Fractyl Health, Inc. (GUTS) AI Stock Analysis

• Market Cap: $71.59M
• Dividend Yield: N/A
• Average Volume (3M): 853.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: -85.71%
• EPS Growth: 66.38%
• Country: US
• Employees: 107
• Sector: General
• Sector Strength: N/A
• Industry: Biotechnology
• EPS (TTM): -0.56
• Shares Outstanding: 72,193,770
• 10 Day Avg. Volume: 1,003,448
• 30 Day Avg. Volume: 853,187
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 6.99K
• Enterprise Value/Gross Profit: -216.14
• Enterprise Value/Ebitda: -1.18
• 1Y Price Target: $7.15
• Price Target Upside: 622.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 42 Neutral
• Price Target: $1.00 ▲(1.01% Upside)

Fractyl Health's overall stock score is primarily impacted by its weak financial performance, characterized by high leverage and negative cash flows. While recent corporate events and earnings call insights provide some optimism, the company's financial instability and bearish technical indicators weigh heavily on the score.

Positive Factors

Innovative Product Pipeline

Positive study results for Revita and promising preclinical data for Rejuva suggest strong potential for innovative treatments, enhancing Fractyl's competitive position in metabolic disease therapies.

Intellectual Property Strength

New patents strengthen Fractyl's IP portfolio, protecting its duodenal resurfacing innovations and reinforcing its leadership in metabolic disease treatment.

Extended Cash Runway

The successful stock offering extends Fractyl's cash runway through key upcoming data readouts, providing financial stability to support strategic initiatives.

Negative Factors

Financial Instability

Persistent operating losses and high leverage indicate financial instability, which may limit Fractyl's ability to invest in R&D and scale its operations.

Negative Cash Flow

Negative cash flows reflect operational challenges and reliance on external financing, which could hinder long-term sustainability and growth.

Dependence on Future Data Readouts

Heavy reliance on future data readouts introduces uncertainty, as positive outcomes are crucial for regulatory approvals and market adoption.

Fractyl Health, Inc. Business Overview & Revenue Model

Company Description

Fractyl Health, Inc., operating under the ticker GUTS, is a biotechnology company focused on developing innovative treatments for metabolic diseases. The company is primarily engaged in the healthcare and biotechnology sectors, with a core emphasis on addressing type 2 diabetes and other metabolic disorders through minimally invasive procedural therapies. Fractyl Health aims to improve patient outcomes by targeting the root causes of these diseases, thereby reducing the reliance on traditional drug therapies.

How the Company Makes Money

Fractyl Health, Inc. generates revenue primarily through the development and commercialization of its proprietary procedural therapies targeting metabolic diseases. The company relies on collaborations with healthcare providers, medical institutions, and potential licensing agreements to drive adoption of its innovative treatments. Revenue is also generated from clinical trials and research partnerships, which help validate and promote the efficacy of its therapies. As the company advances its products through regulatory approvals and expands its market reach, additional revenue streams may include partnerships with pharmaceutical companies and healthcare payers, as well as direct sales to medical facilities.

Fractyl Health, Inc. Financial Statement Overview

Summary

Fractyl Health faces significant financial challenges characterized by persistent operating losses, high leverage, and negative equity. The company has been unable to generate substantial revenue or profits, relying heavily on external financing to cover its cash needs. While the cash position has improved, the overall financial situation remains precarious, with substantial risks due to high debt levels and negative cash flows.

Income Statement

Fractyl Health has shown a pattern of operating losses over the years, with a significant negative EBIT and net income. The gross profit margin is not applicable due to minimal revenue in the latest period. Revenue growth is negative, with a substantial decline in total revenue from previous periods. This indicates challenges in generating sales and controlling operational costs.

Balance Sheet

The company has a high level of debt relative to its equity, indicating high leverage and potential financial risk. The negative stockholders' equity and high debt-to-equity ratio signal financial instability. However, cash reserves have improved in the latest period, which could provide some liquidity cushion despite overall negative equity.

Cash Flow

Fractyl Health is experiencing negative operating and free cash flows, reflecting operational challenges and a reliance on external financing for cash needs. Although operating cash flow has improved compared to the previous year, the free cash flow remains negative, indicating the business is not self-sustaining through its operations alone.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.00K	93.00K	120.00K	0.00	0.00	0.00
Gross Profit	-550.00K	43.00K	43.00K	-452.00K	-676.00K	-770.00K
EBITDA	-100.66M	-92.85M	-50.55M	-48.93M	-36.25M	-28.19M
Net Income	-99.77M	-68.69M	-77.09M	-46.45M	-38.73M	-30.48M
Balance Sheet
Total Assets	62.01M	108.08M	76.21M	60.96M	102.55M	34.76M
Cash, Cash Equivalents and Short-Term Investments	22.29M	67.46M	33.21M	49.27M	95.47M	29.11M
Total Debt	61.72M	62.50M	86.39M	306.81M	304.34M	202.78M
Total Liabilities	80.22M	79.65M	401.27M	313.27M	311.87M	207.48M
Stockholders Equity	-18.21M	28.42M	-325.06M	-252.32M	-209.32M	-172.72M
Cash Flow
Free Cash Flow	-82.34M	-67.29M	-43.18M	-46.30M	-33.51M	-31.07M
Operating Cash Flow	-81.35M	-65.52M	-42.82M	-46.24M	-33.46M	-31.07M
Investing Cash Flow	-992.00K	-1.76M	-359.00K	-56.00K	-51.00K	-2.00K
Financing Cash Flow	1.88M	101.23M	27.44M	4.35M	99.88M	54.39M

