COMPASS Pathways (CMPS) AI Stock Analysis

• Market Cap: $705.62M
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: N/A
• EPS Growth: -21.62%
• Country: US
• Employees: 166
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -1.44
• Shares Outstanding: 96,017,044
• 10 Day Avg. Volume: 1,713,519
• 30 Day Avg. Volume: 1,298,266
• PEG Ratio: 1.91
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.14
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -1.71
• 1Y Price Target: $17.67
• Price Target Upside: 140.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): -1.84
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $8.00 ▲(8.84% Upside)

The score is held back primarily by weak financial performance (no revenue, escalating losses/cash burn, and reduced equity with higher leverage). Offsetting this, technicals are trending positively and the latest earnings call highlighted significant Phase III/regulatory progress and a stated cash runway into 2027, while valuation remains constrained by ongoing losses and no dividend.

Positive Factors

FDA IND acceptance for PTSD

FDA acceptance to start a late-stage PTSD trial structurally broadens COMP360’s development pathway beyond TRD, increasing potential addressable markets and regulatory engagement. This formally advances program diversification and long-term commercial optionality if approvals follow.

Phase III COMP005 positive outcome

A highly significant Phase III result materially derisks the lead program, supporting an accelerated regulatory filing path and strengthening the case for labeling and reimbursement discussions. This outcome improves probability of eventual market access and long-term revenue potential if approved.

Expanded Hercules loan facility extends runway

The milestone-based expansion to $150M and immediate draw materially extends funding runway, enabling continued development and commercial prep. Locked interest-only terms and longer maturity reduce near-term liquidity pressure and provide time to reach regulatory milestones.

Negative Factors

Zero revenue with widening losses

Persisting absence of revenue and rapidly increasing net losses reflect a pure development-stage profile reliant on capital markets. Over several quarters this erodes the path to self-sufficiency and raises the structural need for additional financing before commercialization.

High and rising cash burn

Consistently negative and rising operating cash flow signals structural cash consumption from trials and commercialization prep. Without near-term revenue, sustained high burn necessitates external funding, increasing dilution or debt reliance and constraining long-term strategic flexibility.

Deteriorated balance sheet and higher leverage

A sharp drop in equity and a near-1.0 debt-to-equity ratio reduce financial flexibility and amplify covenant and refinancing risks. Weaker equity cushions make future funding more dilutive or costly, limiting the company’s ability to invest or absorb setbacks during late-stage development.

COMPASS Pathways Business Overview & Revenue Model

Company Description

COMPASS Pathways plc operates as a mental health care company primarily in the United Kingdom and the United States. It develops COMP360, a psilocybin therapy that has completed Phase IIb clinical trials for the treatment of treatment-resistant depression; and is in Phase II clinical trials for the treatment of post-traumatic stress disorder. The company was formerly known as COMPASS Rx Limited and changed its name to COMPASS Pathways plc in August 2020. COMPASS Pathways plc was incorporated in 2020 and is headquartered in London, the United Kingdom.

How the Company Makes Money

COMPASS Pathways makes money primarily through the development and commercialization of its proprietary psilocybin therapy. The company generates revenue by conducting clinical trials and eventually getting regulatory approval to market its therapies. Once approved, COMPASS can license its therapies to healthcare providers or sell them directly to institutions and clinics specializing in mental health treatments. Key revenue streams include potential partnerships with pharmaceutical companies, research grants, and future sales of approved treatments. Strategic collaborations with academic institutions and mental health organizations also play a significant role in advancing their clinical programs and expanding market reach.

COMPASS Pathways Financial Statement Overview

Summary

Compass Pathways is in a typical biotechnology growth phase, characterized by high R&D expenses, no revenue, and reliance on financing. While the balance sheet indicates strong equity and manageable debt, the lack of revenue and significant losses in net income and cash flow highlight the company's ongoing development stage and associated financial risks.

Income Statement

Compass Pathways has consistently reported no revenue, highlighting its early-stage nature in the biotechnology sector. The company has faced widening losses with net income decreasing year-over-year, indicating increasing operational costs without revenue offset. The EBIT and EBITDA margins are negative, reflecting ongoing challenges in reaching profitability.

Balance Sheet

The balance sheet shows a strong equity position, with stockholders' equity covering total liabilities significantly, leading to a healthy equity ratio. However, the company's negative net income impacts the return on equity, and the presence of debt, although minor, adds to financial leverage. Overall, the balance sheet exhibits stability, but profitability remains a concern.

