Lineage Cell Therapeutics, Inc. (LCTX)
:LCTX
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Lineage Therap
(LCTX)
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Rating:48Neutral
Price Target:
$1.50
▼(-12.28% Downside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Lineage Therap (LCTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$376.12M
Dividend YieldN/A
Average Volume (3M)1.14M
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth53.24%
EPS Growth-186.42%
CountryUS
Employees70
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)<0.01
Shares Outstanding249,087,520
10 Day Avg. Volume1,172,472
30 Day Avg. Volume1,136,335
Financial Highlights & Ratios
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 Cap0.86
Enterprise Value/Revenue22.35
Enterprise Value/Gross Profit23.73
Enterprise Value/Ebitda-6.91
Forecast
1Y Price Target
$5.33Price Target Upside211.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.04
Revenue Forecast (FY)$29.89M
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 ...
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 developmen...
Lineage Therap Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive technical and commercial narrative: multiple manufacturing and clinical milestones (AlloSCOPE GMP banking, OpRegen durability signals, islet 0.5L go/no-go, OPC1 device performance, and a funded ReSonance partnership) materially de‑risk future value-creation pathways and were reinforced by financing actions that extend runway into Q2 2028. Offsetting these positives are a large FY net loss driven primarily by noncash warrant remeasurement and an impairment charge, materially higher operating and R&D spend, dependence on Roche/Genentech timing for OpRegen development, and remaining technical scaling risks for islet cells. Overall, the operational and scientific progress along with extended cash runway were emphasized as dominant themes.Positive Updates
Extended Cash Runway and Financing Actions
Cash position of $55.8M as of Dec 31, 2025; $5.4M in proceeds from warrants exercised in March 2026; $21M gross proceeds from an ATM block trade in November 2025; $5M milestone payment from Roche/Genentech. Management expects these resources (including the March warrant proceeds) to fund operations into Q2 2028.
Negative Updates
Large Year-over-Year Net Loss Driven by Noncash Warrant Revaluation and Impairment
Net loss for FY 2025 was $63.5M ($0.28 per share) versus $18.6M in 2024 — an increase in net loss of $44.9M (approximately +241%). The swing was largely due to a $37.9M noncash fair value remeasurement expense of warrant liabilities (driven by higher share price) and a $14.8M loss on impairment of an intangible asset related to the 2019 acquisition.
Read all updates
Q4-2025 Updates
Positive
Negative
Extended Cash Runway and Financing Actions
Cash position of $55.8M as of Dec 31, 2025; $5.4M in proceeds from warrants exercised in March 2026; $21M gross proceeds from an ATM block trade in November 2025; $5M milestone payment from Roche/Genentech. Management expects these resources (including the March warrant proceeds) to fund operations into Q2 2028.
Read all positive updates
Company Guidance
Lineage said its cash position of $55.8 million as of December 31, 2025, together with approximately $5.4 million in warrant proceeds received in March, is expected to fund planned operations into Q2 2028; management noted the extended runway reflects key 2025 financings including $21 million gross from an ATM block trade in November and a $5 million Roche milestone (and that roughly $32 million of remaining warrants at a $0.91 strike, which could be accelerated, were not included in that runway). For context, the company reported Q4 revenues of ~$6.6 million (FY revenues $14.6M), Q4 operating expenses of $13.2M (FY operating expenses $51.2M), R&D of $8.2M in Q4 ($17.7M FY), and a FY net loss of $63.5M ($0.28 per share) driven in part by a $37.9M noncash fair-value remeasurement of warrant liabilities and a $14.8M impairment charge.Lineage Therap Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
24
Negative
| 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
Positive
1.71
Price Trends
1.67
Positive
1.68
Positive
1.54
Positive
Market Momentum
>-0.01
Negative
60.43
Neutral
81.37
Negative
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 1.71 is above the 20-day moving average (MA) of 1.54, above the 50-day MA of 1.67, and above the 200-day MA of 1.54, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 60.43 is Neutral, neither overbought nor oversold. The STOCH value of 81.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LCTX.
Lineage Therap Risk Analysis
Lineage Therap disclosed 79 risk factors in its most recent earnings report. Lineage Therap reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lineage Therap Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $292.25M | -149.32 | -8.36% | ― | 1.40% | 62.01% | |
52 Neutral | $463.68M | -3.10 | -31.75% | ― | 230194.59% | 20.52% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $1.19B | -3.63 | -189.50% | ― | ― | 10.06% | |
48 Neutral | $376.12M | -6.05 | -130.99% | ― | 53.24% | -186.42% | |
48 Neutral | $452.61M | -3.10 | -71.25% | ― | ― | -3.52% | |
41 Neutral | $29.55M | -1.38 | -81.31% | ― | -64.00% | 91.26% |
* Healthcare Sector Average
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Lineage Therap Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Lineage Therap Expands ATM Equity Offering Capacity
Positive
Mar 11, 2026
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. R...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.