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Allogene Therapeutics Inc (ALLO)
NASDAQ:ALLO
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Allogene Therapeutics
(NASDAQ:ALLO)
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Rating:56Neutral
Price Target:
$2.50
▲(10.13% Upside)
Action:ReiteratedDate:03/13/26
The score is held back primarily by weak financial performance (near-zero revenue, large ongoing losses, and sustained cash burn), partially offset by improving technical momentum (price above key moving averages with positive MACD). Earnings-call updates provide a moderate positive due to funded runway and near-term clinical catalysts, while valuation remains constrained because profitability is negative and there is no dividend support.
Positive Factors
Relatively healthy balance sheet
Modest leverage and the reduction in total debt materially lower refinancing risk and give management financial flexibility to fund clinical programs. Over 2–6 months this supports execution of pivotal enrollment goals and reduces near-term liquidity pressure versus peers with higher leverage.
Extended cash runway into 2028
A multi-year runway funded through cash, escrow recovery and ATM activity materially reduces the probability of near-term dilutive financings and permits focused spending. This durable funding window allows completion of ALPHA-3 enrollment and prioritized programs without immediate capital-market dependency.
Differentiated off-the-shelf programs and footprint
Off-the-shelf CAR T with low-dose, in vivo expansion potential and a broad clinical footprint supports scalable, outpatient delivery if safety holds. Structurally this could lower delivery barriers vs autologous CAR T and is a durable competitive advantage if demonstrated in later-phase data.
Negative Factors
Sustained cash burn and negative FCF
Persistent operating losses and negative free cash flow materially increase reliance on capital markets, elevate dilution risk, and erode shareholder equity over time. Even with runway into 2028, multi-year cash burn makes funding subsequent programs or commercialization expensive and uncertain.
Reliance on surrogate MRD endpoint
Basing pivotal success on MRD clearance creates regulatory and commercial uncertainty because linkage to durable endpoints like EFS/OS is incomplete. Surrogate-driven decisions increase the chance of late-stage failure or limited uptake, undermining long-term revenue visibility and payor acceptance.
Competitive pressure shrinking addressable pool
Frontline adoption of bispecifics and other novel therapies can structurally shrink the target population for an allogeneic CAR T, lowering peak market size and commercial return. Competitive displacement risk raises the bar on efficacy/safety needed to secure durable market share.
Allogene Therapeutics (ALLO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$553.38M
Dividend YieldN/A
Average Volume (3M)5.10M
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue Growth-100.00%
EPS Growth37.10%
CountryUS
Employees226
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.17
Shares Outstanding243,777,920
10 Day Avg. Volume3,952,767
30 Day Avg. Volume5,099,919
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.03
Price to Sales (P/S)0.00
P/FCF Ratio-2.02
Enterprise Value/Market Cap0.96
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-14.30
Enterprise Value/Ebitda-2.94
Forecast
1Y Price Target
$8.71Price Target Upside283.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)-0.89
Revenue Forecast (FY)$13.85K
Allogene Therapeutics Business Overview & Revenue Model
Company DescriptionAllogene Therapeutics, Inc., a clinical stage immuno-oncology company, develops and commercializes genetically engineered allogeneic T cell therapies for the treatment of cancer. It develops, manufactures, and commercializes UCART19, an allogeneic chimeric antigen receptor (CAR) T cell product candidate for the treatment of pediatric and adult patients with R/R CD19 positive B-cell ALL. The company also develops ALLO-501, an anti-CD19 allogeneic CAR T cell product candidate that is in Phase I clinical trial for the treatment of R/R non-Hodgkin lymphoma; and ALLO-501A, which is in Phase I/II clinical trial for the treatment R/R large B-cell lymphoma or transformed follicular lymphoma. In addition, it is developing ALLO-715, an allogeneic CAR T cell product candidate that is in a Phase I clinical trial for treating R/R multiple myeloma; ALLO-605, an allogeneic CAR T cell product candidate for the treatment of multiple myeloma; ALLO-647, an anti-CD52 monoclonal antibody; CD70 to treat renal cell cancer; ALLO-819, an allogeneic CAR T cell product candidates for the treatment of acute myeloid leukemia; and DLL3 for the treatment of small cell lung cancer and other aggressive neuroendocrine tumors. The company has license and collaboration agreements with Pfizer Inc.; Servier; Cellectis S.A.; and Notch Therapeutics Inc., as well as clinical trial collaboration agreement with SpringWorks Therapeutics, Inc. It also has a strategic collaboration agreement with The University of Texas MD Anderson Cancer Center for the preclinical and clinical investigation of allogeneic CAR T cell product candidates. The company was incorporated in 2017 and is headquartered in South San Francisco, California.
