LENZ Therapeutics (LENZ) AI Stock Analysis

• Market Cap: $639.57M
• Dividend Yield: N/A
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: N/A
• EPS Growth: 70.19%
• Country: US
• Employees: 6
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.59
• Shares Outstanding: 31,289,968
• 10 Day Avg. Volume: 1,208,112
• 30 Day Avg. Volume: 1,025,547
• PEG Ratio: 0.15
• Price to Book (P/B): 3.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.26
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 35.12
• Enterprise Value/Gross Profit: 35.45
• Enterprise Value/Ebitda: -9.38
• 1Y Price Target: $57.50
• Price Target Upside: 181.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -2.83
• Revenue Forecast (FY): $52.16M

• Rating: 57 Neutral
• Price Target: $22.00 ▲(7.63% Upside)

The score is primarily held back by weak financial performance (large losses and continued cash burn) despite improving revenue and a low-debt balance sheet. Offsetting this is a strong earnings-call read-through with FDA approval and encouraging early launch metrics plus a strengthened cash position. Technicals are mixed with short-term strength but a still-weak longer-term trend, and valuation is not supportive given negative earnings and no dividend.

Positive Factors

Regulatory approval & early commercial traction

FDA approval and an early, measurable prescription footprint materially de-risks the company’s pathway from clinical to commercial. Sustained prescription adoption and professional awareness create a foundation for repeat use, formulary placements, and scaling distribution over the next several quarters.

Very high gross margins

Exceptionally high gross margins imply that each incremental prescription contributes meaningfully to gross profit, enabling operating leverage as sales scale. With fixed R&D and SG&A, high unit economics improve the path to profitability if commercial adoption continues to grow.

Strengthened capital position & low leverage

A strengthened balance sheet and low leverage provide financial flexibility to fund commercialization, marketing, and supply expansion without immediate refinancing pressure. This reduces near-term solvency risk and allows focus on execution rather than balance-sheet fixes.

Negative Factors

Ongoing negative cash generation

Sustained negative operating and free cash flow indicate the company must continue funding operations through financing or drawdowns. Even with recent raises, persistent cash burn elevates dilution and execution risk if commercial scale or revenue ramp lags expectations over the next several quarters.

Sustained net losses and negative returns

Deep, ongoing net losses and historically uneven revenue highlight that profitability depends heavily on successful commercialization execution. Negative returns signal value dilution risk if revenues don’t scale rapidly enough to absorb fixed costs and R&D spend over the medium term.

Safety report and launch frictions

Post-market adverse reports and early launch frictions (transient side effects, limited initial retail availability) create structural risks: potential regulatory scrutiny, prescribing caution from physicians, and slower retail rollouts, any of which could materially slow adoption and revenue scaling.

LENZ Therapeutics Business Overview & Revenue Model

Company Description

LENZ Therapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing therapies to improve vision in the United States. Its product candidates include LNZ100 and LNZ101 which are in Phase III clinical trials for the treatment of presbyopia. The company is headquartered in Del Mar, California.

How the Company Makes Money

LENZ Therapeutics makes money primarily through the development and commercialization of its pharmaceutical products designed to treat eye diseases. The company generates revenue by advancing its drug candidates through clinical trials, obtaining regulatory approvals, and subsequently marketing these drugs to healthcare providers and patients. Additionally, LENZ may engage in strategic partnerships or licensing agreements with other pharmaceutical companies, which can provide upfront payments, milestone payments, and royalties based on product sales. These collaborations can significantly contribute to the company's earnings, allowing LENZ to leverage external resources and market reach while focusing on its core research and development activities.

LENZ Therapeutics Financial Statement Overview

Summary

Revenue rebounded to $17.5M TTM with exceptionally high gross margin (~98%), and leverage is very low with restored positive equity, reducing solvency risk. However, profitability and cash generation remain weak (TTM net income -$58.9M; operating cash flow -$45.2M; free cash flow -$46.2M), indicating ongoing burn and execution risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded to $17.5M (reported 250% growth), and gross margin is exceptionally high (~98%), suggesting strong unit economics on recognized revenue. However, profitability remains very weak: TTM net income is -$58.9M with deeply negative operating results, indicating a cost structure far ahead of the current revenue base. Prior years show limited/zero revenue in several periods, underscoring an uneven revenue history and continued reliance on scaling or future commercialization to close losses.

