IO Biotech (IOBT) AI Stock Analysis

• Market Cap: $20.87M
• Dividend Yield: N/A
• Average Volume (3M): 18.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: N/A
• EPS Growth: 2.36%
• Country: US
• Employees: 80
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.13
• Shares Outstanding: 71,948,845
• 10 Day Avg. Volume: 53,938,183
• 30 Day Avg. Volume: 18,387,623
• PEG Ratio: 0.02
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.74
• Enterprise Value/Market Cap: -0.40
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.16
• Enterprise Value/Ebitda: 0.10
• 1Y Price Target: $0.43
• Price Target Upside: 48.28% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.26
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $0.30 ▲(3.79% Upside)

The score is primarily driven lower by weak financial performance (pre-revenue, large losses, substantial cash burn, and sharply thinner equity cushion) and bearish technicals (price below all major moving averages with negative MACD). Corporate events further increase downside and financing/listing risk, while valuation metrics provide limited offset due to negative earnings and no dividend.

Positive Factors

Proprietary discovery platform

A validated IO Discovery platform that identifies tumor-associated antigens is a durable competitive asset. It can continually generate new vaccine candidates, support combination strategies across indications, and increase the firm's attractiveness for partnerships or licensing agreements over time.

Broad lead candidate strategy

IO102-IO103's development as a combination vaccine across multiple solid-tumor indications increases addressable market and strategic options. Durable benefit: a broad, combo-focused program can sustain long-term clinical development pathways, enable multiple registrational shots, and attract collaboration interest.

Positive Phase 3 signal

A Phase 3 signal showing improved progression-free survival provides meaningful clinical de-risking for the program. Durable impact: positive late-stage data can materially raise regulatory and commercial probability, strengthen partnership leverage, and justify continued investment in related indications.

Negative Factors

Pre-revenue with heavy cash burn

Being pre-revenue with ~ $88M TTM net losses and material operating cash burn is a persistent structural weakness. It necessitates recurring financing, increases dilution risk, and constrains the firm's ability to sustain multiple clinical programs without securing additional capital or partnerships.

Balance sheet deterioration

A collapsing equity buffer and rising debt-to-equity to ~1.6 materially reduce financial flexibility. Structurally this raises funding risk, limits strategic optionality, and increases the likelihood that management must prioritize short-term liquidity actions over long-term R&D investments.

Strategic review and potential liquidation

Launching a formal strategic review that includes sale or liquidation options signals management view of constrained standalone viability. This creates durable execution uncertainty, may slow or halt clinical progress, and increases the probability of outcomes that materially change the firm's long-term growth prospects.

IO Biotech Business Overview & Revenue Model

Company Description

IO Biotech, Inc., a clinical-stage biopharmaceutical company, develops immune-modulating cancer therapies based on the T-win technology platform. The company's lead product candidate, IO102-IO103, which is designed to target immunosuppressive proteins, such as Indoleamine 2,3-dehydrogenase (IDO), and programmed death-ligand (PD-L1) that is in phase 2 clinical trial to treat melanoma, as well as in phase 1 clinical trial to treat lung, head and neck, bladder, and melanoma cancer. It also develops IO112, a product candidate that contains a single Arginase 1-derived peptide designed to target T cells that recognize epitopes derived from Arginase 1 for the treatment of cancers. The company was incorporated in 2014 and is based in Copenhagen, Denmark.

How the Company Makes Money

IO Biotech makes money primarily through the development and commercialization of its immune-modulating cancer therapies. The company's revenue streams include potential product sales, licensing agreements, and collaborations with larger pharmaceutical companies. These partnerships often involve upfront payments, milestone payments, and royalties on future sales. Additionally, IO Biotech may receive funding from grants and research collaborations with academic institutions and healthcare organizations, which contribute to its earnings and support ongoing research and development activities.

