International Stem Cell (ISCO) AI Stock Analysis

• Market Cap: $1.35M
• Dividend Yield: N/A
• Average Volume (3M): 2.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: 10.12%
• EPS Growth: 79.74%
• Country: US
• Employees: 32
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.03
• Shares Outstanding: 8,004,389
• 10 Day Avg. Volume: 3,590
• 30 Day Avg. Volume: 2,041
• PEG Ratio: -0.05
• Price to Book (P/B): -0.17
• Price to Sales (P/S): 0.07
• P/FCF Ratio: -4.25
• Enterprise Value/Market Cap: 3.02
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 0.75
• Enterprise Value/Ebitda: 14.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $0.14 ▲(17.50% Upside)
• Action: Upgraded Date: 01/27/26
• Date: Action: Upgraded 01/27/26

The score is driven primarily by mixed financial performance: a clear turnaround in revenue and reported losses and a repaired balance sheet, offset by recent negative operating/free cash flow that elevates near-term risk. Technicals are mildly constructive, while valuation is constrained by a negative P/E and no provided dividend yield.

Positive Factors

Revenue Recovery

Sustained TTM revenue growth and a near‑breakeven net loss indicate the business is moving toward commercial viability. Over a 2–6 month horizon this strengthens cash generation potential and validates the product/service mix, reducing execution risk if growth continues.

Deleveraged Balance Sheet

Marked reduction in leverage and a return to positive equity materially improve financial flexibility. This durability lowers refinancing and solvency risk, enabling the company to fund operations or partnerships without immediate dilutive financings if stability persists.

Corporate Governance Stability

Re‑election of directors and shareholder approval of executive pay suggest governance continuity and alignment with investors. Stable board oversight supports consistent strategy execution and long‑term planning, important for R&D cycles and partnership negotiations in biotech.

Negative Factors

Weak Cash Generation

Negative operating and free cash flows erode liquidity and raise dependence on external capital. For a small biotech, persistent cash shortfalls can force dilutive financings or constrain R&D and commercialization efforts, making long‑term product development and scaling riskier.

Thin Profit Margins

Very low operating and net margins leave limited cushion against cost increases or demand variability. In a capital‑intensive biotech, narrow margins reduce resilience to R&D setbacks or pricing pressure, potentially requiring restructuring or additional funding to sustain operations.

Historical Balance Sheet Volatility

Past swings in equity and leverage indicate instability in capital structure and funding sources. Such volatility complicates long‑term planning, undermines creditor confidence, and increases execution risk for multi‑year projects unless the company sustains the recent repair.

International Stem Cell Business Overview & Revenue Model

Company Description

International Stem Cell Corporation, a clinical stage biotechnology company, focuses on the development of therapeutic and biomedical products in North America, Asia, Europe, and internationally. The company's products are based on human parthenogenetic stem cells, a proprietary type of pluripotent stem cell. It develops various cell types, including neural stem cells for the treatment of Parkinson's disease and other central nervous system disorders; and develops, manufactures, and markets anti-aging skincare and human cell culture products. The company's human cell culture products include human skin cells and reagents for the study of skin disease, toxicology, or wound healing; human cells from the heart and blood vessels, and reagents to study cardiovascular disease and cancer; human bronchial and tracheal cell lines for the study of toxicity, cystic fibrosis, asthma, and pathogenesis; and human mammary epithelial cell lines for the study of breast cancer, three dimensional culture, and carcinogen screening. Its human cell culture products also comprise adult stem cells and reagents for regenerative medicine; human prostate cells and specialized medium to study prostate disease; human renal and bladder cells and media to study renal and bladder diseases; human corneal cells and media for the study of corneal disease; human female reproductive system cells for the study of cellular physiology; human skeletal muscle cells for the study of biology, diabetes, insulin receptor studies, muscle metabolism, muscle tissue repair, and myotube development; and other cell culture reagents and supplements for the growth, staining, and freezing of human cells. The company sells skincare products through a website and professional channels; and human cell culture products through its sales force, OEM partners, and brand distributors. International Stem Cell Corporation was founded in 2001 and is headquartered in San Diego, California.

