Relay Therapeutics (RLAY) AI Stock Analysis

• Market Cap: $1.33B
• Dividend Yield: N/A
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.00
• Revenue Growth: -16.50%
• EPS Growth: 33.02%
• Country: US
• Employees: 259
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.43
• Shares Outstanding: 173,322,390
• 10 Day Avg. Volume: 2,263,515
• 30 Day Avg. Volume: 1,920,374
• PEG Ratio: 0.11
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 58.82
• P/FCF Ratio: -2.34
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 162.08
• Enterprise Value/Gross Profit: 178.02
• Enterprise Value/Ebitda: -4.28
• 1Y Price Target: $14.60
• Price Target Upside: 79.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -1.66
• Revenue Forecast (FY): $14.56M

• Rating: 53 Neutral
• Price Target: $8.50 ▲(4.29% Upside)

The score is primarily constrained by weak financial performance—minimal revenue scale alongside large losses and sustained cash burn—despite low leverage. Technicals are moderately supportive with price above key moving averages and neutral momentum, while valuation remains challenged due to negative earnings and no dividend. Positive corporate events (FDA Breakthrough Therapy designation and board strengthening) provide an upside catalyst but do not offset the current cash-burn profile.

Positive Factors

Proprietary protein motion platform

Relay’s protein motion technology is a durable scientific differentiator that targets protein conformational dynamics rather than static structures. This platform can generate multiple precision oncology assets, sustain partnerships, and create technical barriers to entry that support long-term pipeline productivity and licensing.

FDA Breakthrough Therapy Designation for zovegalisib

Breakthrough Therapy status materially increases regulatory support and can accelerate development and review timelines. This designation validates the mechanism and clinical signal, improving the probability of approval, bolstering partner interest, and enhancing the long-term commercial prospects of the lead program.

Board expansion and multi-year cash runway

Adding experienced biotech CEOs strengthens commercialization and go-to-market capabilities ahead of potential approvals. Combined with a reported cash position supporting operations into 2029, this reduces near-term financing pressure and gives management durable time to advance registrational programs and execute strategic partnerships.

Negative Factors

Sustained cash burn and negative free cash flow

Heavy, ongoing negative operating and free cash flow signals persistent reliance on external capital or partner financing to fund R&D and trials. Over the medium term this raises dilution risk, constrains optionality for program prioritization, and forces trade-offs between growth investments and liquidity preservation.

Very small, declining revenue base

Minimal and falling revenue indicates limited commercial traction and insufficient organic cash generation. This structural revenue weakness makes the company dependent on milestone payments or capital markets, lengthens the path to self-sustaining operations, and reduces resilience during clinical or regulatory setbacks.

Deep losses and negative returns on equity

Large, persistent net losses and substantially negative ROE show that capital is currently being consumed rather than generated. Over time this erodes shareholder equity, heightens scrutiny on capital allocation, and implies a prolonged timeline before achieving positive unit economics or returns for investors.

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 generates revenue primarily through partnerships and collaborations with pharmaceutical companies, where they license their technology and drug candidates for further development. This includes upfront payments, milestone payments tied to the achievement of specific development milestones, and royalties on future sales of products that result from these collaborations. The company may also receive funding from grants and government programs aimed at supporting innovative biotechnology research, contributing to its overall revenue streams. Strategic partnerships with larger pharmaceutical firms provide significant financial backing and resources, which are crucial for advancing their drug development pipeline.

Relay Therapeutics Financial Statement Overview

Summary

Financials reflect a development-stage biotech: very small and flat TTM revenue ($8.4M) with sharp prior-year decline, and deep losses (TTM net income -$297.6M) with heavy ongoing cash burn (TTM FCF -$248.9M). Balance sheet leverage is low (debt-to-equity ~0.05), providing flexibility, but equity/assets trending down and highly negative ROE (~-43%) keep financial risk elevated.

