Galecto (GLTO) AI Stock Analysis

• Market Cap: $39.92M
• Dividend Yield: N/A
• Average Volume (3M): 5.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• 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: -0.11
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 857.02
• Enterprise Value/Ebitda: 0.27
• 1Y Price Target: $41.00
• Price Target Upside: 64.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $25.00 ▲(0.04% Upside)

The score is held back primarily by weak financial performance (no revenue, persistent losses, and ongoing cash burn with an eroded equity base). Offsetting this, recent corporate events are constructive—Damora acquisition with significant private funding and runway extension—while technicals are mixed and valuation remains challenged due to negative earnings and no dividend.

Positive Factors

Extended Cash Runway

The $285M private investment materially extends operational runway into 2029, reducing near-term financing pressure and allowing multi-program IND filings and early clinical readouts to be funded internally. This supports deliberate de-risking of clinical assets and strategic execution over several years.

Strategic Pipeline Acquisition

Acquiring Damora adds a focused, potentially best-in-class anti-mutCALR antibody franchise (DMR-001/002) and GB3226, diversifying Galecto’s R&D beyond prior programs. The transaction accelerates entry into MPN and AML niches, improving long-term commercial opportunity if clinical milestones are met.

Strengthened Operational Leadership

Adding an experienced COO with performance-linked incentives and equity grants bolsters execution capacity for complex IND filings, trial starts, and integration of Damora. Improved operational leadership can raise development productivity and regulatory navigation over the medium term.

Negative Factors

No Revenue and Persistent Cash Burn

As a clinical-stage company with zero revenue, Galecto remains structurally dependent on external capital until product approvals. Despite improved burn rates, persistent negative operating and free cash flow mean financing risk and potential dilution remain material until commercialization is achieved.

Eroded Equity Base

A sharply reduced shareholders' equity reflects cumulative losses and prior dilution, shrinking the balance sheet buffer. This deterioration increases vulnerability to adverse trial outcomes and raises the likelihood of future financing that could dilute existing holders and constrain strategic flexibility.

Very Small Internal Headcount

A tiny employee base suggests heavy reliance on external vendors, CROs, and recent hires for R&D and operations. Even with funding and new leadership, limited internal capacity can slow program coordination, oversight, and simultaneous IND-enabling activities, increasing execution risk over time.

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

Galecto's financial performance is weak, with no revenue generation, consistent losses, and negative cash flows. While the company maintains low debt levels, the ongoing cash burn without revenue poses significant risks.

Income Statement

Galecto has reported no revenue over the years, indicating significant challenges in revenue generation or commercialization. The company consistently shows negative margins with a net profit margin of -100% due to zero revenue and persistent losses. This highlights ongoing operational difficulties and financial strain.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio, indicating limited leverage which can be a positive sign of financial stability. However, the equity ratio has decreased over the years, suggesting a reduction in equity relative to total assets, signaling potential risk if this trend continues.

Cash Flow

Cash flow analysis reveals consistent negative free cash flow, indicating operational cash burn without sufficient inflow to cover expenses. The absence of revenue generation pressures the company's cash reserves despite prior financing activities boosting cash positions.

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: Positive
• Last Price: 24.99
• 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 GLTO, the sentiment is Positive. The current price of 24.99 is below the 20-day moving average (MA) of 25.15, above the 50-day MA of 22.06, and above the 200-day MA of 8.56, indicating a neutral trend. The MACD of -0.27 indicates Positive momentum. The RSI at 53.43 is Neutral, neither overbought nor oversold. The STOCH value of 65.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLTO.

Galecto Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLTO	52 Neutral	$39.92M	-2.07	-114.81%	―	―	37.42%
QNRX	52 Neutral	$6.63M	-0.02	-655.85%	―	―	-228.89%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MTNB	45 Neutral	$4.55M	-0.21	-157.24%	―	―	25.19%
GRI	42 Neutral	$3.32M	-0.02	-397.84%	―	―	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.