Fractyl Health, Inc. (GUTS) AI Stock Analysis

• Market Cap: $191.86M
• Dividend Yield: N/A
• Average Volume (3M): 1.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: -96.91%
• EPS Growth: 63.11%
• Country: US
• Employees: 107
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.71
• Shares Outstanding: 137,044,430
• 10 Day Avg. Volume: 2,526,420
• 30 Day Avg. Volume: 1,776,972
• PEG Ratio: 0.07
• Price to Book (P/B): 3.16
• Price to Sales (P/S): 964.47
• P/FCF Ratio: -1.33
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 29.11K
• Enterprise Value/Gross Profit: -304.27
• Enterprise Value/Ebitda: -0.72
• 1Y Price Target: $7.75
• Price Target Upside: 423.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -1.63
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $1.50 ▲(1.35% Upside)

Fractyl Health's overall stock score is primarily impacted by its precarious financial performance, with significant operating losses and high leverage. While the earnings call provided some optimism with clinical advancements and a strong cash position, the negative valuation metrics and moderate technical indicators suggest caution. The company's future potential hinges on successful clinical outcomes and improved financial health.

Positive Factors

Innovative Product Offering

The Revita procedure's ability to sustain weight loss post-GLP-1 therapy positions Fractyl Health as a leader in innovative metabolic treatments, potentially establishing a new therapeutic category in obesity management.

Strong Cash Position

A strong cash position extending into early 2027 provides Fractyl Health with the financial flexibility to invest in R&D and support key milestones, enhancing long-term growth prospects.

Clinical Progress

The durable outcomes from the German Registry Study reinforce the long-term efficacy of Revita, bolstering confidence in its potential to transform metabolic disease treatment.

Negative Factors

High Leverage

High leverage can increase financial risk and limit Fractyl Health's ability to invest in growth opportunities, potentially impacting long-term stability and operational flexibility.

Persistent Operating Losses

Ongoing operating losses suggest challenges in achieving profitability, which could hinder Fractyl Health's ability to sustain operations and invest in future growth without external financing.

Negative Cash Flows

Negative cash flows indicate reliance on external financing, which may not be sustainable long-term. This could impact Fractyl Health's ability to fund operations and strategic initiatives independently.

Fractyl Health, Inc. Business Overview & Revenue Model

Company Description

Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is based in Lexington, Massachusetts.

How the Company Makes Money

Fractyl Health generates revenue primarily through the commercialization of its Revita procedure and related technologies. Key revenue streams include the sale of medical devices used in the procedure, as well as potential licensing agreements and collaborations with healthcare facilities and providers. Additionally, the company may receive funding from strategic partnerships with pharmaceutical companies and research institutions that are interested in metabolic health innovations. As the market for metabolic disease treatments continues to grow, Fractyl Health aims to expand its reach and establish a broader presence in the healthcare ecosystem, which will contribute to its earnings over time.

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	3.00K	93.00K	120.00K	0.00	0.00	0.00
Gross Profit	-287.00K	43.00K	43.00K	-452.00K	0.00	-770.00K
EBITDA	-120.58M	-92.85M	-50.55M	-48.93M	-36.25M	-28.19M
Net Income	-122.20M	-68.69M	-77.09M	-46.45M	-38.73M	-30.48M
Balance Sheet
Total Assets	114.27M	108.08M	76.21M	60.96M	102.55M	34.76M
Cash, Cash Equivalents and Short-Term Investments	77.66M	67.46M	33.52M	49.27M	95.47M	29.11M
Total Debt	62.18M	62.50M	373.72M	306.81M	304.34M	15.29M
Total Liabilities	117.45M	79.65M	401.27M	313.27M	311.87M	19.81M
Stockholders Equity	-3.18M	28.42M	-325.06M	-252.32M	-209.32M	14.95M
Cash Flow
Free Cash Flow	-86.81M	-67.29M	-43.18M	-46.30M	-33.51M	-31.07M
Operating Cash Flow	-86.03M	-65.52M	-42.82M	-46.24M	-33.46M	-31.07M
Investing Cash Flow	-787.00K	-1.76M	-359.00K	-56.00K	-51.00K	-2.00K
Financing Cash Flow	79.81M	101.23M	27.44M	4.35M	99.88M	54.39M

Fractyl Health, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GUTS, the sentiment is Positive. The current price of 1.48 is above the 20-day moving average (MA) of 1.25, above the 50-day MA of 1.28, and above the 200-day MA of 1.41, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 64.29 is Neutral, neither overbought nor oversold. The STOCH value of 91.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GUTS.