Income Statement

TTM (Trailing-Twelve-Months) revenue remains very small ($8.4M) and has been flat versus the prior period, following a sharp annual decline in 2024 (down ~61%) after a strong 2023. Profitability is weak: the company is deeply loss-making with TTM net income of -$297.6M and very negative operating margins, reflecting a cost base that far exceeds current revenue. A positive is that gross profit is still positive in TTM, but overall earnings power remains far from breakeven.

Balance Sheet

Leverage is low for a biotech: TTM total debt is $33.3M against $607.7M of equity (debt-to-equity ~0.05), which supports financial flexibility. However, equity and total assets have trended down from 2022–2024 levels, consistent with ongoing losses and cash burn. Returns to shareholders are materially negative (TTM return on equity around -43%), underscoring that the balance sheet strength is being consumed by operating losses.

Cash Flow

Cash generation is a key weakness: TTM operating cash flow is -$248.5M and free cash flow is -$248.9M, indicating sustained cash burn to fund operations and R&D. Free cash flow has also deteriorated versus the prior period (negative growth), and cash outflows broadly mirror accounting losses (free cash flow roughly in line with net loss), suggesting limited near-term self-funding capacity without external capital.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.36M	10.01M	25.55M	1.38M	3.03M	82.65M
Gross Profit	7.61M	10.01M	25.55M	1.38M	3.03M	79.11M
EBITDA	-316.55M	-380.21M	-374.15M	-306.82M	-223.08M	-52.25M
Net Income	-297.59M	-337.71M	-341.97M	-290.51M	-363.87M	-52.41M
Balance Sheet
Total Assets	670.00M	871.30M	843.98M	1.10B	1.01B	799.83M
Cash, Cash Equivalents and Short-Term Investments	596.43M	781.32M	750.09M	998.92M	958.07M	678.06M
Total Debt	33.33M	48.50M	53.47M	57.74M	22.90M	24.42M
Total Liabilities	62.29M	93.50M	91.98M	149.55M	110.64M	36.54M
Stockholders Equity	607.71M	777.79M	752.00M	950.22M	897.81M	763.29M
Cash Flow
Free Cash Flow	-248.87M	-251.13M	-304.44M	-238.55M	-77.88M	-104.42M
Operating Cash Flow	-248.46M	-249.11M	-300.32M	-229.49M	-74.41M	-102.49M
Investing Cash Flow	186.33M	-41.08M	257.63M	-188.75M	-479.51M	81.67M
Financing Cash Flow	1.47M	270.15M	34.75M	289.91M	388.09M	426.51M

Relay Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.15
• 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 RLAY, the sentiment is Positive. The current price of 8.15 is above the 20-day moving average (MA) of 7.81, above the 50-day MA of 7.88, and above the 200-day MA of 5.12, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 54.62 is Neutral, neither overbought nor oversold. The STOCH value of 48.35 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
IMTX	56 Neutral	$1.28B	-9.13	-29.01%	―	-27.61%	-69.49%
GERN	54 Neutral	$874.55M	-12.81	-29.57%	―	522.13%	62.68%
RLAY	53 Neutral	$1.33B	―	-41.14%	―	-16.50%	33.02%
TNGX	53 Neutral	$1.56B	-13.03	-51.65%	―	53.28%	21.77%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ZBIO	51 Neutral	$986.09M	-4.01	-68.33%	―	―	-38.04%
PROK	44 Neutral	$595.65M	-3.75	―	―	―	2.35%

Relay Therapeutics Corporate Events

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.

Relay Therapeutics Expands Board with New Appointments

On November 4, 2025, Relay Therapeutics expanded its Board of Directors by appointing Lonnel Coats and Habib Dable, both former biotech CEOs with significant commercialization expertise. This strategic move aligns with the company’s ongoing efforts to advance its clinical programs, particularly the RLY-2608 trials in breast cancer and vascular malformations. Additionally, Relay reported its third quarter 2025 financial results, highlighting a net loss reduction compared to the previous year and a strong cash position of $596 million, expected to support operations into 2029.

The most recent analyst rating on (RLAY) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Relay Therapeutics stock, see the RLAY Stock Forecast page.