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Precigen, Inc. (PGEN)
NASDAQ:PGEN
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Precigen (PGEN) AI Stock Analysis

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PGEN

Precigen

(NASDAQ:PGEN)

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Neutral 59 (OpenAI - 5.2)
Rating:59Neutral
Price Target:
$7.00
▲(29.63% Upside)
Action:Reiterated
Date:08/05/26
The score is held back primarily by weak underlying financial performance (large cash burn and higher leverage despite improving revenue) and an unattractive/unclear valuation signal (negative P/E, no dividend). These are partially offset by strong technical momentum and a very strong earnings update showing rapid commercial revenue growth and near-term profitability, albeit with identified risks around margin normalization, receivables timing, and ongoing expense growth.
Positive Factors
Rapid commercial revenue growth & early profitability
Sustained quarter-over-quarter revenue acceleration paired with reported operating and net income demonstrates real commercial traction and an ability to convert launch sales into near-term profitability. That progress materially lowers execution risk for scaling operations and supports reinvestment into the pipeline over the next 2–6 months.
Negative Factors
Persistent cash burn and negative operating cash flow
Material negative operating and free cash flow indicate the business is consuming cash faster than it generates it. Even with improving sales, the current burn rate implies reliance on receivables monetization or new financing to fund operations and the pipeline, raising dilution and runway risk if collections or funding falter.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid commercial revenue growth & early profitability
Sustained quarter-over-quarter revenue acceleration paired with reported operating and net income demonstrates real commercial traction and an ability to convert launch sales into near-term profitability. That progress materially lowers execution risk for scaling operations and supports reinvestment into the pipeline over the next 2–6 months.
Read all positive factors

Precigen (PGEN) vs. SPDR S&P 500 ETF (SPY)

Precigen Business Overview & Revenue Model

Company Description
Precigen, Inc. is an American company dedicated to the discovery and development of cutting-edge gene and cellular therapies. The company also offers disease-modifying treatments, genetically engineered swine for regenerative medicine, and advance...
How the Company Makes Money
Precigen’s revenue model has historically been centered on (1) collaboration and licensing arrangements and (2) grant and contract revenue, rather than large-scale recurring product sales. Under collaboration/license deals, the company can earn up...

Precigen Earnings Call Summary

Earnings Call Date:Aug 04, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial momentum for PAPZIMEOS driven by exceptional Q2 revenue growth (>145% QoQ), launch-to-date revenue >$78M, broad payer coverage (~315M lives), durable clinical responses (83% ongoing CR >3 years), and attainment of profitability for the quarter and first half of 2026. Operational and financial risks noted include normalization of gross margins after remaining prelaunch inventory is consumed, reliance on accounts receivable collections and existing debt interest expense, rising commercial and future R&D spend, and limited public granularity on exact account activation counts and non-hub patient visibility. Overall, the positive revenue, profitability, coverage, and durability developments materially outweigh the manageable operational and financial caveats.
Positive Updates
Quarterly Revenue Acceleration
PAPZIMEOS generated $53.1 million in Q2 revenue vs. $21.6 million in Q1, representing >145% quarter-over-quarter growth; total company revenues were $55.0 million for the quarter.
Negative Updates
Gross Margin Normalization Risk
Q2 95% gross margin is elevated due to recognition related to pre-approval manufacturing and prelaunch inventory; management expects margins to stabilize to high-80%/low-90% (implying COGS ~10%) once remaining prelaunch inventory is sold (expected in Q3).
Read all updates
Q2-2026 Updates
Negative
Quarterly Revenue Acceleration
PAPZIMEOS generated $53.1 million in Q2 revenue vs. $21.6 million in Q1, representing >145% quarter-over-quarter growth; total company revenues were $55.0 million for the quarter.
Read all positive updates
Company Guidance
Precigen guided that Q2 PAPZIMEOS revenue was $53.1M (Q1 $21.6M, >145% QoQ) and launch‑to‑date revenue exceeded $78M, with total Q2 revenues of $55M (COGS $2.8M; reported gross margin 95%); they expect gross margins to normalize to the high‑80% to low‑90% range after selling remaining pre‑approval inventory (anticipated in Q3). Financials/guidance included operating income of $22.6M, net income of $20.1M ($0.05/diluted), R&D $7.3M, SG&A $22.2M, cash and investments of $38.7M, trade receivables of $71.9M (expected to be collected over ~4 months), ~$100M debt with ~$3M quarterly interest (offset by ~ $0.4M interest income), and management’s view that cash + receivables will fund operations to cash‑flow breakeven by end‑2026. Commercial guidance/metrics: hub registrations >500, >200 patients have received ≥1 dose with >100 completing the 4‑dose course, ~315M covered lives after adding ~18M in Q2, permanent J‑code effective April 1, and 7‑year U.S. market exclusivity through August 2032.