Balance Sheet

Leverage is very low (TTM debt-to-equity ~0.5%), which meaningfully reduces financial risk and provides flexibility for a development-stage biotech. Equity is positive and sizable in 2024 and TTM (~$194M–$204M), a notable improvement versus negative equity in 2021–2023, signaling a strengthened capital position. The key weakness is returns: with ongoing losses, return on equity is materially negative (about -24% to -26% recently), implying continued value dilution risk if losses persist.

Cash Flow

Cash generation remains a core concern: TTM operating cash flow is -$45.2M and free cash flow is -$46.2M, reflecting ongoing cash burn to fund operations. Cash burn improved versus 2024 (operating cash flow -$59.4M), but free cash flow still deteriorated modestly versus the prior period (negative growth). A partial positive is that free cash flow roughly tracks net loss (free cash flow to net income ~1.0), suggesting losses are largely cash-based rather than being masked by non-cash adjustments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.50M	0.00	0.00	15.00M	0.00	0.00
Gross Profit	17.34M	-58.00K	0.00	15.00M	-734.00K	-121.00K
EBITDA	-65.51M	-49.71M	-72.41M	-10.47M	-70.03M	-68.21M
Net Income	-58.88M	-49.77M	-69.97M	-10.81M	-70.76M	-68.37M
Balance Sheet
Total Assets	210.70M	215.30M	70.38M	46.95M	18.34M	22.56M
Cash, Cash Equivalents and Short-Term Investments	202.17M	209.03M	65.79M	44.44M	18.31M	19.82M
Total Debt	461.00K	1.38M	329.00K	250.00K	0.00	0.00
Total Liabilities	16.78M	11.22M	163.09M	71.12M	32.55M	32.36M
Stockholders Equity	193.93M	204.08M	-92.71M	-24.17M	-14.21M	-9.80M
Cash Flow
Free Cash Flow	-46.16M	-59.86M	-60.41M	-94.57M	-58.59M	-10.27M
Operating Cash Flow	-45.22M	-59.39M	-60.38M	-87.98M	-52.85M	-8.72M
Investing Cash Flow	2.28M	-154.48M	-29.62M	-241.86M	-5.74M	-1.54M
Financing Cash Flow	27.18M	199.00M	80.70M	597.00K	417.47M	30.08M

LENZ Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LENZ, the sentiment is Negative. The current price of 20.44 is above the 20-day moving average (MA) of 17.31, below the 50-day MA of 21.86, and below the 200-day MA of 30.27, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 56.17 is Neutral, neither overbought nor oversold. The STOCH value of 86.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LENZ.

LENZ Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STOK	65 Neutral	$1.68B	44.64	15.02%	―	1128.17%	―
LENZ	57 Neutral	$639.57M	-9.70	-28.78%	―	―	70.19%
RAPP	56 Neutral	$1.28B	-10.00	-23.41%	―	―	-37.07%
SNDX	55 Neutral	$1.76B	-5.60	-129.32%	―	597.19%	0.45%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

LENZ Therapeutics Corporate Events

LENZ Therapeutics Responds to FDA Adverse Event Report

LENZ Therapeutics, Inc. addressed a recent adverse event report submitted to the FDA’s database regarding a retinal tear in a patient using VIZZ™. The patient had pre-existing retinal conditions, and independent specialists noted multiple risk factors, making a causal link to VIZZ uncertain. The company emphasized that this initial report does not change their safety expectations for VIZZ as such events may naturally occur, and they plan not to provide detailed case reports for future individual incidents.

The most recent analyst rating on (LENZ) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on LENZ Therapeutics stock, see the LENZ Stock Forecast page.