Galecto (GLTO) AI Stock Analysis

• Market Cap: $37.98M
• Dividend Yield: N/A
• Average Volume (3M): 5.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: N/A
• EPS Growth: 37.42%
• Country: US
• Employees: 5
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -2.36
• Shares Outstanding: 1,597,321
• 10 Day Avg. Volume: 9,383,356
• 30 Day Avg. Volume: 5,257,093
• PEG Ratio: <0.01
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.29
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -5.99K
• Enterprise Value/Ebitda: -1.89
• 1Y Price Target: $40.67
• Price Target Upside: 71.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $30.00 ▲(26.16% Upside)

The score is held back primarily by weak fundamentals (no revenue, ongoing losses, and continued cash burn despite improvement) and unattractive earnings-based valuation (negative P/E). Offsetting factors include strong technical momentum (price above key moving averages with positive MACD) and positive corporate developments (Damora acquisition and associated financing extending runway).

Positive Factors

Acquisition & Financing Extends Runway

The Damora acquisition plus a $285M private placement materially lengthens funding visibility and lets Galecto advance multiple programs without immediate financing pressure. This reduces near-term dilution risk and supports multi-year clinical development timelines through key IND/POC milestones.

Strengthened Operational Leadership

Adding an experienced COO with performance-based compensation and equity alignment improves execution capacity for complex clinical programs and the integration of acquisitions. Strong operational leadership enhances trial delivery, partnering and resource allocation over the next several years.

Improving Cash Burn and Low Leverage

Operating losses and free cash flow have meaningfully improved versus prior years, and debt is small relative to equity. This trend reduces near-term funding pressure, increases optionality to prioritize highest-value programs, and lowers solvency risk while Galecto pursues clinical milestones.

Negative Factors

No Revenue / Persistent Operating Losses

Galecto generates no product revenue and remains unprofitable, meaning it relies entirely on financing to fund R&D. Without commercial products, margins are absent and the path to self-sustaining cash generation depends on successful, multi-year clinical outcomes—a structural constraint.

Eroded Equity Base Raises Dilution Risk

A sharply reduced equity base limits non-dilutive financing options and increases reliance on equity financings or substantial partnerships. Even with current private funding, continued cash consumption and prior erosion make further dilution or onerous financing terms likely if clinical timelines slip.

High Clinical / Pipeline Risk

Galecto's value hinges on early-stage and mid-stage clinical programs, including newly acquired candidates. These assets face binary trial outcomes, long development timelines and regulatory uncertainty. Success is uncertain; setbacks would materially delay revenue and require more capital.

Galecto Business Overview & Revenue Model

Company Description

Galecto, Inc., a clinical-stage biotechnology company, develops molecules for the treatment of fibrosis, cancer, inflammation, and other related diseases. The company's lead product candidate is GB2064, which is in Phase IIa for the treatment of myelofibrosis. It also develops GB0139, an inhaled inhibitor of galectin-3 that is in Phase IIb clinical trial for the treatment of severe fibrotic lung diseases, such as idiopathic pulmonary fibrosis, a life-threatening progressive fibrotic disease of the lung; and GB1211, a selective oral galectin-3 inhibitor that is in Phase IIa for the treatment of cancer, as well as in Phase Ib/IIa for fibrosis. Galecto, Inc. was founded in 2011 and is based in Boston, Massachusetts.

How the Company Makes Money

Galecto makes money primarily through the development and commercialization of its proprietary drug candidates. The company's revenue model hinges on advancing its pipeline of therapeutics through clinical trials, seeking regulatory approval, and subsequently partnering with pharmaceutical companies for commercialization or directly marketing their products. Key revenue streams include milestone payments and royalties from licensing agreements, collaborations with other biotech or pharmaceutical companies, and potential sales revenue from approved drugs. Significant partnerships with industry players can also contribute to research funding and development support, which are crucial for progressing their clinical programs.

Galecto Financial Statement Overview

Summary

No revenue and ongoing operating losses with consistently negative operating/free cash flow. Positives include materially narrowing losses and reduced cash burn, plus very low leverage, but sharply eroded equity highlights ongoing funding/dilution risk.

Income Statement

GLTO has generated no revenue across the annual periods provided and TTM (Trailing-Twelve-Months), with persistent and sizable operating losses. Losses have narrowed materially versus earlier years (net loss improved from about $61.6M in 2022 to about $21.4M in 2024 and about $15.8M in TTM), which is a positive trajectory, but profitability remains deeply negative and margins are effectively nonexistent due to zero revenue.

Balance Sheet

Leverage is very low, with debt remaining small relative to equity across periods, which reduces solvency risk near-term. However, the equity base has declined sharply over time (from roughly $165.5M in 2020 to $15.8M in 2024 and $6.7M in TTM), reflecting ongoing losses and raising dilution/financing risk if cash needs persist; returns on equity are strongly negative throughout.

