Phathom Pharmaceuticals (PHAT)
NASDAQ:PHAT
Top Page
Phathom Pharmaceuticals
(NASDAQ:PHAT)
Select Model
Select Model
Rating:50Neutral
Price Target:
$11.50
▼(-9.02% Downside)
Action:ReiteratedDate:02/27/26
The score is held down primarily by weak financial quality (ongoing losses, substantial cash burn, and negative equity), partially offset by a stronger earnings-call outlook with clear 2026 growth and profitability targets. Technicals and valuation remain mixed, with negative momentum signals and limited valuation clarity due to negative earnings.
Positive Factors
High Gross Margins
Sustained ~85–87% gross margins indicate strong product economics for VOQUEZNA. Durable high gross profit per prescription supports scalable leverage as volumes grow, enabling the company to absorb fixed commercial costs and materially improve operating profitability as revenue scales.
Negative Factors
Negative Equity
Persistently negative shareholders' equity signals accumulated losses that constrain financial flexibility. Negative equity can limit borrowing options, heighten dilution risk from future equity raises, and remains a structural solvency concern even as operating metrics improve.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins
Sustained ~85–87% gross margins indicate strong product economics for VOQUEZNA. Durable high gross profit per prescription supports scalable leverage as volumes grow, enabling the company to absorb fixed commercial costs and materially improve operating profitability as revenue scales.
Read all positive factors
Phathom Pharmaceuticals (PHAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$996.02M
Dividend YieldN/A
Average Volume (3M)1.07M
Price to Earnings (P/E)―
Beta (1Y)2.07
Revenue Growth460.30%
EPS Growth33.03%
CountryUS
Employees427
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.29
Shares Outstanding78,798,710
10 Day Avg. Volume888,956
30 Day Avg. Volume1,068,499
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)-2.76
Price to Sales (P/S)6.91
P/FCF Ratio-7.25
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue4.96
Enterprise Value/Gross Profit5.69
Enterprise Value/Ebitda-17.68
Forecast
1Y Price Target
$23.86Price Target Upside88.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-0.28
Revenue Forecast (FY)$332.01M
Phathom Pharmaceuticals Business Overview & Revenue Model
Company Description
Phathom Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company has the rights in the United States, Europe, and Canada to vonoprazan, a pot...
How the Company Makes Money
Phathom makes money primarily by selling its VOQUEZNA-branded products in the United States. Revenue is generated from product sales (recognized based on shipments and net of typical commercial allowances such as rebates, chargebacks, discounts, a...
Phathom Pharmaceuticals Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful operational and financial progress: very strong revenue growth (217% YoY), disciplined expense reductions, improved cash profile via a $130M equity raise and favorable term loan modifications, near-full sales force, and clear guidance to reach operating profitability in Q3 2026 and cash flow positivity in 2027. Key challenges cited include persistently high gross-to-net discounts (55%–59%), remaining absolute expense levels, seasonality and short-term prescription volatility, limited broad Medicare coverage, covenant timing considerations, and competitive risk. On balance, the positive execution items (revenue growth, cost control, capital structure improvements, and commercial traction) outweigh the challenges described.Positive Updates
Strong Full-Year Revenue Growth
Full-year 2025 net revenues of $175.1 million, representing 217% year-over-year growth and delivering at the high end of the guided range.
Negative Updates
High Gross-to-Net Discounts
Gross-to-net (rebate/discount) remains high: Q4 at the high end of a 55%–60% range and 2026 guidance of 55%–59%, materially reducing reported net revenue versus gross sales.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Revenue Growth
Full-year 2025 net revenues of $175.1 million, representing 217% year-over-year growth and delivering at the high end of the guided range.
