Rapport Therapeutics, Inc. (RAPP) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: N/A
• Average Volume (3M): 367.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: N/A
• EPS Growth: -37.07%
• Country: US
• Employees: 69
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.71
• Shares Outstanding: 47,661,137
• 10 Day Avg. Volume: 325,844
• 30 Day Avg. Volume: 367,959
• PEG Ratio: -0.47
• Price to Book (P/B): 12.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -54.72
• Enterprise Value/Market Cap: 0.58
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -6.95
• 1Y Price Target: $54.60
• Price Target Upside: 106.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): -3.54
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $27.00 ▲(2.12% Upside)

The score is primarily held back by weak financial performance typical of a pre-revenue biotech (widening losses and increasing cash burn). Strength comes from a strong, low-debt balance sheet and a notable positive corporate catalyst (FDA clearance to move the lead program into Phase 3 with a stated multi-year cash runway). Technicals are neutral-to-weak near term and valuation metrics provide limited support due to negative earnings.

Positive Factors

Low Leverage Balance Sheet

Very low leverage provides durable financial flexibility for a clinical-stage biotech. It reduces refinancing and solvency risk during multi-year trials, supports licensing or partnership negotiations, and lets management prioritize R&D investment without urgent debt pressure.

Regulatory Progress: RAP-219 Phase 3 Clearance

Clearance to start a registrational Phase 3 materially advances program de-risking and raises the probability of a future approval or partner interest. This structural shift moves the company from early development toward pivotal evidence generation and potential commercialization pathways.

Multi-Year Cash Runway

A stated cash balance sufficient into the second half of 2029 gives the company time to execute a dense clinical slate without immediate financing. Multi-year runway lowers short-term capital risk and enables strategic sequencing of trials and formulation work.

Negative Factors

Pre-Revenue Business Model

Absence of product revenue means long-term value depends entirely on achieving clinical and regulatory milestones. That structural profile increases dependency on external capital and creates binary program risk: failed trials materially impair future cash flows and strategic options.

High and Rising Cash Burn

Sustained negative operating and free cash flow with an increasing burn rate elevates funding needs over time. Even with a current runway, higher burn accelerates capital depletion, raising the odds of mid-cycle financing that can disrupt timelines or force reprioritization of programs.

Reliance on Equity Financing

An at-the-market registration signals ongoing dependence on equity markets to fund operations. Structurally, reliance on dilutive financing can alter capital mix, dilute existing shareholders, and constrain long-term strategic choices if clinical outcomes necessitate material additional raises.

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

Rapport Therapeutics, Inc. generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company engages in partnerships and collaborations with other pharmaceutical firms to co-develop and license its therapies, which can provide milestone payments and royalties. Additionally, Rapport may secure funding through grants and research agreements to support its drug discovery and development efforts. The company's financial growth is supported by strategic alliances and the successful advancement of its drug pipeline through clinical trials.

Rapport Therapeutics, Inc. Financial Statement Overview

Summary

Mixed early-stage biotech profile: no revenue and widening losses with rising cash burn (TTM EBIT about -$110.1M; TTM FCF about -$77.9M). Offsetting this, the balance sheet is strong with minimal leverage (TTM debt about $11.9M vs equity about $511.6M; debt-to-equity ~0.02), supporting funding flexibility despite negative ROE.

Income Statement

RAPP remains a pre-revenue biotechnology company (revenue is 0 across annual periods and TTM (Trailing-Twelve-Months)), so profitability is entirely driven by operating spend. Losses have expanded materially from 2022 to 2024, and TTM (Trailing-Twelve-Months) shows further deterioration with EBIT of about -$110.1M and net income of about -$97.7M versus 2024 net income of about -$78.3M. The main strength is that losses are expected for the business model at this stage, but the accelerating loss profile increases reliance on external funding and raises execution risk.

Balance Sheet

The balance sheet is a key positive: leverage is very low, with TTM (Trailing-Twelve-Months) debt of about $11.9M against equity of about $511.6M (debt-to-equity ~0.02). Equity has scaled up significantly versus earlier years, supporting flexibility to fund operations. The primary weakness is ongoing negative returns on equity (TTM ROE ~-0.29), reflecting that capital is currently being consumed rather than generating earnings.

Cash Flow

Cash generation is weak, as expected for a clinical-stage biotech: TTM (Trailing-Twelve-Months) operating cash flow is about -$77.2M and free cash flow is about -$77.9M, representing a higher cash burn than 2024 (free cash flow about -$67.2M). A relative positive is that free cash flow tracks net losses closely (TTM free cash flow to net income ~1.01), suggesting losses are largely cash-based rather than heavily distorted by non-cash items. The key risk is the rising burn rate, which can shorten the funding runway if not offset by new capital.

Breakdown	TTM	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	-106.04M	-77.47M	-34.66M	-10.35M
Net Income	-97.70M	-78.31M	-34.79M	-10.65M
Balance Sheet
Total Assets	535.32M	314.93M	155.42M	31.60M
Cash, Cash Equivalents and Short-Term Investments	513.03M	305.28M	147.56M	31.16M
Total Debt	11.87M	1.48M	2.15M	10.44M
Total Liabilities	23.71M	9.51M	14.48M	12.10M
Stockholders Equity	511.62M	305.43M	140.94M	19.50M
Cash Flow
Free Cash Flow	-77.89M	-67.23M	-28.82M	-3.53M
Operating Cash Flow	-77.22M	-64.83M	-27.18M	-3.24M
Investing Cash Flow	18.78M	-170.14M	-78.86M	-5.28M
Financing Cash Flow	270.48M	221.63M	145.14M	39.69M

Rapport Therapeutics, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAPP, the sentiment is Negative. The current price of 26.44 is below the 20-day moving average (MA) of 27.72, below the 50-day MA of 28.36, and above the 200-day MA of 19.96, indicating a neutral trend. The MACD of -0.59 indicates Positive momentum. The RSI at 43.98 is Neutral, neither overbought nor oversold. The STOCH value of 41.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RAPP.

Rapport Therapeutics, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INVA	61 Neutral	$1.46B	14.17	15.17%	―	9.76%	88.06%
LENZ	57 Neutral	$583.56M	―	-28.78%	―	―	70.19%
RAPP	56 Neutral	$1.26B	―	-23.41%	―	―	-37.07%
ELVN	56 Neutral	$1.51B	-13.91	-25.43%	―	―	3.18%
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.