IO Biotech Financial Statement Overview

Summary

Very weak fundamentals for a development-stage biotech: zero revenue and large ongoing losses (TTM net loss ~$88.3M) alongside heavy cash burn (TTM operating cash flow and FCF about -$81M). Balance sheet resilience has deteriorated sharply in TTM with equity near ~$0.9M and higher leverage (debt-to-equity ~1.60), increasing funding and dilution risk.

Income Statement

IO Biotech is still pre-revenue (reported revenue is 0 across annual periods and TTM (Trailing-Twelve-Months)), while losses remain very large. TTM (Trailing-Twelve-Months) net loss is approximately $88.3M (vs. ~$95.5M in 2024), showing some improvement year over year, but profitability is still far from breakeven and gross profit is negative. Overall, the income statement reflects a development-stage biotech with persistent operating losses and limited visibility to near-term earnings power.

Balance Sheet

Leverage is low in the annual periods (debt-to-equity ~0.02–0.04 from 2022–2024), which is a positive for financial flexibility. However, the balance sheet has weakened sharply in TTM (Trailing-Twelve-Months): equity has fallen to about $0.9M (from ~$47.0M in 2024) and debt-to-equity rises to ~1.60, indicating a much thinner equity buffer. Total assets also declined to ~$40.0M TTM from ~$67.7M in 2024, pointing to ongoing cash burn and reduced balance sheet resilience.

Cash Flow

Cash generation is materially negative: TTM (Trailing-Twelve-Months) operating cash flow is about -$81.0M and free cash flow is about -$81.1M, with free cash flow deterioration versus 2024 (negative growth). Free cash flow roughly tracks net loss (near 1x), suggesting losses are largely cash-based rather than driven by major non-cash add-backs. The consistent and sizable cash burn profile heightens funding risk unless the company raises capital or meaningfully reduces spend.

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	-910.00K	-849.00K	-756.00K	-540.00K	0.00	0.00
EBITDA	-87.25M	-93.20M	-84.47M	-69.34M	-67.45M	-12.02M
Net Income	-88.35M	-95.49M	-86.08M	-71.46M	-67.88M	-12.04M
Balance Sheet
Total Assets	39.96M	67.70M	150.72M	151.81M	222.29M	5.65M
Cash, Cash Equivalents and Short-Term Investments	30.66M	60.03M	143.19M	142.59M	211.53M	3.40M
Total Debt	1.46M	1.92M	2.49M	2.79M	0.00	0.00
Total Liabilities	39.05M	20.68M	17.56M	12.95M	10.36M	3.05M
Stockholders Equity	911.00K	47.02M	133.16M	138.85M	211.92M	2.60M
Cash Flow
Free Cash Flow	-81.06M	-82.39M	-72.06M	-60.42M	-40.80M	-9.96M
Operating Cash Flow	-81.00M	-82.35M	-71.74M	-59.73M	-40.65M	-9.96M
Investing Cash Flow	-69.00K	-44.00K	-323.00K	-690.00K	-153.00K	0.00
Financing Cash Flow	32.76M	0.00	71.86M	0.00	252.95M	5.10M

IO Biotech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IOBT, the sentiment is Negative. The current price of 0.29 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.62, and below the 200-day MA of 1.14, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 37.05 is Neutral, neither overbought nor oversold. The STOCH value of 27.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IOBT.

IO Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVAX	50 Neutral	$20.09M	-0.34	―	―	4455.07%	77.31%
ELUT	48 Neutral	$44.84M	-1.14	―	―	-14.92%	72.81%
IGC	47 Neutral	$25.87M	-3.47	-83.34%	―	-6.51%	58.31%
IOBT	41 Neutral	$20.87M	-0.22	-240.48%	―	―	2.36%
PLUR	40 Underperform	$32.20M	-1.13	―	―	121.74%	24.75%

