics Inc.

The business

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

Revenue · FY2025

−100.0% YoY

Vital signs · TTM, with 5-yr average

Revenue $5M 5-yr avg $23M

ROIC −36% 5-yr avg −51%

Free cash flow margin −2211% 5-yr avg −327579%

Next report By 11/13 · the 10-Q for the quarter ended late September · due within 45 days of period end · has filed ~43 days after · the wire records it on arrival

The business in brief

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

Situation: Unprofitable. No meaningful revenue yet; the record is the cash on hand against the burn.
What moves the needle: The pipeline against the patent cliff, and pricing. What decides it: whether new drugs replace those losing exclusivity, the odds in the clinical pipeline, and how durable pricing stays against payers and generics.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −44%, above 15% in 0 of 7 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, 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	TTMTTMJun 2026
								Income statement
$0	$0	$114M	$156K	$95K	$22K	$0	$5M	RevenueRevenue
—	—	65%	n/m	n/m	n/m	—	n/m	SG&A / revenueSG&A/rev
—	—	193%	n/m	n/m	n/m	—	n/m	R&D / revenueR&D/rev
($202M)	($258M)	($180M)	($336M)	($328M)	($273M)	($209M)	($180M)	Operating incomeOp. inc.
—	—	−157.9%	n/m	n/m	n/m	—	n/m	Operating marginOp. mgn
($185M)	($250M)	($257M)	—	($327M)	($257M)	($191M)	—	Pretax incomePretax
($185M)	($316M)	($182M)	($340M)	($327M)	($258M)	($191M)	($165M)	Net incomeNet inc.
								Cash flow & returns
($137M)	($115M)	($185M)	($221M)	($238M)	($200M)	($149M)	($102M)	Operating cash flowOp. cash
$5M	$7M	$11M	$14M	$14M	$14M	$12M	$12M	Depreciation & amortizationD&A
($3M)	$129M	($94M)	$22M	$9M	($8M)	($8M)	$14M	Working capital & otherWC & other
$51M	$66M	$21M	$5M	$2M	$694K	$386K	$402K	CapexCapex
—	—	18.8%	n/m	n/m	n/m	—	8.7%	Capex / revenueCapex/rev
($188M)	($181M)	($206M)	($226M)	($239M)	($201M)	($150M)	($103M)	Owner earningsOwner earn.
—	—	−180.8%	n/m	n/m	n/m	—	n/m	Owner earnings marginOE mgn
($188M)	($181M)	($206M)	($226M)	($239M)	($201M)	($150M)	($103M)	Free cash flowFCF
—	—	−180.8%	n/m	n/m	n/m	—	n/m	Free cash flow marginFCF mgn
$164M	($505M)	$164M	$106M	$163M	$76M	$96M	—	Investing cash flowInv. cash
$59M	$634M	$12M	$3M	$96M	$117M	$30M	—	Financing cash flowFin. cash
$86M	$13M	($9M)	($111M)	$21M	($8M)	($24M)	—	Change in cashΔ cash
-35%	-25%	-19%	-44%	-60%	-62%	-69%	-36%	ROICROIC
-29%	-31%	-20%	-51%	-64%	-61%	-65%	-38%	Return on equityROE
−29%	−31%	−20%	−51%	−64%	−61%	−65%	−38%	Retained to equityRetained/eq
								Balance sheet
$531M	$828M	$457M	$62M	$83M	$75M	$52M	$39M	Cash & investmentsCash+inv
$9M	$10M	$10M	$14M	$6M	$5M	$4M	$6M	Accounts payablePayables
$545M	$845M	$471M	$529M	$459M	$303M	$258M	$340M	Current assetsCur. assets
$33M	$94M	$48M	$54M	$37M	$36M	$33M	$32M	Current liabilitiesCur. liab.
16.5×	9.0×	9.8×	9.8×	12.4×	8.5×	7.9×	10.7×	Current ratioCurr. ratio
$56M	$119M	$123M	$113M	$99M	$86M	$73M	—	Net PP&ENet PP&E
$718M	$1.2B	$1.1B	$822M	$643M	$549M	$416M	$550M	Total assetsAssets
($531M)	($828M)	($457M)	($62M)	($83M)	($75M)	($52M)	($39M)	Net debt / (cash)Net debt
—	—	—	—	—	-1509.4×	-194.7×	-138.7×	Interest coverageInt. cov.
$89M	$148M	$126M	$155M	$131M	$127M	$123M	—	Total liabilitiesTotal liab.
$629M	$1.0B	$925M	$667M	$512M	$422M	$293M	$436M	Shareholders’ equityEquity
—	—	70.8%	n/m	n/m	n/m	—	808.0%	Stock comp / revenueSBC/rev
								Per share
101M	120M	136M	143M	157M	195M	221M	285M	Shares out (diluted)Shares
$0.00	$0.00	$0.84	$0.00	$0.00	$0.00	$0.00	$0.02	Revenue / shareRev/sh
$-1.83	$-2.63	$-1.34	$-2.38	$-2.09	$-1.32	$-0.87	$-0.58	EPS (diluted)EPS
$-1.86	$-1.50	$-1.52	$-1.58	$-1.52	$-1.03	$-0.68	$-0.36	Owner earnings / shareOE/sh
$-1.86	$-1.50	$-1.52	$-1.58	$-1.52	$-1.03	$-0.68	$-0.36	Free cash flow / shareFCF/sh
$0.50	$0.55	$0.16	$0.04	$0.01	$0.00	$0.00	$0.00	Cap. spending / shareCapex/sh
$6.22	$8.42	$6.81	$4.66	$3.26	$2.17	$1.33	$1.53	Book value / shareBVPS