Read all positive updates
Company Guidance
Phathom guided 2026 net revenue of $320–$345 million (including an accounting reclassification that shifts roughly $17–$20 million from gross‑to‑net to cost of goods sold), with gross‑to‑net expected at 55%–59% and gross margin of ~80%. They forecast cash operating expenses (ex‑stock‑based comp) of $235–$255 million (midpoint ≈14% below 2025 cash OpEx of ≈$284M), expect to reach operating profitability excluding stock‑based compensation by Q3 2026 and for full‑year 2026, and to achieve cash‑flow positivity in 2027; revenue cadence is expected to be ~40% H1 / ~60% H2 with Q1 the soft quarter. Management also noted post‑transaction cash on hand of ~ $190M (after a $130M gross equity raise and ≈$56M used to modify term debt), the highest covenant cash requirement of ≈$130M through 9/30/2027 under the revenue‑interest financing, and a modified term loan of $175M outstanding at 9.85% interest maturing February 2029.Phathom Pharmaceuticals Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
22
Negative
Cash Flow
27
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 175.11M | 55.25M | 682.00K | 0.00 | 0.00 |
| Gross Profit | 152.51M | 47.28M | 515.00K | -620.00K | -521.00K |
| EBITDA | -152.50M | -261.52M | -159.05M | -169.80M | -136.57M |
| Net Income | -221.25M | -334.33M | -201.59M | -197.72M | -143.88M |
Balance Sheet | |||||
| Total Assets | 259.15M | 378.32M | 413.84M | 164.81M | 189.43M |
| Cash, Cash Equivalents and Short-Term Investments | 129.97M | 297.26M | 381.39M | 155.38M | 183.26M |
| Total Debt | 2.71M | 554.95M | 139.03M | 97.07M | 91.34M |
| Total Liabilities | 697.32M | 631.90M | 486.60M | 239.62M | 117.28M |
| Stockholders Equity | -438.17M | -253.58M | -72.76M | -74.81M | 72.16M |
Cash Flow | |||||
| Free Cash Flow | -166.78M | -266.90M | -139.21M | -147.57M | -148.78M |
| Operating Cash Flow | -166.78M | -266.77M | -137.58M | -146.53M | -148.46M |
| Investing Cash Flow | -229.00K | -135.00K | -1.63M | -1.04M | -328.00K |
| Financing Cash Flow | -288.00K | 182.77M | 367.58M | 120.04M | 44.71M |
Phathom Pharmaceuticals Technical Analysis
Positive
12.64
Price Trends
11.71
Positive
13.50
Negative
12.31
Positive
Market Momentum
0.05
Negative
64.54
Neutral
86.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHAT, the sentiment is Positive. The current price of 12.64 is above the 20-day moving average (MA) of 10.95, above the 50-day MA of 11.71, and above the 200-day MA of 12.31, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 64.54 is Neutral, neither overbought nor oversold. The STOCH value of 86.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHAT.
Phathom Pharmaceuticals Risk Analysis
Phathom Pharmaceuticals disclosed 81 risk factors in its most recent earnings report. Phathom Pharmaceuticals 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 3 New Risks
1.
We and others are subject to ongoing adverse event reporting obligations for our approved products and any failure to comply with these requirements could result in regulatory action that would materially harm our business. Q4, 2025
2.
We have ceased to qualify as a smaller reporting company in 2026, and as a result we are subject to increased reporting, compliance and internal control requirements, which may increase our costs and strain management resources. Q4, 2025
3.
If our efforts to develop, maintain and effectively deploy sales, marketing and distribution capabilities are unsuccessful, we may not be able to successfully commercialize our approved products or any product candidates we may develop and generate revenues at the levels and on the timing we expect. Q4, 2025
Phathom Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $1.13B | -10.26 | -34.23% | ― | 522.13% | 62.68% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $996.02M | -5.47 | 55.14% | ― | 460.30% | 33.03% | |
50 Neutral | $1.22B | -4.30 | -156.98% | ― | ― | -38.04% | |
49 Neutral | $999.45M | -7.34 | 170.21% | ― | 8.00% | -10.15% | |
49 Neutral | $1.33B | -16.13 | -56.64% | ― | -36.36% | -945.72% | |
48 Neutral | $840.56M | -27.51 | -42.39% | ― | 116.64% | 47.93% |
* Healthcare Sector Average
PHAT
Phathom Pharmaceuticals
12.63
7.75
158.81%
GERN
Geron
1.67
0.29
21.01%
ABUS
Arbutus Biopharma
4.15
1.01
32.17%
URGN
Urogen Pharma
21.57
11.45
113.14%
TSHA
Taysha Gene Therapies
4.49
3.25
262.10%
ZBIO
Zenas BioPharma, Inc.
20.44
12.51
157.76%
Phathom Pharmaceuticals Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Phathom Pharmaceuticals Announces $130 Million Public Offering
Positive
Jan 8, 2026
On January 7, 2026, Phathom Pharmaceuticals entered into an underwriting agreement with Guggenheim Securities and Cantor Fitzgerald for an underwritten public offering comprising 6,875,000 shares of common stock at $16.00 per share and 1,250,078 p...
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.