Is BioAge Labs (NASDAQ:BIOA) Weighed On By Its Debt Load?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. As with many other companies BioAge Labs, Inc. (NASDAQ:BIOA) makes use of debt. But is this debt a concern to shareholders?

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When Is Debt Dangerous?

Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. When we think about a company's use of debt, we first look at cash and debt together.

How Much Debt Does BioAge Labs Carry?

As you can see below, BioAge Labs had US$7.06m of debt at March 2025, down from US$12.8m a year prior. But on the other hand it also has US$320.5m in cash, leading to a US$313.5m net cash position.

How Strong Is BioAge Labs' Balance Sheet?

Zooming in on the latest balance sheet data, we can see that BioAge Labs had liabilities of US$23.7m due within 12 months and liabilities of US$6.94m due beyond that. On the other hand, it had cash of US$320.5m and US$1.46m worth of receivables due within a year. So it actually has US$291.3m more liquid assets than total liabilities.

This surplus liquidity suggests that BioAge Labs' balance sheet could take a hit just as well as Homer Simpson's head can take a punch. Having regard to this fact, we think its balance sheet is as strong as an ox. Succinctly put, BioAge Labs boasts net cash, so it's fair to say it does not have a heavy debt load! When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if BioAge Labs can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.

Check out our latest analysis for BioAge Labs

While it hasn't made a profit, at least BioAge Labs booked its first revenue as a publicly listed company, in the last twelve months.

So How Risky Is BioAge Labs?

By their very nature companies that are losing money are more risky than those with a long history of profitability. And in the last year BioAge Labs had an earnings before interest and tax (EBIT) loss, truth be told. Indeed, in that time it burnt through US$54m of cash and made a loss of US$71m. But the saving grace is the US$313.5m on the balance sheet. That kitty means the company can keep spending for growth for at least two years, at current rates. Even though its balance sheet seems sufficiently liquid, debt always makes us a little nervous if a company doesn't produce free cash flow regularly. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. For example, we've discovered 3 warning signs for BioAge Labs (1 can't be ignored!) that you should be aware of before investing here.

If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.

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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.