Lineage Therap (LCTX) AI Stock Analysis

• Market Cap: $411.04M
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 76.43%
• EPS Growth: -35.66%
• Country: US
• Employees: 70
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.13
• Shares Outstanding: 228,356,300
• 10 Day Avg. Volume: 1,848,840
• 30 Day Avg. Volume: 1,767,691
• 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: 0.40
• Enterprise Value/Revenue: 15.33
• Enterprise Value/Gross Profit: 24.01
• Enterprise Value/Ebitda: -8.35
• 1Y Price Target: $5.67
• Price Target Upside: 222.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $2.00 ▲(13.64% Upside)

Lineage Therap's overall stock score is primarily influenced by its financial performance challenges, with ongoing losses and cash flow issues. Technical analysis shows positive momentum, providing some support. Valuation remains a concern due to negative earnings, while the earnings call highlights potential long-term growth through clinical advancements and partnerships.

Positive Factors

Clinical Advancements

The expansion of clinical sites for OpRegen indicates strong progress in the development pipeline, enhancing the potential for successful trials and future market entry.

Strategic Partnerships

Securing external funding through partnerships demonstrates confidence in Lineage's technology and provides financial support for ongoing and future projects.

Cash Runway Extension

A strong cash position extending operational runway provides financial stability and flexibility to pursue strategic initiatives without immediate capital pressure.

Negative Factors

Decreased Revenue

A decline in revenue highlights challenges in generating consistent income, which could impact the company's ability to fund operations and growth initiatives.

Significant Net Loss

Ongoing significant net losses indicate financial instability, potentially limiting investment in R&D and affecting long-term sustainability.

Cash Flow Challenges

Weak cash flow positions hinder the company's ability to self-fund operations and may necessitate additional financing, impacting financial health.

Lineage Therap Business Overview & Revenue Model

Company Description

Lineage Therap (LCTX) is a biotechnology company focused on developing innovative cell therapies for the treatment of degenerative diseases and conditions, particularly those affecting the retina. The company specializes in the advancement of pluripotent stem cell technology, which allows for the generation of specialized cells that can potentially restore vision in patients suffering from retinal disorders. Lineage's core products include its lead therapeutic candidates, which are designed to address unmet medical needs in ocular health, as well as other applications in regenerative medicine.

How the Company Makes Money

Lineage Therap generates revenue primarily through the development and commercialization of its cell therapy products. Key revenue streams include funding from partnerships and collaborations with pharmaceutical companies, grants, and potential product sales upon regulatory approval. The company often engages in strategic alliances that provide upfront payments, research funding, and milestone payments tied to the achievement of specific development goals. Additionally, the company may receive royalties on future sales of any products that successfully reach the market. Lineage's focus on clinical trials and regulatory approvals also positions it to benefit from governmental and institutional funding aimed at advancing innovative medical treatments.

Lineage Therap Financial Statement Overview

Summary

Lineage Therap is experiencing growth in revenue but faces significant challenges in profitability and cash flow. The low leverage is a positive aspect, but the company needs to address its operational losses to improve financial health.

Income Statement

Lineage Therap has shown some revenue growth, with a 14.2% increase in the TTM period. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin remains strong, but the high operating losses are a concern.

Balance Sheet

The company maintains a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is stable, suggesting a solid asset base relative to equity.

Cash Flow

Lineage Therap's cash flow situation is challenging, with negative operating cash flow and free cash flow. The free cash flow to net income ratio is slightly above 1, indicating that cash flow is somewhat aligned with reported losses. However, the overall cash flow position remains weak.

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	6.91M	9.16M	8.27M	13.97M	2.47M	388.00K
EBITDA	-19.86M	-20.87M	-24.04M	-21.79M	-48.34M	-24.41M
Net Income	-67.66M	-18.61M	-21.49M	-26.35M	-43.02M	-20.68M
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	20.80M	78.38M	63.42M	73.34M	92.22M	96.20M
Cash Flow
Free Cash Flow	-20.66M	-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: Positive
• Last Price: 1.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCTX, the sentiment is Positive. The current price of 1.76 is above the 20-day moving average (MA) of 1.75, above the 50-day MA of 1.60, and above the 200-day MA of 0.94, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 53.05 is Neutral, neither overbought nor oversold. The STOCH value of 32.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LCTX.

