Relay Therapeutics (RLAY) AI Stock Analysis

• Market Cap: $1.83B
• Dividend Yield: N/A
• Average Volume (3M): 2.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.99
• Revenue Growth: -16.50%
• EPS Growth: 33.02%
• Country: US
• Employees: 259
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.32
• Shares Outstanding: 178,725,810
• 10 Day Avg. Volume: 3,060,899
• 30 Day Avg. Volume: 2,608,066
• PEG Ratio: 0.17
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 94.54
• P/FCF Ratio: -6.15
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 116.06
• Enterprise Value/Gross Profit: 127.22
• Enterprise Value/Ebitda: -6.13
• 1Y Price Target: $17.40
• Price Target Upside: 69.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): -1.54
• Revenue Forecast (FY): $10.67M

• Rating: 59 Neutral
• Price Target: $10.50 ▲(2.34% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held back primarily by weak financial performance (large ongoing losses and sustained cash burn), partially offset by strong technical trend/momentum and meaningful positive clinical/regulatory corporate events (Breakthrough Therapy designation and supportive trial data). Valuation is neutral-to-weak due to the negative P/E and no dividend support.

Positive Factors

FDA Breakthrough Designation

The FDA Breakthrough Therapy designation is a durable regulatory advantage: it can expedite clinical development and review, increase regulator engagement, and materially de-risk the lead program. This bolsters partner interest and strategic optionality for commercialization and long-term value creation.

Encouraging Phase 1/2 ReDiscover data

Robust ReDiscover signals (median PFS ~11.1 months, ORR 43% in measurable disease, tolerable safety) provide clinically meaningful evidence that supports the ongoing global Phase 3. Positive efficacy and tolerability in a pretreated population materially reduce technical risk and strengthen Relay's competitive position in PI3Kα-targeted breast cancer.

Low financial leverage

Very low debt levels reduce near-term financial distress risk and preserve strategic flexibility for a clinical-stage biotech. With minimal leverage, Relay can prioritize R&D and partnership deals without heavy interest burdens, extending runway and lowering the probability that short-term financing constraints disrupt development timelines.

Negative Factors

Sustained cash burn

Persistent negative operating and free cash flow indicates ongoing reliance on balance-sheet resources and external financing. Sustained cash burn increases dilution risk, forces timing-sensitive capital raises, and can constrain R&D sequencing or commercialization support absent large partnerships or milestone receipts.

Large, persistent losses

Substantial recurring operating and net losses mean the company must convert clinical success into revenue to become self-sustaining. Continued negative margins erode equity and require repeated financing or lucrative partnerships, raising execution and financing risk over the next several quarters to years.

Revenue volatility and funding reliance

Dependence on collaboration/licensing payments and milestone timing creates uneven, unpredictable revenue. As a clinical-stage company without commercial products, Relay remains reliant on milestone receipts and equity financing, which can complicate planning and increase dilution if clinical timelines or partner progress slip.

Relay Therapeutics Business Overview & Revenue Model

Company Description

Relay Therapeutics, Inc. operates as a clinical-stage precision medicines company. It engages in transforming the drug discovery process with an initial focus on enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications. The company's lead product candidates include RLY-4008, an oral small molecule inhibitor of fibroblast growth factor receptor 2 (FGFR2), which is in a first-in-human clinical trial for patients with advanced or metastatic FGFR2-altered solid tumors; RLY-2608, a lead mutant-PI3Ka inhibitor program that targets phosphoinostide 3 kinase alpha; and RLY-1971, an oral small molecule inhibitor of protein tyrosine phosphatase Src homology region 2 domain-containing phosphatase-2 that is in Phase 1 trial in patients with advanced solid tumors. It has collaboration and license agreements with D. E. Shaw Research, LLC to research certain biological targets through the use of D. E. Shaw Research computational modeling capabilities focused on analysis of protein motion to develop and commercialize compounds and products directed to such targets; and Genentech, Inc. for the development and commercialization of RLY-1971. The company was formerly known as Allostery, Inc. and changed its name to Relay Therapeutics, Inc. in December 2015. Relay Therapeutics, Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Relay Therapeutics has historically generated revenue primarily from collaboration and licensing arrangements (rather than product sales), because it is a clinical-stage company without widely commercialized, approved therapeutics. Under these types of agreements, revenue can come from upfront payments, research funding/reimbursement, milestone payments tied to development, regulatory, or commercial events, and royalties on net sales if a partnered product is successfully commercialized. If the company reports collaboration revenue in a given period, it generally reflects amounts earned under the terms of such partnerships (including recognition of portions of upfront consideration over time and/or achievement of milestones when they become earned). Beyond collaboration-related revenue, the company typically funds operations through external financing (e.g., equity offerings), which supports R&D but is not reported as revenue. Specific current partners, products generating royalties, or the exact composition of revenue by stream is null.

Relay Therapeutics Financial Statement Overview

Summary

Balance sheet is a relative strength with low leverage (debt-to-equity ~0.03–0.07), but the core business profile remains weak: revenue is small/volatile, operating and net losses are large and persistent, and operating/free cash flow are materially negative (ongoing cash burn), despite some improvement and a 2025 revenue rebound.

Income Statement

Revenue is small and volatile over time (2020 had a spike, followed by much lower levels; 2025 rebounded with strong growth vs. 2024). Profitability remains very weak: the company is generating large operating losses and net losses each year, with net margins deeply negative across the period. The main positive is the recent revenue acceleration (2025 annual growth), but losses remain very large relative to the current revenue base.

Balance Sheet

The balance sheet is a relative strength: leverage is low (debt-to-equity remains ~0.03–0.07), which reduces financial risk. However, equity has declined meaningfully from 2022 to 2025, consistent with ongoing losses, and returns on equity are sharply negative each year—signaling continued value erosion despite modest debt levels.

