CervoMed (CRVO) AI Stock Analysis

• Market Cap: $43.21M
• Dividend Yield: N/A
• Average Volume (3M): 112.80K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.29
• Revenue Growth: -38.81%
• EPS Growth: -76.96%
• Country: US
• Employees: 15
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.84
• Shares Outstanding: 9,252,719
• 10 Day Avg. Volume: 143,994
• 30 Day Avg. Volume: 112,798
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.14
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 102.69
• Enterprise Value/Gross Profit: 102.69
• Enterprise Value/Ebitda: -1.23
• 1Y Price Target: $22.75
• Price Target Upside: 394.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $4.50 ▼(-2.17% Downside)

The score is held down primarily by weak financial performance—large and widening losses with accelerating cash burn and a shrinking equity base. Technicals also remain bearish with the stock below major moving averages and negative momentum. Offsetting these risks, recent FDA alignment and Phase 2b data provide positive clinical/regulatory catalysts, but valuation signals are limited due to negative earnings and no dividend.

Positive Factors

Regulatory Progress

FDA alignment on the Phase 3 design materially reduces regulatory uncertainty and enables execution of a global randomized trial in DLB. Over the coming months this structural clarity supports program planning, enrollment strategy, and increases the probability of an efficient approval pathway if trials succeed.

Clinical Proof Points

Consistent biomarker improvements in Phase 2b indicate target engagement and potential disease‑modifying effects. This durable scientific evidence strengthens the therapeutic rationale, de‑risks the asset vs. preclinical-only candidates, and supports advancement to Phase 3 and potential partnerships for a DLB indication with no approved therapies.

Low Financial Leverage

A debt‑free balance sheet reduces refinancing and interest expense risk, preserving strategic flexibility. For a clinical‑stage biotech facing costly development, low leverage allows more optionality in structuring equity, partnership or milestone financings without immediate solvency pressure, supporting sustained R&D investment.

Negative Factors

Accelerating Cash Burn

Worsening operating and free cash flow materially shortens runway and elevates the need for near‑term financing. That persistent negative cash generation increases dilution risk, can force hurried or costly capital raises, and may delay or constrain execution of pivotal trials and long‑term development plans.

Minimal Commercial Revenue

Very small revenue alongside large, expanding losses shows the company lacks a commercial revenue cushion. The business is dependent on clinical success or external funding to sustain operations; failure to monetize assets or secure deals would threaten continuity of development programs and long‑term viability.

Eroding Equity Base

Shrinking shareholders' equity reflects cumulative losses eroding the capital base, weakening balance sheet resilience. Over months this reduces negotiating leverage with partners and lenders, increases reliance on dilutive financings, and limits the company's ability to absorb trial setbacks or scale programs without external support.

CervoMed Business Overview & Revenue Model

Company Description

CervoMed Inc., a clinical-stage biotechnology company, engages in the development and commercialization of drug treatments for neurodegenerative diseases. It develops neflamapimod, an orally administered small molecule brain penetrant for the treatment of dementia with Lewy bodies (DLB), Alzheimer's diseases, and brain stroke recovery. The company is based in Boston, Massachusetts.

How the Company Makes Money

CervoMed generates revenue primarily through the development and commercialization of its therapeutic products. The company invests heavily in research and development to create proprietary drugs and treatments, which are then patented and brought to market. Revenue streams include product sales, licensing agreements, and potential collaborations with larger pharmaceutical companies. These partnerships can provide upfront payments, milestone payments, and royalties on sales, contributing significantly to CervoMed's earnings. Additionally, the company may receive funding from grants and research institutions to support its development pipeline.

CervoMed Financial Statement Overview

Summary

Early-stage profile with very small TTM revenue (~$0.3M) against large and widening losses (EBIT ~-$27.2M; net loss ~-$25.6M). Cash burn is heavy and accelerating (TTM operating/FCF ~-$24.9M vs. ~-$16.5M in 2024), increasing future funding needs. Positives include a debt-free balance sheet, but equity has declined (~$39.2M to ~$26.0M), reflecting ongoing value erosion.

Income Statement

TTM (Trailing-Twelve-Months) shows minimal revenue ($0.3M) alongside very large operating losses (EBIT about -$27.2M) and a net loss of about -$25.6M, indicating the cost base is far ahead of current commercialization. Losses have also expanded versus 2024 (net loss about -$16.3M), which points to rising spend and weak operating leverage. Strength: the company has begun generating some revenue in TTM after years of $0 revenue, but profitability remains the central weakness.

Balance Sheet

The balance sheet is conservatively levered with zero total debt in both TTM (Trailing-Twelve-Months) and 2024, which reduces refinancing risk. However, equity has declined from about $39.2M (2024) to about $26.0M (TTM), consistent with ongoing losses and cash burn, and returns on equity remain deeply negative. Strength: low leverage; weakness: shrinking equity base and continued value erosion if losses persist.

