Cognition Therapeutics (CGTX) AI Stock Analysis

• Market Cap: $90.92M
• Dividend Yield: N/A
• Average Volume (3M): 2.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.45
• Revenue Growth: N/A
• EPS Growth: 50.39%
• Country: US
• Employees: 25
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.06
• Shares Outstanding: 88,274,260
• 10 Day Avg. Volume: 2,171,776
• 30 Day Avg. Volume: 2,911,286
• PEG Ratio: 0.71
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.98
• Enterprise Value/Market Cap: 0.38
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -559.30
• Enterprise Value/Ebitda: -1.23
• 1Y Price Target: $3.00
• Price Target Upside: 191.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $1.00 ▼(-2.91% Downside)

The score is held down primarily by weak financial performance (minimal revenue, large losses, and significant cash burn) and a soft technical setup (below key moving averages with negative MACD). A low-debt balance sheet and a positive FDA interaction supporting progression toward a Phase 2b trial provide partial offsets, but not enough to materially lift the overall risk profile.

Positive Factors

Low Leverage / Balance Sheet

Very low reported debt provides structural financial flexibility versus many early-stage biotech peers, reducing near-term insolvency risk and giving management time to advance clinical programs. This durable strength helps sustain development activities while fundraising occurs.

Regulatory Engagement Advancing Phase 2b

A formal FDA Type C meeting that clarified clinically meaningful endpoints materially reduces later-stage development execution risk. This durable regulatory progress strengthens the company’s path to a Phase 2b trial in DLB, improving likelihood of efficient trial design and regulator alignment.

Published Phase 2 Data for Zervimesine

Peer-reviewed Phase 2 publication demonstrating safety and positive signals across behavioral, cognitive, functional, and movement domains provides durable scientific validation. This strengthens the biological rationale, de-risks later trials, and increases partnerability for out-licensing or collaborations.

Negative Factors

High Cash Burn

Sustained negative operating and free cash flow at this magnitude creates a structural reliance on external capital and compresses runway between financings. Over months this elevates execution risk for clinical programs unless burn is reduced or new non-dilutive funding is secured.

No Revenue; Widening Losses

Absence of commercial revenue and materially widening net losses reflect a business still in R&D spend mode. This structural lack of internal cash generation means long-term sustainability depends on future trial success or recurring outside funding, increasing investor and operational risk.

Reliance on Equity Financing / ATM

Frequent use of at-the-market equity facilities signals ongoing dependence on dilutive equity raises to fund operations. Over time this increases shareholder dilution risk and can limit strategic optionality, making long-term funding costs and capital structure durability key concerns.

Cognition Therapeutics Business Overview & Revenue Model

Company Description

Cognition Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of small molecule therapeutics targeting age-related degenerative diseases and disorders of the central nervous system and retina. Its lead product candidate is CT1812, a sigma-2 receptor antagonist, which is in Phase II clinical trial for the treatment of mild-to-moderate Alzheimer's disease, as well as has completed Phase I clinical trial to treat early-stage Alzheimer's disease; in Phase II clinical trial for the treatment of dementia with Lewy bodies (DLB); and in preclinical trial to treat dry age-related macular degeneration (AMD). The company is also developing CT2168 for the treatment of synucleinopathies, which include DLB and Parkinson's disease; and CT2074 to treat dry AMD. Cognition Therapeutics, Inc. was incorporated in 2007 and is headquartered in Purchase, New York.

How the Company Makes Money

Cognition Therapeutics makes money primarily through the development and eventual commercialization of its pharmaceutical products. The company generates revenue by advancing its drug candidates through clinical trials, aiming for successful regulatory approval, which can lead to product sales, licensing agreements, or partnerships with larger pharmaceutical companies. These collaborations can result in milestone payments, royalties, and upfront fees. Additionally, the company may receive government grants or public funding to support its research and development efforts in targeting Alzheimer's and other neurodegenerative diseases.

Cognition Therapeutics Financial Statement Overview

Summary

Overall fundamentals are weak due to minimal revenue, sizable and widening losses, and heavy negative operating/free cash flow (TTM ~-$29.5M). The main offset is a comparatively solid, low-debt balance sheet (very low debt-to-equity), which provides some flexibility despite ongoing burn.

Income Statement

The Income Statement remains very weak: the company reports essentially no revenue across annual periods and TTM (Trailing-Twelve-Months), while losses are sizable and widening versus prior years (TTM net loss of ~$28.0M vs ~$11.7M in 2021). Profitability is structurally negative (TTM gross profit is slightly negative and operating losses are large), indicating the business is still in a heavy investment/burn phase. A minor positive is that 2022 showed a one-time net profit, but results quickly reverted to large losses, limiting confidence in near-term earnings quality.