Fractyl Health, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GUTS, the sentiment is Neutral. The current price of 0.99 is above the 20-day moving average (MA) of 0.97, below the 50-day MA of 1.24, and below the 200-day MA of 1.55, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 41.10 is Neutral, neither overbought nor oversold. The STOCH value of 25.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GUTS.

Fractyl Health, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTMX	66 Neutral	397.44M	4.22	-6988.82%	―	18.01%	306.76%
ICCC	54 Neutral	54.82M	32.17	5.90%	―	21.75%	―
PDSB	50 Neutral	49.85M	-1.16	―	―	―	25.26%
CUE	45 Neutral	54.40M	-1.28	-232.44%	―	-0.11%	43.47%
GUTS	42 Neutral	$71.59M	―	-379.75%	―	-85.71%	66.38%
PMVP	40 Underperform	77.90M	-0.94	―	―	―	-61.41%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

Fractyl Health, Inc. Corporate Events

Fractyl Health Appoints New Directors Amid Leadership Changes

On August 29, 2025, Fractyl Health, Inc. announced the appointment of Christopher Thompson, M.D. as a Class I director and Ian Sheffield as a Class II director, effective September 2, 2025. Dr. Thompson’s term will expire at the 2028 annual meeting, while Mr. Sheffield’s term will end at the 2026 meeting. Mr. Sheffield will also join the audit committee. Both directors will participate in the Non-Employee Director Compensation Program, receiving annual retainers and initial equity awards. Additionally, Amy W. Schulman resigned as a Class I director and from the Nominating and Corporate Governance Committee, effective September 2, 2025, without any disputes with the company.

Fractyl Health Raises $20.7M Through Stock Offering

On August 6, 2025, Fractyl Health, Inc. entered into an underwriting agreement with Ladenburg Thalmann & Co. Inc. for an offering of 19,047,619 shares of common stock and associated warrants, raising approximately $20.7 million in net proceeds. The company plans to use these funds to support its pipeline programs and general corporate purposes, with potential additional proceeds from warrant exercises. The offering closed on August 7, 2025, and includes conditions for warrant exercises and stockholder approvals, impacting the company’s financial strategy and stakeholder engagement.

Fractyl Health Unveils Positive REMAIN-1 Study Results

On June 23, 2025, Fractyl Health, Inc. announced positive 3-month data from the REVEAL-1 cohort of its REMAIN-1 pivotal study, indicating that its Revita procedure may help maintain or further weight loss after GLP-1 therapy discontinuation. The study showed that 12 of 13 participants maintained or lost weight, with no serious adverse effects reported. Additionally, Fractyl presented promising preclinical data on its Rejuva Smart GLP-1 pancreatic gene therapy platform, which prevented obesity and hyperglycemia in animal models. These findings support further development of Fractyl’s metabolic disease therapies, with upcoming data readouts expected to reinforce Revita’s potential in post-GLP-1 weight maintenance.

Fractyl Health Announces New Patents for Gut Therapies

On June 18, 2025, Fractyl Health, Inc. announced the issuance of two new U.S. patents that enhance its intellectual property portfolio, which protects its duodenal resurfacing innovations. These patents, issued on May 20 and June 17, 2025, are directed towards ablating duodenal mucosa using various forms of energy, reinforcing Fractyl’s leadership in metabolic disease treatment. The announcement underscores Fractyl’s commitment to advancing gut-targeted therapies for obesity and type 2 diabetes, with its lead product candidate, Revita, being a first-in-class treatment designed to remodel the duodenal lining. The company is also preparing for key data readouts from its ongoing pivotal study of Revita, which may demonstrate its potential in maintaining weight loss and supporting durable metabolic outcomes.

Fractyl Health Holds Annual Stockholder Meeting

On June 11, 2025, Fractyl Health, Inc. held its Annual Meeting of Stockholders, with approximately 70.38% of the company’s common stock voting power represented. During the meeting, William W. Bradley, Ajay Royan, and Amy W. Schulman were elected as Class I directors for a three-year term, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.