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1. Company Snapshot

1.a. Company Description

Allurion Technologies Inc.focuses on ending obesity with a weight loss platform to treat people who are overweight.Its platform, the Allurion Program, features swallowable and procedure-less intragastric balloon for weight loss (the Allurion Balloon) and offers access to AI-powered remote patient monitoring tools, a proprietary behavior change program, secure messaging, and video telehealth that are delivered by the Allurion Virtual Care Suite.


The company is headquartered in Natick, Massachusetts.

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1.b. Last Insights on ALUR

Allurion Technologies' recent performance faces challenges despite progress in its weight loss solutions. The company's Q3 2025 earnings report showed no Form 483 issued after a successful FDA Pre-Approval Inspection. However, its debt exchange transaction and $5 million private placement financing indicate efforts to strengthen its financial position. Partnerships, such as with ProSurg Medical in Brazil, expand its market reach. Recent publications demonstrating the efficacy of its Allurion Smart Capsule also support growth. According to Zacks, the medical products industry faces macro headwinds, but ALUR shows favorable fundamentals.

1.c. Company Highlights

2. Allurion Technologies' Q3 2025 Earnings: A Strategic Revamp

Allurion Technologies reported revenue of $2.7 million for the third quarter, reflecting the restructuring efforts to focus on accounts and distributors promoting metabolically healthy weight loss. The operating expenses decreased by 29% to $10.9 million compared to the prior year, while the operating loss narrowed by 22% to $9.6 million. Adjusted operating expenses were $8.4 million, down 42% from the previous year. The company's EPS came in at -$1.18, missing estimates of -$0.965.

Publication Date: Nov -24

📋 Highlights
  • FDA Approval Milestones: Pre-approval and Bioresearch Monitoring inspections passed with zero findings, advancing Smart Capsule approval.
  • Revenue & Cost Management: Q3 revenue $2.7M; operating expenses down 29% YoY to $10.9M, adjusted operating expenses down 42% to $8.4M.
  • Debt Restructuring: Exchanged debt for convertible preferred equity and secured private placement to strengthen balance sheet.
  • Drug-Eluting Balloon Collaboration: Partnering to develop a platform for delivering medications, supplements, and microbiome enhancers.
  • Long-Term Intragastric Balloon: 12-month Smart Capsule project aims to treat obesity and chronic diseases with sustained therapeutics release.

Strategic Developments and Future Plans

The company has made significant progress in the FDA approval process for the Allurion Smart Capsule, completing a pre-approval inspection with zero findings and a Bioresearch Monitoring inspection. Allurion is advancing its launch preparations internally and is exploring the development of a drug-eluting balloon in collaboration with its strategic partner, potentially enabling the delivery of medications, supplements, and microbiome enhancers. As management noted, "The company believes the Allurion program is the only solution for obesity management that has consistently demonstrated significant and immediate weight loss while maintaining or increasing muscle mass."

Financial Restructuring and Valuation

Allurion has strengthened its financial position through a transaction to exchange outstanding debt for convertible preferred equity and a private placement financing. With a stronger balance sheet, the company is better positioned to increase value for shareholders. The current valuation metrics indicate a P/S Ratio of 0.57 and an EV/EBITDA of -1.12. Analysts estimate revenue growth of 10.3% for next year, which may impact the stock's valuation.

Long-term Growth Prospects

The company is working on a longer-term intragastric balloon project, envisioning a platform where a patient swallows a Smart Capsule that remains in the stomach for 12 months, releasing therapeutics or gut microbiome enhancers. This project, combined with a drug elution approach, offers potential opportunities for treating various chronic diseases. With a retooling of its R&D pipeline and manufacturing capabilities, Allurion is poised for long-term success, pending successful execution and regulatory approvals.