Lineage Therap Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDMT	58 Neutral	$490.84M	―	-38.87%	―	―	―
LCTX	55 Neutral	$411.04M	-9.86	-70.12%	―	76.43%	-35.66%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AMRN	50 Neutral	$316.13M	-3.65	-17.35%	―	-6.31%	-115.62%
DBVT	48 Neutral	$537.18M	―	-234.58%	―	―	1.29%
AURA	43 Neutral	$352.84M	-2.90	-55.39%	―	―	-9.14%
TVRD	37 Underperform	$41.17M	-0.25	-93.85%	―	-40.16%	78.28%

Lineage Therap Corporate Events

Lineage Cell Therapeutics Reports Q3 2025 Results

Lineage Cell Therapeutics, Inc. is a clinical-stage biotechnology company specializing in the development of novel allogeneic cell therapies aimed at treating serious medical conditions. The company leverages its proprietary cell-based technology platform to design and manufacture specialized human cells for therapeutic purposes.

Lineage Cell Therapeutics Advances in Spinal Cord Injury Treatment with DOSED Study

Study Overview: The DOSED clinical study, officially titled ‘Delivery of Oligodendrocyte Progenitor Cells for Spinal Cord Injury: Evaluation of a Novel Device,’ aims to assess the safety and utility of a new delivery device for administering LCTOPC1. This cell therapy targets spinal cord injuries (SCI) by replacing or supporting dysfunctional cells, potentially improving quality of life and functional activity for those with traumatic cervical or thoracic injuries.

Lineage Cell Therapeutics’ Earnings Call: Progress Amid Challenges

Lineage Cell Therapeutics’ recent earnings call presented a mixed outlook, reflecting both significant advancements and financial hurdles. The company showcased promising progress in its OpRegen and OPC1 programs, highlighting strategic partnerships and clinical successes. However, financial challenges, including a substantial impairment expense and warrant liabilities, contributed to a notable net loss, painting a complex picture for investors.

Lineage Therap Partners with WDI for Hearing Loss Research

Lineage Cell Therapeutics announced a multi-year research collaboration with William Demant Invest 2 Aps to advance its auditory neuronal cell transplant program, ReSonance, aimed at treating hearing loss. The agreement, established on August 22, 2025, involves WDI funding up to $12 million over three years to achieve preclinical readiness for potential human clinical trials, with both parties sharing joint ownership of project results.

The most recent analyst rating on (LCTX) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Lineage Therap stock, see the LCTX Stock Forecast page.

Lineage Cell Therapeutics Reports Q2 2025 Progress and Challenges

Lineage Cell Therapeutics, Inc. is a clinical-stage biotechnology company focused on developing allogeneic cell therapies for serious neurological and ophthalmic conditions, utilizing its proprietary cell-based technology platform. In its second quarter 2025 earnings report, Lineage highlighted significant progress in its clinical programs and manufacturing capabilities. The company reported positive 36-month results from its OpRegen cell therapy program, which is being developed in collaboration with Genentech and Roche, showing potential in treating geographic atrophy secondary to age-related macular degeneration. Additionally, Lineage achieved a milestone in its OPC1 program by treating its first chronic spinal cord injury patient with a novel delivery system. Financially, Lineage reported a net loss of $30.5 million for the quarter, primarily due to a non-recurring impairment expense related to its VAC platform. Despite the increased loss, the company maintains a strong cash position of $42.3 million, expected to support operations into the first quarter of 2027. Looking ahead, Lineage remains optimistic about its pipeline and manufacturing capabilities, positioning itself as a compelling partner and investment opportunity in the biotechnology sector.