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AbCellera Biologics (ABCL)
NASDAQ:ABCL
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AbCellera Biologics
(NASDAQ:ABCL)
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Rating:49Neutral
Price Target:
$3.50
▼(-2.51% Downside)
Action:ReiteratedDate:02/25/26
ABCL scores below average primarily due to weak financial performance (ongoing losses and cash burn) and bearish technical signals (below major moving averages with negative MACD). The earnings call provides partial support through strong liquidity and visible clinical catalysts, while valuation remains hard to assess favorably with negative earnings and no dividend.
Positive Factors
Strong Liquidity
A roughly $700M available liquidity buffer materially increases runway to execute multi-year clinical plans and fund elevated R&D. This reduces near-term financing pressure, preserves strategic optionality, and supports advancing internal programs over the next 2–6 months without immediate dilution.
Conservative Balance Sheet / Low Leverage
Low debt and conservative leverage provide financial flexibility for continued R&D and capital investments. This reduces refinancing and interest-rate risks, enabling the company to prioritize clinical and manufacturing spend without high fixed obligations that could constrain strategy in the medium term.
Advancing Pipeline & Clinical-Stage Transition
Concrete progression to randomized Phase II and additional IND-enabling plans signal a structural shift to value creation via internal assets. A deeper clinical pipeline and track record of discovery-to-clinic strengthens long-term upside potential and supports future milestone/royalty revenue streams if trials succeed.
Negative Factors
Ongoing Cash Burn & Negative Free Cash Flow
Sustained negative operating and free cash flow driven by higher R&D increases the risk that liquidity will be consumed over time. Even with current cash, continued burn reduces runway and may necessitate future financing or partnerships that could dilute shareholders or shift strategic priorities.
Revenue Volatility & One-Time Items
The recent revenue rebound is materially influenced by a one-time patent settlement, masking underlying partner-fee declines. As the firm pivots to internal programs, near-term recurring revenues may fall, creating weaker, less predictable cash inflows that pressure funding of development activities.
Clinical & Class Safety Risk on Lead Programs
Key scientific uncertainty for ABCL635 and an external OX40/OX40L safety event elevate regulatory and clinical risk. Negative or safety-challenged readouts could delay or halt programs, undermining the strategic shift to internal assets and materially affecting long-term revenue and partner interest.
AbCellera Biologics (ABCL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$963.86M
Dividend YieldN/A
Average Volume (3M)4.11M
Price to Earnings (P/E)―
Beta (1Y)1.59
Revenue Growth7.16%
EPS Growth3.95%
CountryUS
Employees596
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.03
Shares Outstanding303,160,500
10 Day Avg. Volume3,197,604
30 Day Avg. Volume4,111,451
Financial Highlights & Ratios
PEG Ratio0.64
Price to Book (P/B)1.06
Price to Sales (P/S)13.60
P/FCF Ratio-5.87
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue16.39
Enterprise Value/Gross Profit20.47
Enterprise Value/Ebitda-8.12
Forecast
1Y Price Target
$7.00Price Target Upside94.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.65
Revenue Forecast (FY)$29.89M
AbCellera Biologics Business Overview & Revenue Model
Company DescriptionAbCellera Biologics Inc. develops antibody discovery platform. Its full-stack, artificial intelligence-powered antibody discovery platform searches and analyzes the database of natural immune systems to find antibodies that could be developed as drugs. As of December 31, 2021, the company had 156 discovery programs that are either completed, in progress, or under contract with 36 partners. AbCellera Biologics Inc. has a research collaboration and license agreement with Eli Lilly and Company. The company was incorporated in 2012 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyAbCellera generates revenue primarily through its partnerships and collaborations with pharmaceutical companies, where it provides its antibody discovery services. The company typically enters into agreements that include upfront payments, research funding, and milestone payments based on the progress of drug development. Additionally, AbCellera may receive royalties on sales of products that result from these collaborations. The company's revenue model is heavily reliant on the successful advancement of its partners' therapeutic candidates, along with ongoing research contracts and collaborations that can provide continuous income streams.
AbCellera Biologics Key Performance Indicators (KPIs)
Any
Number of Discovery Partners
Indicates the breadth of AbCellera's collaborative network, highlighting potential for diverse innovation and revenue streams through partnerships.
Indicates the breadth of AbCellera's collaborative network, highlighting potential for diverse innovation and revenue streams through partnerships.
Data provided by:
The Fly
The FlyAbCellera Biologics Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful progress in AbCellera's strategic transition to a clinical-stage biotech: solid liquidity (~$700M available), completion of platform and manufacturing investments, successful nomination and clinic advancement of multiple internal candidates, and a roadmap of near- and mid-term clinical catalysts (notably ABCL635 Phase II readout in Q3 2026). At the same time, notable risks and near-term challenges were acknowledged: revenue growth in 2025 was materially influenced by a one-time legal settlement, research fee revenues are expected to decline as the company pivots to internal programs, R&D spending and cash burn remain elevated, and lead programs face clinical and class-specific safety uncertainties that could delay value realization. Overall, the positive operational and pipeline milestones and strong liquidity outweigh the near-term financial and clinical risks.Q4-2025 Updates
Positive Updates
Strong Liquidity Position
Approximately $561 million in cash, cash equivalents and marketable securities at quarter end, with an additional ~$140 million in committed government funding, yielding roughly $700 million in total available liquidity to execute the strategy.
