Phathom Pharmaceuticals (PHAT) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: N/A
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.03
• Revenue Growth: 460.30%
• EPS Growth: 33.03%
• Country: US
• Employees: 427
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.41
• Shares Outstanding: 78,294,780
• 10 Day Avg. Volume: 1,536,280
• 30 Day Avg. Volume: 1,106,091
• PEG Ratio: -0.04
• Price to Book (P/B): -2.02
• Price to Sales (P/S): 9.28
• P/FCF Ratio: -1.92
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 8.91
• Enterprise Value/Gross Profit: 10.22
• Enterprise Value/Ebitda: -6.44
• 1Y Price Target: $25.83
• Price Target Upside: 70.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): -0.59
• Revenue Forecast (FY): $317.59M

• Rating: 57 Neutral
• Price Target: $18.50 ▲(22.19% Upside)

The score is held back primarily by weak financial quality (large losses, cash burn, and negative equity) despite strong revenue growth and gross margins. Technicals and the latest earnings call are supportive due to clear momentum and sharply improved expense and cash usage trends, while valuation is constrained by negative earnings and the recent financing introduces dilution even as it improves liquidity.

Positive Factors

Revenue Growth & Gross Margins

Meaningful top-line scaling to $147M with ~87% gross margins signals attractive unit economics and successful commercialization of core products. Durable high gross margins mean incremental sales can flow to operating leverage, supporting a lasting path to profitability as fixed costs are managed.

Commercial Traction (Prescriptions)

Rapid prescription growth and a large installed base indicate sustained physician adoption and patient demand for VOQUEZNA. A durable prescription footprint supports recurring revenue, strengthens payer negotiation positions, and underpins multi-quarter commercialization momentum in GI therapeutics.

Low Financial Leverage

Very low reported debt reduces interest burden and refinancing exposure, preserving strategic optionality while the company scales. This durable low-leverage profile limits downside from rising rates and gives flexibility to prioritize commercialization and R&D investments over near-term debt service.

Negative Factors

Deep Negative Equity

A deeply negative equity position reflects cumulative losses that materially constrain balance sheet flexibility. This structural weakness limits the ability to access non-dilutive financing, restricts strategic alternatives, and raises vulnerability to setbacks that could force distress financing or heavy dilution.

Sustained Cash Burn / Weak Cash Generation

Persistent negative operating and free cash flow near $225M TTM shows the business continues to consume large amounts of cash despite expense reductions. This durable cash-burn profile necessitates external funding, limits reinvestment capacity, and delays the company's ability to self-fund growth or sustain operations without financing.

Reliance on Equity Financing / Dilution Risk

The recent ~$130M offering and automatic shelf filing indicate structural dependence on equity to fund operations and growth. Ongoing equity raises can dilute shareholders, signal limited internal cash sufficiency, and elevate funding risk until operating profitability and sustained positive cash flow are achieved.

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 potassium-competitive acid blocker (P-CAB) that blocks acid secretion in the stomach. It is also developing vonoprazan, which is in Phase III clinical trials for the treatment of erosive gastroesophageal reflux disease; and in combination with antibiotics for the treatment of Helicobacter pylori infection. Phathom Pharmaceuticals, Inc. was incorporated in 2018 and is headquartered in Florham Park, New Jersey.

How the Company Makes Money

Phathom Pharmaceuticals generates revenue primarily through the commercialization of its pharmaceutical products. The company's key revenue streams include sales from its marketed medications, which are aimed at treating gastrointestinal conditions. Additionally, Phathom may benefit from partnerships and collaborations with other pharmaceutical companies for co-development or licensing agreements, which can provide upfront payments, milestone payments, and royalties on sales. These collaborative efforts can enhance its financial stability and expand its market reach, contributing significantly to its overall earnings.

Phathom Pharmaceuticals Financial Statement Overview

Summary

Phathom Pharmaceuticals is experiencing significant financial challenges despite revenue growth. The company has substantial net losses, negative cash flows, and negative equity, indicating financial instability. The reliance on financing activities to sustain operations poses a risk if external funding becomes scarce.

Income Statement

Phathom Pharmaceuticals has shown significant revenue growth, with TTM (Trailing-Twelve-Months) revenue increasing to $81.86 million from $55.25 million annually. However, the company is experiencing substantial losses, with a negative net profit margin and EBIT margin in both TTM and annual reports. The gross profit margin is strong at approximately 86.2% in TTM, but the net loss remains a concern, impacting the overall profitability.

Balance Sheet

The balance sheet indicates a negative stockholders' equity of $338.38 million, reflecting high liabilities compared to assets. Total debt has reduced, but the company still faces a high debt-to-equity ratio due to negative equity. This presents a risk of instability. The equity ratio is also negative, further emphasizing the financial leverage and instability concerns.

