Edgewise Therapeutics (EWTX) AI Stock Analysis

• Market Cap: $3.27B
• Dividend Yield: N/A
• Average Volume (3M): 933.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.20
• Revenue Growth: N/A
• EPS Growth: -5.73%
• Country: US
• Employees: 117
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.47
• Shares Outstanding: 105,868,430
• 10 Day Avg. Volume: 739,177
• 30 Day Avg. Volume: 933,860
• PEG Ratio: -1.23
• Price to Book (P/B): 4.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.76
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -16.54
• 1Y Price Target: $40.29
• Price Target Upside: 35.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): -1.94
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $31.00 ▲(4.52% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by mixed fundamentals: a strong, low-debt balance sheet offsets very weak operating performance with no revenue and rising losses/cash burn. Technicals are supportive with an established uptrend and positive momentum indicators, while valuation remains constrained by negative earnings and no dividend.

Positive Factors

Strong cash reserves

A cash and marketable securities balance of ~$530M provides a durable runway to fund clinical programs and organizational growth without immediate reliance on dilutive financing, enabling sustained R&D execution and optionality around partnership or regulatory timing over the next 2–6 months.

Minimal leverage

Very low debt relative to a large equity base materially reduces financial risk and interest obligations, preserving flexibility to invest in trials or secure partnerships. Low leverage supports resilience through long development cycles common in clinical-stage biotechs.

Advancing pipeline with near-term pivotal data

Multiple near-term catalysts (pivotal GRAND CANYON and CIRRUS‑HCM Part D) are structural: positive data could enable a first marketing application and inform Phase 3 design. Successful readouts would materially de-risk development programs and drive long-term commercial potential.

Negative Factors

No revenue

Absence of product revenue means the business lacks internal recurring cash generation, leaving R&D and operations entirely dependent on capital markets or partners. This structural profile increases financing risk and reduces margin diversification over the medium term.

Widening net losses

Rapidly expanding net losses indicate rising development and operating spend; sustained negative profitability erodes equity value and heightens future funding needs, potentially forcing strategic tradeoffs or slower program pacing if capital markets tighten.

Accelerating cash burn

Operating cash flow deterioration signals a heavy and increasing cash burn tied to trial activities. Even with a strong cash balance today, this structural burn rate raises the probability of additional capital raises or partner dependence within months if timelines slip or programs expand.

Edgewise Therapeutics Business Overview & Revenue Model

Company Description

Edgewise Therapeutics, Inc., a biopharmaceutical company, develops small molecule therapies for musculoskeletal diseases. The Company's lead product candidate, EDG-5506, is an orally administered small molecule designed to address the root cause of dystrophinopathies including Duchenne muscular dystrophy and Becker muscular dystrophy which has completed Phase 1 clinical trial. It develops a pipeline of precision medicine product candidates that target key muscle proteins and modulators to address genetically defined muscle disorders. Edgewise Therapeutics, Inc. was incorporated in 2017 and is headquartered in Boulder, Colorado.

How the Company Makes Money

Edgewise Therapeutics generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company makes money by conducting clinical trials, gaining regulatory approvals, and ultimately marketing its therapies to healthcare providers and patients. Revenue streams include upfront payments, milestone payments, and royalties from licensing agreements with strategic partners. Edgewise may also engage in collaborations with larger pharmaceutical companies to co-develop or co-market its products, which can provide additional funding and resources to support its research and development efforts. However, as a clinical-stage company, Edgewise may primarily rely on funding from investors and strategic partnerships until its products reach the market.

Edgewise Therapeutics Financial Statement Overview

Summary

Balance sheet strength (minimal debt vs. large equity base) supports ongoing R&D, but operating performance is very weak with no revenue, materially widening net losses, and accelerating cash burn that increases future financing dependence.

Income Statement

The company reports no revenue across the provided annual periods, which is typical for a clinical-stage biotech but limits earnings quality and visibility. Losses have widened materially over time (net loss from about $17M in 2020 to about $168M in 2025), pointing to rising operating spend and a longer path to breakeven. Profitability remains deeply negative, and without revenue traction in the data, the income statement profile is weak despite the sector context.

Balance Sheet

The balance sheet looks strong and de-risked from a leverage standpoint: debt is minimal in recent years (roughly $4–5M vs. over $500M of equity in 2025), resulting in very low leverage. Equity and total assets have grown significantly since 2023, suggesting capital raises and a larger cash/investment base to fund operations. The key weakness is persistent negative returns on equity driven by ongoing losses, meaning the capital base is being consumed rather than generating returns.

Cash Flow

Cash burn is substantial and increasing, with operating cash flow declining from about -$14.6M (2020) to about -$143.8M (2025), consistent with an accelerating R&D and operating cost curve. Free cash flow is similarly negative each year, indicating the business is not self-funding. A positive point is that free cash flow broadly tracks net loss (free cash flow to net income around ~1x), suggesting losses are largely reflected in cash usage rather than being heavily distorted by non-cash items.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00
EBITDA	-191.41M	-156.54M	-112.63M	-71.12M	-42.94M
Net Income	-167.79M	-133.81M	-100.16M	-67.64M	-42.81M
Balance Sheet
Total Assets	552.60M	486.82M	340.04M	367.10M	285.23M
Cash, Cash Equivalents and Short-Term Investments	530.11M	470.17M	318.39M	351.95M	280.79M
Total Debt	3.99M	4.74M	5.41M	4.41M	0.00
Total Liabilities	30.35M	27.60M	21.20M	20.39M	10.85M
Stockholders Equity	522.26M	459.22M	318.83M	346.72M	274.38M
Cash Flow
Free Cash Flow	-143.82M	-110.34M	-97.69M	-58.18M	-34.17M
Operating Cash Flow	-143.82M	-109.03M	-91.95M	-52.63M	-33.51M
Investing Cash Flow	-32.79M	-184.66M	102.89M	-70.58M	-242.23M
Financing Cash Flow	196.09M	249.25M	53.17M	129.64M	186.38M

Edgewise Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EWTX, the sentiment is Positive. The current price of 29.66 is above the 20-day moving average (MA) of 29.62, above the 50-day MA of 27.14, and above the 200-day MA of 18.79, indicating a bullish trend. The MACD of 0.80 indicates Positive momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 60.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EWTX.

Edgewise Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EWTX	61 Neutral	$3.27B	-19.10	-30.02%	―	―	-5.73%
PHVS	56 Neutral	$1.79B	-8.59	-51.80%	―	―	-20.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
JANX	50 Neutral	$821.02M	-8.18	-12.48%	―	-23.37%	-42.45%
VRDN	49 Neutral	$2.81B	-8.19	-47.40%	―	23340.07%	18.06%
VERA	48 Neutral	$2.97B	-10.45	-73.25%	―	―	-53.44%
BHVN	48 Neutral	$1.72B	-1.51	-522.08%	―	―	18.76%