Lineage Therap (LCTX) AI Stock Analysis

• Market Cap: $398.54M
• Dividend Yield: N/A
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 24.05%
• EPS Growth: -169.73%
• Country: US
• Employees: 70
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): <0.01
• Shares Outstanding: 249,087,520
• 10 Day Avg. Volume: 1,383,166
• 30 Day Avg. Volume: 1,217,111
• PEG Ratio: -0.03
• Price to Book (P/B): 8.63
• Price to Sales (P/S): 26.40
• P/FCF Ratio: -19.77
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 22.68
• Enterprise Value/Gross Profit: 24.08
• Enterprise Value/Ebitda: -15.66
• 1Y Price Target: $6.00
• Price Target Upside: 275.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.02
• Revenue Forecast (FY): $26.23M

• Rating: 48 Neutral
• Price Target: $1.50 ▼(-6.25% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held back primarily by heavy operating losses and sustained cash burn despite improving revenue. Offsetting factors include an extended cash runway into Q2 2028 and low leverage, while technicals are mixed with the stock below key short/medium-term moving averages. Valuation is difficult to support given negative earnings and no dividend data.

Positive Factors

Extended cash runway

A multi-year runway materially reduces near-term financing pressure, allowing management to execute planned clinical and manufacturing milestones without immediate dilution. This supports sustained R&D progress and increases probability of reaching value-inflection events over the next 2–3 years.

GMP AlloSCOPE manufacturing validation

Validated GMP cell banking and repeatable production provide a durable manufacturing advantage for off-the-shelf cell therapies. Demonstrated clinical-use material and large vial inventories underpin scalability potential and lower technical risk for commercialization pathways.

OpRegen partner momentum & durability signal

Clinical durability signals plus an active Roche/Genentech partnership materially de-risk commercial potential for OpRegen. Partner funding, RMAT designation, and site expansion increase development credibility and long-term commercialization prospects independent of short-term market swings.

Negative Factors

Persistent cash burn

Sustained negative operating cash flow indicates ongoing reliance on external financing to fund operations. Over 2–3 years this elevates dilution and execution risk if milestone funding or equity raises are delayed, threatening the company’s ability to advance multiple programs concurrently.

Large net loss & impairments

A materially larger annual loss, including impairment and remeasurement volatility, weakens shareholder capital and can constrain strategic flexibility. Recurring large losses reduce the balance sheet cushion and increase dependence on future financing and milestone receipts for stability.

Islet scaling uncertainty

Demonstrated small‑scale reproducibility is encouraging, but unproven translation to multi‑liter and commercial bioreactors is a fundamental technical risk. Failure or delays in scale-up would impair ability to manufacture commercial doses, impacting revenue potential and partner confidence long-term.

Lineage Therap Business Overview & Revenue Model

Company Description

Lineage Cell Therapeutics, Inc., a clinical-stage biotechnology company, develops novel cell therapies for the treatment of degenerative diseases in the United States and internationally. The company develops OpRegen, a retinal pigment epithelium cell replacement therapy, which is in Phase I/IIa clinical trial for the treatment of the dry age-related macular degeneration; OPC1, an oligodendrocyte progenitor cell therapy that is in Phase I/IIa multicenter clinical trial for the treatment of acute spinal cord injuries; and VAC2, an allogeneic cancer immunotherapy of antigen-presenting dendritic cells, which is in Phase I clinical trial to treat non-small cell lung cancer. It also offers Renevia, a facial aesthetics product. In addition, the company engages in the research and development of therapeutic products for retinal diseases, neurological diseases, and disorders and oncology. Lineage Cell Therapeutics, Inc. has a collaboration with Orbit Biomedical, Ltd. The company was formerly known as BioTime, Inc. and changed its name to Lineage Cell Therapeutics, Inc. in August 2019. Lineage Cell Therapeutics, Inc. was incorporated in 1990 and is headquartered in Carlsbad, California.

How the Company Makes Money

Lineage primarily makes money through (1) collaboration and licensing arrangements and (2) grant and contract revenue; it does not primarily rely on product sales because it is a clinical-stage company and its lead programs are still in development. 1) Collaboration and licensing revenue: Lineage enters partnerships in which it may grant rights to develop and/or commercialize certain programs or technologies. In return, the company may receive upfront payments, reimbursement of certain development activities, research funding, and potential development/regulatory/commercial milestone payments, as well as royalties on future net sales if a partnered product is commercialized. Any specific partner names, deal terms (e.g., milestone totals, royalty rates), and which programs are covered: null. 2) Government grants and other funding: The company may receive research grants or contract funding from governmental or non-profit entities to support development of specific programs. These funds can be recognized as revenue based on the applicable accounting treatment and the underlying grant/contract terms. Specific grant sources, amounts, and covered programs: null. 3) Other income sources (if applicable): Lineage may also recognize limited revenue from services, cost reimbursements, or other ancillary arrangements related to its development operations; the materiality and details of such revenue sources: null. Overall, Lineage’s earnings potential is tied to securing and maintaining funding for R&D, progressing candidates through clinical trials to value-inflection points, and monetizing its pipeline via partnerships and, if approvals are ultimately obtained, royalties and/or commercialization economics. The extent to which any given program contributes to revenue in a particular period depends on the timing of collaboration payments, grant milestones, and recognition of reimbursable development activities.