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

	6-yr	5-yr
Capital spending / share	−61.1%/yr	−68.3%/yr
Book value / share	−22.7%/yr	−30.9%/yr

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 $191M loss into ($150M) 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	($191M)	($258M)	($327M)	($340M)	($182M)
Depreciation & amortizationnon-cash charge added back	+$12M	+$14M	+$14M	+$14M	+$11M
Stock-based compensationreal costnon-cash, but a real cost	+$38M	+$52M	+$66M	+$84M	+$81M
Working capital & othertiming of cash in and out, other non-cash items	−$8M	−$8M	+$9M	+$22M	−$94M
Cash from operations	($149M)	($200M)	($238M)	($221M)	($185M)
Capital expenditurecash put back in to keep running and to grow	−$386K	−$694K	−$2M	−$5M	−$21M
Owner earnings	($150M)	($201M)	($239M)	($226M)	($206M)
Owner-earnings marginowner earnings ÷ revenue	—	-913609%	-251841%	-144686%	-181%

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 $38M), owner earnings is nearer ($187M).

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? -194.7×

Does not cover its interest

Operating income ($209M) ÷ interest expense $1M

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? +$52M

Net cash, debt-free

Cash $52M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $52M, 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 -51%

What this means
The filing data didn't include the inputs for this check.
Owner-earnings margin ($150M)

Consumes cash

Owner earnings ($150M) = operating cash ($149M) − maintenance capex $386K

Industry peers: median -142%

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. Treating stock comp as the real expense it is (less $38M of SBC) leaves ($187M).
Are earnings backed by cash? ($149M)

Loss, and burning cash

Net income ($191M) · cash from operations ($149M)

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? —

Not enough data

What this means
The filing data didn't include the inputs for this check.
Investing or harvesting? 0.03×

Harvesting

Capex $386K ÷ depreciation & amortization as filed $12M

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 3 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 · $0

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× · 7.93×

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 (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 —

Uninterrupted dividends · no dividend line tagged in the data

What this means
An unbroken dividend was Graham's mark of durability. This record carries no dividends-paid line in any year — common for partnerships, whose distributions file under tags the chain doesn't read — so the criterion is withheld rather than judged on silence.
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 $-0.75/share (latest year $-0.55), the averaged base the calculator's gate runs on, and book value is $0.85/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 −107623% → −793400% (2-yr avg ends)

What this means
Through the cycle the operating margin slipped — about −107623% early to −793400% lately, median −344986% — competition or costs are biting in.
Worst year 2024 · −1241813.6% op. margin

What this means
Operations went underwater in 2024, understand why before trusting the good years.

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

Current Position

as of the latest quarter, Jun 30, 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$340M

Cash & short-term investments$39M
Other current assets$301M

Current liabilities$32M

Accounts payable$6M
Other current liabilities$26M

Current ratio10.72×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 ratio1.22×strictest: cash alone against what's due

Working capital$308Mthe cushion left after near-term bills

Cash runway0.4 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate

Current ratio, recent quarters9.3× → 10.7×

Deeper floors

Tangible book value$436Mequity stripped of goodwill & intangibles

Net current asset value$226MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$79M$79M of it operating leases

From the company's latest filing.

Peers, Biotechnology

The same industry, side by side on owner economics. Each column names the period it is read over, and a median resting on fewer than three years carries that count beside it; the group median at the foot is the line to read each figure against.

Company	Revenuelatest FY, USD	Gross marginmedian over the record	Op. marginmedian over the record	ROICmedian over the record	Owner earn. marginmedian over the record
AMGNAmgen Inc.	$36.8B	76%	36.1%	18%	35%
BCRXBioCryst Pharmaceuticals Inc.	$875M	95%	-113.1%	-142%3y	-91%
ADMAADMA Biologics Inc	$510M	-13%	-106.6%	-39%	-158%
ADPTAdaptive Biotechnologies Corporation	$277M	68%	-108.0%	-32%	-97%
BEAMBeam Therapeutics Inc.	$140M	—	-555.6%	-63%	-142%
AUTLAutolus Therapeutics PLC	$75M	-20%2y	-358.9%1y	-192%2y	-387%1y
ACOGAlpha Cognition Inc.	$10M	—	-221.7%1y	—	-200%1y
ALLOAllogene Therapeutics Inc.	$0	—	-157.9%1y	-44%	-181%1y
Group median	—	—	-135.5%	-44%	-150%

The price

What a price has to assume.

What the price implies

reverse-DCF

Allogene Therapeutics 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, delivered−93%/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−2211%

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 ALLO against another business →

Cite: Owner Scorecard, "Allogene Therapeutics Inc. (ALLO), the owner's record," https://ownerscorecard.com/c/ALLO, data as of 2026-08-17.

Manual order: ← ALLE its page in the Manual ALLY →

Industry order: ← ADPT the Biotechnology chapter ALVO →