Fate Therapeutics (FATE) AI Stock Analysis

• Market Cap: $143.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: -46.92%
• EPS Growth: 20.26%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.27
• Shares Outstanding: 116,263,460
• 10 Day Avg. Volume: 1,627,765
• 30 Day Avg. Volume: 1,605,150
• PEG Ratio: 0.03
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 17.56
• P/FCF Ratio: -1.04
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 25.17
• Enterprise Value/Gross Profit: -26.74
• Enterprise Value/Ebitda: -1.19
• 1Y Price Target: $2.25
• Price Target Upside: 82.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): -1.12
• Revenue Forecast (FY): $5.85M

• Rating: 50 Neutral
• Price Target: $1.00 ▼(-18.70% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back primarily by weak financial performance (steep revenue contraction, large ongoing losses, and persistent negative free cash flow), partially offset by improving technical momentum (price above key moving averages and positive MACD). Valuation remains challenging because profitability is negative and there is no dividend support.

Positive Factors

iPSC-based off-the-shelf cell therapy platform

Fate's iPSC-based platform is a durable structural advantage: it targets scalable, allogeneic cell therapies that can lower manufacturing complexity and enable broad patient access. That foundational technology supports long-term product differentiation, partner interest, and potential cost-of-goods benefits versus autologous approaches.

Partnership-driven funding model

A partnership-focused model provides durable non-dilutive or de-risking funding via upfronts, R&D reimbursements and milestone economics. For a clinical-stage biotech, active collaborations can extend runway, validate programs through external expertise, and align commercial paths without immediate product revenue dependence.

Moderation in cash burn versus prior year

The reduction in annual cash burn versus the prior year reflects improving capital efficiency and operational discipline, which can lengthen runway and support advancing key trials. While not yet cash-generative, a sustained trend of moderated outflows is a meaningful step toward stabilizing financing needs over the medium term.

Negative Factors

Steep multi-year revenue decline

A structural collapse in reported revenue markedly reduces internal funding capacity and signals lost or lapsed collaboration income. Over a 2–6 month horizon this constrains flexibility to advance multiple programs, increases reliance on external financing or milestone events, and raises execution risk for sustained development plans.

Persistent negative free cash flow

Consistent, large negative FCF forces repeated access to capital markets or partner funding, creating dilution and execution risk. Even with burn moderation, the inability to self-fund operations undermines financial resilience, making the company sensitive to financing terms and timing over the medium term.

Large ongoing net losses

Substantial and persistent net losses erode equity and reduce return metrics, limiting strategic optionality. Over several months this means management must prioritize programs and financing choices, and the firm remains exposed to dilution or program cuts if revenue/milestone inflows do not materialize as planned.

Fate Therapeutics Business Overview & Revenue Model

Company Description

Fate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops programmed cellular immunotherapies for cancer and immune disorders worldwide. Its NK- and T-cell immuno-oncology programs under development include FT516 for the treatment of acute myeloid leukemia (AML) B-cell lymphoma, and advanced solid tumor; FT596 to treat B-cell lymphoma and chronic lymphocytic leukemia; FT538 to treat AML and multiple myeloma; FT576 to treat multiple myeloma; FT819 to treat hematologic malignancies and solid tumors; FT536 to treat solid tumors; and FT500 for the treatment of advanced solid tumors. The company has a collaboration and option agreement with Ono Pharmaceutical Co. Ltd. for the development and commercialization of two off-the-shelf iPSC-derived CAR T-cell product candidates; strategic research collaboration and license agreement with Juno Therapeutics, Inc. to screen for and identify small molecule modulators that enhance the therapeutic properties of genetically-engineered T-cell immunotherapies; and a collaboration and option agreement with Janssen Biotech, Inc. Fate Therapeutics, Inc. was incorporated in 2007 and is headquartered in San Diego, California.

How the Company Makes Money

Fate Therapeutics has historically generated revenue primarily from collaboration and partnership arrangements rather than from product sales, because it is a clinical-stage company and does not have widely marketed commercial products. Key revenue streams have included: (1) Collaboration revenue, which may consist of upfront payments, reimbursed research and development services, and the amortization/recognition of deferred revenue associated with performance obligations under collaboration agreements; and (2) Potential future milestone and royalty economics, where applicable, tied to progress in partnered programs (e.g., clinical, regulatory, or commercial milestones) and downstream sales-based royalties if partnered products are commercialized. Significant partnerships have been a major factor in earnings in periods when such agreements were active; however, specific, current, and program-level payment terms and the company’s present active collaboration revenue sources should be considered null here if not confirmed from up-to-date filings. Product revenue from commercial sales is currently null (or immaterial/not applicable) given the company’s development-stage status.