Lineage Therap Financial Statement Overview

Summary

Revenue growth is improving (2025 revenue $14.6M, +34.6% YoY), but financial quality remains weak with large operating losses (2025 EBIT -$36.6M) and persistent cash burn (2025 operating/free cash flow about -$18.9M). Low debt (~$2.4M; debt-to-equity ~0.06) helps, but equity has declined materially, reflecting ongoing losses.

Income Statement

Revenue has rebounded strongly, rising to $14.6M in 2025 (up 34.6% YoY) after modest growth in 2024, showing improving top-line traction. That said, profitability remains very weak: the company continues to post large operating losses (2025 EBIT of -$36.6M) and a deeply negative net margin (about -436% in 2025), indicating the cost base is far above the current revenue scale. Overall, growth is a positive, but the earnings profile is still highly loss-making and volatile.

Balance Sheet

Leverage is low, with total debt of ~$2.4M in 2025 and a modest debt-to-equity ratio (~0.06), which reduces financial risk and provides flexibility. However, equity has fallen materially (to ~$43.3M in 2025 from ~$78.4M in 2024), reflecting ongoing losses and weakening the capital cushion. Returns on shareholder capital are sharply negative (2025 return on equity around -147%), highlighting that the balance sheet strength is being pressured by continued net losses.

Cash Flow

Cash generation is a key weak point: operating cash flow and free cash flow were both about -$18.9M in 2025, following similarly negative levels in 2023–2024, implying ongoing cash burn to fund operations. While 2022 briefly showed positive operating and free cash flow, the trend since then has reverted to consistent outflows, increasing funding reliance over time. The cash flow profile is therefore fragile despite some year-to-year fluctuations in burn.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.56M	9.50M	8.95M	14.70M	3.90M
Gross Profit	13.71M	9.16M	8.27M	13.97M	2.47M
EBITDA	-21.08M	-20.87M	-24.04M	-21.79M	-48.34M
Net Income	-63.53M	-18.61M	-21.49M	-26.27M	-43.02M
Balance Sheet
Total Assets	112.58M	113.22M	101.02M	123.66M	174.54M
Cash, Cash Equivalents and Short-Term Investments	55.78M	47.80M	35.49M	57.88M	58.36M
Total Debt	2.42M	2.51M	2.95M	3.90M	2.80M
Total Liabilities	69.24M	36.21M	39.00M	51.73M	83.65M
Stockholders Equity	44.55M	78.38M	63.42M	73.34M	92.22M
Cash Flow
Free Cash Flow	-19.44M	-23.66M	-29.24M	646.00K	-23.91M
Operating Cash Flow	-18.92M	-23.09M	-28.57M	1.06M	-23.56M
Investing Cash Flow	-13.46M	-2.31M	46.45M	-46.16M	9.74M
Financing Cash Flow	26.95M	35.86M	6.42M	1.63M	36.93M

Lineage Therap Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCTX, the sentiment is Negative. The current price of 1.6 is below the 20-day moving average (MA) of 1.79, below the 50-day MA of 1.72, and above the 200-day MA of 1.45, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.85 is Neutral, neither overbought nor oversold. The STOCH value of 6.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LCTX.

Lineage Therap Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBVT	60 Neutral	$1.11B	-1.46	-295.23%	―	―	1.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LCTX	48 Neutral	$398.54M	-6.05	-130.99%	―	24.05%	-169.73%
AMRN	48 Neutral	$320.90M	-149.32	-8.36%	―	-6.31%	-115.62%
FDMT	47 Neutral	$432.55M	-2.14	-47.27%	―	―	―
TVRD	46 Neutral	$36.49M	-16.53	-135.79%	―	-53.67%	86.75%
AURA	42 Neutral	$428.01M	-3.90	-69.67%	―	―	-11.41%

Lineage Therap Corporate Events

Lineage Therap Expands ATM Equity Offering Capacity

On March 11, 2026, Lineage Cell Therapeutics, Inc. filed a new prospectus supplement with the U.S. Securities and Exchange Commission to update its existing shelf registration, enabling ongoing at-the-market offerings of common shares through B. Riley Securities, Inc. Under this arrangement, the company may sell up to an additional $60 million of common shares, on top of roughly $22.6 million previously sold, expanding its capacity to raise equity capital over time and potentially strengthening its financial flexibility for operations and growth initiatives.

The most recent analyst rating on (LCTX) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Lineage Therap stock, see the LCTX Stock Forecast page.