Allurion's Revenue Halves, Net Loss Widens Amidst Market Headwinds

TL;DR

**Allurion is bleeding cash and revenue, making it a risky bet for traders.**

AI Summary

Allurion Technologies, Inc. reported a significant decline in financial performance for the nine months ended September 30, 2025, with revenue plummeting to $11.617 million from $26.519 million in the prior year, a 56.2% decrease. The company posted a net loss of $22.720 million, a stark contrast to the net income of $2.410 million in the same period of 2024. Gross profit also fell sharply to $7.963 million from $18.970 million, indicating reduced sales efficiency. Operating expenses decreased to $31.826 million from $52.053 million, primarily due to reductions in sales and marketing and research and development. Cash and cash equivalents decreased from $15.379 million at December 31, 2024, to $6.136 million at September 30, 2025, highlighting liquidity concerns. The company's total liabilities remained high at $101.069 million, with a substantial stockholders' deficit of $82.928 million, worsening from $77.978 million at year-end 2024. Strategic outlook includes managing various conflicts of interest and successfully deploying cash from the Chardan Equity Facility.

Why It Matters

Allurion's substantial revenue decline and widening net loss signal significant operational challenges and could erode investor confidence, potentially impacting its stock price (ALURW). For employees, this financial downturn might lead to further restructuring or workforce reductions, creating job insecurity. Customers could face uncertainty regarding product availability or future innovation if the company struggles to maintain its financial footing. In the broader market, Allurion's struggles highlight the intense competitive pressures in the weight loss solutions sector, especially with the rise of GLP-1 drugs, and could affect valuations of similar medical device companies.

Risk Assessment

Risk Level: high — The company's cash and cash equivalents dropped from $15.379 million to $6.136 million in nine months, indicating rapid cash burn. A net loss of $22.720 million for the nine months ended September 30, 2025, compared to a net income of $2.410 million in the prior year, further underscores severe financial deterioration and high operational risk.

Analyst Insight

Investors should exercise extreme caution and consider divesting from Allurion Technologies, Inc. given the significant revenue decline of 56.2% and the substantial net loss of $22.720 million. The rapid depletion of cash reserves suggests potential liquidity issues, making it a high-risk investment.

Financial Highlights

revenue

$11.617M

total Debt

$101.069M

net Income

($22.720M)

eps

($1.53)

gross Margin

68.5%

cash Position

$6.136M

revenue Growth

-56.2%

Key Numbers

• $11.617M — Revenue (Decreased 56.2% from $26.519M in 2024 for the nine months ended September 30.)
• ($22.720M) — Net Loss (Compared to a net income of $2.410M in 2024 for the nine months ended September 30.)
• $6.136M — Cash and Cash Equivalents (Decreased from $15.379M at December 31, 2024, indicating significant cash burn.)
• ($82.928M) — Stockholders' Deficit (Worsened from ($77.978M) at December 31, 2024, reflecting accumulated losses.)
• $101.069M — Total Liabilities (Remains high, posing a significant financial burden for the company.)
• ($1.53) — Basic Net Loss Per Share (For the three months ended September 30, 2025, compared to $3.41 net income per share in 2024.)
• 7,767,027 — Common Shares Outstanding (As of September 30, 2025, an increase from 2,710,607 at December 31, 2024.)

Key Players & Entities

• Allurion Technologies, Inc. (company) — Registrant
• New York Stock Exchange (regulator) — Exchange where ALUR and ALUR WS are registered
• $11.617 million (dollar_amount) — Revenue for nine months ended September 30, 2025
• $26.519 million (dollar_amount) — Revenue for nine months ended September 30, 2024
• $22.720 million (dollar_amount) — Net loss for nine months ended September 30, 2025
• $2.410 million (dollar_amount) — Net income for nine months ended September 30, 2024
• $6.136 million (dollar_amount) — Cash and cash equivalents as of September 30, 2025
• $15.379 million (dollar_amount) — Cash and cash equivalents as of December 31, 2024
• $82.928 million (dollar_amount) — Total stockholders' deficit as of September 30, 2025
• Chardan Equity Facility (company) — Source of funding for Allurion