Fate Therapeutics Financial Statement Overview

Summary

Weak fundamentals overall: revenue has fallen sharply (from $96.3M in 2022 to $6.6M in 2025) and the company remains deeply unprofitable (2025 net loss of ~$136.3M). Cash flow is persistently negative (2025 FCF about -$112.0M), although burn moderated versus 2024. Balance sheet leverage is moderate for a development-stage biotech, but equity/assets have shrunk meaningfully over time, increasing reliance on future financing or a business inflection.

Income Statement

Revenue has contracted materially over the last several years (from $96.3M in 2022 to $6.6M in 2025), and profitability remains deeply negative with large operating and net losses each year (2025 net loss of ~$136.3M). While losses have narrowed versus 2024, margins are still heavily negative and earnings quality is not yet demonstrating a clear path to breakeven. The primary strength is the reduced loss run-rate year over year, but the key weakness is the steep revenue decline and continued large operating deficit.

Balance Sheet

Leverage appears manageable for a development-stage biotech, with debt-to-equity generally in the ~0.17–0.38 range and 2025 total debt of ~$77.8M against ~$207.2M of equity. However, the balance sheet has weakened over time as equity and total assets have declined meaningfully (equity from ~$678.8M in 2021 to ~$207.2M in 2025), consistent with ongoing losses and cash burn. The key strength is moderate debt levels; the key risk is shrinking capital base and persistent negative returns on equity.

Cash Flow

Cash generation remains a core concern: operating cash flow and free cash flow are negative every year shown, with 2025 operating cash flow of about -$106.1M and free cash flow of about -$112.0M. Cash burn improved versus 2024 (less negative), but free cash flow growth is negative in 2025 and the company continues to fund operations through its balance sheet rather than internally generated cash. The main positive is the recent moderation in burn; the main weakness is the ongoing, sizable negative free cash flow profile.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.65M	13.63M	63.53M	96.30M	55.85M
Gross Profit	-6.25M	13.63M	-93.65M	82.54M	50.00M
EBITDA	-127.02M	-176.58M	-172.23M	-294.63M	-211.14M
Net Income	-136.31M	-186.26M	-160.93M	-281.72M	-212.15M
Balance Sheet
Total Assets	318.94M	440.69M	506.22M	705.56M	921.46M
Cash, Cash Equivalents and Short-Term Investments	203.66M	279.07M	315.18M	436.23M	615.91M
Total Debt	77.85M	85.27M	103.54M	109.34M	114.82M
Total Liabilities	111.75M	121.97M	137.80M	221.62M	242.62M
Stockholders Equity	207.18M	318.73M	368.42M	483.94M	678.84M
Cash Flow
Free Cash Flow	-112.04M	-123.60M	-138.42M	-283.77M	-213.57M
Operating Cash Flow	-106.08M	-122.87M	-132.26M	-248.21M	-162.87M
Investing Cash Flow	111.17M	12.22M	112.67M	166.75M	-324.02M
Financing Cash Flow	5.49M	99.89M	85.00K	9.21M	453.13M

Fate Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FATE, the sentiment is Neutral. The current price of 1.23 is below the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.22, and above the 200-day MA of 1.18, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 43.71 is Neutral, neither overbought nor oversold. The STOCH value of 10.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FATE.

Fate Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CGEN	73 Outperform	$215.58M	4.04	55.68%	―	-88.47%	-1658.33%
ONCY	52 Neutral	$108.68M	-3.43	-755.18%	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
FATE	50 Neutral	$143.00M	-0.86	-55.02%	―	-46.92%	20.26%
STTK	50 Neutral	$420.80M	-7.52	-65.03%	―	-84.46%	33.32%
NKTX	47 Neutral	$172.60M	-1.76	-26.69%	―	―	25.84%
CRDF	45 Neutral	$137.41M	-4.09	-82.00%	―	-27.29%	16.40%