Werewolf Therapeutics (HOWL) AI Stock Analysis

• Market Cap: $31.15M
• Dividend Yield: N/A
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.89
• Revenue Growth: -100.00%
• EPS Growth: -8.30%
• Country: US
• Employees: 46
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.36
• Shares Outstanding: 48,540,200
• 10 Day Avg. Volume: 1,746,006
• 30 Day Avg. Volume: 1,221,642
• PEG Ratio: -0.02
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 34.02
• P/FCF Ratio: -1.14
• Enterprise Value/Market Cap: 0.03
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -1.21
• Enterprise Value/Ebitda: -0.02
• 1Y Price Target: $4.00
• Price Target Upside: 525.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $0.64 ▲(0.31% Upside)

The score is held down primarily by weak financial performance (large ongoing losses and cash burn with funding/dilution risk) and bearish technicals (downtrend across major moving averages with negative MACD). Positive pipeline progress and FDA-related updates provide some offset, but loss-making status and lack of dividend support keep the valuation component weak.

Positive Factors

Proprietary PREDATOR platform (tumor‑targeted prodrugs)

A proprietary tumor‑activated PREDATOR platform is a durable competitive asset: engineering conditionally activated biologics can improve therapeutic index across multiple cytokine and immune modalities, enabling a platform approach that spreads R&D risk and supports multiple programs and partner opportunities.

Clinical signals and FDA guidance for WTX‑124

Objective and durable responses plus FDA acceptance of a recommended Phase 2 dose and initial registration guidance materially de‑risks WTX‑124’s development pathway. This improves the program's appeal to partners and supports a realistic route to approval rather than solely exploratory development.

WTX‑330 safety/PK and manufacturing improvements

Improved safety profile, favorable PK and an optimized manufacturing process reduce clinical and scale‑up risk for WTX‑330. These durable technical improvements enhance partnerability, speed regulatory filings, and increase the likelihood of translating early signals into later‑stage programs.

Negative Factors

High cash burn and negative free cash flow

Sustained negative operating and free cash flow at scale requires repeated external funding. Over a multi‑month horizon this forces prioritization of assets, potential delays in trials, and increases reliance on dilutive financings or non‑dilutive partnerships to maintain development timelines.

Minimal revenue and sustained net losses

As a clinical‑stage biotech with essentially no product revenue and large ongoing losses, the company lacks internal cash generation to fund late‑stage studies. This structural reality constrains strategic optionality and increases dependence on upfront, milestone, or licensing deals.

Eroding equity and funding/dilution risk

A sharp decline in shareholders' equity reduces the balance sheet cushion and raises the likelihood of future equity raises or onerous financing. This structural dilution risk can impede long‑term planning, weaken negotiating leverage with partners, and pressure program continuity without new capital.

Werewolf Therapeutics Business Overview & Revenue Model

Company Description

Werewolf Therapeutics, Inc., a biopharmaceutical company, develops therapeutics engineered to stimulate the body's immune system for the treatment of cancer. The company, through its proprietary PREDATOR platform, designs conditionally activated molecules that stimulate adaptive and innate immunity for addressing the limitations of conventional proinflammatory immune therapies. Its lead product candidates are WTX-124, a conditionally activated Interleukin-2 INDUKINE molecule for the treatment of advanced solid tumors; and WTX-330, a conditionally activated Interleukin-12 INDUKINE molecule for the treatment of relapsed or refractory advanced or metastatic solid tumors or lymphoma. The company is also developing WTX-613, a conditionally activated interferon alpha INDUKINE molecule for the treatment of solid tumors and hematologic malignancies. Werewolf Therapeutics, Inc. was incorporated in 2017 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Werewolf Therapeutics generates revenue primarily through a combination of product development partnerships, licensing agreements, and potential future sales of its proprietary therapeutics. The company collaborates with pharmaceutical companies and research institutions to co-develop new therapies, which may involve upfront payments, milestone payments based on development progress, and royalties from future sales. Additionally, the company may pursue grants and funding from governmental and non-governmental organizations aimed at supporting innovative biotech solutions, further contributing to its revenue streams.

Werewolf Therapeutics Financial Statement Overview

Summary

Overall financial strength is constrained by minimal revenue, large net losses (about $72.8M TTM), and significant cash burn (about -$63.6M TTM free cash flow). Leverage is moderate, but equity has declined sharply over time, elevating future funding and dilution risk.

Income Statement

Operating performance remains weak. In TTM (Trailing-Twelve-Months), the company generated essentially no revenue while posting a large net loss (about $72.8M) and deeply negative operating profit, indicating the business is still in a heavy investment/burn phase. Looking back, revenue has been volatile and recently deteriorated materially (2024 revenue down sharply versus 2023), with losses persisting each year—showing limited near-term progress toward profitability.