Cash Flow

Cash burn remains significant, with operating cash flow and free cash flow negative in every period. The burn rate has improved meaningfully versus prior years (free cash flow improved from about -$36.9M in 2023 to about -$18.6M in 2024 and about -$12.2M in TTM), but the business is still consuming cash with no revenue base, implying continued dependence on external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-5.00K	0.00	0.00	0.00	0.00	0.00
EBITDA	-15.87M	-21.11M	-35.63M	-60.72M	-51.79M	-34.65M
Net Income	-15.84M	-21.44M	-38.35M	-61.62M	-51.75M	-34.84M
Balance Sheet
Total Assets	10.74M	17.13M	38.23M	73.19M	122.22M	171.60M
Cash, Cash Equivalents and Short-Term Investments	7.61M	14.18M	33.15M	60.22M	100.19M	163.58M
Total Debt	1.41M	73.00K	249.00K	804.00K	847.00K	915.00K
Total Liabilities	4.07M	1.30M	5.90M	11.44M	4.99M	6.11M
Stockholders Equity	6.67M	15.83M	32.33M	61.75M	117.22M	165.49M
Cash Flow
Free Cash Flow	-12.23M	-18.62M	-36.91M	-43.13M	-52.53M	-38.20M
Operating Cash Flow	-12.23M	-18.62M	-36.91M	-42.93M	-52.31M	-38.20M
Investing Cash Flow	0.00	11.65M	22.33M	12.38M	-48.05M	0.00
Financing Cash Flow	0.00	0.00	2.88M	507.00K	0.00	187.39M

Galecto Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.78
• 50DMA: Negative
• 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 GLTO, the sentiment is Neutral. The current price of 23.78 is below the 20-day moving average (MA) of 24.85, below the 50-day MA of 24.85, and above the 200-day MA of 10.30, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 44.02 is Neutral, neither overbought nor oversold. The STOCH value of 15.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GLTO.

Galecto Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLTO	56 Neutral	$37.98M	-1.87	-114.81%	―	―	37.42%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MTNB	45 Neutral	$4.05M	-0.17	-157.24%	―	―	25.19%
QNRX	44 Neutral	$4.33M	-0.02	-655.85%	―	―	-228.89%
GRI	43 Neutral	$3.81M	>-0.01	-238.17%	―	―	98.22%

Galecto Corporate Events

Galecto Showcases New mutCALR MPN Pipeline at JPM

In January 2026, Galecto announced that it would present a new corporate slide deck to investors and analysts at the 44th Annual J.P. Morgan Healthcare Conference, highlighting its recently acquired portfolio of potentially best‑in‑class therapies targeting mutant CALR‑driven myeloproliferative neoplasms following the acquisition of Damora Therapeutics. The materials outline a pipeline led by DMR‑001, a subcutaneous anti‑mutCALR monoclonal antibody with clinical proof‑of‑concept evidence in essential thrombocythemia and myelofibrosis, alongside additional mutCALR‑focused candidates (DMR‑002, DMR‑003) and small molecule GB3226 progressing toward IND and CTA milestones between 2026 and 2027, signaling a strategic push to establish a new standard of care and strengthen Galecto’s positioning in the MPN treatment landscape.

The most recent analyst rating on (GLTO) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Galecto stock, see the GLTO Stock Forecast page.

Galecto appoints new chief operating officer, enhances leadership

On December 31, 2025, Galecto issued Paramora Holding LLC a warrant to purchase up to 628,302 shares of its common stock at an exercise price of $23.01 per share, relying on a private offering exemption and adding a potential future source of equity financing tied to its antibody discovery and option agreement with Paragon Therapeutics and Paramora. On January 6, 2026, Galecto announced the appointment of industry veteran Sherwin Sattarzadeh as chief operating officer, effective January 5, 2026, with a compensation package featuring salary, performance-based bonuses, severance protections tied to potential change-of-control events, and sizable equity grants, underscoring the company’s push to strengthen its operational leadership and align management incentives with long-term shareholder value.

The most recent analyst rating on (GLTO) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Galecto stock, see the GLTO Stock Forecast page.

Galecto Completes Acquisition of Damora Therapeutics

On November 10, 2025, Galecto, Inc. completed the acquisition of Damora Therapeutics, a biotechnology company specializing in antibody therapeutics for mutant calreticulin-driven myeloproliferative neoplasms (MPNs). This acquisition, along with a $285 million private investment, positions Galecto to advance Damora’s portfolio, including the lead program DMR-001, which is expected to reach Phase 1 clinical proof-of-concept data by 2027. The merger enhances Galecto’s capabilities in addressing blood cancers and provides a financial runway into 2029, supporting the development of multiple programs. The acquisition also resulted in changes to Galecto’s board of directors, with new appointments from Fairmount, the lead investor in the private placement.