Fractyl Health, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFT	60 Neutral	$219.11M	―	-51.06%	―	-44.94%	-274.42%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IPHA	49 Neutral	$182.55M	―	-271.32%	―	-75.77%	-31.24%
GUTS	48 Neutral	$191.86M	―	-518.40%	―	-96.91%	63.11%
CHRS	47 Neutral	$158.34M	―	―	―	-72.54%	-19972.15%
SLS	43 Neutral	$207.97M	―	-84.33%	―	―	59.04%
TARA	39 Underperform	$285.74M	―	-49.42%	―	―	48.84%

Fractyl Health, Inc. Corporate Events

Fractyl Health’s Earnings Call Highlights Clinical and Financial Progress

Fractyl Health, Inc. has reported significant clinical and financial progress in its latest earnings call, with a particular focus on the promising outcomes of the Revita procedure. The overall sentiment was positive, highlighting the company’s robust financial standing and clinical advancements, though challenges such as increased net loss and weight regain in the sham group were noted.

Fractyl Health Reports Q3 2025 Results and Strategic Progress

Fractyl Health, Inc., a metabolic therapeutics company, focuses on pioneering treatments for obesity and type 2 diabetes through innovative approaches targeting the root causes of these diseases. In its third quarter 2025 earnings report, Fractyl Health highlighted significant progress in its Revita and Rejuva platforms, with promising clinical data and strategic financial maneuvers extending its cash runway into early 2027.

Fractyl Health Approves Share Issuance in Special Meeting

On October 3, 2025, Fractyl Health, Inc. held a Special Meeting of Stockholders where 64.12% of the company’s common stock voting power was represented. During the meeting, stockholders approved the issuance of shares in accordance with Nasdaq rules related to a financing transaction and also approved the potential adjournment of the meeting to solicit additional proxies if necessary.

The most recent analyst rating on (GUTS) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Fractyl Health, Inc. stock, see the GUTS Stock Forecast page.

Fractyl Health Announces $60M Stock Offering Pricing

On September 26, 2025, Fractyl Health, Inc. announced the pricing of an underwritten offering of 60 million shares of its common stock at $1.00 per share, expected to raise approximately $56 million in net proceeds. The offering, managed by BofA Securities and Evercore ISI, is anticipated to close on September 29, 2025, and aims to fund the company’s operations and capital expenditures into early 2027, potentially strengthening its position in the metabolic therapeutics industry.

The most recent analyst rating on (GUTS) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Fractyl Health, Inc. stock, see the GUTS Stock Forecast page.

Fractyl Health Reveals Promising REMAIN-1 Study Results

On September 26, 2025, Fractyl Health announced the 3-month interim results from its REMAIN-1 Midpoint Cohort study, which evaluates the Revita DMR System’s potential to maintain weight loss after GLP-1 drug discontinuation. The study showed that Revita-treated patients lost an additional 2.5% total body weight after stopping tirzepatide, while sham patients regained 10%, indicating strong statistical significance. These findings suggest Revita could be a first-in-class treatment for post-GLP-1 weight maintenance, offering a new therapeutic category in obesity care. The study’s positive results bolster confidence in the ongoing Pivotal Cohort study, which is expected to complete randomization in early 2026, with further data and potential PMA filing anticipated later that year.

The most recent analyst rating on (GUTS) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Fractyl Health, Inc. stock, see the GUTS Stock Forecast page.

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.

The most recent analyst rating on (GUTS) stock is a Buy with a $3.60 price target. To see the full list of analyst forecasts on Fractyl Health, Inc. stock, see the GUTS Stock Forecast page.