Alto Neuroscience, Inc. (ANRO) AI Stock Analysis

• Market Cap: $754.60M
• Dividend Yield: N/A
• Average Volume (3M): 2.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.10
• Revenue Growth: N/A
• EPS Growth: -7.87%
• Country: US
• Employees: 76
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.46
• Shares Outstanding: 31,066,336
• 10 Day Avg. Volume: 557,199
• 30 Day Avg. Volume: 2,303,174
• PEG Ratio: 0.65
• Price to Book (P/B): 3.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.92
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -965.87
• Enterprise Value/Ebitda: -9.83
• 1Y Price Target: $32.50
• Price Target Upside: 33.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -2.3
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $25.00 ▲(2.92% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

Score is held back primarily by weak financial performance (no revenue, large losses, and significant cash burn). Offsetting factors include strong technical momentum and a positive corporate event that improves funding capacity, while valuation remains constrained by unprofitability.

Positive Factors

Improved Funding Runway

The $120M PIPE and pro‑forma cash of roughly $275M materially reduce near‑term liquidity risk and fund the planned Phase 2b start and Phase 3 initiation for ALTO‑207. This financing supports continuity of pivotal development and lowers the immediacy of future capital needs, enabling management to focus on clinical execution over emergency fundraising.

Conservative Capital Structure

Low leverage relative to equity and rising total assets provide financial flexibility to sustain R&D investment. A conservative balance sheet improves resilience to clinical setbacks, allowing the company to absorb development volatility and prioritize program milestones without immediate solvency pressure.

Precision Psychiatry Pipeline

Alto's focus on biomarker-driven precision psychiatry and ALTO‑207 targets heterogenous neuropsychiatric populations where targeted selection can raise trial success rates. Structurally, precision approaches can improve development efficiency, create differentiated clinical evidence, and enhance commercial positioning if validated.

Negative Factors

No Revenue & Large Losses

The company remains entirely pre‑revenue with substantial operating losses, meaning enterprise value is fully contingent on clinical and regulatory success. Long‑term reliance on future approvals or commercialization creates binary outcome risk and requires continuing external financing until products generate sustainable revenue.

Accelerating Cash Burn

Worsening operating and free cash flow indicate accelerating cash consumption tied to R&D and trial activity. Persistent negative cash generation reduces optionality, forces periodic dilutive financings if timelines slip, and constrains the firm's ability to expand programs or absorb delays without materially increasing fundraising frequency.

Historical Balance-Sheet Strain

A history of negative equity and deeply negative ROE reflects past solvency pressure and dependence on external capital. Structurally, this pattern raises the likelihood of future dilution and can limit strategic flexibility, making long‑term investor returns highly sensitive to successful clinical outcomes and milestone delivery.

Alto Neuroscience, Inc. Business Overview & Revenue Model

Company Description

Alto Neuroscience, Inc. operates as a clinical-stage biopharmaceutical company that engages in the psychiatry drug development business. The company develops ALTO-100 for the treatment of patients with major depressive disorder (MDD) and post-traumatic stress disorder; ALTO-300, a small molecule melatonergic agonist and serotonergic antagonist with antidepressant properties to treat patients with MDD; and ALTO-101, a novel small molecule phosphodiesterase 4 inhibitor for the treatment of cognitive impairment associated with schizophrenia. It also develops ALTO-203, a novel small-molecule histamine H3 receptor inverse agonist to treat patients with MDD and higher levels of anhedonia, and ALTO-202, an investigational orally bioavailable antagonist of the GluN2B subunit of the NMDA receptor for the treatment of MDD. In addition, the company develops novel pharmacodynamically synergistic combinations and an AI-enabled biomarker platform that combine sources of information on patients brain activity and behavior to identify patients to respond to novel product candidates. Alto Neuroscience, Inc. was incorporated in 2019 and is based in Los Altos, California.

How the Company Makes Money

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Alto Neuroscience, Inc. Financial Statement Overview

Summary

Development-stage profile with $0 recurring revenue (2022–2025), large ongoing operating losses (EBIT about -$66.4M in 2025) and worsening cash burn (FCF about -$51.8M in 2025). Balance sheet is a relative strength with low debt (~$4.4M) versus equity (~$151.1M), but persistent losses imply continued funding/dilution risk.

Income Statement

The company is still firmly in development-stage mode with essentially no recurring revenue (revenue is $0 in 2022–2025, with only a small $0.2M in 2021). Losses have widened materially versus 2021 (net loss of about $63.2M in 2025 vs. $9.2M in 2021), and operating losses remain significant (EBIT of about -$66.4M in 2025). A modest positive is that losses improved slightly year-over-year from 2024 to 2025 at the net income line, but the overall trajectory shows rising spend and limited operating leverage given the lack of revenue.

