Foghorn Therapeutics (FHTX) AI Stock Analysis

• Market Cap: $291.74M
• Dividend Yield: N/A
• Average Volume (3M): 157.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.77
• Revenue Growth: -3.91%
• EPS Growth: 37.89%
• Country: US
• Employees: 112
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.35
• Shares Outstanding: 58,700,245
• 10 Day Avg. Volume: 207,613
• 30 Day Avg. Volume: 157,412
• PEG Ratio: 0.18
• Price to Book (P/B): -3.13
• Price to Sales (P/S): 11.00
• P/FCF Ratio: -3.95
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 8.31
• Enterprise Value/Gross Profit: 27.90
• Enterprise Value/Ebitda: -3.52
• 1Y Price Target: $11.67
• Price Target Upside: 134.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): -1.05
• Revenue Forecast (FY): $35.69M

• Rating: 45 Neutral
• Price Target: $5.00 ▲(0.60% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held down primarily by weak financial performance (large ongoing losses, heavy cash burn, and negative equity) and bearish technicals (below key moving averages with negative MACD). Offsetting factors include constructive corporate updates—added financing and extended runway plus clinical progress and leadership strengthening—while valuation offers limited support due to a negative P/E and no dividend.

Positive Factors

Partnership with Eli Lilly

A collaboration with a major pharma like Eli Lilly provides development expertise, co-funding, and external validation of Foghorn’s lead SMARCA2 program. This materially reduces execution risk for FHD-909, increases access to resources for trials, and raises chances of milestone payments or downstream licensing benefits.

Extended cash runway after $50M financing

The January 2026 financing materially strengthens near-term liquidity and extends runway into 1H 2028, lowering immediate refinancing pressure. This gives management time to advance FHD-909 and IND-stage degrader programs to value-inflection milestones without urgent capital raises, improving strategic optionality.

Seasoned CFO appointment

Hiring a CFO with extensive biopharma capital markets and transaction experience strengthens financial stewardship and fundraising credibility. His history raising >$1B and supporting launches should improve strategic financing execution, investor engagement, and disciplined resource allocation as programs progress.

Negative Factors

Persistent heavy cash burn

Sustained negative operating and free cash flow indicates ongoing high burn tied to development programs. Even with recent financing, continued cash consumption at current rates implies recurring reliance on external capital, increasing dilution risk and constraining long-term investment flexibility absent program inflection or partner payments.

Negative shareholders' equity and shrinking assets

Multi-year negative equity and a shrinking asset base erode the company’s financial cushion, distorting leverage metrics and limiting borrowing flexibility. This structural balance-sheet fragility heightens vulnerability to adverse outcomes and makes future financing terms more dilutive or costly if clinical setbacks occur.

Large recurring operating and net losses

Consistently large negative margins and reliance on collaboration revenue highlight absence of operating self-sufficiency. Revenue volatility and no product sales mean long-term viability depends on successful clinical development or partner milestones; failures or delays would prolong losses and pressure capital needs.

