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Edgewise Therapeutics, Inc. (EWTX)
NASDAQ:EWTX
US Market
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Edgewise Therapeutics (EWTX) AI Stock Analysis

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EWTX

Edgewise Therapeutics

(NASDAQ:EWTX)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
$48.00
▲(39.41% Upside)
Action:Reiterated
Date:07/14/26
The score is driven primarily by mixed financial performance—strong balance sheet strength but substantial pre-revenue losses and cash burn. Technicals are supportive with a strong uptrend and bullish momentum, while valuation is weaker due to negative earnings and no dividend. The Servier asset sale is a meaningful positive catalyst that improves financial flexibility and strategic focus.
Positive Factors
Low Leverage / Strong Balance Sheet
Extremely low leverage and a sizable asset base provide a durable funding cushion to support multi-year clinical programs. This reduces near-term financing pressure, lowers dilution risk, and gives management flexibility to prioritize development timelines and partnerships through pivotal milestones.
Negative Factors
Pre-revenue Company
Edgewise remains pre-revenue and lacks commercial products, so long-term viability depends on clinical success, milestone receipts, or partnerships. This structural dependence increases execution risk and means the company must convert clinical progress into approvals and revenue to sustain growth beyond financing events.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Strong Balance Sheet
Extremely low leverage and a sizable asset base provide a durable funding cushion to support multi-year clinical programs. This reduces near-term financing pressure, lowers dilution risk, and gives management flexibility to prioritize development timelines and partnerships through pivotal milestones.
Read all positive factors

Edgewise Therapeutics (EWTX) vs. SPDR S&P 500 ETF (SPY)

Edgewise Therapeutics Business Overview & Revenue Model

Company Description
Edgewise Therapeutics, Inc. is a biopharmaceutical firm dedicated to developing small-molecule treatments for a range of musculoskeletal disorders. Its leading investigational drug, EDG-5506, is an orally administered compound specifically enginee...
How the Company Makes Money
Edgewise Therapeutics primarily makes money through collaboration and partnership-related income and, to date, not from product sales because it is a clinical-stage company without commercialized therapies. Its revenue model generally consists of ...

Edgewise Therapeutics Financial Statement Overview

Summary
Financial profile is mixed: a very strong, low-leverage balance sheet (debt-to-equity ~0.008; sizable equity/assets) is offset by a pre-revenue model, widening net losses (TTM net loss ~$176M), and heavy ongoing cash burn (TTM operating cash flow about -$148.5M; TTM FCF about -$148.7M).
Income Statement
18
Very Negative
Balance Sheet
78
Positive
Cash Flow
28
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-590.00K-2.27M0.000.000.000.00
EBITDA-175.97M-165.53M-131.52M-98.43M-63.08M-42.54M
Net Income-176.01M-167.79M-133.81M-100.16M-67.64M-42.81M
Balance Sheet
Total Assets518.52M552.60M486.82M340.04M367.10M285.23M
Cash, Cash Equivalents and Short-Term Investments499.56M530.11M470.17M318.39M351.95M280.79M
Total Debt3.79M3.99M4.74M5.41M4.41M0.00
Total Liabilities25.32M30.35M27.60M21.20M20.39M10.85M
Stockholders Equity493.20M522.26M459.22M318.83M346.72M274.38M
Cash Flow
Free Cash Flow-148.71M-143.82M-110.34M-97.69M-58.18M-34.17M
Operating Cash Flow-148.49M-143.82M-109.03M-91.95M-52.63M-33.51M
Investing Cash Flow-74.25M-32.79M-184.66M102.89M-70.58M-242.23M
Financing Cash Flow206.04M196.09M249.25M53.17M129.64M186.38M

Edgewise Therapeutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price34.43
Price Trends
50DMA
37.14
Positive
100DMA
34.26
Positive
200DMA
28.61
Positive
Market Momentum
MACD
0.91
Positive
RSI
48.03
Neutral
STOCH
14.53
Positive
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 34.43 is below the 20-day moving average (MA) of 41.15, below the 50-day MA of 37.14, and above the 200-day MA of 28.61, indicating a neutral trend. The MACD of 0.91 indicates Positive momentum. The RSI at 48.03 is Neutral, neither overbought nor oversold. The STOCH value of 14.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EWTX.

Edgewise Therapeutics Risk Analysis

Edgewise Therapeutics disclosed 86 risk factors in its most recent earnings report. Edgewise Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Edgewise Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$4.28B-23.38-32.55%-7.28%
59
Neutral
$2.76B-6.68-74.86%-85.06%
52
Neutral
$2.44B-10.39-67.40%-5.22%
52
Neutral
$2.32B-2.62-866.46%39.46%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
49
Neutral
$1.99B-5.33-60.70%23382.78%7.01%
49
Neutral
$991.61M-8.72-11.85%47.10%-35.51%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EWTX
Edgewise Therapeutics
38.81
25.42
189.84%
VRDN
Viridian Therapeutics
18.56
1.77
10.54%
PHVS
Pharvaris
33.55
9.71
40.73%
VERA
Vera Therapeutics
36.99
14.20
62.31%
JANX
Janux Therapeutics Inc
16.05
-10.03
-38.46%
BHVN
Biohaven Ltd.
14.86
1.05
7.60%

Edgewise Therapeutics Corporate Events

Business Operations and StrategyM&A Transactions
Edgewise Therapeutics Sells Muscular Dystrophy Assets to Servier
Positive
Jul 13, 2026
On July 10, 2026, Edgewise Therapeutics completed the sale of its sevasemten compound and muscular dystrophy business to Servier Pharmaceuticals for $1.55 billion in upfront cash and up to $1.1 billion in milestone payments, for potential total co...
Executive/Board ChangesShareholder Meetings
Edgewise Therapeutics Shareholders Back Board and Governance
Positive
Jun 5, 2026
Edgewise Therapeutics, Inc. held its Annual Meeting of stockholders on June 4, 2026, at which shareholders elected three Class II directors, Laura Brege, Badreddin Edris, Ph.D., and Jonathan Root, M.D., to serve until the 2029 annual meeting. Shar...
Business Operations and StrategyM&A Transactions
Edgewise Therapeutics Sells Sevasemten, Refocuses on Cardiology
Positive
Jun 1, 2026
On June 1, 2026, Edgewise Therapeutics announced a definitive agreement to sell sevasemten and its muscular dystrophy business to Servier for $1.55 billion in upfront cash and up to $1.1 billion in additional milestone payments, for potential tota...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 14, 2026