Transition to Clinical-Stage Biotech and Pipeline Expansion
Successfully delivered on four corporate priorities for 2025 and exceeded one by nominating two development candidates. ABCL635 advanced into a randomized, double-blind, placebo-controlled Phase II study; ABCL575 is in Phase I; ABCL688 and ABCL386 are in IND‑enabling activities. More than 20 programs in discovery and an expectation to advance a fifth program into IND-enabling activities in H1 2026.
Near- and Mid-Term Clinical Catalysts
Management expects 2 clinical readouts in 2026 (including ABCL635 Phase II readout anticipated in Q3 2026) and plans for multiple catalysts in 2027 with an anticipated five clinical-stage programs by mid-2027.
Revenue Increase Year-over-Year
Total revenue for 2025 was $75 million versus ~$29 million in 2024, an increase of approximately 158.6%, driven largely by $36 million from a patent settlement with Bruker and $47 million in licensing and royalty payments (and $27 million from partnered program work).
Improved Net Loss and EPS Trend
Net loss improved to approximately $146 million in 2025 from about $163 million in 2024, representing a reduction in loss of ~10.4%. Reported loss per share was $0.49 (basic and diluted).
Increased R&D Investment to Support Internal Pipeline
Research and development expenses rose to $187 million in 2025, about $20 million higher than the prior year (~+12%), reflecting deliberate investment in advancing proprietary programs and internal capabilities.
Clinical Manufacturing and Capital Investments
Substantial completion of clinical manufacturing facility and continued PP&E investments to establish clinical manufacturing capabilities, intended to improve supply chain control, flexibility and IP protection; real estate and other financing actions provided $63 million in liquidity during the quarter.
Discovery-to-Clinic Track Record
Cumulative total of 104 partner-initiated programs with downstream participation; 19 molecules discovered by or via licensed technology have reached the clinic. Of the 104 programs, management reported roughly 48 programs currently actively progressing (~46%).
Negative Updates
Revenue Driven by One-Time Legal Settlement
A material portion of 2025 licensing and royalty revenue ($36 million) stemmed from the settlement of patent infringement claims against Bruker, indicating that the large year-over-year revenue increase is significantly influenced by a one-time item rather than recurring operational growth.
Declining Near-Term Research Fee Revenues
Management expects research fee revenues to trend lower as the company shifts focus from partner-initiated work to its internal pipeline, presenting potential near-term revenue headwinds.
Sustained Net Loss and Cash Burn
Operating activities used approximately $130 million in cash during 2025. The company remains loss-making with a net loss of ~$146 million and a loss per share of $0.49, highlighting ongoing cash consumption while advancing internal programs.
Rising R&D Spend
R&D expenses increased by approximately $20 million year-over-year (~+12%) to $187 million, reflecting higher investment requirements to advance internal candidates which increases near-term cash needs.
Clinical Risk on Lead Program ABCL635
Although target engagement biomarker data improved the estimated probability of success, management emphasized a key scientific risk: incomplete understanding of hot-flash biology. A negative Phase II readout (anticipated Q3 2026) could delay progression to a late-stage company and materially impact the strategy.
Safety Signal in OX40 Ligand Class
Recent external safety development (Kaposi sarcoma event) in the OX40/OX40L class has raised attention; while management downplayed the impact, such events could increase regulatory scrutiny or raise the bar for advancement of ABCL575 and related assets.
Reduced Reporting Transparency for Partner Programs
Management will stop reporting partner-initiated program starts on a quarterly basis in 2026, reducing the frequency of external visibility into one element of business activity and run-rate discovery work.