Foghorn Therapeutics Business Overview & Revenue Model

Company Description

Foghorn Therapeutics Inc., a clinical-stage biopharmaceutical company, discovers and develops medicines targeting genetically determined dependencies within the chromatin regulatory system. The company uses its proprietary Gene Traffic Control platform to identify, validate, and potentially drug targets within the system. It is developing FHD-286, a small molecule inhibitor of the enzymatic activity of BRG1 and BRM for the treatment of metastatic uveal melanoma and relapsed and/or refractory acute myeloid leukemia and myelodysplastic syndrome; and FHD-609, a small molecule protein degrader for BRD9 to treat patients with synovial sarcoma. The company is also developing an enzymatic inhibitor and a protein degrader as selective modulators of BRM; and ARID1B selective modulators for the treatment of ovarian, endometrial, colorectal, bladder, and gastric cancers. It has a research collaboration and license agreement with Merck Sharp & Dohme Corp. to discover and develop novel oncology therapeutics against a transcription factor target; and with Loxo Oncology to create novel oncology medicines. Foghorn Therapeutics Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Foghorn Therapeutics primarily makes money through (1) collaboration and partnership revenue and (2) limited other operating revenue, rather than product sales, because it is a clinical-stage company and does not have commercialized therapies. Collaboration revenue can include upfront payments, research funding, and potential milestone payments earned upon achieving development, regulatory, or commercialization events under partnering agreements; if any partnered products reach the market, the company may also be entitled to royalties on partner sales, depending on contract terms. In addition to collaborations, the company may generate minor ancillary revenue (if applicable) such as grant income or other service/contract-related revenue, but these are typically not the core driver relative to partnerships for a pre-commercial biotech. If the company later obtains regulatory approvals for its own drug candidates, it would also generate revenue from product sales, but product-sales revenue is currently null.

Foghorn Therapeutics Financial Statement Overview

Summary

Financials remain weak for a development-stage biotech: despite a 2025 revenue rebound, operating and net losses are large with deeply negative margins, cash flow shows heavy ongoing burn (negative operating and free cash flow), and multi-year negative shareholders’ equity plus a declining asset base increases balance-sheet risk and dependence on external financing.

Income Statement

Revenue is volatile but rebounded in 2025 (annual revenue up ~26% vs. 2024), following a decline in 2024 after a strong 2023. Profitability remains weak: the company has posted large operating and net losses every year, with net margins deeply negative (still about -240% in 2025). While losses narrowed modestly in 2025 versus 2024, the earnings profile is still highly dependent on funding rather than operating self-sufficiency.

Balance Sheet

The balance sheet shows elevated financial risk due to persistent negative shareholders’ equity from 2023–2025 (about -$108.5M in 2025), indicating accumulated losses have eroded the capital base. Total debt is moderate in dollars (about $41.3M in 2025) and down from 2022 levels, but leverage ratios are distorted by negative equity and therefore signal fragility rather than strength. Total assets declined materially from 2022 to 2025, suggesting a shrinking balance-sheet cushion over time.

Cash Flow

Cash generation is weak and inconsistent: operating cash flow was negative in most years and materially negative again in 2025 (about -$86.1M), with free cash flow also negative (about -$86.1M). Free cash flow deteriorated slightly in 2025 versus 2024, implying continued heavy cash burn. While cash burn roughly tracks reported losses (free cash flow broadly in line with net loss), the overall trend still points to ongoing external financing needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	30.91M	22.60M	34.16M	19.23M	1.32M
Gross Profit	27.58M	22.60M	34.16M	19.23M	1.32M
EBITDA	-78.78M	-97.17M	-104.45M	-113.82M	-96.19M
Net Income	-74.28M	-86.62M	-98.43M	-108.88M	-101.32M
Balance Sheet
Total Assets	198.10M	283.98M	285.92M	404.88M	519.77M
Cash, Cash Equivalents and Short-Term Investments	158.89M	243.75M	234.06M	345.80M	154.29M
Total Debt	41.27M	37.13M	45.07M	51.51M	58.33M
Total Liabilities	306.60M	329.51M	363.11M	404.77M	422.90M
Stockholders Equity	-108.50M	-45.53M	-77.19M	112.00K	96.87M
Cash Flow
Free Cash Flow	-86.15M	-101.31M	-119.33M	192.40M	-53.56M
Operating Cash Flow	-86.10M	-100.41M	-118.11M	193.61M	-50.25M
Investing Cash Flow	112.04M	-29.90M	144.45M	-244.32M	36.17M
Financing Cash Flow	1.02M	105.43M	1.78M	1.76M	22.42M

Foghorn Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHTX, the sentiment is Negative. The current price of 4.97 is below the 20-day moving average (MA) of 5.54, below the 50-day MA of 5.63, and below the 200-day MA of 5.06, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 40.29 is Neutral, neither overbought nor oversold. The STOCH value of 30.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FHTX.