Cash Flow

Cash generation is weak, with operating cash flow and free cash flow materially negative every year, indicating sustained cash burn to fund operations. Cash burn improved somewhat in 2025 versus 2024 (less negative operating and free cash flow), but free cash flow growth has been inconsistent and remains negative overall, leaving the company dependent on its balance-sheet resources and/or future financing.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.36M	10.01M	25.55M	1.38M	3.03M
Gross Profit	11.80M	10.01M	25.55M	1.38M	3.03M
EBITDA	-272.92M	-380.21M	-374.15M	-306.82M	-223.08M
Net Income	-276.48M	-337.71M	-341.97M	-290.51M	-363.87M
Balance Sheet
Total Assets	621.33M	871.30M	843.98M	1.10B	1.01B
Cash, Cash Equivalents and Short-Term Investments	554.52M	781.32M	750.09M	998.92M	958.07M
Total Debt	32.46M	48.50M	53.47M	57.74M	22.90M
Total Liabilities	54.27M	93.50M	91.98M	149.55M	110.64M
Stockholders Equity	567.06M	777.79M	752.00M	950.22M	897.81M
Cash Flow
Free Cash Flow	-235.87M	-251.13M	-304.44M	-238.55M	-77.88M
Operating Cash Flow	-235.46M	-249.11M	-300.32M	-229.49M	-74.41M
Investing Cash Flow	192.80M	-41.08M	257.63M	-188.75M	-479.51M
Financing Cash Flow	1.60M	270.15M	34.75M	289.91M	388.09M

Relay Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.26
• 50DMA: Positive
• 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 RLAY, the sentiment is Positive. The current price of 10.26 is above the 20-day moving average (MA) of 9.78, above the 50-day MA of 8.80, and above the 200-day MA of 6.09, indicating a bullish trend. The MACD of 0.47 indicates Positive momentum. The RSI at 58.93 is Neutral, neither overbought nor oversold. The STOCH value of 48.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RLAY.

Relay Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RLAY	59 Neutral	$1.83B	―	-43.17%	―	-16.50%	33.02%
GERN	57 Neutral	$1.04B	-10.26	-34.23%	―	522.13%	62.68%
TNGX	55 Neutral	$2.67B	-10.13	-50.30%	―	53.28%	21.77%
ZBIO	54 Neutral	$1.35B	―	-78.92%	―	―	-38.04%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IMTX	51 Neutral	$1.32B	―	-39.69%	―	-27.61%	-69.49%
PROK	44 Neutral	$640.78M	-4.96	7.10%	―	―	2.35%

Relay Therapeutics Corporate Events

Relay Therapeutics Highlights Positive Zovegalisib ReDiscover Trial Data

On March 16, 2026, Relay Therapeutics reported Phase 1/2 ReDiscover data for its PI3Kα inhibitor zovegalisib combined with fulvestrant at the recommended Phase 3 dose of 400mg twice daily taken with food in patients with PI3Kα‑mutated, HR+/HER2‑ metastatic breast cancer. The update, based on a January 13, 2026 data cut‑off, was presented at the ESMO Targeted Anticancer Therapies Congress 2026 and focused on a heavily pre‑treated population previously exposed to CDK4/6 inhibitors and at least one endocrine therapy.

Among 57 efficacy‑evaluable patients at the 400mg BID fed dose, median progression‑free survival reached 11.1 months, with similar outcomes in kinase and non‑kinase mutation subgroups, while the confirmed objective response rate was 43% in patients with measurable disease and 52% in second‑line‑only patients. Pharmacokinetic analyses showed that the fed 400mg regimen achieved drug exposures comparable to the earlier 600mg BID fasted dose, and the combination was generally well tolerated, with mostly low‑grade, manageable adverse events and only four discontinuations, reinforcing the selection of this dose for the ongoing global Phase 3 ReDiscover‑2 trial in a population that has already received CDK4/6 inhibitors and supporting Relay’s competitive position in the PI3Kα‑targeted breast cancer space.

The most recent analyst rating on (RLAY) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Relay Therapeutics stock, see the RLAY Stock Forecast page.

Relay Therapeutics Updates Bylaws on Federal Securities Litigation

On March 6, 2026, Relay Therapeutics, Inc. amended and restated its bylaws to specify that federal district courts in the United States will serve as the exclusive forum for complaints arising under the Securities Act of 1933 and the Securities Exchange Act of 1934, along with related rules and regulations. The move centralizes securities-related litigation in federal courts, potentially reducing jurisdictional disputes, increasing procedural predictability for the company and investors, and aligning Relay Therapeutics with a growing governance trend among U.S. public companies.

The most recent analyst rating on (RLAY) stock is a Hold with a $10.50 price target. To see the full list of analyst forecasts on Relay Therapeutics stock, see the RLAY Stock Forecast page.

Relay Therapeutics Wins FDA Breakthrough Therapy Designation

On February 3, 2026, Relay Therapeutics announced that the U.S. Food and Drug Administration granted Breakthrough Therapy designation to its lead drug candidate zovegalisib (RLY-2608), in combination with fulvestrant, for adults with PIK3CA-mutant HR+/HER2- locally advanced or metastatic breast cancer whose disease has recurred or progressed after CDK4/6 inhibitor treatment. The designation, based on robust Phase 1/2 data from the ReDiscover trial across multiple PIK3CA mutations and dosing regimens, underscores zovegalisib’s potential to address a large, underserved patient population that lacks pan-mutant selective PI3Kα inhibitor regimens and bolsters Relay Therapeutics’ position in precision oncology by validating its allosteric, isoform-selective approach to PI3Kα inhibition.

The most recent analyst rating on (RLAY) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Relay Therapeutics stock, see the RLAY Stock Forecast page.