Balance Sheet

Balance sheet quality is mixed. Leverage appears moderate based on reported debt-to-equity (about 0.33 in TTM (Trailing-Twelve-Months), ~0.51 in 2024), which provides some financial flexibility. However, equity has fallen significantly over time (from ~$152.8M in 2021 to ~$29.6M in TTM), reflecting sustained losses and raising the risk of future dilution or tighter funding conditions if losses continue.

Cash Flow

Cash flow is pressured by ongoing cash burn. TTM (Trailing-Twelve-Months) operating cash flow was about -$63.5M and free cash flow about -$63.6M, both meaningfully negative. While free cash flow has occasionally improved year-over-year in prior periods, the company is still consuming substantial cash, and cash generation has not yet stabilized at a level that would reduce external financing needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	1.89M	19.94M	16.40M	0.00	0.00
Gross Profit	-832.00K	71.00K	18.18M	13.89M	0.00	-777.00K
EBITDA	-66.69M	-64.05M	-32.47M	-51.30M	-49.87M	-14.26M
Net Income	-72.84M	-70.52M	-37.37M	-53.81M	-49.98M	-14.94M
Balance Sheet
Total Assets	79.63M	126.93M	174.83M	160.25M	179.25M	96.40M
Cash, Cash Equivalents and Short-Term Investments	65.71M	111.00M	134.34M	129.31M	157.53M	92.57M
Total Debt	37.30M	37.09M	51.92M	14.68M	15.66M	2.54M
Total Liabilities	50.01M	53.54M	63.46M	37.91M	26.46M	7.18M
Stockholders Equity	29.61M	73.39M	111.37M	122.34M	152.79M	89.22M
Cash Flow
Free Cash Flow	-63.64M	-56.44M	-33.38M	-44.21M	-43.37M	-19.18M
Operating Cash Flow	-63.52M	-56.19M	-32.61M	-40.60M	-42.88M	-18.62M
Investing Cash Flow	-123.00K	-254.00K	-769.00K	-3.61M	-498.00K	-560.00K
Financing Cash Flow	6.21M	13.08M	58.43M	15.91M	109.43M	93.86M

Werewolf Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.64
• 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 HOWL, the sentiment is Negative. The current price of 0.64 is above the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.76, and below the 200-day MA of 1.17, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 20.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HOWL.

Werewolf Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KLRS	60 Neutral	$147.79M	-1.13	-63.45%	―	―	63.31%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CAMP	49 Neutral	$183.66M	-1.46	-172.70%	―	―	5.51%
NRXP	46 Neutral	$54.47M	-0.71	―	―	―	-9.32%
CRVO	45 Neutral	$43.21M	-1.59	-71.42%	―	-38.81%	-76.96%
HOWL	44 Neutral	$31.15M	-0.37	-122.43%	―	-100.00%	-8.30%

Werewolf Therapeutics Corporate Events

Werewolf Therapeutics Updates Pipeline and Outlines 2026 Priorities

On December 18, 2025, Werewolf Therapeutics reported a pipeline update and 2026 business priorities centered on its INDUKINE and INDUCER platforms, highlighting preliminary clinical data and a shift toward partnering for late‑stage development. The company showcased Phase 1/1b results for WTX‑124, an IL‑2 INDUKINE, showing objective and durable responses as monotherapy in melanoma, cutaneous squamous cell carcinoma, and gastroesophageal junction cancer and in combination with pembrolizumab across multiple solid tumors as of October 30, 2025, with a 21% objective response rate in heavily pretreated advanced cutaneous melanoma and 30% in patients who had previously responded to immunotherapy; the FDA has accepted 18 mg as the recommended Phase 2 dose and provided initial guidance for a monotherapy registration path in post‑ICI relapsed or refractory melanoma. Werewolf also detailed early Phase 1b/2 data for its IL‑12 INDUKINE WTX‑330 through October 31 and December 2, 2025, indicating improved safety, favorable pharmacokinetics versus recombinant IL‑12 and antitumor activity including a confirmed partial response in metastatic gall bladder cancer, supported by an optimized manufacturing process. Looking ahead, the company expects to complete the WTX‑124 Phase 1/1b trial and deliver further data in the first half of 2026 and to provide an update from the dose‑finding Part A of the WTX‑330 Phase 1b/2 trial over the same period, but it signaled that additional funding and strategic partnerships will be required to advance both programs into registration‑enabling or combination studies, affecting the pace and scope of future clinical development. In parallel, Werewolf is advancing its INDUCER T‑cell engager platform, reporting preclinical data on WTX‑1011 and the newly announced WTX‑2022 that showed strong tumor‑specific activation, antitumor activity in xenograft models, and low cytokine release in non‑human primates, with cell line development and IND‑enabling studies underway and planned investigational filings around mid‑2027, subject to financing, positioning the company to compete as a differentiated player in next‑generation T‑cell engager therapies.

The most recent analyst rating on (HOWL) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Werewolf Therapeutics stock, see the HOWL Stock Forecast page.