How the Company Makes Money

ISCO generates revenue through multiple streams, primarily from the sale of biomedical products, licensing agreements, and partnerships. The company develops and sells specialized cell culture media and reagents used in stem cell research and therapy development. Additionally, ISCO has a skincare product line under the brand 'Lifeline Skin Care,' which leverages its stem cell technology. Revenue is also derived from strategic partnerships and collaborations with other biotech firms and research institutions, which may include joint development agreements, licensing its proprietary technologies, and receiving milestone and royalty payments.

International Stem Cell Financial Statement Overview

Summary

Operational results improved with TTM revenue growth and losses narrowing to near breakeven, and the balance sheet shows meaningful deleveraging with positive equity. However, cash flow weakened in TTM with negative operating and free cash flow, raising liquidity and funding risk despite improved reported profitability.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew strongly versus the prior annual period, with revenue up from $9.09M (2024) to $9.39M (TTM). Profitability has improved markedly versus earlier years: losses narrowed from deep negatives in 2020–2021 to near breakeven in TTM (net loss of ~$0.06M), and operating results moved to slightly positive. However, margins remain thin (near-zero operating margin and slightly negative net margin), meaning the business is still sensitive to modest cost pressure or demand softness.

Balance Sheet

Leverage improved substantially in TTM, with total debt down to ~$0.49M and equity turning positive (~$0.52M), a major repair from 2021–2024 when equity was negative and debt levels were much higher. Total assets are steady around ~$5.3M. The key weakness is that the balance sheet has been volatile (large swings in equity and leverage across years), which reduces confidence in durability, even though the latest snapshot looks materially healthier.

Cash Flow

Cash generation weakened in TTM: operating cash flow turned slightly negative (~-$0.10M) and free cash flow is also negative (~-$0.14M), a sharp reversal from 2022–2023 when both operating and free cash flow were solidly positive (notably 2023). While reported net losses are now small, cash flow is not consistently tracking profitability, and free cash flow has become more pressured, raising near-term funding and liquidity risk if this persists.

Breakdown	TTM	Mar 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.39M	9.09M	7.79M	8.18M	7.18M	7.13M
Gross Profit	5.43M	5.32M	4.61M	4.91M	4.24M	4.35M
EBITDA	279.00K	142.00K	202.00K	22.00K	-220.00K	-2.36M
Net Income	-59.00K	-209.00K	-131.00K	-466.00K	-1.04M	-2.84M
Balance Sheet
Total Assets	5.28M	5.17M	5.39M	5.13M	4.95M	5.29M
Cash, Cash Equivalents and Short-Term Investments	966.00K	1.23M	1.59M	742.00K	171.00K	689.00K
Total Debt	3.89M	3.84M	4.18M	4.28M	4.07M	4.32M
Total Liabilities	4.76M	9.10M	5.28M	9.65M	9.53M	9.62M
Stockholders Equity	524.00K	-3.93M	113.00K	-4.52M	-4.59M	-4.33M
Cash Flow
Free Cash Flow	-141.00K	-153.00K	846.00K	321.00K	-1.34M	-449.00K
Operating Cash Flow	-98.00K	13.00K	929.00K	332.00K	-1.30M	-341.00K
Investing Cash Flow	-43.00K	-171.00K	-83.00K	-11.00K	-45.00K	-108.00K
Financing Cash Flow	-200.00K	-200.00K	0.00	250.00K	824.00K	654.00K

International Stem Cell Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 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 ISCO, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.15, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.22 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ISCO.

International Stem Cell 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%
ISCO	51 Neutral	$1.35M	-9.04	-88.08%	―	10.12%	79.74%
SCNI	49 Neutral	$671.99K	-0.06	―	―	178.82%	-4121.10%
BDRX	41 Neutral	$774.40K	-0.02	-60.37%	―	-100.00%	86.75%
OGEN	29 Underperform	$3.00M	-0.04	-168.95%	―	―	90.27%

International Stem Cell Corporate Events

International Stem Cell Holds Annual Stockholders Meeting

On June 17, 2025, International Stem Cell Corporation held its Annual Meeting of Stockholders where two key proposals were considered. The first proposal involved the election of four directors, all of whom were successfully elected. The second proposal, which was approved, concerned the advisory approval of executive compensation. Additionally, a vote was held on the frequency of advisory votes on executive compensation, with the majority favoring a three-year interval.