ALLURION TECHNOLOGIES, INC. Annual Report Summary

I’ve put together this guide to help you understand Allurion Technologies’ performance. My goal is to translate complex financial filings into plain English so you can decide if this company fits your investment strategy.

1. What does this company do?

Allurion is a medical device company focused on weight loss. Their main product is the Allurion Balloon, a swallowable gastric balloon that stays in the stomach for four months before passing naturally. They pair this with a digital platform, the "Virtual Care Suite," which uses AI to monitor patient progress via a connected scale and app. By avoiding the risks and high costs of traditional surgery, Allurion targets people with a BMI between 27 and 40 who want to avoid invasive procedures.

2. Financial Performance & Health

The company is currently in a "survival and scale" phase. For the year ending December 31, 2025, Allurion reported $65.2 million in revenue, a 12% increase driven by international growth. However, they remain unprofitable, with a loss of approximately $118 million.

• The "Burn": The company spent about $75 million on operations this year. They rely on outside funding to stay afloat and will need to raise more cash within the next 12 months to maintain operations.
• The "Dilution" Trap: The company frequently issues new shares to pay off debt or raise cash, which reduces your ownership percentage. In January 2025, they performed a 1-for-25 reverse stock split to meet exchange price rules. The total number of shares continues to fluctuate as the company converts debt into equity.
• Debt Shuffle: In late 2025, the company swapped $40 million of debt for preferred stock. While this lowered their interest payments, these preferred shares take priority if the company is ever sold or dissolved, placing common stockholders at the back of the line.

3. Major Wins and Challenges

• Wins: In February 2026, the FDA approved the Allurion Balloon for the U.S. market. This is a significant milestone, as the U.S. is the world’s largest market for weight-loss procedures. The company expects this to drive revenue growth through 2027.
• Challenges: Allurion is currently facing delisting procedures from the New York Stock Exchange because their market value dropped below $15 million. As of March 2026, the stock was moved to the OTC Pink Sheets, which can make it harder to trade and limits interest from large institutional investors.

4. Key Risks

• Market Liquidity: Trading on the OTC market makes it harder for the company to raise capital from traditional investors. It also creates wider price gaps, which can make it more expensive to buy or sell shares.
• Constant Fundraising: The company’s ongoing need for cash, evidenced by a $3.1 million private placement in February 2026, often creates a "ceiling" on the stock price as investors anticipate further share issuances.
• Internal Controls: The company reported "material weaknesses" in its financial reporting regarding complex debt accounting. This creates a risk of future financial restatements and can impact investor confidence.

5. Future Outlook

Allurion is at a crossroads. With FDA approval, they have a clear path to sell their product in the U.S. However, they are fighting for survival on the stock market and depend on raising cash to stay open. This is a high-stakes, speculative investment. You are betting that their U.S. sales growth—which they target at $100 million annually within three years—will be enough to pay off their $50 million in debt and stabilize the company before they run out of cash.

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Investor Note: Before making a decision, consider whether you are comfortable with the risks associated with OTC-traded stocks and the potential for further share dilution. This is a speculative play that relies heavily on the successful execution of their U.S. market launch.