Company Guidance
AbCellera guided to two clinical readouts in 2026 — a Phase II top-line readout for ABCL635 expected in Q3 and a Phase I readout for ABCL575 by year-end — and plans to file INDs/CTAs and initiate Phase I/II studies for ABCL688 and ABCL386 in 2027, targeting five clinical-stage programs by mid‑2027 and advancing a fifth program into IND-enabling in H1 2026. Financially, it finished FY2025 with roughly $561M of cash, cash equivalents and marketable securities, about $700M of total available liquidity including ~$140M of committed government funding, $405M invested in short‑term securities, reported FY2025 revenue of $75M (≈$27M partner work, ≈$47M licensing/royalty including ~$36M from a Bruker settlement), R&D spend of $187M (up ≈$20M YoY), SG&A of ≈$83M, a net loss of ≈$146M (loss per share $0.49), operating cash usage of ≈$130M and $46M of other investment activity; operationally the company has started 104 partner-initiated programs (19 molecules to clinic), is actively leading/co-leading 14 programs, has completed work on 84 programs (34 of those being advanced by partners) and counts 48 programs actively progressing (37 discovery, 5 preclinical, 6 clinical).AbCellera Biologics Financial Statement Overview
Summary
Overall fundamentals are pressured: income statement and cash flow reflect sustained net losses and ongoing cash burn (2023–2025), despite a notable 2025 revenue rebound. The balance sheet is a relative strength with low leverage and financial flexibility, but recurring losses are weighing on equity and returns.Income Statement
Revenue has been highly volatile: strong growth in 2025 (to ~$75M) follows sharp declines in 2023–2024 from much higher levels in 2020–2022. Profitability has deteriorated materially—after healthy profits in 2020–2022 (positive net margins), the company has posted sizable net losses in 2023–2025 with deeply negative margins. The main positive is the rebound in top-line growth in the most recent year, but earnings power remains weak and unstable.34
Negative
Balance Sheet
Leverage remains conservative with low debt relative to equity across the period (debt-to-equity generally low), which provides financial flexibility. However, equity and total assets have trended down versus prior years, and returns on equity turned negative in 2023–2025 due to recurring losses. Overall, the balance sheet is a clear strength, but ongoing losses are gradually pressuring the capital base.70
Positive
Cash Flow
Cash generation has weakened significantly: operating cash flow and free cash flow were strongly positive in 2021–2022 but turned negative in 2023–2025, indicating cash burn. Free cash flow is negative in each of the last three years, which reduces financial runway unless revenue and profitability improve or external funding is used. A partial positive is that free cash flow has moved somewhat less negative in the latest year, but it remains firmly below zero.30
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 75.13M | 28.83M | 38.02M | 485.42M | 375.20M |
| Gross Profit | 75.13M | 28.83M | 38.02M | 418.99M | 329.69M |
| EBITDA | -155.42M | -204.15M | -192.16M | 260.17M | 239.15M |
| Net Income | -146.41M | -162.86M | -146.40M | 158.52M | 153.46M |
Balance Sheet | |||||
| Total Assets | 1.36B | 1.36B | 1.49B | 1.54B | 1.32B |
| Cash, Cash Equivalents and Short-Term Investments | 533.83M | 625.61M | 760.59M | 886.49M | 722.98M |
| Total Debt | 280.62M | 65.36M | 77.38M | 82.26M | 40.06M |
| Total Liabilities | 325.74M | 304.47M | 335.78M | 307.63M | 292.84M |
| Stockholders Equity | 966.90M | 1.06B | 1.15B | 1.23B | 1.03B |
Cash Flow | |||||
| Free Cash Flow | -174.07M | -186.95M | -121.38M | 204.70M | 186.13M |
| Operating Cash Flow | -131.29M | -108.56M | -43.88M | 277.36M | 244.58M |
| Investing Cash Flow | 87.75M | 121.41M | -221.11M | -352.63M | -332.25M |
| Financing Cash Flow | 14.08M | 12.77M | 10.36M | -1.63M | -3.89M |
AbCellera Biologics Technical Analysis
Neutral
3.59
Price Trends
3.63
Negative
4.10
Negative
3.99
Negative
Market Momentum
-0.10
Negative
55.36
Neutral
83.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABCL, the sentiment is Neutral. The current price of 3.59 is above the 20-day moving average (MA) of 3.23, below the 50-day MA of 3.63, and below the 200-day MA of 3.99, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 55.36 is Neutral, neither overbought nor oversold. The STOCH value of 83.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ABCL.
AbCellera Biologics Risk Analysis
AbCellera Biologics disclosed 102 risk factors in its most recent earnings report. AbCellera Biologics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AbCellera Biologics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $3.27B | -19.10 | -30.02% | ― | ― | -5.73% | |
56 Neutral | $2.28B | -14.85 | -28.57% | ― | -42.64% | -39.78% | |
54 Neutral | $4.87B | -18.21 | -25.31% | ― | ― | -64.91% | |
53 Neutral | $2.50B | -5.91 | -63.26% | ― | -8.75% | -8.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $1.78B | -5.74 | -129.32% | ― | 597.19% | 0.45% | |
49 Neutral | $963.86M | -6.50 | -14.47% | ― | 7.16% | 3.95% |
* Healthcare Sector Average
ABCL
AbCellera Biologics
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39.65%
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EWTX
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AbCellera Biologics Corporate Events
Business Operations and StrategyLegal Proceedings
AbCellera Secures Global Settlement and Patent License Deal
Positive
Dec 18, 2025
On December 18, 2025, AbCellera Biologics announced a global settlement and patent license agreement with Bruker Corporation that resolves all patent litigation between the two companies. Under the agreement, Bruker will pay AbCellera $36 million upfront and provide ongoing royalty payments on worldwide sales of Bruker’s Beacon Optofluidic platform products for the life of the licensed patents, strengthening AbCellera’s cash position and securing a continuing revenue stream tied to Bruker’s commercial success.
The most recent analyst rating on (ABCL) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on AbCellera Biologics stock, see the ABCL Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.