Rapport Therapeutics, Inc. (RAPP) AI Stock Analysis

• Market Cap: $1.46B
• Dividend Yield: N/A
• Average Volume (3M): 309.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: N/A
• EPS Growth: -37.07%
• Country: US
• Employees: 69
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.72
• Shares Outstanding: 47,661,137
• 10 Day Avg. Volume: 280,067
• 30 Day Avg. Volume: 309,621
• PEG Ratio: 0.20
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.19
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -7.22
• 1Y Price Target: $47.20
• Price Target Upside: 54.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -3.52
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $32.00 ▲(4.78% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is primarily constrained by pre-revenue financials, widening losses, and material cash burn, despite a strong low-leverage balance sheet. Technicals are supportive with an uptrend and healthy momentum, and the recent FDA clearance to move RAP-219 into Phase 3 is a notable positive catalyst, while valuation remains challenging due to negative earnings and no dividend.

Positive Factors

Balance Sheet Strength

Substantial equity and minimal debt give Rapport multi-year funding capacity and low refinancing risk relative to peers. This low leverage supports execution of costly registrational programs, preserves strategic optionality for partnerships, and underpins a stated cash runway into 2H 2029.

Regulatory Progress on Lead Asset

FDA clearance to start a Phase 3 registrational program materially de-risks the lead program's clinical pathway. It establishes a clear development plan and timing (Phase 3 start accelerated), concentrates resources on a high-potential epilepsy franchise and increases odds for future partnerships or commercialization.

Strategic Partnership

A regional collaboration expands RAP-219's commercial and development footprint without sole-company investment, helping share regulatory and market-entry burden. Such partnerships can accelerate patient access, diversify future revenue streams, and reduce go-to-market execution risk in a key territory.

Negative Factors

No Revenue and Widening Losses

As a pre-revenue biotech, Rapport relies on R&D progress to create eventual sales; persistent and widening net losses constrain returns and mean value realization depends on successful trials. Until approvals or partnering occur, negative earnings and ROE remain structural impediments to profitability.

High Cash Burn

Sustained negative operating and free cash flow necessitates ongoing capital raises or partner funding. While cash on hand supports near-term plans, continued burn increases likelihood of future dilution or financing at inopportune times, imposing execution and ownership risks for long-term investors.

Funding Dependence

The business model depends structurally on external capital and collaborations until product revenue emerges. That reliance creates execution and dilution risks, links program continuity to market access and partner terms, and makes strategic outcomes contingent on successful financings or deals.

Rapport Therapeutics, Inc. Business Overview & Revenue Model

Company Description

Rapport Therapeutics, Inc., operates as a clinical-stage biopharmaceutical company that focuses on the discovery and development of transformational small molecule medicines for patients suffering from central nervous system (CNS) disorders. Its lead product candidate is receptor associated protein (RAP)-219, an investigational small molecule that is designed to inhibit TARPy8-containing AMPARs with picomolar affinity for the treatment of focal epilepsy and other CNS disorders, including peripheral neuropathic pain and bipolar disorder. The company also develops RAP-199, a TARPy8 targeted molecule with differentiated chemical and pharmacokinetic properties; and nicotinic acetylcholine receptor (nAChR) programs, such as a6 nAChR to treat chronic pain and a9a10 nAChR for the treatment of hearing disorders. The company was formerly known as Precision Neuroscience NewCo, Inc. and changed its name to Rapport Therapeutics, Inc. in October 2022. Rapport Therapeutics, Inc. was incorporated in 2022 and is based in Boston, Massachusetts.

How the Company Makes Money

As a clinical-stage biotechnology company, Rapport Therapeutics does not have publicly known recurring revenue from marketed products; product-sales revenue is null. Its funding and any revenues typically come from external capital and collaboration-related payments: (1) Equity financing (e.g., proceeds from IPOs, follow-on offerings, private placements) is a primary source of cash for operations while programs are in development; (2) Collaboration, licensing, or partnership arrangements—if present—can generate upfront payments, research funding, milestone payments tied to clinical/regulatory achievements, and royalties on partner sales; specific counterparties and terms are null if not publicly disclosed in available materials; and (3) Interest income on cash balances may contribute immaterial revenue. Longer-term, the company’s intended revenue model is to commercialize one or more approved CNS therapeutics (directly or via partners), generating product sales and/or royalties, but commercialization revenue is currently null absent approved products.

Rapport Therapeutics, Inc. Financial Statement Overview

Summary

Balance sheet strength (high equity ~$484.7M and very low debt ~$11.5M) is a key positive, but fundamentals remain weak with no revenue, widening losses (net loss -$111.5M TTM), and significant ongoing cash burn (FCF -$87.9M TTM).