How the Company Makes MoneyAllogene Therapeutics is a clinical-stage company and does not have recurring product sales from commercialized therapies. Its revenue has primarily been generated from collaboration and licensing arrangements, including payments related to partnered R&D activities (e.g., upfront payments, reimbursement for research services, and other collaboration-related revenue, as applicable under specific agreements). A significant factor historically contributing to reported revenue has been its collaboration arrangement with F. Hoffmann-La Roche Ltd and Genentech, Inc., under which Allogene has been eligible to receive payments tied to agreed-upon development activities and potential milestones; royalty streams would generally depend on future commercialization by the relevant parties, but the presence and magnitude of such royalties are not available here and may be contingent on future events. Outside of collaboration revenue, the company funds operations primarily through external financing (e.g., equity offerings and other capital-raising activities), which supports development but is not recorded as revenue.
Allogene Therapeutics Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presented multiple high-impact near-term catalysts (April MRD readout for ALPHA-3 and June proof-of-concept data for ALLO-329), a differentiated autoimmune approach with potential low/no lymphodepletion, and an extended cash runway into 2028 to support prioritized programs. However, the company faces meaningful financial losses, dependence on surrogate MRD endpoints with incomplete linkage to clinical outcomes, competitive headwinds from frontline bispecifics, and uncertainty around safety and small-sample interim analyses. On balance, the call emphasized execution readiness and funding to reach key inflection points while acknowledging important clinical and market risks.Q4-2025 Updates
Positive Updates
Upcoming Clinical Catalysts and Timelines
ALPHA-3 (SemiCell) interim futility MRD analysis planned for April 2026 on 24 patients (12 per arm); ALLO-329 proof-of-concept translational and early clinical signals expected in June 2026; additional clinical updates anticipated later in 2026.
Ambitious MRD Efficacy Target for ALPHA-3
Company anchored expectations around a 25% to 30% absolute delta in MRD clearance between SemiCell-treated and observation arms—a threshold management calls potentially practice-changing for first-line large B-cell lymphoma.
Broad Clinical Footprint for SemiCell
SemiCell is active in over 60 clinical sites across the U.S. and Canada with site start-up activities underway in Australia and South Korea, emphasizing community integration and outpatient delivery as a strategic advantage of the off-the-shelf model.
ALLO-329 Differentiated Autoimmune Program
ALLO-329 is a dual CD19/CD70 allogeneic CAR T designed with Dagger technology to enable in vivo expansion at low cell doses; study starts at 20 million CAR-T cells (significantly lower than competitors—autologous programs 5x–10x higher, other allogeneic programs up to ~50x higher); cohorts include cyclophosphamide-only and no lymphodepletion to test low/no lymphodepletion feasibility.
Extended Cash Runway into 2028
As of 12/31/2025 cash, cash equivalents, and investments were $258.3 million; company received an additional $23.7 million from escrow in February and raised $20.7 million YTD via ATM, extending runway into 2028 to support completion of ALPHA-3 enrollment.
Focused Prioritization and Capital Allocation
Management has prioritized resources behind ALPHA-3 and RESOLUTION (ALLO-329), highlighting discipline in advancing high-impact programs and explicitly linking cash runway to execution of these pivotal studies.
Clear Financial Guidance for 2026
Guidance provided: operating cash expense ~ $150 million for 2026; GAAP operating expenses ~ $210 million including estimated ~$35 million of non-cash stock-based compensation—giving investors visibility into near-term burn and planning assumptions.
