Q32 Bio (QTTB) AI Stock Analysis

• Market Cap: $22.81M
• Dividend Yield: N/A
• Average Volume (3M): 159.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -100.00%
• EPS Growth: 91.45%
• Country: US
• Employees: 42
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -10.37
• Shares Outstanding: 12,197,615
• 10 Day Avg. Volume: 166,585
• 30 Day Avg. Volume: 159,718
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 21.84
• Price to Cash Flow (P/CF): -0.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -0.75
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -29.69
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.00
• Price Target Upside: 595.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Q32 Bio's overall stock score is low due to significant financial instability, negative revenue, and ongoing losses. The technical analysis shows mixed signals, while the valuation is unattractive with a negative P/E ratio and no dividends. These factors highlight the company's current financial and operational challenges, suggesting a need for strategic changes to improve its financial health.

Positive Factors

Clinical Trials

All patients who completed Part A treatment maintained hair after 36 weeks and beyond, with some achieving additional hair growth post-treatment.

Corporate Strategy

The restructuring decision shows confidence in focusing on bempikibart development for alopecia areata patients.

Patient Feedback

Bempi is well tolerated and patients are satisfied with outcomes, indicating potential positive feedback from ongoing studies.

Negative Factors

Financial Performance

QTTB is down -40% YTD as there remains investor cautiousness around bempi's activity in alopecia areata.

Market Comparison

Comparison with Pfizer's JAK inhibitor shows a significantly lower response rate for bempikibart, affecting its valuation.

Stock Valuation

The data is not supportive of bempikibart valuation beyond current assumptions, with a 15% probability of achieving peak sales.

Q32 Bio Business Overview & Revenue Model

Company Description

Q32 Bio (QTTB) is a biotechnology company focused on developing therapies for patients with severe autoimmune and inflammatory diseases. The company operates in the biopharmaceutical sector, leveraging its expertise in immunology to create innovative treatments. Q32 Bio's core products and services involve research and development of monoclonal antibodies and other biologics designed to modulate the immune system and address underlying disease mechanisms.

How the Company Makes Money

Q32 Bio makes money primarily through the development and commercialization of its therapeutic products. The company's revenue model includes partnerships and collaborations with larger pharmaceutical companies, which may involve upfront payments, milestone-based payments, and royalties from the sales of developed drugs. Additionally, Q32 Bio may receive funding from grants and research collaborations, which contribute to its operational and developmental expenses. The company's earnings are significantly influenced by the success of its clinical trials and the subsequent approval and commercialization of its therapies.

Q32 Bio Financial Statement Overview

Summary

Q32 Bio is facing significant financial challenges with no recent revenue generation, resulting in negative profit margins and operational inefficiencies. The balance sheet reflects high leverage and negative equity, indicating financial instability. Cash flow issues persist, with negative operating and free cash flows, suggesting the need for strategic restructuring and improved operational efficiency.

Income Statement

Q32 Bio has been experiencing significant challenges in terms of revenue generation, with TTM (Trailing-Twelve-Months) revenue dropping to zero from $1.156 million in 2023. The gross profit margin is negative due to no revenue and persistent losses, indicating operational inefficiencies. Net profit margins have been consistently negative, and the company is struggling with high EBIT and EBITDA losses, reflecting ongoing financial challenges in achieving profitability.

Balance Sheet

The company's balance sheet shows a concerning debt-to-equity ratio due to negative equity, reflecting financial instability. Despite a significant amount of cash and short-term investments, the liabilities are considerably high relative to assets. Equity has been declining, impacting the overall equity ratio negatively. The company needs to address its high leverage and improve equity levels to stabilize its financial foundation.

