Phathom Pharmaceuticals
PHAT on Nasdaq. Phathom Pharmaceuticals sells medicines for stomach acid to wholesalers and pharmacies. Market value $542m.
Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.
Should I look at this?
Not a fit for our list right now
Why it could be worth it
See Health care stocks that passed both tests
This is not advice. Check the numbers below.
For every $100 of what the whole company costs, it produced $-6.73 of spare cash in the past 12 months. A savings account pays about $4.
The filings do not give us enough to work this out.
The filings do not give us enough to work this out.
Quality score: 20 of 100. Price score: 0 of 100. Our list needs 70 on quality and 60 on price.
$6.78 a share, 4% above its 1-year low
Over the past year the price has ranged from $6.52 to $18.31.
Pays no dividend
Prices from Tuesday’s close (6 October).
Five years of cash, in billions
Spare cash swings from quarter to quarter here: a shortfall of $37 million in the past 12 months, a shortfall of $167 million in the year to December 2025.
| Revenue | |||||
| Revenue | n/a | $0 | $682,000 | $55m | $175m |
| Operating margin | |||||
| Operating margin | n/a | n/a | -24532.6% | -502.2% | -91.4% |
| Debt to equity | |||||
| Debt to equity | 1.24 | n/a | n/a | n/a | n/a |
| Shares outstanding | |||||
| Shares outstanding | 0.04bn | 0.06bn | 0.07bn | 0.07bn | 0.08bn |
Health checks
- Free cash flow positive0 of 5 years
- Accounting looks honest (Beneish)Warning signs
- Financial strength (Piotroski)3 of 9
- Profit backed by cash (accruals)No
- DebtUnknown
- Revenue growth, five yearsUnknown
- Buying back its own sharesNo, 94% more shares since 2021
The quarter to June 2026
How the business did, compared with the same quarter a year earlier.
- Sales: $74 million last quarter, up 88% on a year ago.
- A loss of $18 million, compared with a loss of $76 million a year ago.
- It loses 17 cents on each $1 of sales, compared with 236 cents a year earlier.
- Over the past 12 months it spent $37 million more cash than it brought in, compared with $275 million a year earlier.
- 16% more shares than a year ago. Each share owns a bit less of the company.
- It has $18 million more cash than debt. A year ago debt was $56 million more than cash.
- Sales grew on a year ago in each of the last 4 quarters.
| Quarter to | Amount |
|---|---|
| September 2024 | $16m |
| December 2024 | $30m |
| March 2025 | $29m |
| June 2025 | $40m |
| September 2025 | $50m |
| December 2025 | $58m |
| March 2026 | $58m |
| June 2026 | $74m |
| Quarter to | Amount |
|---|---|
| September 2024 | -$86m |
| December 2024 | -$74m |
| March 2025 | -$94m |
| June 2025 | -$76m |
| September 2025 | -$30m |
| December 2025 | -$21m |
| March 2026 | -$30m |
| June 2026 | -$18m |
From the company's quarterly reports to the SEC.
Dates
- Next results (estimated)
- n/a
- Last annual report (10-K)
- 26 February 2026
- Next quarterly (estimated, 10-Q)
- 29 October 2026
Who owns it
None of the long-term investors we follow own it. 162 funds in all.
Largest holders overall
- Frazier Life Sciences Management, L.P.$135m
- Medicxi Ventures Management (Jersey)$81m
- BlackRock$49mAdded
- Invesco$44mCut
- Carlyle Group$38m
- Millennium Management$37mCut
- Vanguard Capital Management$29mAdded
- GW&K Investment Management$24mAdded
- Franklin Resources$21mAdded
- NEA Management Company$21m
From 13F filings for the quarter ended 30 June 2026.
Big holders and activists
4 investors own more than 5%.
- James N. TopperPassive investorat least 8.6%0.0 pts(filed with 16 related holders)Since 1 November 2025
What they said
Item 4 is hereby amended to remove references to "FLSPOF" and the "FLSPOF Shares" from the first paragraph.
Read the filing - BlackRock, Inc.Passive investor5.5%+0.9 ptsSince 30 June 2026
- Carlyle Group Inc.Passive investorat least 4.9%(filed with 10 related holders)Since 28 August 2025
- Millennium Management LLCPassive investorat least 4.2%−1.1 pts(filed with 2 related holders)Since 30 June 2026
- Integrated Core Strategies (US) LLCPassive investorSold down below 5%Since 31 December 2025
- Frazier Life Sciences Public Overage Fund, L.P.Passive investorSold down below 5%Since 18 August 2025
- Jennison Associates LLCPassive investorSold down below 5%Since 31 May 2025
- PRUDENTIAL FINANCIAL INCPassive investorSold down below 5%Since 31 May 2025
| Holder | Stake | Since | |
|---|---|---|---|
James N. Topper Passive investor | at least 8.6%0.0 pts (filed with 16 related holders) | 1 November 2025 | What they saidItem 4 is hereby amended to remove references to "FLSPOF" and the "FLSPOF Shares" from the first paragraph. Read the filing |
BlackRock, Inc. Passive investor | 5.5%+0.9 pts | 30 June 2026 | |
Carlyle Group Inc. Passive investor | at least 4.9% (filed with 10 related holders) | 28 August 2025 | |
Millennium Management LLC Passive investor | at least 4.2%−1.1 pts (filed with 2 related holders) | 30 June 2026 | |
Integrated Core Strategies (US) LLC Passive investor | Sold down below 5% | 31 December 2025 | |
Frazier Life Sciences Public Overage Fund, L.P. Passive investor | Sold down below 5% | 18 August 2025 | |
Jennison Associates LLC Passive investor | Sold down below 5% | 31 May 2025 | |
PRUDENTIAL FINANCIAL INC Passive investor | Sold down below 5% | 31 May 2025 |
From Schedule 13D and 13G filings: anyone owning more than 5% must file one.
What insiders did
No insider bought shares on the open market in the last 12 months. 1 sold $7,079.
- Breedlove Robert CharlesPrincipal Accounting OfficerSold
- Date
- 3 November 2025
- Shares
- 524
- Price
- $13.51
- Value
- $7,079
| Date | Who | Did | Shares | Price | Value |
|---|---|---|---|---|---|
| 3 November 2025 | Breedlove Robert Charles Principal Accounting Officer | Sold | 524 | $13.51 | $7,079 |
From Form 4 filings: insiders must report trades in their own company's shares within two days.
Warning signs in its filings
Problems the company itself reported to the SEC, in its own words.
None of the warning signs we check for were found.
We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.
We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 26 Feb 2026, plus the 10-Q filed 30 Jul 2026 and 5 later 8-Ks.
A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.
What could go wrong
- It owes more than it owns on paper (negative equity). Often that's from borrowing to buy back shares.
- Its accounts show patterns that sometimes come before companies have to correct past results (Beneish score).
Whether the price already reflects the risks is what the deep dive is for.
The deep dive
Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.
- What the business is worth, as a range, and the margin of safety at today’s price
- Prices to start buying, buy, and buy hard
- The three things that would make this a mistake
- Every number footnoted to the filing it came from
Your first deep dive is free.
Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.