Negative Updates
Ongoing and Material Net Losses
Net loss for FY2025 was $190.9 million (or $0.87 per share); Q4 2025 net loss was $38.8 million (or $0.17 per share), underscoring continued cash burn and reliance on capital markets to bridge to clinical inflection points.
Reliance on Surrogate Endpoint with Uncertain Translation
Management acknowledges limited data linking MRD clearance magnitude to clinical outcomes (EFS/OS); while targeting a 25%–30% MRD delta, company notes uncertainty in how MRD conversion will translate into interim EFS results and potential for many underlying assumptions.
Competitive Landscape and Potential Patient Pool Pressure
Emerging CD3 bispecifics moving into frontline therapy may reduce the proportion of MRD-positive patients and/or alter the eligible patient pool for SemiCell over time, creating market uncertainty and potential downward pressure on addressable population.
Safety and Outpatient Delivery Requirements
For SemiCell to achieve broad community uptake, it must demonstrate outpatient tolerability without rehospitalization; management plans to report only high-level safety in the interim update, leaving detailed safety profile unanswered until more data are released.
Significant Non-Cash Expenses and Impairments
FY2025 included $37.6 million of non-cash stock-based compensation and $2.4 million of non-cash impairment of long-lived assets; Q4 included $8.1 million non-cash stock-based comp—these items materially affect GAAP results and indicate dilutionary/expense pressures.
Small Sample Size at Interim MRD Readout
The April MRD futility assessment is based on only 24 patients (12 per arm), and company models ~20% spontaneous MRD clearance in observation arm—small n increases statistical uncertainty around observed deltas and interpretation of results.
Company Guidance
The company reiterated financial and clinical guidance: as of 12/31/2025 cash, cash equivalents and investments were $258.3M, plus an additional $23.7M received from escrow in February and $20.7M raised year-to-date via ATM, extending runway into 2028 (said to cover ALPHA-3 enrollment); Q4 R&D was $28.6M (including $2.5M non‑cash stock‑based compensation) and FY R&D was $150.2M (incl. $12.9M SBC); Q4 G&A was $13.8M (incl. $5.6M SBC) and FY G&A was $56.8M (incl. $24.7M SBC); net loss Q4 was $38.8M or $0.17/sh and net loss FY was $190.9M or $0.87/sh (incl. $37.6M SBC and $2.4M impairment). For 2026 they guided operating cash expense of ~ $150M and GAAP operating expenses of ~ $210M (including ~ $35M non‑cash SBC), excluding BD impacts. Key clinical milestones: an ALPHA‑3 interim futility MRD analysis in April on 24 patients (12 per arm) with an anchored target 25–30 percentage‑point absolute delta in MRD clearance, >60 active U.S./Canada sites (Australia and South Korea start‑ups underway) and modeled spontaneous MRD clearance of ~20% in the observation arm; and ALLO‑329 proof‑of‑concept translational and early clinical signals expected in June 2026 from the RESOLUTION Phase 1 (3+3) study starting at 20M CAR T cells in parallel cohorts with cyclophosphamide‑only and no lymphodepletion (noting competitor doses up to ~5–10x autologous and ~50x other allogeneic).Allogene Therapeutics Financial Statement Overview
Summary
Fundamentals remain weak for a development-stage biotech: revenue is near-zero and losses are large and persistent (FY2025 net loss ~$190.9M) with ongoing negative operating and free cash flow (FCF ~$-149.6M in 2025). The balance sheet is a relative positive with modest leverage and declining debt in 2025, but multi-year cash burn continues to erode assets/equity and implies ongoing financing dependence.Income Statement