Cash Flow

Q32 Bio's cash flow statement reveals negative operating cash flow, indicating cash strain due to unprofitable operations. Although there is a notable increase in financing cash flow, this reliance on external financing might not be sustainable. Free cash flow remains negative, pointing to ongoing challenges in maintaining liquidity and financial flexibility. The free cash flow to net income ratio indicates difficulties in converting income into cash.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.16M	6.65M	33.97M	2.70M	1.67M
	Gross Profit
578.00K	4.05M	24.43M	2.70M	1.67M
	EBIT
-92.10M	-39.23M	-36.69M	-130.26M	-109.94M
	EBITDA
-86.50M	-38.85M	-86.22M	-121.36M	-103.63M
	Net Income Common Stockholders
-112.96M	-42.81M	-37.56M	-128.69M	-103.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
82.65M	43.89M	32.25M	217.43M	262.39M
	Total Assets
306.12M	61.77M	35.15M	263.74M	310.57M
	Total Debt
50.84M	44.73M	4.97M	15.44M	0.00
	Net Debt
-37.95M	838.00K	-27.27M	-201.99M	-53.77M
	Total Liabilities
233.13M	192.49M	124.36M	67.74M	52.06M
	Stockholders Equity
72.99M	-130.71M	-89.21M	196.00M	258.51M
Cash Flow		Free Cash Flow
-96.46M	-13.44M	-33.14M	-98.06M	-113.19M
	Operating Cash Flow
-96.23M	-10.96M	-32.98M	-94.33M	-91.36M
	Investing Cash Flow
101.33M	-2.47M	-157.00K	204.90M	-51.80M
	Financing Cash Flow
184.00K	30.07M	20.11M	53.09M	158.21M

Q32 Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QTTB, the sentiment is Negative. The current price of 1.87 is above the 20-day moving average (MA) of 1.77, below the 50-day MA of 2.05, and below the 200-day MA of 22.27, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 38.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QTTB.

Q32 Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.31B	3.39	-40.42%	2.90%	18.11%	2.25%
PASG	42 Neutral	$20.01M	―	-75.07%	―	―	42.39%
QTTB	41 Neutral	$22.81M	―	-121.36%	―	-100.00%	91.45%
TPST	39 Underperform	$27.32M	―	-182.35%	―	―	-220.54%
CMMB	33 Underperform	$24.70M	―	-91.76%	―	―	57.93%
ANVS	33 Underperform	$30.59M	―	-3159.09%	―	―	68.75%
CGTX	32 Underperform	$27.13M	―	-157.19%	―	―	-0.38%

Q32 Bio Corporate Events

Q32 Bio Board Member Mark Iwicki Resigns

On April 25, 2025, Mark Iwicki announced his resignation from the board of directors of Q32 Bio Inc., effective December 31, 2025. He will maintain his roles as Chair of the Board and the Compensation Committee, and as a member of the Audit Committee until then. His resignation is to focus on his CEO role at Inhibikase Therapeutics, Inc., and is not due to any disagreements with Q32 Bio.

Spark’s Take on QTTB Stock

According to Spark, TipRanks’ AI Analyst, QTTB is a Neutral.

Q32 Bio’s overall stock score is low due to significant financial instability, negative revenue, and ongoing losses. The technical analysis shows mixed signals, while the valuation is unattractive with a negative P/E ratio and no dividends. These factors highlight the company’s current financial and operational challenges, suggesting a need for strategic changes to improve its financial health.

To see Spark’s full report on QTTB stock, click here.

Q32 Bio Restructures to Focus on Bempikibart Development

On February 10, 2025, Q32 Bio announced a strategic restructuring plan to focus on advancing its bempikibart clinical development program for alopecia areata. This involves discontinuing the Phase 2 renal basket trial of ADX-097 and evaluating strategic options for its tissue-targeted complement inhibitor platform. The restructuring includes a reduction in workforce and is expected to extend cash runway to the second half of 2026, while incurring approximately $1.1 million in severance charges. The company plans to initiate an open-label extension and SIGNAL-AA Part B dosing in 2025, with topline data expected in the first half of 2026. These changes aim to maximize the potential of bempikibart in transforming treatment for alopecia areata and potentially other autoimmune conditions.