Cash Flow

Operating cash flow remains negative, with a worsening trend in TTM at -$282.68 million. Free cash flow also decreased, indicating potential cash flow challenges. However, the company has managed to maintain financing cash flows, which slightly offsets the negative operating cash flow impact. The operating cash flow to net income ratio reflects inefficiency in converting income to cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	147.19M	55.25M	682.00K	0.00	0.00	0.00
Gross Profit	128.42M	47.28M	515.00K	-620.00K	-521.00K	-300.00K
EBITDA	-203.56M	-261.52M	-159.05M	-169.80M	-136.57M	-124.19M
Net Income	-274.55M	-334.33M	-201.59M	-197.72M	-143.88M	-129.07M
Balance Sheet
Total Assets	240.29M	378.32M	413.84M	164.81M	189.43M	295.11M
Cash, Cash Equivalents and Short-Term Investments	135.16M	297.26M	381.39M	155.38M	183.26M	287.50M
Total Debt	2.71M	554.95M	139.03M	97.07M	91.34M	49.02M
Total Liabilities	662.82M	631.90M	486.60M	239.62M	117.28M	100.84M
Stockholders Equity	-422.53M	-253.58M	-72.76M	-74.81M	72.16M	194.27M
Cash Flow
Free Cash Flow	-225.25M	-266.90M	-139.21M	-147.57M	-148.78M	-70.73M
Operating Cash Flow	-225.23M	-266.77M	-137.58M	-146.53M	-148.46M	-69.69M
Investing Cash Flow	-147.00K	-135.00K	-1.63M	-1.04M	-328.00K	-1.04M
Financing Cash Flow	25.86M	182.77M	367.58M	120.04M	44.71M	114.46M

Phathom Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.14
• 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 PHAT, the sentiment is Negative. The current price of 15.14 is below the 20-day moving average (MA) of 16.37, below the 50-day MA of 15.23, and above the 200-day MA of 10.33, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 46.33 is Neutral, neither overbought nor oversold. The STOCH value of 29.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PHAT.

Phathom Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHAT	57 Neutral	$1.19B	-3.97	―	―	460.30%	33.03%
TSHA	53 Neutral	$1.38B	―	-64.93%	―	-36.36%	-945.72%
GERN	52 Neutral	$861.78M	-11.23	-29.57%	―	522.13%	62.68%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
URGN	50 Neutral	$877.20M	-5.41	―	―	8.00%	-10.15%
ABUS	49 Neutral	$919.31M	-21.55	-45.88%	―	116.64%	47.93%
ZBIO	47 Neutral	$1.21B	-4.98	-68.33%	―	―	-38.04%

Phathom Pharmaceuticals Corporate Events

Phathom Pharmaceuticals Announces $130 Million Public Offering

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 pre-funded warrants at $15.999 each, with a 30-day option for underwriters to purchase up to 1,218,761 additional shares. The underwriters agreed to purchase the securities at a discount, and Phathom expects to raise net proceeds of about $130 million, or approximately $150 million if the option is fully exercised, with the offering anticipated to close on January 9, 2026 subject to customary conditions; the company has said it plans to use the capital for general corporate purposes, including working capital and commercialization and R&D expenses, which would bolster its funding base for ongoing product rollouts and pipeline development in gastrointestinal therapeutics.

The most recent analyst rating on (PHAT) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Phathom Pharmaceuticals stock, see the PHAT Stock Forecast page.

Phathom Pharmaceuticals Begins Phase 2 EoE Trial

On November 4, 2025, Phathom Pharmaceuticals announced the commencement of its Phase 2 pHalcon EoE-201 clinical trial, marking the first dosing of a patient with VOQUEZNA® (vonoprazan) tablets for eosinophilic esophagitis in adults. This two-part, randomized, double-blind, placebo-controlled study aims to enroll 80 adults with EoE and dysphagia, with results expected in 2027, potentially impacting Phathom’s market position in gastrointestinal treatments.

The most recent analyst rating on (PHAT) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Phathom Pharmaceuticals stock, see the PHAT Stock Forecast page.

Phathom Pharmaceuticals Publishes Phase 3 Trial Results

On October 25, 2025, Phathom Pharmaceuticals announced the publication of additional analyses from its Phase 3 pHalcon-NERD-301 trial in the American Journal of Gastroenterology, highlighting the effectiveness of VOQUEZNA® (vonoprazan) tablets in treating nighttime symptoms of Non-Erosive Reflux Disease (NERD). The trial demonstrated that VOQUEZNA significantly improved the percentage of heartburn-free nights and was generally well tolerated, offering a promising alternative for patients who experience inadequate relief from existing treatments. This development could enhance Phathom’s positioning in the gastrointestinal treatment market by addressing a significant gap in current GERD therapies.

The most recent analyst rating on (PHAT) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Phathom Pharmaceuticals stock, see the PHAT Stock Forecast page.