Balance Sheet

The balance sheet looks comparatively stronger than the income statement. Leverage is low in the most recent year, with total debt of about $4.4M against stockholders’ equity of about $151.1M (low debt relative to equity). Total assets grew to about $184.7M in 2025 from $177.5M in 2024, suggesting continued funding capacity. Key risk: profitability is deeply negative, with return on equity around -42% in 2025, and the business previously had negative equity in 2021–2023, highlighting historical balance-sheet strain and reliance on external financing.

Cash Flow

Cash generation is weak and deteriorating, reflecting heavy R&D and operating spend. Operating cash flow and free cash flow are both meaningfully negative in 2025 (about -$51.8M each), worsening versus 2024 (operating cash flow about -$47.4M). Free cash flow growth is sharply negative in 2025, indicating accelerating cash burn. A relative positive is that cash outflow broadly tracks reported losses (free cash flow is close to net loss), but the sustained and increasing burn rate raises funding and dilution risk if revenue remains limited.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	210.00K
Gross Profit	-605.00K	0.00	-502.00K	-373.00K	-342.00K	65.00K
EBITDA	-59.42M	-66.36M	-68.61M	-34.56M	-27.37M	-9.04M
Net Income	-62.26M	-63.24M	-61.43M	-36.30M	-27.71M	-9.19M
Balance Sheet
Total Assets	147.01M	184.69M	177.54M	86.63M	50.85M	28.79M
Cash, Cash Equivalents and Short-Term Investments	137.82M	176.48M	168.23M	82.55M	48.34M	25.70M
Total Debt	27.52M	4.41M	16.94M	9.99M	82.11M	38.16M
Total Liabilities	35.45M	33.55M	26.08M	158.30M	89.26M	41.27M
Stockholders Equity	111.56M	151.14M	151.46M	-71.67M	-38.41M	-12.48M
Cash Flow
Free Cash Flow	-53.80M	-51.79M	-49.50M	-33.92M	-21.13M	-9.94M
Operating Cash Flow	-53.27M	-51.77M	-47.42M	-33.45M	-20.39M	-9.26M
Investing Cash Flow	-530.00K	-24.00K	-2.08M	-470.00K	-732.00K	-680.00K
Financing Cash Flow	9.94M	60.08M	135.69M	68.13M	43.79M	31.69M

Alto Neuroscience, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANRO, the sentiment is Positive. The current price of 24.29 is above the 20-day moving average (MA) of 20.41, above the 50-day MA of 17.95, and above the 200-day MA of 9.85, indicating a bullish trend. The MACD of 1.53 indicates Negative momentum. The RSI at 68.08 is Neutral, neither overbought nor oversold. The STOCH value of 77.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ANRO.

Alto Neuroscience, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRBP	57 Neutral	$168.67M	-1.38	-65.76%	―	―	-17.43%
ANRO	56 Neutral	$754.60M	-1.92	-45.01%	―	―	-7.87%
FBRX	56 Neutral	$343.99M	-3.77	-110.72%	―	―	77.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ELTX	50 Neutral	$223.70M	-3.08	-5657.87%	―	―	17.36%
MIST	49 Neutral	$143.94M	-2.78	-2372.68%	―	―	3.70%

Alto Neuroscience, Inc. Corporate Events

Alto Neuroscience Secures $120 Million Private Placement Financing

On March 16, 2026, Alto Neuroscience, Inc. entered into a securities purchase agreement for a private placement of 2.9 million common shares and pre-funded warrants for 3.1 million additional shares, at $20.00 per share or $19.9999 per warrant. The deal, led by Commodore Capital and joined by several biotech-focused investors, is expected to generate about $120 million in gross proceeds and expand Alto’s board to seven directors.

Alto announced that it intends to use the financing to advance ALTO-207, its fixed-dose pramipexole/ondansetron combination for treatment-resistant depression, through a planned Phase 3 trial and potential New Drug Application submission. The company expects to start a Phase 2b study in the first half of 2026, initiate Phase 3 in early 2027 and, pro forma for the transaction, estimates it would have held roughly $275 million in cash and equivalents as of February 28, 2026, strengthening its ability to complete pivotal development of ALTO-207.

The private placement is structured as a PIPE, with the securities sold in a transaction exempt from registration under U.S. securities laws and supported by a registration rights agreement for subsequent resale. Jefferies, BofA Securities, TD Cowen, Stifel, William Blair and Baird acted as placement agents, while Alto and the agents were advised by Cooley LLP and Latham & Watkins LLP, respectively, underscoring strong Wall Street backing for the company’s precision psychiatry strategy.

The most recent analyst rating on (ANRO) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Alto Neuroscience, Inc. stock, see the ANRO Stock Forecast page.