**Delcath: Temporary Headwinds Are No Cause For Concern**
*Nov. 06, 2025 | 2:15 PM ET*
Delcath Systems, Inc. (DCTH) reported a weak third quarter, primarily due to seasonality and pricing headwinds. While these challenges impacted recent results, data suggests they are temporary and not indicative of the company’s long-term trajectory.
Despite the recent sequential decline in revenue causing significant pressure on Delcath’s stock, the company continues to expand its treatment sites and sales force. These strategic investments are expected to drive strong growth in 2026.
Additionally, ongoing clinical trials aim to expand Delcath’s addressable market, offering the potential for substantial upside over the coming years. Given the prospect of continued growth and strong margins once growth investments normalize, Delcath’s current valuation appears extremely low and attractive.
—
### About the Author: Richard Durant
Richard Durant leads Narweena, an asset manager focused on identifying market dislocations caused by misconceptions of businesses’ long-term prospects. Narweena seeks excess risk-adjusted returns by uncovering secular growth opportunities in markets protected by barriers to entry.
Durant’s research prioritizes company and industry fundamentals, striving to unveil unique investment insights. Narweena maintains a high-risk appetite with a long-term horizon, focusing on undervalued smaller-cap stocks where competitive advantages are not readily apparent.
The investment philosophy considers macro trends such as an aging population, low population growth, and stagnating productivity—factors that shape a novel opportunity set compared to historical precedents. While many industries might face stagnation or decline (potentially reducing competition), others may see rising costs and diseconomies of scale.
Furthermore, the economy’s increasing shift toward asset-light businesses and declining infrastructure investment needs has resulted in a large pool of capital chasing fewer investment opportunities. This dynamic tends to elevate asset prices and compress risk premia over time.
Richard Durant holds undergraduate degrees in engineering and finance from the University of Adelaide (Honors) and an MBA from Nanyang Technological University (Dean’s Honors List). He has also passed the CFA exams.
—
### Analyst’s Disclosure
I/we have a beneficial long position in the shares of DCTH, either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article.
—
### Seeking Alpha’s Disclaimer
Past performance is no guarantee of future results. No recommendation or advice is given regarding the suitability of any investment for a particular investor. Views or opinions expressed may not reflect those of Seeking Alpha as a whole.
Seeking Alpha is not a licensed securities dealer, broker, US investment adviser, or investment bank. Our analysts are third-party authors, including both professional and individual investors, who may not be licensed or certified by any regulatory body.
—
**Recommended For You:**
[Related articles and stock analyses]
https://seekingalpha.com/article/4839454-delcath-temporary-headwinds-are-no-cause-for-concern?source=feed_all_articles