Lenz Therapeutics, Inc. (LENZ)
NASDAQ:LENZ
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LENZ Therapeutics
(NASDAQ:LENZ)
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Rating:47Neutral
Price Target:
$8.00
▼(-21.41% Downside)
Action:Reiterated
Date:05/14/26
The score is held back primarily by weak financial durability (very large losses and substantial cash burn) and bearish technicals (price below all key moving averages with negative MACD). Offsetting factors include strong early unit economics and commercial traction signals from the earnings call plus a solid cash position, while valuation is difficult to assess given the negative P/E and no dividend yield provided.
Positive Factors
High unit economics and gross margins
Very high product-level gross margins (~91%) and rising revenue demonstrate durable unit economics. Strong per-unit margins and low blended gross-to-net create structural profitability potential as scale grows, enabling margin capture even with ongoing promotional spend.
Negative Factors
Very large losses and high cash burn
Sustained, material negative margins and heavy free cash outflows mean the business currently consumes capital faster than it generates it. Over months this forces reliance on financing or rapid margin/volume improvement, increasing dilution risk and constraining long-term strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
High unit economics and gross margins
Very high product-level gross margins (~91%) and rising revenue demonstrate durable unit economics. Strong per-unit margins and low blended gross-to-net create structural profitability potential as scale grows, enabling margin capture even with ongoing promotional spend.
Read all positive factors
LENZ Therapeutics (LENZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$250.52M
Dividend YieldN/A
Average Volume (3M)865.69K
Price to Earnings (P/E)―
Beta (1Y)1.44
Revenue GrowthN/A
EPS Growth-103.37%
CountryUS
Employees6
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.60
Shares Outstanding31,354,395
10 Day Avg. Volume835,512
30 Day Avg. Volume865,689
Financial Highlights & Ratios
PEG Ratio-0.26
Price to Book (P/B)1.62
Price to Sales (P/S)24.15
P/FCF Ratio-6.59
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue10.45
Enterprise Value/Gross Profit11.47
Enterprise Value/Ebitda-1.86
Forecast
1Y Price Target
$32.20Price Target Upside216.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-3.93
Revenue Forecast (FY)$24.88M
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 treat...
How the Company Makes Money
As a clinical-stage company, LENZ Therapeutics has not historically generated material recurring revenue from product sales; therefore, its primary source of funding has typically been capital raised from equity offerings and similar financing act...
LENZ Therapeutics Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Neutral
The call balanced encouraging early commercial and clinical signals against clear near-term execution and financial challenges. Highlights include meaningful prescription growth (25k prescriptions, +19% QoQ), a large and growing prescriber base (10k+ prescribers), improving e-pharmacy refill patterns (two-thirds three-month packs), solid unit economics (≈$67 net per pack, ≈$60 net cash per unit), favorable early safety readouts, and a strong cash position (~$258M). Lowlights center on slower-than-expected new patient adoption, elevated SG&A and operating losses (Q1 SG&A $45M, net loss $41.5M), one-time cost-of-sales charges, and remaining uncertainty around durable refill dynamics until cohorts mature. Management outlined concrete commercialization actions (field messaging, DTC optimization, direct-to-practice selling, manufacturing improvements) intended to address adoption friction, but the launch remains early and will require demonstrated momentum in upcoming quarters.Positive Updates
Prescription Volume and Quarter-over-Quarter Growth
Approximately 25,000 paid and billed prescriptions in Q1 2026, a 19% increase versus Q4 2025; total filled/shipments since launch of roughly 46,000 boxes/units.
Negative Updates
Pace of New Patient Adoption Slower Than Expected
Management acknowledged new patient starts and routine ECP prescribing were more gradual than anticipated in Q1; conversion from awareness/sampling to sustained prescribing is slower than targeted and requires behavioral shifts among physicians.
Read all updates
Q1-2026 Updates
Positive
Negative
Prescription Volume and Quarter-over-Quarter Growth
Approximately 25,000 paid and billed prescriptions in Q1 2026, a 19% increase versus Q4 2025; total filled/shipments since launch of roughly 46,000 boxes/units.