Cash Flow

The cash flow situation reflects high operational cash outflows, which is typical for a biotech firm in the R&D phase. The free cash flow is negative, and financing activities significantly contribute to cash reserves. While the company succeeds in securing financing, the reliance on financing for cash flow stability presents a potential risk.

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	0.00	0.00	0.00	0.00	0.00	-112.87K
EBITDA	-231.27M	-148.82M	-115.24M	-90.77M	-71.37M	-64.94M
Net Income	-237.32M	-155.12M	-118.46M	-91.50M	-71.74M	-60.80M
Balance Sheet
Total Assets	255.61M	213.67M	275.99M	197.29M	300.90M	203.46M
Cash, Cash Equivalents and Short-Term Investments	185.94M	165.08M	220.20M	143.21M	273.24M	190.33M
Total Debt	35.18M	32.19M	33.05M	1.93M	3.61M	0.00
Total Liabilities	218.02M	58.97M	50.24M	16.01M	16.49M	6.89M
Stockholders Equity	37.59M	154.69M	225.74M	181.28M	284.41M	196.56M
Cash Flow
Free Cash Flow	-161.21M	-119.19M	-97.44M	-106.05M	-68.08M	-41.51M
Operating Cash Flow	-161.21M	-119.19M	-97.38M	-105.45M	-67.75M	-41.38M
Investing Cash Flow	0.00	0.00	-64.00K	-596.00K	-334.00K	-628.00K
Financing Cash Flow	140.68M	63.82M	173.83M	1.04M	156.65M	194.16M

COMPASS Pathways Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.35
• 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 CMPS, the sentiment is Positive. The current price of 7.35 is above the 20-day moving average (MA) of 6.97, above the 50-day MA of 6.20, and above the 200-day MA of 4.94, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 57.97 is Neutral, neither overbought nor oversold. The STOCH value of 57.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMPS.

COMPASS Pathways Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TALK	65 Neutral	$656.00M	162.30	3.74%	―	18.37%	―
CMPS	58 Neutral	$705.62M	-2.74	-205.19%	―	―	-21.62%
INNV	56 Neutral	$793.74M	-45.35	-6.86%	―	12.48%	-9.28%
TOI	52 Neutral	$329.58M	―	-3407.86%	―	21.67%	16.74%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CCRN	48 Neutral	$300.08M	-18.96	-3.76%	―	-22.14%	-787.87%
AGL	46 Neutral	$422.87M	-1.31	-73.31%	―	5.21%	5.21%

COMPASS Pathways Corporate Events

COMPASS Pathways expands Hercules loan facility for runway

On January 5, 2026, COMPASS Pathways and certain subsidiaries entered into a third amendment to their loan and security agreement with Hercules Capital, expanding the facility to provide up to $150 million in term loans across five milestone-based tranches, including an immediate $50 million draw of which about $31.1 million will repay existing indebtedness. The amended agreement locks in an interest-only period until at least early 2029, sets a maturity date of January 5, 2031, and adds a mix of facility, end-of-term and prepayment charges, while maintaining collateralization over substantially all personal property and customary covenants and default provisions; the structure ties further borrowing capacity and certain financial covenants to the company’s achievement of clinical, FDA approval and commercial milestones for its lead product candidate, providing extended runway but also embedding performance and cash-balance requirements that will be closely watched by lenders and investors.

The most recent analyst rating on (CMPS) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on COMPASS Pathways stock, see the CMPS Stock Forecast page.

Compass Pathways Appoints Dr. Jeffrey Jonas to Board

On October 26, 2025, Compass Pathways announced the appointment of Dr. Jeffrey Jonas to its Board of Directors, effective October 29, 2025. Dr. Jonas, with over three decades of experience in pharmaceutical research and development, particularly in neuroscience, will also serve on the audit and risk and scientific committees. His extensive background in life sciences and leadership roles in various biopharmaceutical companies is expected to significantly benefit Compass Pathways as it advances its COMP360 program towards potential commercialization. As part of this transition, Thomas Lönngren will retire from the Board at the end of December 2025 after more than six years of service, during which he contributed to the company’s growth and strategic direction.

The most recent analyst rating on (CMPS) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on COMPASS Pathways stock, see the CMPS Stock Forecast page.