Income Statement

TTM (Trailing-Twelve-Months) results show no revenue and a large net loss (-$111.5M), with losses widening versus prior years (net loss of -$78.3M in 2024 and -$34.8M in 2023). Profitability remains deeply negative (EBIT -$125.1M TTM), reflecting a company still in the heavy investment/pre-commercial stage. The main positive is that losses are consistent with a development biotech profile rather than a deteriorating gross margin story, but the trajectory of higher operating losses is a clear earnings risk until revenue ramps.

Balance Sheet

The balance sheet is a relative strength: TTM equity is high ($484.7M) against low debt ($11.5M), translating to modest leverage (debt-to-equity ~0.02). Assets have scaled meaningfully (to $512.4M TTM), suggesting strong funding capacity. The key weakness is that returns on equity are negative (ROE ~-0.29 TTM) due to ongoing losses; additionally, the company previously showed negative equity in 2023, highlighting historical volatility typical of early-stage biotech.

Cash Flow

Cash generation remains negative, with TTM operating cash flow of -$87.5M and free cash flow of -$87.9M, indicating continued cash burn. Free cash flow was slightly better year-over-year (positive growth rate shown for TTM), but the overall level of burn is still high and will likely require continued balance-sheet funding over time. A mitigating factor is that free cash flow broadly tracks net loss (free cash flow to net income ~1.01 TTM), suggesting losses are largely cash-backed rather than being driven by large non-cash distortions.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	0.00	0.00	0.00	0.00
Gross Profit	0.00	-839.00K	-112.00K	-15.00K
EBITDA	-125.10M	-77.47M	-34.66M	-10.35M
Net Income	-111.48M	-78.31M	-34.79M	-10.65M
Balance Sheet
Total Assets	512.43M	314.93M	155.42M	31.60M
Cash, Cash Equivalents and Short-Term Investments	490.54M	305.28M	147.48M	31.16M
Total Debt	11.48M	1.48M	2.15M	10.44M
Total Liabilities	27.78M	9.51M	181.06M	12.10M
Stockholders Equity	484.65M	305.43M	-25.63M	19.50M
Cash Flow
Free Cash Flow	-88.09M	-67.23M	-28.82M	-3.53M
Operating Cash Flow	-87.47M	-64.83M	-27.18M	-3.24M
Investing Cash Flow	-187.47M	-170.14M	-78.86M	-5.28M
Financing Cash Flow	270.79M	221.63M	145.14M	39.69M

Rapport Therapeutics, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAPP, the sentiment is Positive. The current price of 30.54 is above the 20-day moving average (MA) of 29.05, above the 50-day MA of 28.29, and above the 200-day MA of 22.38, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 59.73 is Neutral, neither overbought nor oversold. The STOCH value of 72.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RAPP.

Rapport Therapeutics, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INVA	74 Outperform	$1.65B	4.97	30.60%	―	9.76%	88.06%
ELVN	61 Neutral	$1.78B	-7.35	-24.22%	―	―	3.18%
RAPP	57 Neutral	$1.46B	-10.46	-28.60%	―	―	-37.07%
LENZ	57 Neutral	$384.87M	-19.90	-29.58%	―	―	70.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Rapport Therapeutics, Inc. Corporate Events

Rapport Therapeutics Establishes $110 Million At-The-Market Offering

On January 7, 2026, Rapport Therapeutics, Inc. filed a prospectus supplement to its effective shelf registration statement to register the offer and sale, from time to time, of up to $110 million of its common stock through Leerink Partners LLC and Cantor Fitzgerald & Co. as sales agents under an existing sales agreement dated July 1, 2025. As of the filing date, the company had not yet sold any shares under this arrangement, indicating the filing primarily positions Rapport to tap the capital markets flexibly in the future to support its funding needs without immediately altering its share base.

The most recent analyst rating on (RAPP) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Rapport Therapeutics, Inc. stock, see the RAPP Stock Forecast page.

Rapport Therapeutics advances RAP-219 into Phase 3 epilepsy

On January 7, 2026, Rapport Therapeutics announced that the U.S. FDA has cleared its lead candidate RAP-219 to advance into Phase 3 registrational trials for focal onset seizures, prompting the company to move the program’s start forward to the second quarter of 2026 and to open a long-term safety study for prior trial participants. Leveraging strong Phase 2a data and physician market research that point to a potential multi-billion-dollar U.S. opportunity in epilepsy, Rapport is expanding RAP-219 development into primary generalized tonic-clonic seizures with a Phase 3 trial slated for the first half of 2027, while continuing a Phase 2 study in bipolar mania and progressing a long-acting injectable formulation and other pipeline assets. At the same time, the FDA has lifted its clinical hold on a RAP-219 trial in diabetic peripheral neuropathic pain, but the company is deferring further spending on that indication to prioritize its α6β4 chronic pain and migraine program, and management says its $513 million cash balance at the end of the third quarter should fund operations into the second half of 2029, supporting a dense slate of clinical milestones in 2026 and beyond.

The most recent analyst rating on (RAPP) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Rapport Therapeutics, Inc. stock, see the RAPP Stock Forecast page.