Balance Sheet

The Balance Sheet is a relative strength. Leverage is low (TTM debt-to-equity ~0.06; total debt only ~$0.38M against ~$36.5M of equity), providing financial flexibility versus many early-stage biotech peers. However, profitability is poor and equity is being worked down over time (equity has declined meaningfully from ~2021 levels), and returns on equity are deeply negative in recent periods, reflecting ongoing losses that could eventually require additional capital.

Cash Flow

Cash Flow generation is weak and consistently negative. Operating cash flow and free cash flow are materially negative in TTM (both about -$29.5M), and cash burn has generally increased versus earlier years (e.g., operating cash flow around -$3.6M in 2021). Free cash flow trends are volatile (TTM free cash flow growth is sharply negative), and cash flows are not yet supported by revenue, implying continued reliance on external funding if burn rates persist.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-61.00K	0.00	-252.00K	-235.00K	0.00	-98.00K
EBITDA	-27.73M	-33.68M	-25.51M	-21.13M	-10.73M	-5.99M
Net Income	-27.99M	-33.97M	-25.79M	757.00K	-11.72M	-10.07M
Balance Sheet
Total Assets	43.40M	30.23M	35.16M	50.42M	59.14M	7.12M
Cash, Cash Equivalents and Short-Term Investments	39.82M	25.01M	29.92M	41.56M	54.72M	5.19M
Total Debt	380.00K	814.00K	1.24M	1.48M	0.00	12.85M
Total Liabilities	6.87M	11.48M	10.69M	10.18M	7.86M	75.30M
Stockholders Equity	36.53M	18.75M	24.47M	40.25M	51.27M	-68.18M
Cash Flow
Free Cash Flow	-29.53M	-28.48M	-16.16M	-18.70M	-3.66M	-3.44M
Operating Cash Flow	-29.53M	-28.47M	-16.02M	-18.53M	-3.63M	-3.43M
Investing Cash Flow	-1.00K	-4.00K	-147.00K	-171.00K	-27.00K	-10.00K
Financing Cash Flow	47.35M	23.57M	4.52M	5.55M	53.20M	5.76M

Cognition Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGTX, the sentiment is Negative. The current price of 1.03 is below the 20-day moving average (MA) of 1.34, below the 50-day MA of 1.47, and below the 200-day MA of 1.19, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 29.04 is Positive, neither overbought nor oversold. The STOCH value of 10.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CGTX.

Cognition Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANRO	56 Neutral	$466.00M	-6.52	-45.01%	―	―	-7.87%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MIST	49 Neutral	$159.27M	-2.16	-260.65%	―	―	3.70%
CGTX	47 Neutral	$90.92M	-2.17	-109.73%	―	―	50.39%
ACET	46 Neutral	$71.17M	-0.37	-71.73%	―	―	25.89%
TNXP	43 Neutral	$207.68M	-0.02	-64.99%	―	-8.79%	81.36%
ELTX	43 Neutral	$137.29M	-2.31	―	―	―	17.36%

Cognition Therapeutics Corporate Events

Cognition Therapeutics Advances Zervimesine Toward Phase 2b Trial

On January 21, 2026, Cognition Therapeutics held a Type C meeting with the U.S. Food and Drug Administration to review plans for a proposed Phase 2b trial of its investigational drug zervimesine in patients with mild-to-moderate dementia with Lewy bodies, a neurodegenerative disease that currently has no FDA-approved therapies, and disclosed the completion of this meeting in a January 27, 2026 press release. The company’s engagement with regulators on clinically meaningful endpoints underscores its efforts to advance zervimesine—previously shown to be generally well tolerated and designed to counter toxic protein build-up in the brain—into later-stage studies, a step that could be strategically important for its clinical pipeline and for stakeholders watching progress in treatments for dementia with Lewy bodies and related CNS disorders.

The most recent analyst rating on (CGTX) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Cognition Therapeutics stock, see the CGTX Stock Forecast page.

Cognition Therapeutics Launches New $75M ATM Offering

On December 18, 2025, Cognition Therapeutics entered into a new Open Market Sale Agreement with Jefferies LLC to establish an at-the-market equity offering of up to $75 million of its common stock, under which Jefferies will act as sales agent or principal and receive a 3% commission on any shares sold. In conjunction with this new facility, the company terminated its prior at-the-market sales agreement with Cantor Fitzgerald and B. Riley Securities, effective December 18, 2025, leaving roughly $12.5 million of capacity unused under the 2022 program and signaling a shift of its equity capital-raising activities to the new Jefferies-managed structure without incurring termination penalties.

The most recent analyst rating on (CGTX) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Cognition Therapeutics stock, see the CGTX Stock Forecast page.