Precigen Financial Statement Overview

Summary
Despite strong gross margins and improving TTM revenue, the financial statements show high risk: persistent large losses (deeply negative EBIT/net income in TTM), significant cash burn (TTM operating cash flow and free cash flow around -$114M to -$115M), and elevated leverage (debt about $98M vs. equity about $44M).
Income Statement
24
Negative
Balance Sheet
33
Negative
Cash Flow
18
Very Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue31.59M9.68M3.92M6.22M26.91M14.27M
Gross Profit24.59M3.59M-342.00K106.00K20.57M-39.41M
EBITDA-199.73M-243.57M-123.50M-89.23M-62.43M-77.64M
Net Income-204.42M-250.64M-126.23M-95.90M28.32M-92.17M
Balance Sheet
Total Assets170.30M156.62M145.27M151.04M215.98M359.86M
Cash, Cash Equivalents and Short-Term Investments38.21M97.86M97.91M62.85M55.95M108.66M
Total Debt98.34M98.29M5.50M7.10M51.42M190.07M
Total Liabilities126.72M135.71M106.75M32.55M89.72M252.51M
Stockholders Equity43.58M20.91M38.51M118.50M126.26M107.35M
Cash Flow
Free Cash Flow-115.18M-89.83M-76.76M-68.47M-69.97M-63.02M
Operating Cash Flow-114.17M-87.83M-68.17M-66.93M-65.05M-55.77M
Investing Cash Flow-23.52M-1.53M-20.71M-3.09M226.42M-74.54M
Financing Cash Flow92.49M90.05M110.58M29.59M-155.29M121.19M

Precigen Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.40
Price Trends
50DMA
5.03
Positive
100DMA
4.48
Positive
200DMA
4.31
Positive
Market Momentum
MACD
0.33
Negative
RSI
71.35
Negative
STOCH
92.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PGEN, the sentiment is Positive. The current price of 5.4 is below the 20-day moving average (MA) of 5.51, above the 50-day MA of 5.03, and above the 200-day MA of 4.31, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 71.35 is Negative, neither overbought nor oversold. The STOCH value of 92.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PGEN.

Precigen Risk Analysis

Precigen disclosed 67 risk factors in its most recent earnings report. Precigen 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

Precigen Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$601.99M103.252.61%-2.36%-80.69%
60
Neutral
$8.58B-22.99-43.02%-100.00%-24.90%
59
Neutral
$2.24B-4.89-645.92%652.08%-116.59%
52
Neutral
$2.58B-9.52-51.15%-63.29%25.39%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
51
Neutral
$1.15B-7.69-35.35%23.91%
48
Neutral
$1.09B-5.06-50.12%-30.42%-23.31%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PGEN
Precigen
6.89
5.06
276.50%
MDXG
MiMedx Group
4.16
-3.08
-42.54%
WVE
Wave Life Sciences
5.93
-2.62
-30.64%
ORIC
Oric Pharmaceuticals
12.93
3.05
30.87%
IMNM
Immunome
25.52
15.06
143.98%
PRAX
Praxis Precision Medicines
319.23
270.63
556.85%

Precigen Corporate Events

Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Precigen Shareholders Expand Incentive Plan, Reaffirm Governance
Positive
Jun 24, 2026
At its Annual Meeting of Stockholders on June 18, 2026, Precigen, Inc. shareholders approved an amendment to the company’s 2023 Omnibus Incentive Plan, adding 7 million shares of common stock available for equity awards. The vote underscores...
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.Date of analysis: Aug 05, 2026