The income statement remains very weak. Revenue is effectively minimal and has trended down sharply from 2021 to 2025 (falling from about $114.1M in 2021 to near-zero by 2025), leaving the company dependent on funding rather than commercial sales. Losses are persistent, with EBIT and net income negative every year, although the loss magnitude improved in 2025 versus 2024 (net loss narrowed from ~$257.6M to ~$190.9M). Profitability is still far from sustainable given the continuing large operating losses and lack of meaningful revenue base.18
Very Negative
Balance Sheet
The balance sheet is a relative bright spot, with modest leverage (debt-to-equity roughly 0.15–0.26 across 2022–2025). Total debt declined in 2025 versus 2024 (~$75.0M vs ~$90.8M), which helps reduce financial risk. The main concern is ongoing balance sheet erosion: stockholders’ equity and total assets have been trending down materially from 2020–2025, reflecting sustained losses and cash burn. Returns on equity are deeply negative each year, consistent with a business still in heavy investment mode.54
Neutral
Cash Flow
Cash flow quality is pressured by consistent cash burn. Operating cash flow and free cash flow are negative every year, and while 2025 showed improvement versus 2024 (operating cash flow improved from about -$200.3M to about -$149.2M), free cash flow remains meaningfully negative (~- $149.6M in 2025). Free cash flow has been volatile year-to-year (growth swinging between positive and negative), highlighting uncertainty in burn-rate trajectory. Cash usage broadly tracks the accounting loss (free cash flow roughly in line with net income), which indicates the losses are translating into real cash outflows rather than being mostly non-cash.23
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 0.00 | 22.00K | 95.00K | 156.00K | 114.09M |
| Gross Profit | -12.36M | 22.00K | 95.00K | -14.14M | 114.09M |
| EBITDA | -194.57M | -243.33M | -313.07M | -321.24M | -169.74M |
| Net Income | -190.89M | -257.59M | -327.26M | -340.41M | -182.05M |
Balance Sheet | |||||
| Total Assets | 415.90M | 548.71M | 642.84M | 821.58M | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 250.21M | 292.48M | 448.70M | 517.32M | 457.30M |
| Total Debt | 75.05M | 90.76M | 95.12M | 101.12M | 73.13M |
| Total Liabilities | 123.36M | 126.53M | 130.60M | 154.70M | 125.63M |
| Stockholders Equity | 292.54M | 422.18M | 512.23M | 666.88M | 925.20M |
Cash Flow | |||||
| Free Cash Flow | -149.63M | -200.99M | -239.25M | -225.71M | -206.26M |
| Operating Cash Flow | -149.25M | -200.30M | -237.73M | -220.52M | -184.81M |
| Investing Cash Flow | 95.56M | 75.69M | 163.29M | 106.16M | 163.66M |
| Financing Cash Flow | 30.16M | 116.67M | 95.69M | 2.95M | 11.96M |
Allogene Therapeutics Technical Analysis
Neutral
2.27
Price Trends
1.96
Positive
1.64
Positive
1.44
Positive
Market Momentum
0.14
Positive
49.90
Neutral
32.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLO, the sentiment is Neutral. The current price of 2.27 is below the 20-day moving average (MA) of 2.43, above the 50-day MA of 1.96, and above the 200-day MA of 1.44, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 49.90 is Neutral, neither overbought nor oversold. The STOCH value of 32.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALLO.
Allogene Therapeutics Risk Analysis
Allogene Therapeutics disclosed 78 risk factors in its most recent earnings report. Allogene Therapeutics 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
Allogene Therapeutics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | $553.38M | -1.58 | -57.07% | ― | -100.00% | 37.10% | |
52 Neutral | $472.86M | -1.30 | -113.81% | ― | ― | 20.71% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $186.05M | -1.20 | -85.20% | ― | ― | 46.68% | |
47 Neutral | $257.95M | 3.92 | 78.38% | ― | ― | ― | |
45 Neutral | $297.02M | -4.58 | 105.48% | ― | -3.91% | 37.89% |
* Healthcare Sector Average
ALLO
Allogene Therapeutics
2.27
0.58
34.32%
ABEO
Abeona Therapeutics
4.76
-0.40
-7.75%
FHTX
Foghorn Therapeutics
5.06
0.62
13.96%
TNYA
Tenaya Therapeutics
0.86
0.17
25.66%
NMRA
Neumora Therapeutics, Inc.
2.83
1.67
143.97%
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.