Lineage Therap (LCTX) AI Stock Analysis

• Market Cap: $405.38M
• Dividend Yield: N/A
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: 24.05%
• EPS Growth: -169.73%
• Country: US
• Employees: 70
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.13
• Shares Outstanding: 230,327,530
• 10 Day Avg. Volume: 1,037,632
• 30 Day Avg. Volume: 1,128,986
• PEG Ratio: 0.24
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 10.59
• P/FCF Ratio: -4.25
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 32.14
• Enterprise Value/Gross Profit: 32.85
• Enterprise Value/Ebitda: -7.62
• 1Y Price Target: $4.50
• Price Target Upside: 169.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $1.50 ▼(-10.18% Downside)

Lineage Therap's overall stock score reflects significant financial challenges, with declining revenues and operational losses being the most impactful factors. While technical indicators and valuation metrics are neutral to slightly negative, recent corporate events and strategic partnerships provide some positive momentum. The company's progress in clinical trials and partnerships offers long-term potential, but immediate financial metrics present short-term challenges.

Positive Factors

Strategic Partnerships

The partnership with William Demant Invest A/S demonstrates Lineage Therap's ability to attract external funding, supporting its R&D and enhancing its financial stability.

Clinical Advancements

The expansion of clinical sites for OpRegen indicates strong progress in clinical trials, enhancing the potential for successful commercialization and long-term growth.

Cash Runway Extension

A solid cash runway into 2027 provides Lineage Therap with the financial flexibility to continue its R&D efforts and strategic initiatives without immediate funding pressure.

Negative Factors

Declining Revenue

Declining revenue reflects challenges in maintaining sales growth, which could impact the company's ability to fund operations and invest in future growth.

Significant Net Loss

A significant net loss highlights ongoing financial challenges, potentially limiting the company's capacity to invest in new projects and impacting long-term profitability.

Cash Flow Challenges

Severe cash flow challenges indicate difficulties in generating sufficient cash from operations, which may hinder the company's ability to sustain its business model and growth initiatives.

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 Therap generates revenue through a combination of product sales, partnerships, and licensing agreements. The company monetizes its proprietary stem cell technologies by bringing therapies to market, which may involve direct sales to healthcare providers or hospitals. Additionally, Lineage Therap engages in collaborations with pharmaceutical companies and research institutions, which often include upfront payments, milestone payments based on development progress, and royalties on future sales of products developed from their technologies. These strategic partnerships are crucial for funding research and development efforts while providing a pathway to commercialization, thereby contributing significantly to the company's financial performance.

Lineage Therap Financial Statement Overview

Summary

Lineage Therap is facing significant financial challenges across all verticals. The company is struggling with declining revenues, substantial operational losses, and negative cash flow growth. While leverage is relatively low, the negative return on equity and poor cash flow metrics highlight the need for strategic improvements to stabilize financial performance and enhance shareholder value.

Income Statement

Lineage Therap's income statement reflects significant challenges. The company has experienced declining revenue growth, with a negative growth rate of -89.8% in the TTM period. Profitability metrics are concerning, with a negative net profit margin of -625.53% and negative EBIT and EBITDA margins, indicating substantial operational losses. The gross profit margin remains relatively high at 63.85%, but this is overshadowed by the overall financial performance.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.13 in the TTM period, which is manageable. However, the return on equity is significantly negative at -119.44%, indicating that the company is not generating returns on shareholder investments. The equity ratio is not provided, but the overall financial stability appears weak due to ongoing losses.

Cash Flow

Cash flow analysis reveals a challenging situation with negative free cash flow growth of -902.6% in the TTM period. The operating cash flow to net income ratio is negative, suggesting cash flow issues relative to net losses. The free cash flow to net income ratio is slightly positive at 1.01, indicating some alignment between cash flow and net income, but overall cash flow health is poor.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.82M	9.50M	8.95M	14.70M	3.90M	773.00K
Gross Profit	10.58M	9.16M	8.27M	13.97M	2.47M	388.00K
EBITDA	-45.64M	-20.87M	-24.04M	-21.79M	-48.34M	-24.41M
Net Income	-67.66M	-18.61M	-21.49M	-26.27M	-43.02M	-20.65M
Balance Sheet
Total Assets	89.64M	113.22M	101.02M	123.66M	174.54M	107.95M
Cash, Cash Equivalents and Short-Term Investments	40.49M	47.80M	35.49M	57.88M	58.36M	41.56M
Total Debt	2.62M	2.51M	2.95M	3.90M	2.80M	3.83M
Total Liabilities	68.84M	36.21M	39.00M	51.73M	83.65M	12.82M
Stockholders Equity	22.04M	78.38M	63.42M	73.34M	92.22M	96.20M
Cash Flow
Free Cash Flow	-20.88M	-23.66M	-29.24M	646.00K	-23.91M	-19.82M
Operating Cash Flow	-20.39M	-23.09M	-28.57M	1.06M	-23.56M	-19.75M
Investing Cash Flow	4.51M	-2.31M	46.45M	-46.16M	9.74M	13.04M
Financing Cash Flow	28.30M	35.86M	6.42M	1.63M	36.93M	29.86M

Lineage Therap Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.67
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.67 is below the 20-day moving average (MA) of 1.71, below the 50-day MA of 1.74, and above the 200-day MA of 1.19, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 47.18 is Neutral, neither overbought nor oversold. The STOCH value of 52.79 is Neutral, 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	$724.11M	-3.25	-234.58%	―	―	1.29%
AMRN	55 Neutral	$323.62M	-3.64	-17.35%	―	-6.31%	-115.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LCTX	48 Neutral	$405.38M	-5.63	-153.37%	―	24.05%	-169.73%
FDMT	47 Neutral	$428.51M	-2.00	-45.38%	―	―	―
AURA	42 Neutral	$321.96M	-2.62	-64.26%	―	―	-11.41%
TVRD	38 Underperform	$42.12M	-0.46	-97.61%	―	-53.67%	86.75%

Lineage Therap Corporate Events

Lineage Therap Withdraws CIRM Grant Application

On November 28, 2025, Lineage Cell Therapeutics withdrew its application for a CIRM Grant for the continued development of OPC1 after receiving feedback from CIRM. The company plans to address the feedback and resubmit the application in January 2026. This decision does not affect the ongoing development of OPC1 or the DOSED clinical study, which evaluates a novel device for spinal cord injury treatment.

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

Lineage Therap Secures $5M Milestone Payment

On November 20, 2025, Lineage Cell Therapeutics achieved a significant development milestone under its collaboration with Genentech and Roche for the OpRegen cell therapy program, triggering a $5 million payment. A portion of this payment will be distributed to the Israel Innovation Authority and Hadasit Medical Research and Development Ltd., reflecting the collaborative nature of the project and compliance with Israeli law.

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.

Lineage Therap Sells 12 Million Shares to Janus

On November 12, 2025, Lineage Cell Therapeutics, Inc. sold 12,000,000 common shares to Janus Henderson Investors at $1.75 per share, generating $21 million in gross proceeds. This transaction, conducted under its at-the-market offering program, is expected to bolster the company’s financial position and support its ongoing operations and strategic initiatives.

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