IO Biotech Corporate Events

IO Biotech launches strategic review amid major restructuring

On January 21, 2026, IO Biotech’s board approved a restructuring and workforce reduction plan expected to result in a significant global headcount cut, as the company moves to reduce operating expenses while evaluating strategic alternatives. The plan is expected to generate one-time charges of approximately $2.4 million to $2.6 million, largely tied to severance, benefits, and related termination costs, primarily in the first quarter of 2026, with the potential for additional non-material charges later. As part of these measures, the company notified Chief Medical Officer Qasim Ahmad on January 28, 2026, that his employment would end effective February 15, 2026, underscoring the depth of the restructuring at senior levels. On January 30, 2026, IO Biotech announced it had retained Raymond James & Associates as its exclusive financial advisor to assist in its review of strategic options and confirmed that the workforce reduction and broader cost-containment initiatives are central to conserving cash and reshaping operations during this strategic review, a move with significant implications for employees, leadership and the company’s future configuration.

The most recent analyst rating on (IOBT) stock is a Sell with a $0.29 price target. To see the full list of analyst forecasts on IO Biotech stock, see the IOBT Stock Forecast page.

IO Biotech Explores Strategic Alternatives Amid Cost-Cutting Plans

On January 21, 2026, IO Biotech announced that it had begun exploring a range of strategic alternatives aimed at maximizing shareholder value, including options such as a merger, business combination, sale of assets, other strategic transactions, or potentially liquidation and dissolution. As part of this review, the company is also considering additional workforce reductions and other significant cost-cutting measures, while noting that no timetable has been set, no transaction agreements have been reached, and there is no assurance that any deal will ultimately be pursued or completed on favorable terms, underscoring a period of heightened uncertainty for investors, employees, and partners.

The most recent analyst rating on (IOBT) stock is a Hold with a $0.48 price target. To see the full list of analyst forecasts on IO Biotech stock, see the IOBT Stock Forecast page.

IO Biotech Receives Nasdaq Notice for Bid Price Noncompliance

On December 17, 2025, IO Biotech, Inc. received a notice from Nasdaq that its common stock no longer met the Nasdaq Global Select Market’s minimum bid price requirement, as its closing bid price had remained below $1.00 per share for 30 consecutive trading days, though the stock continues to trade without immediate impact to its listing status. The company has until June 16, 2026, to regain compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive trading days, and while it may seek an additional 180-day compliance period through a transfer to the Nasdaq Capital Market, failure to cure the deficiency could ultimately result in delisting, introducing heightened uncertainty for shareholders and potentially constraining the company’s access to capital markets.

The most recent analyst rating on (IOBT) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on IO Biotech stock, see the IOBT Stock Forecast page.

IO Biotech Announces Resignation of Chief Accounting Officer

On November 17, 2025, IO Biotech, Inc. announced the resignation of Brian Burkavage from his role as Senior Vice President and Chief Accounting Officer, effective December 12, 2025. His departure is amicable and due to his pursuit of another opportunity. Following his resignation, Amy Sullivan, the current Chief Financial Officer, will assume the role of principal accounting officer. No new compensation arrangements will be made for Ms. Sullivan in her new role.

The most recent analyst rating on (IOBT) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on IO Biotech stock, see the IOBT Stock Forecast page.

IO Biotech Presents at Jefferies Global Healthcare Conference

IO Biotech, Inc. announced its participation in the Jefferies Global Healthcare Conference starting November 18, 2025, where it will present updated corporate information to investors. The company highlighted the promising results of its Phase 3 trial for Cylembio in treating advanced melanoma, demonstrating improved progression-free survival compared to pembrolizumab alone. Despite narrowly missing statistical significance, the trial showed potential broad application across multiple cancer indications, positioning Cylembio as a promising partner in combination therapies and potentially addressing significant unmet medical needs in the oncology market.

The most recent analyst rating on (IOBT) stock is a Hold with a $0.39 price target. To see the full list of analyst forecasts on IO Biotech stock, see the IOBT Stock Forecast page.