Foghorn Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLUE	54 Neutral	$1.25B	-5.64	8.28%	―	1112.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
INBX	49 Neutral	$1.01B	-3.70	-186.06%	―	―	―
TNXP	47 Neutral	$181.78M	―	-60.15%	―	-8.79%	81.36%
FHTX	45 Neutral	$291.74M	-4.58	105.48%	―	-3.91%	37.89%

Foghorn Therapeutics Corporate Events

Foghorn Advances FHD-909 Trial and Strengthens Financial Position

Foghorn Therapeutics Inc. is a clinical-stage biotechnology company focused on developing a new class of medicines that correct abnormal gene expression, with an initial emphasis on oncology. Using its Gene Traffic Control platform, the company is advancing a pipeline of targeted therapies aimed at cancers driven by chromatin regulatory dysfunction, including SMARCA4-mutant non-small cell lung cancer and other solid and hematologic tumors.

Foghorn Therapeutics reported on March 11, 2026, that its lead candidate FHD-909, a first-in-class oral SMARCA2 selective inhibitor for SMARCA4-mutant cancers, is progressing as planned in a Phase 1 trial that began dosing patients in October 2024, supported by a broad oncology collaboration with Eli Lilly. The company highlighted preclinical advances in its selective CBP, EP300 and ARID1B degrader programs, a strengthened balance sheet following a $50 million January 2026 financing that extends cash runway into the first half of 2028, and the appointment of veteran finance executive Ryan Maynard as chief financial officer, underscoring both clinical momentum and improved financial flexibility for its oncology strategy.

The most recent analyst rating on (FHTX) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Foghorn Therapeutics stock, see the FHTX Stock Forecast page.

Foghorn Therapeutics Names Veteran Executive as New CFO

On February 23, 2026, Foghorn Therapeutics appointed veteran finance executive Ryan D. Maynard as chief financial officer, with immediate effect, replacing interim CFO Jeff Sacher. Maynard assumes the roles of principal financial and accounting officer under an employment agreement that includes a $510,000 base salary, performance-based bonus eligibility, a $90,000 signing bonus, and stock options for 400,000 shares vesting over four years.

Maynard brings more than 25 years of experience leading financial strategy and capital markets activities at public and private biopharmaceutical and healthcare companies, including prior CFO roles at Cara Therapeutics, LetsGetChecked, Blade Therapeutics, and Rigel Pharmaceuticals. His background in raising over $1 billion, executing strategic transactions, and supporting drug approvals and launches is expected to strengthen Foghorn’s financial leadership as it advances its oncology pipeline and partnership programs.

The most recent analyst rating on (FHTX) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Foghorn Therapeutics stock, see the FHTX Stock Forecast page.

Foghorn Therapeutics Announces $50 Million Equity Financing

On January 9, 2026, Foghorn Therapeutics announced that it had entered into purchase agreements with a group of leading life sciences investors, including BVF Partners, Deerfield Management and Flagship Pioneering, to raise approximately $50 million through the sale of common stock, pre-funded warrants and two series of premium-priced warrants, with the financing priced at a 30% premium to the company’s January 9 closing share price and expected to close on January 13, 2026. The transaction, conducted without an underwriter, strengthens Foghorn’s balance sheet to an estimated $208.9 million in cash, cash equivalents and marketable securities, extending its cash runway into the first half of 2028 and supporting continued advancement of its oncology pipeline, including the Phase 1 dose-escalation trial of FHD-909 (LY4050784) for SMARCA4-mutant cancers, and progression of its selective CBP and EP300 degrader programs toward key IND-related milestones in 2026, which collectively reinforce its positioning as a differentiated player in targeted cancer therapeutics.

The most recent analyst rating on (FHTX) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Foghorn Therapeutics stock, see the FHTX Stock Forecast page.