FAQ

Risk Factors

• Substantial Stockholders' Deficit [high — financial]: The company has a significant stockholders' deficit of $82.928 million as of September 30, 2025, which worsened from $77.978 million at December 31, 2024. This indicates that liabilities exceed assets, raising concerns about the company's long-term solvency and financial stability.
• Declining Revenue and Net Loss [high — financial]: Revenue for the nine months ended September 30, 2025, plummeted by 56.2% to $11.617 million from $26.519 million in the prior year. This decline, coupled with a net loss of $22.720 million (compared to a net income of $2.410 million in 2024), signals a severe deterioration in operational performance and profitability.
• Dwindling Cash Position [high — financial]: Cash and cash equivalents have decreased significantly from $15.379 million at December 31, 2024, to $6.136 million at September 30, 2025. This rapid cash burn rate raises concerns about the company's ability to fund its operations and meet its short-term obligations.
• Execution of Strategic Initiatives [medium — operational]: The company's strategic outlook involves managing various conflicts of interest and successfully deploying cash from the Chardan Equity Facility. Failure to effectively manage these complex situations could lead to operational disruptions and hinder the company's ability to achieve its financial goals.
• High Total Liabilities [high — financial]: Total liabilities remain substantial at $101.069 million. This high level of debt, in conjunction with the declining revenue and net losses, increases financial risk and could limit the company's flexibility for future investments or operations.
• Market Acceptance and Competition [medium — market]: The company operates in a competitive market. The significant decline in revenue suggests potential challenges in market acceptance of its products or services, or intense competition that is impacting sales volume and pricing power.

Industry Context

Allurion Technologies operates in the medical device or health technology sector, likely focusing on weight loss or related therapies. This industry is characterized by rapid innovation, significant R&D investment, and stringent regulatory oversight. Companies often face intense competition from established players and emerging startups, requiring continuous product development and effective market penetration strategies.

Regulatory Implications

As a medical technology company, Allurion is subject to rigorous regulatory scrutiny from bodies like the FDA. Compliance with manufacturing standards, clinical trial requirements, and post-market surveillance is critical. Any failure to adhere to these regulations can lead to product recalls, fines, and reputational damage, impacting financial performance.

What Investors Should Do

1. Monitor cash burn and liquidity closely.
2. Evaluate the sustainability of the business model given revenue decline.
3. Assess the impact of the stockholders' deficit.
4. Understand the terms and execution of the Chardan Equity Facility.

Glossary

Stockholders' Deficit

A situation where a company's total liabilities exceed its total assets, resulting in a negative equity value for shareholders. (Indicates the company has more debt than assets, a sign of financial distress.)

Cash Burn Rate

The rate at which a company is spending its cash reserves, typically used for companies that are not yet profitable. (Highlights the rapid decrease in cash, suggesting potential liquidity issues if not managed.)

Chardan Equity Facility

A financial arrangement, likely a line of credit or commitment from Chardan Capital Markets, allowing the company to draw down equity financing under certain conditions. (The company plans to deploy cash from this facility, making its successful utilization critical for operations.)

Year-Over-Year Comparison

The nine months ended September 30, 2025, show a dramatic downturn compared to the same period in 2024. Revenue has fallen by 56.2%, and the company has swung from a net income of $2.410 million to a net loss of $22.720 million. Gross profit margins have likely compressed, and operating expenses have been reduced, but the overall financial health has deteriorated significantly, evidenced by a shrinking cash position and a growing stockholders' deficit.

