Is BioLife Solutions (NASDAQ:BLFS) A Risky Investment?

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. We note that BioLife Solutions, Inc. (NASDAQ:BLFS) does have debt on its balance sheet. But the more important question is: how much risk is that debt creating?

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When Is Debt A Problem?

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. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we examine debt levels, we first consider both cash and debt levels, together.

What Is BioLife Solutions's Net Debt?

The image below, which you can click on for greater detail, shows that BioLife Solutions had debt of US$11.8m at the end of June 2025, a reduction from US$21.1m over a year. But on the other hand it also has US$88.6m in cash, leading to a US$76.8m net cash position.

How Healthy Is BioLife Solutions' Balance Sheet?

According to the last reported balance sheet, BioLife Solutions had liabilities of US$28.3m due within 12 months, and liabilities of US$11.8m due beyond 12 months. On the other hand, it had cash of US$88.6m and US$9.17m worth of receivables due within a year. So it can boast US$57.7m more liquid assets than total liabilities.

This short term liquidity is a sign that BioLife Solutions could probably pay off its debt with ease, as its balance sheet is far from stretched. Succinctly put, BioLife Solutions boasts net cash, so it's fair to say it does not have a heavy debt load! There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine BioLife Solutions's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.

See our latest analysis for BioLife Solutions

In the last year BioLife Solutions wasn't profitable at an EBIT level, but managed to grow its revenue by 46%, to US$93m. Shareholders probably have their fingers crossed that it can grow its way to profits.

So How Risky Is BioLife Solutions?

Although BioLife Solutions had an earnings before interest and tax (EBIT) loss over the last twelve months, it generated positive free cash flow of US$9.9m. So although it is loss-making, it doesn't seem to have too much near-term balance sheet risk, keeping in mind the net cash. We think its revenue growth of 46% is a good sign. There's no doubt fast top line growth can cure all manner of ills, for a stock. When we look at a riskier company, we like to check how their profits (or losses) are trending over time. Today, we're providing readers this interactive graph showing how BioLife Solutions's profit, revenue, and operating cashflow have changed over the last few years.

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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.