Lineage Therap (LCTX) AI Stock Analysis

• Market Cap: $369.94M
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• 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: 1,889,712
• 30 Day Avg. Volume: 1,622,703
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.45
• Enterprise Value/Revenue: 15.19
• Enterprise Value/Gross Profit: 15.57
• Enterprise Value/Ebitda: -8.32
• 1Y Price Target: $5.67
• Price Target Upside: 265.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: $1.00 ▼(-35.48% Downside)

Lineage Therap's overall stock score reflects a challenging financial performance with ongoing losses and negative cash flow, which is a significant concern. However, the technical analysis shows positive momentum, suggesting market optimism. Valuation remains a concern due to negative earnings, but recent corporate events and strategic partnerships provide a potential upside.

Positive Factors

Strategic Partnerships

The collaboration with William Demant Invest for auditory neuronal cell transplant development strengthens Lineage's R&D capabilities and diversifies its therapeutic portfolio, potentially leading to new revenue streams and enhancing its market position in regenerative medicine.

Revenue Growth

The significant revenue growth reflects successful commercialization efforts and strategic partnerships, indicating a positive trend in financial performance that can support further R&D and operational expansion.

OpRegen Program Success

The promising results from the OpRegen program enhance Lineage's competitive edge in ocular therapies, potentially leading to successful commercialization and establishing a strong foothold in the ophthalmology market.

Negative Factors

Profitability Challenges

Despite revenue growth, ongoing profitability challenges and negative cash flow indicate financial instability, which could hinder long-term sustainability and investment in R&D without strategic financial management.

Impairment Expense

The substantial impairment expense reflects potential missteps in asset valuation and strategic planning, impacting financial health and necessitating careful asset management to avoid future losses.

Warrant Liability Impact

The significant warrant liability expense underscores financial volatility and could strain cash reserves, affecting the company's ability to fund operations and strategic initiatives without additional capital.

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's financials reflect challenges typical of a biotechnology company. Despite a strong gross profit margin of 97%, the company struggles with negative net profit margins and free cash flow, relying on external funding. The balance sheet is stable with low leverage, but negative returns on equity indicate inefficiencies.

Income Statement

Lineage Therap's income statement reveals challenges in achieving profitability with negative EBIT and EBITDA margins despite a slight increase in revenue. The gross profit margin remains relatively strong at around 97% for the TTM. However, the net profit margin is negative, and revenue growth has been inconsistent, highlighting the company's struggle to convert sales into profits.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of about 0.03, indicating low leverage. The equity ratio stands at 69.5%, reflecting significant equity financing. However, the return on equity is negative due to ongoing net losses, suggesting inefficiencies in generating returns from shareholder capital.

Cash Flow

The cash flow statement indicates negative free cash flow, with a slight improvement in operating cash flow compared to net income. The free cash flow to net income ratio is negative, showing challenges in converting earnings into cash flow. Financing activities have been a key source of cash, suggesting reliance on external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.91M	9.50M	8.95M	14.70M	3.90M	773.00K
Gross Profit	10.65M	9.16M	8.27M	13.97M	2.47M	388.00K
EBITDA	-19.93M	-20.87M	-24.04M	-21.79M	-48.34M	-24.41M
Net Income	-40.91M	-18.61M	-21.49M	-26.35M	-43.02M	-20.68M
Balance Sheet
Total Assets	90.80M	113.22M	101.02M	123.66M	174.54M	107.95M
Cash, Cash Equivalents and Short-Term Investments	42.29M	47.80M	35.49M	57.88M	58.36M	41.56M
Total Debt	2.15M	2.51M	2.95M	3.90M	2.80M	3.83M
Total Liabilities	43.69M	36.21M	39.00M	51.73M	83.65M	12.82M
Stockholders Equity	48.38M	78.38M	63.42M	73.34M	92.22M	96.20M
Cash Flow
Free Cash Flow	-22.85M	-23.66M	-29.24M	646.00K	-23.91M	-19.82M
Operating Cash Flow	-22.56M	-23.09M	-28.57M	1.06M	-23.56M	-19.75M
Investing Cash Flow	8.41M	-2.31M	46.45M	-46.16M	9.74M	13.04M
Financing Cash Flow	26.47M	35.86M	6.42M	1.63M	36.93M	29.86M

Lineage Therap Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.55 is above the 20-day moving average (MA) of 1.36, above the 50-day MA of 1.19, and above the 200-day MA of 0.76, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 68.02 is Neutral, neither overbought nor oversold. The STOCH value of 84.19 is Negative, 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
CLLS	64 Neutral	258.25M	-5.82	-28.05%	―	334.02%	―
LCTX	55 Neutral	$369.94M	―	-70.12%	―	76.43%	-35.66%
EDIT	51 Neutral	303.03M	-1.13	-176.57%	―	-41.97%	-20.86%
NKTX	39 Underperform	146.31M	-1.35	―	―	―	26.33%
CTNM	39 Underperform	294.44M	-4.94	―	―	―	-125.92%
NMRA	33 Underperform	296.36M	-1.08	―	―	―	9.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Lineage Therap Corporate Events

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.

Lineage Therap Holds Annual Meeting, Elects Directors

On June 26, 2025, Lineage Therap held its Annual Meeting, where shareholders elected seven directors to the board, ratified the appointment of Baker Tilly US, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, approved executive compensation on an advisory basis, and approved an EIP Amendment. These decisions reflect shareholder support for the company’s current leadership and strategic direction, potentially impacting its governance and financial practices.

Lineage Therap Reports Promising OpRegen Study Results

Lineage Cell Therapeutics announced the 36-month visual acuity results from a Phase 1/2a clinical study of RG6501 (OpRegen) in patients with geographic atrophy secondary to age-related macular degeneration. The results, presented at Clinical Trials at the Summit 2025, showed sustained improvement in visual acuity and retinal structure in patients who received extensive OpRegen cell therapy coverage, suggesting potential long-term benefits of the therapy. These findings could enhance Lineage’s position in the biotechnology industry by demonstrating the efficacy of their cell therapy in treating advanced ophthalmic conditions.