Cash Flow

Cash generation is weak: TTM (Trailing-Twelve-Months) operating cash flow is about -$24.9M and free cash flow is about -$24.9M, worse than 2024 (about -$16.5M). The cash burn is broadly in line with reported net losses (free cash flow roughly matches net income in scale), which suggests losses are translating into real cash outflows rather than being mostly non-cash. Strength: cash flow and earnings are directionally consistent; weakness: accelerating burn increases funding needs over time.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	322.57K	0.00	0.00	0.00	0.00	0.00
Gross Profit	322.57K	0.00	0.00	0.00	0.00	-103.17K
EBITDA	-26.89M	-18.23M	-7.81M	-5.80M	-15.94M	-15.76M
Net Income	-25.58M	-16.29M	-2.17M	-5.80M	-24.10M	-14.19M
Balance Sheet
Total Assets	30.61M	43.08M	9.97M	4.16M	37.84M	27.73M
Cash, Cash Equivalents and Short-Term Investments	27.29M	38.92M	7.79M	4.09M	37.31M	18.52M
Total Debt	0.00	0.00	0.00	12.41M	0.00	149.16K
Total Liabilities	4.60M	3.88M	2.60M	13.16M	2.93M	2.92M
Stockholders Equity	26.01M	39.20M	7.38M	-9.00M	34.91M	24.81M
Cash Flow
Free Cash Flow	-24.93M	-16.53M	-7.45M	-2.57M	-14.50M	-13.55M
Operating Cash Flow	-24.93M	-16.53M	-7.45M	-2.57M	-14.50M	-13.55M
Investing Cash Flow	22.03M	-28.66M	0.00	0.00	4.00K	0.00
Financing Cash Flow	4.59M	46.40M	11.15M	0.00	33.30M	17.89M

CervoMed Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.60
• 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 CRVO, the sentiment is Negative. The current price of 4.6 is below the 20-day moving average (MA) of 6.42, below the 50-day MA of 7.65, and below the 200-day MA of 8.07, indicating a bearish trend. The MACD of -0.81 indicates Positive momentum. The RSI at 20.33 is Positive, neither overbought nor oversold. The STOCH value of 7.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRVO.

CervoMed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XFOR	52 Neutral	$336.63M	-0.37	-156.87%	―	2925.73%	-294.29%
JSPR	52 Neutral	$38.62M	-0.22	-191.12%	―	―	-24.38%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRLD	51 Neutral	$130.22M	-1.25	-103.99%	―	250.00%	15.15%
CRVO	45 Neutral	$43.21M	-1.59	-71.42%	―	-38.81%	-76.96%
ABVC	44 Neutral	$46.17M	-7.17	-40.32%	―	56.52%	75.22%

CervoMed Corporate Events

CervoMed Releases Updated Investor Presentation and Business Overview

On January 8, 2026, CervoMed Inc. disclosed that it has made an investor presentation available on its website under the “Investors – Events and Presentations” section, summarizing information about its business, clinical studies, development plans, financial position and related matters. The company noted that its representatives may periodically use this presentation, with possible non-material modifications, in conferences and investor meetings, emphasized that the materials should be considered in the context of its broader SEC filings and public announcements, and clarified that the furnished information is not deemed “filed” for purposes of the Exchange Act and does not carry the associated liability unless specifically incorporated by reference in future regulatory filings.

The most recent analyst rating on (CRVO) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on CervoMed stock, see the CRVO Stock Forecast page.

CervoMed’s Promising Phase 2b Trial Results for DLB

CervoMed announced new data from its Phase 2b RewinD-LB trial, presented at the 18th Clinical Trials on Alzheimer’s Disease Conference in December 2025, showing that neflamapimod treatment led to improvements in neuroinflammation and neurodegeneration markers in patients with dementia with Lewy bodies. The trial demonstrated significant reductions in plasma GFAP levels and an increase in the Ab42/40 ratio, suggesting that neflamapimod may act on the underlying disease process. These findings reinforce previous studies and support the initiation of a Phase 3 trial, highlighting the potential impact on treatment options for DLB, a condition with no approved treatments in the US or EU.

The most recent analyst rating on (CRVO) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on CervoMed stock, see the CRVO Stock Forecast page.

CervoMed Gains FDA Alignment for Phase 3 Trial

On November 4, 2025, CervoMed Inc. announced it received alignment from the U.S. FDA on key aspects of its proposed Phase 3 clinical trial for neflamapimod, aimed at treating dementia with Lewy bodies (DLB). The feedback allows CervoMed to proceed with its trial design, which includes a global, randomized, double-blind study involving approximately 300 patients, with the trial set to begin in the second half of 2026. This development marks a significant milestone for CervoMed, reinforcing its scientific approach and providing a regulatory pathway toward potential approval. The trial is designed to exclude patients with Alzheimer’s disease co-pathology and will focus on cognitive and functional decline, with the aim of establishing neflamapimod as a first-in-class treatment for DLB, a condition currently lacking approved therapies.

The most recent analyst rating on (CRVO) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on CervoMed stock, see the CRVO Stock Forecast page.