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 per share ALUR The New York Stock E
• $202.50 — ase 0.056818 shares of Common Stock for $202.50 per share ALUR WS The New York Stoc

Filing Documents

• alur-20250930.htm (10-Q) — 4550KB
• alur-ex10_4.htm (EX-10.4) — 59KB
• alur-ex31_1.htm (EX-31.1) — 19KB
• alur-ex32_1.htm (EX-32.1) — 10KB
• 0001193125-25-284630.txt ( ) — 20886KB
• alur-20250930.xsd (EX-101.SCH) — 2376KB
• alur-20250930_htm.xml (XML) — 5024KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Operations 2 Condensed Consolidated Statements of Comprehensive Income (Loss) 3 Condensed Consolidated Statements of Redeemable Preferred Stock and Stockholders' Deficit 4 Condensed Consolidated Statements of Cash Flows 5 Notes to Unaudited Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 40 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 54 Item 4.

Controls and Procedures

Controls and Procedures 54 PART II. OTHER INFORMATION 56 Item 1.

Legal Proceedings

Legal Proceedings 56 Item 1A.

Risk Factors

Risk Factors 56 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 58 Item 3. Defaults Upon Senior Securities 58 Item 4. Mine Safety Disclosures 58 Item 5. Other Information 58 Item 6. Exhibits 59

Signatures

Signatures 61 i SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, which are not purely historical, include, but are not limited to, statements regarding the plans, strategies and prospects, both business and financial, of Allurion Technologies, Inc. ("Allurion", the "Company", "we", "our", or "us"). Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors. Such risks, uncertainties and other factors could cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believes", "estimates", "expects", "projects", "target", "goal", "forecasts", "may", "will", "potential", "should", "would", "could", "future", "seeks", "plans", "predicts", "propose", "scheduled", "anticipates", "intends", or similar expressions. Such statements are based on the beliefs and assumptions of the management of Allurion. Although Allurion believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, Allurion cannot assure you that it will achieve or realize these plans, intentions or expectations. Forward-looking statements in this Quarterly Report on Form 10-Q include, but are not limited to, statements about the ability of Allurion to: realize the benefits expected from the busin

—FIN ANCIAL INFORMATION

PART I—FIN ANCIAL INFORMATION Ite m 1. Financial Statements. ALLURION TECHNOLOGIES, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CO NSOLIDATED BALANCE SHEETS (dollars in thousands) September 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 6,136 $ 15,379 Accounts receivable, net of allowance of doubtful accounts of $ 7,613 and $ 6,701 , respectively 3,983 7,134 Inventory, net 3,665 3,400 Prepaid expenses and other current assets 812 1,243 Total current assets 14,596 27,156 Property and equipment, net 1,514 2,469 Right-of-use asset 1,078 2,079 Other long-term assets 953 1,109 Total assets $ 18,141 $ 32,813 Liabilities and Stockholders' Deficit Current liabilities: Accounts payable $ 2,813 $ 6,572 Current portion of lease liabilities 471 869 Accrued expenses and other current liabilities 8,336 11,422 Total current liabilities 11,620 18,863 Warrant liabilities 5,718 4,567 Revenue Interest Financing liability 49,900 49,200 Earn-out liabilities 93 1,090 Convertible notes payable 32,240 35,710 Lease liabilities, net of current portion 682 1,344 Other liabilities 816 17 Total liabilities 101,069 110,791 Commitments and Contingencies (Note 16) Stockholders' deficit: Preferred stock, $ 0.0001 par value — 100,000,000 shares authorized as of September 30, 2025; and no shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively — — Common stock, $ 0.0001 par value — 1,000,000,000 shares authorized as of September 30, 2025; and 7,767,027 and 2,710,607 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 5 3 Additional paid-in capital 163,354 152,596 Accumulated other comprehensive (loss) income ( 1,360 ) ( 8,370 ) Accumulated deficit ( 244,927 ) ( 222,207 ) Total stockholders' deficit ( 82,9

View Full Filing

View this 10-Q filing on SEC EDGAR