Prelude Therapeutics (PRLD) AI Stock Analysis

• Market Cap: $130.22M
• Dividend Yield: N/A
• Average Volume (3M): 256.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 250.00%
• EPS Growth: 15.15%
• Country: US
• Employees: 131
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.26
• Shares Outstanding: 43,765,010
• 10 Day Avg. Volume: 194,393
• 30 Day Avg. Volume: 256,051
• PEG Ratio: 0.04
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 13.75
• P/FCF Ratio: -0.93
• Enterprise Value/Market Cap: 0.39
• Enterprise Value/Revenue: 4.87
• Enterprise Value/Gross Profit: 5.08
• Enterprise Value/Ebitda: -0.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $2.00 ▼(-18.37% Downside)

The score is held back primarily by weak financial performance—large ongoing losses and substantial cash burn—despite improving revenue and modest leverage. Offsetting this, recent updates (earnings call and corporate events) support the development narrative via the Incyte partnership and an FDA IND clearance, while technicals and valuation signals remain mixed/neutral given unprofitability.

Positive Factors

Strategic collaboration with Incyte

The Incyte option deal supplies meaningful non-dilutive capital and milestone upside, materially extending runway into 2027. Structurally this reduces near-term financing risk, supports advancing lead programs, and increases optionality for out-licensing or co-development.

FDA IND clearance for PRT12396

Regulatory clearance to initiate human studies is a durable de-risking event: it validates preclinical work, enables clinical data generation and readouts, and creates tangible milestones for partnering or value realization over the next 12–24 months.

Improving revenue and robust discovery engine

Sustained revenue growth combined with internal discovery progress indicates the company can both capture non-dilutive collaboration revenue and advance differentiated assets. A functioning discovery-to-clinic capability supports longer-term pipeline replenishment and licensing potential.

Negative Factors

Large and persistent cash burn

Run-rate cash burn of roughly $100M annually is a structural constraint: it necessitates further financing unless milestones trigger partner payments, increases dilution risk, and can force prioritization that slows other programs if timelines slip.

Sharply reduced equity base

A materially smaller equity cushion reduces the firm’s ability to absorb continued losses or adverse trial outcomes. This raises refinancing and covenant sensitivity, limiting strategic flexibility and potentially increasing the cost or dilutive impact of future capital raises.

Clinical timing and competitive differentiation risk

Delayed clinical starts through 2026 and strong incumbent competition create structural execution risk. Extended timelines allow competitors to advance, heighten the need for clear differentiation on selectivity/safety, and make commercial success contingent on superior clinical outcomes.

Prelude Therapeutics Business Overview & Revenue Model

Company Description

Prelude Therapeutics Incorporated, a clinical-stage precision oncology company, focuses on the discovery and development of novel precision cancer medicines to underserved patients. It is developing PRT543 that is in Phase 1 clinical trials in select solid tumors and myeloid malignancies; and PRT811, which is in Phase 1 clinical trials in solid tumors, including glioblastoma multiforme. The company is also developing PRT1419, a potent and selective inhibitor of the anti-apoptotic protein; PRT2527, a potent inhibitor of CDK9 that exhibits high kinome selectivity; PRT-SCA2, which is in preclinical stage for multiple genomically selected cancers; PRT3645, a brain penetrant molecule that potently and selectively targets CDK4/6; and PRT-K4 that is in preclinical stage for solid tumors. The company was incorporated in 2016 and is headquartered in Wilmington, Delaware.

How the Company Makes Money

Prelude Therapeutics primarily makes money through the development and commercialization of its proprietary drug candidates. The company's revenue model includes out-licensing its drug candidates to larger pharmaceutical companies, which may involve upfront payments, milestone payments, and royalties on sales if the drugs are successfully developed and commercialized. Prelude may also engage in collaborative research and development partnerships with other biotech or pharmaceutical companies, which can provide additional funding and resources. Additionally, the company might receive grants or funding from government or non-profit organizations to support its research efforts. As a clinical-stage company, Prelude's revenue may be limited until its drug candidates receive regulatory approval and reach the market.

Prelude Therapeutics Financial Statement Overview

Summary

Revenue is improving (TTM $10.5M, ~50% growth), and leverage is modest (debt-to-equity ~0.24). However, results remain dominated by very large losses (TTM net loss ~$111.8M) and heavy cash burn (TTM operating cash flow and free cash flow both about -$100M), alongside a sharply reduced equity base—keeping financial risk elevated.

Income Statement

TTM (Trailing-Twelve-Months) revenue improved to $10.5M (50% growth vs. the last annual period), and gross profit remains strong given the nature of reported revenue. However, profitability is deeply negative: TTM net loss of ~$111.8M and materially negative operating results (EBIT of ~$121.0M) indicate the business is still in a heavy investment phase with limited revenue scale to absorb costs. Overall, top-line traction is a positive, but losses remain the dominant feature of the income statement.

Balance Sheet

Leverage is modest (TTM debt-to-equity ~0.24; total debt ~$17.9M), which reduces financial risk versus more highly levered peers. The key weakness is a sharp decline in equity over time (from ~$237.1M in 2023 to ~$58.5M in TTM), consistent with ongoing losses and/or capital structure changes, and return on equity remains very negative (TTM ~-1.07). In short: low debt helps, but the shrinking equity base highlights elevated balance-sheet sensitivity if losses persist.

