Lineage Therap (LCTX) AI Stock Analysis

• Market Cap: $382.34M
• Dividend Yield: N/A
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• 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: 1,292,978
• 30 Day Avg. Volume: 2,150,723
• 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: 0.91
• Enterprise Value/Revenue: 32.14
• Enterprise Value/Gross Profit: 32.85
• Enterprise Value/Ebitda: -7.62
• 1Y Price Target: $4.60
• Price Target Upside: 185.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.28
• Revenue Forecast (FY): $9.90M

• Rating: 46 Neutral
• Price Target: $1.50 ▼(-6.83% Downside)

Lineage Therap's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and substantial operational losses. Technical analysis indicates a bearish trend, while valuation metrics suggest the stock is undervalued due to financial struggles. Despite promising advancements in clinical trials and partnerships, these factors are overshadowed by the company's current financial challenges.

Positive Factors

Strategic Partnerships

This partnership not only provides significant funding but also validates Lineage's technology, potentially leading to further collaborations and enhancing long-term growth prospects.

Clinical Advancements

The expansion of clinical sites for OpRegen indicates strong progress in clinical trials, suggesting potential future product approvals and market entry, enhancing long-term revenue potential.

Cash Runway Extension

A solid cash position ensures operational stability and provides the company with the flexibility to invest in R&D and strategic initiatives, supporting long-term growth.

Negative Factors

Declining Revenue

Declining revenues can hinder the company's ability to invest in growth and innovation, potentially impacting its competitive position and long-term financial health.

Significant Net Loss

A substantial net loss highlights operational inefficiencies and financial strain, which could limit the company's ability to fund future growth initiatives and achieve profitability.

Negative Cash Flow Growth

Negative cash flow growth indicates potential liquidity issues, restricting the company's ability to invest in strategic projects and affecting long-term sustainability.

Lineage Therap Business Overview & Revenue Model

Company Description

Lineage Therap (LCTX) is a biotechnology company focused on developing and commercializing innovative therapies for patients with degenerative diseases. The company primarily operates in the regenerative medicine sector, leveraging its expertise in stem cell technology to create advanced therapeutic solutions. Lineage Therap's core products are stem cell-derived therapies aimed at treating conditions such as age-related macular degeneration and spinal cord injuries, striving to restore lost function and improve quality of life for patients.

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: Neutral
• Last Price: 1.61
• 50DMA: Negative
• 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 Neutral. The current price of 1.61 is below the 20-day moving average (MA) of 1.76, below the 50-day MA of 1.73, and above the 200-day MA of 1.03, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 41.86 is Neutral, neither overbought nor oversold. The STOCH value of 22.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LCTX.

Lineage Therap Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDMT	53 Neutral	$600.49M	―	-45.38%	―	―	―
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	$520.31M	―	-234.58%	―	―	1.29%
LCTX	46 Neutral	$382.34M	―	-153.37%	―	24.05%	-169.73%
AURA	43 Neutral	$352.84M	-2.90	-64.26%	―	―	-11.41%
TVRD	37 Underperform	$41.17M	-0.25	-97.61%	―	-53.67%	86.75%

Lineage Therap Corporate Events

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.

Lineage Cell Therapeutics: Progress Amid Financial Challenges

Lineage Cell Therapeutics Faces Mixed Sentiments Amidst Progress and Financial Challenges

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.