3. NewsRoom

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Allurion Announces Initial Results on Combining the Allurion Program With Low-Dose Tirzepatide to Optimize Muscle Mass and GLP-1 Adherence

Nov -25

Source: businesswire.com

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New Peer-Reviewed Publication Demonstrates Superior Weight Loss and Improved Body Composition with the Allurion Smart Capsule Combined with Lifestyle Intervention Compared to Lifestyle Intervention Alone

Nov -20

Source: businesswire.com

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Allurion Announces Strategic Distribution Partnership with ProSurg Medical in Brazil to Pioneer New Approach Focused on Metabolically Healthy Weight Loss

Nov -18

Source: businesswire.com

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4 Medical Product Stocks to Watch From a Challenging Industry

Nov -17

Source: zacks.com

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Allurion Technologies Inc. (ALUR) Q3 2025 Earnings Call Transcript

Nov -12

Source: seekingalpha.com

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Allurion Reports Third Quarter 2025 Financial Results and Provides Business Update

Nov -12

Source: businesswire.com

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Allurion Passes Critical FDA Milestones, Enters Into Transaction to Exchange All Outstanding Debt That Would Result in the Company Being Debt-Free, and Announces a $5 Million Private Placement Financing

Nov -11

Source: businesswire.com

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Allurion to Report Third Quarter 2025 Financial Results on November 12, 2025

Nov -06

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.20%)

6. Segments

Allurion Balloon

Expected Growth: 10.2%

Growing demand for non-invasive weight loss solutions, increasing prevalence of obesity, and rising awareness about health and wellness are expected to drive the growth of the Allurion Balloon market.

7. Detailed Products

Elipse Balloon

A non-invasive, swallowable weight loss device that helps patients lose weight and develop healthy habits.

Allurion Weight Loss Program

A comprehensive weight loss program that combines the Elipse Balloon with personalized coaching and support.

Virtual Care Platform

A digital platform that enables remote monitoring and support for patients undergoing weight loss treatment.

Data Analytics and Insights

A data analytics platform that provides insights and trends on patient outcomes and treatment efficacy.

8. Allurion Technologies Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Allurion Technologies Inc. is medium due to the presence of alternative technologies and products in the market.

Bargaining Power Of Customers

The bargaining power of customers for Allurion Technologies Inc. is high due to the concentration of buyers and the availability of alternative products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Allurion Technologies Inc. is low due to the presence of multiple suppliers and the lack of concentration in the supply market.

Threat Of New Entrants

The threat of new entrants for Allurion Technologies Inc. is medium due to the moderate barriers to entry and the presence of established players in the market.

Intensity Of Rivalry

The intensity of rivalry for Allurion Technologies Inc. is high due to the presence of multiple competitors and the high stakes in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight -146.20%
Debt Cost 3.95%
Equity Weight 246.20%
Equity Cost 3.11%
WACC 1.88%
Leverage -59.38%

11. Quality Control: Allurion Technologies Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SI-BONE

A-Score: 4.7/10

Value: 7.0

Growth: 5.8

Quality: 5.6

Yield: 0.0

Momentum: 6.0

Volatility: 4.0

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AxoGen

A-Score: 4.0/10

Value: 2.6

Growth: 7.1

Quality: 3.9

Yield: 0.0

Momentum: 8.0

Volatility: 2.7

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Stock-Card
Allurion Technologies

A-Score: 4.0/10

Value: 9.6

Growth: 3.2

Quality: 5.6

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

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Surmodics

A-Score: 3.7/10

Value: 7.2

Growth: 1.9

Quality: 5.3

Yield: 0.0

Momentum: 2.0

Volatility: 5.7

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Xtant Medical

A-Score: 3.0/10

Value: 6.2

Growth: 2.9

Quality: 3.9

Yield: 0.0

Momentum: 3.5

Volatility: 1.3

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Orthofix Medical

A-Score: 2.8/10

Value: 4.8

Growth: 1.3

Quality: 2.5

Yield: 0.0

Momentum: 3.0

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.7$

Current Price

1.7$

Potential

0.00%

Expected Cash-Flows