Read all positive updates
Company Guidance
Management’s guidance focused on accelerating new‑patient adoption and delivering “meaningful and sustained” script growth while promising more granular cohort refill data in H2 2026; they reiterated Q1 operating targets and financial assumptions including ~25,000 paid/billed scripts in Q1 and ~46,000 total monthly units sold since launch, >10,000 unique prescribers (≈60% have written multiple times), net product revenue $1.7M ($1.9M total), blended gross‑to‑net <10% (~$67 net revenue per monthly pack), ~$7 distribution/channel cost per unit and ~$60 net cash per pack, target ~90% direct product gross margin over time, Q1 cost of sales $1.1M (one‑time items; insurance recovery expected in Q2), SG&A $45M ($40.7M ex‑stock comp, ~80% sales & marketing), Q1 net loss $41.5M (EPS −$1.32), cash $258.4M with Q1 cash burn ≈$34M, sales force to reach ~15,000 targeted ECPs by quarter‑end, e‑pharmacy >50% of scripts with >66% of that volume as three‑month prescriptions, ~46,000 boxes (~1.2M doses) shipped to date with zero retinal detachments and two retinal tears reported.LENZ Therapeutics Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.99M | 19.09M | 0.00 | 0.00 | 15.00M | 0.00 |
| Gross Profit | 19.13M | 18.38M | -58.00K | 0.00 | 15.00M | -734.00K |
| EBITDA | -117.98M | -90.85M | -49.71M | -72.41M | -10.47M | -70.03M |
| Net Income | -109.00M | -82.13M | -49.77M | -69.97M | -10.81M | -70.76M |
Balance Sheet | ||||||
| Total Assets | 272.54M | 305.88M | 215.30M | 70.38M | 46.95M | 18.34M |
| Cash, Cash Equivalents and Short-Term Investments | 258.38M | 292.35M | 209.03M | 65.79M | 44.44M | 18.31M |
| Total Debt | 237.00K | 350.00K | 1.38M | 329.00K | 250.00K | 0.00 |
| Total Liabilities | 26.04M | 21.54M | 11.22M | 163.09M | 71.12M | 32.55M |
| Stockholders Equity | 246.49M | 284.34M | 204.08M | -92.71M | -24.17M | -14.21M |
Cash Flow | ||||||
| Free Cash Flow | -87.44M | -70.00M | -59.86M | -60.41M | -94.57M | -58.59M |
| Operating Cash Flow | -86.70M | -69.17M | -59.39M | -60.38M | -87.98M | -52.85M |
| Investing Cash Flow | -61.40M | -75.67M | -154.48M | -29.62M | -241.86M | -5.74M |
| Financing Cash Flow | 149.72M | 149.75M | 199.00M | 80.70M | 597.00K | 417.47M |
LENZ Therapeutics Technical Analysis
Negative
10.18
Price Trends
9.02
Negative
11.89
Negative
22.30
Negative
Market Momentum
-0.52
Negative
42.73
Neutral
75.93
Neutral
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 10.18 is above the 20-day moving average (MA) of 8.22, above the 50-day MA of 9.02, and below the 200-day MA of 22.30, indicating a bearish trend. The MACD of -0.52 indicates Negative momentum. The RSI at 42.73 is Neutral, neither overbought nor oversold. The STOCH value of 75.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LENZ.
LENZ Therapeutics Risk Analysis
LENZ Therapeutics disclosed 60 risk factors in its most recent earnings report. LENZ Therapeutics 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
LENZ Therapeutics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $1.89B | -17.39 | -24.79% | ― | ― | -18.14% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $1.97B | -11.48 | -48.84% | ― | -83.20% | -439.48% | |
47 Neutral | $250.52M | -2.24 | -46.82% | ― | ― | -103.37% | |
43 Neutral | $1.75B | -6.98 | -256.66% | ― | 397.28% | 27.68% |
* Healthcare Sector Average
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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.