EyeGene (KOSDAQ:185490) Is In A Good Position To Deliver On Growth Plans

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. For example, although Amazon.com made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. But while history lauds those rare successes, those that fail are often forgotten; who remembers Pets.com?

So should EyeGene (KOSDAQ:185490) shareholders be worried about its cash burn? In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. The first step is to compare its cash burn with its cash reserves, to give us its 'cash runway'.

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How Long Is EyeGene's Cash Runway?

A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. As at September 2025, EyeGene had cash of ₩26b and no debt. Looking at the last year, the company burnt through ₩6.4b. So it had a cash runway of about 4.1 years from September 2025. There's no doubt that this is a reassuringly long runway. Depicted below, you can see how its cash holdings have changed over time.

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How Well Is EyeGene Growing?

EyeGene managed to reduce its cash burn by 68% over the last twelve months, which suggests it's on the right flight path. Pleasingly, this was achieved with the help of a 26% boost to revenue. We think it is growing rather well, upon reflection. In reality, this article only makes a short study of the company's growth data. You can take a look at how EyeGene has developed its business over time by checking this visualization of its revenue and earnings history.

How Hard Would It Be For EyeGene To Raise More Cash For Growth?

There's no doubt EyeGene seems to be in a fairly good position, when it comes to managing its cash burn, but even if it's only hypothetical, it's always worth asking how easily it could raise more money to fund growth. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn.

EyeGene's cash burn of ₩6.4b is about 15% of its ₩43b market capitalisation. As a result, we'd venture that the company could raise more cash for growth without much trouble, albeit at the cost of some dilution.

Is EyeGene's Cash Burn A Worry?

It may already be apparent to you that we're relatively comfortable with the way EyeGene is burning through its cash. For example, we think its cash runway suggests that the company is on a good path. Its weak point is its cash burn relative to its market cap, but even that wasn't too bad! After taking into account the various metrics mentioned in this report, we're pretty comfortable with how the company is spending its cash, as it seems on track to meet its needs over the medium term. An in-depth examination of risks revealed 2 warning signs for EyeGene that readers should think about before committing capital to this stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.