Cash Flow

Cash generation is a clear pressure point: TTM operating cash flow is about -$100.2M and free cash flow about -$100.3M, reflecting significant ongoing cash burn. Free cash flow deterioration (TTM free cash flow growth ~-7.6%) reinforces that the company is not yet moving toward self-funding operations. While free cash flow roughly tracks net losses (free cash flow to net income ~1.0), the absolute burn level is the central risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.50M	7.00M	0.00	0.00	0.00	0.00
Gross Profit	10.07M	7.00M	0.00	0.00	0.00	-542.00K
EBITDA	-118.57M	-137.94M	-131.11M	-122.22M	-112.82M	-58.22M
Net Income	-111.77M	-127.17M	-121.83M	-115.44M	-111.69M	-56.93M
Balance Sheet
Total Assets	94.75M	175.51M	277.67M	220.50M	305.10M	223.59M
Cash, Cash Equivalents and Short-Term Investments	54.96M	133.61M	232.94M	201.73M	291.23M	218.31M
Total Debt	17.85M	18.02M	16.89M	1.83M	1.74M	0.00
Total Liabilities	36.22M	44.06M	40.58M	25.06M	19.20M	11.41M
Stockholders Equity	58.53M	131.46M	237.09M	195.44M	285.90M	212.18M
Cash Flow
Free Cash Flow	-100.28M	-103.65M	-110.58M	-86.75M	-85.85M	-46.80M
Operating Cash Flow	-100.17M	-102.89M	-107.06M	-83.73M	-83.53M	-46.18M
Investing Cash Flow	135.92M	90.19M	-34.65M	81.69M	-263.80M	-621.00K
Financing Cash Flow	-162.00K	-120.00K	136.40M	815.00K	164.90M	246.23M

Prelude Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.45
• 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 PRLD, the sentiment is Neutral. The current price of 2.45 is above the 20-day moving average (MA) of 2.12, above the 50-day MA of 2.05, and above the 200-day MA of 1.34, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.49 is Neutral, neither overbought nor oversold. The STOCH value of 73.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRLD.

Prelude Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPTX	57 Neutral	$114.24M	-1.56	-49.78%	―	-82.16%	14.58%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRLD	51 Neutral	$130.22M	-1.25	-103.99%	―	250.00%	15.15%
PMVP	46 Neutral	$54.81M	-0.64	-51.87%	―	―	-58.47%
GANX	46 Neutral	$67.69M	-2.53	-261.72%	―	―	42.29%
PSTV	40 Underperform	$43.18M	-0.12	―	―	-8.16%	22.44%

Prelude Therapeutics Corporate Events

Prelude Therapeutics Wins FDA IND Clearance for PRT12396

On February 3, 2026, Prelude Therapeutics announced that the U.S. Food and Drug Administration had cleared its Investigational New Drug application for PRT12396, a mutant-selective JAK2V617F inhibitor designed to treat certain myeloproliferative neoplasms, allowing the company to proceed with a Phase 1 study and positioning the drug as a potential new targeted option for patients with polycythemia vera and myelofibrosis. The open-label, multi-center trial, expected to begin dosing patients by the second quarter of 2026, marks a key milestone in Prelude’s strategic pivot toward its JAK2 and KAT6 programs and advances an asset that sits under an exclusive option agreement with Incyte, underscoring the company’s ambition to reshape the treatment landscape in myeloproliferative neoplasms and strengthen its standing in precision oncology.

The most recent analyst rating on (PRLD) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Prelude Therapeutics stock, see the PRLD Stock Forecast page.

Prelude Therapeutics unveils strategic investor presentation on pipelines

On January 9, 2026, Prelude Therapeutics began using a new corporate investor presentation outlining its strategy to advance two highly differentiated programs: JAK2V617F mutant-selective JH2 inhibitors for myeloproliferative neoplasms and first-in-class, highly selective oral KAT6A degraders for ER-positive breast cancer and other tumors. The materials highlight recently disclosed preclinical data showing potent, mutant-selective activity of its JAK2V617F inhibitors, positioning them as potential disease-modifying therapies in a large and growing market now dominated by first-generation agents such as ruxolitinib, and describe a planned Phase 1 program as well as an exclusive option agreement with Incyte announced in November 2025 that provides significant capital to support the JAK2V617F and KAT6A pipelines, alongside ongoing degrader payload discovery and partnering efforts.

The most recent analyst rating on (PRLD) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Prelude Therapeutics stock, see the PRLD Stock Forecast page.

Prelude Therapeutics Reports Q3 2025 Financial Results

Prelude Therapeutics reported its third-quarter 2025 financial results and provided a corporate update, highlighting advancements in its pipeline programs. The company is progressing with its JAK2V617F inhibitor and KAT6A degrader programs, with IND filings expected in 2026. Financially, Prelude reduced its net loss to $19.7 million compared to the previous year, with a cash runway projected into 2027, supported by recent license payments.

The most recent analyst rating on (PRLD) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Prelude Therapeutics stock, see the PRLD Stock Forecast page.

Prelude Therapeutics Signs Option Agreement with Incyte

On November 3, 2025, Prelude Therapeutics entered into an Exclusive Option Agreement with Incyte Corporation to potentially acquire Prelude’s JAK2V617F JH2 inhibitor program, aimed at treating myeloproliferative neoplasms (MPNs). The agreement provides Prelude with $60 million in capital and the possibility of up to $910 million in total payments if Incyte exercises its option. Additionally, Prelude announced the resignation of Jane Huang, M.D., as President and Chief Medical Officer, effective November 3, 2025, with Dr. Victor Sandor stepping in to provide strategic oversight.

The most recent analyst rating on (PRLD) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Prelude Therapeutics stock, see the PRLD Stock Forecast page.