Relay Therapeutics (RLAY) AI Stock Analysis

• Market Cap: $1.83B
• Dividend Yield: N/A
• Average Volume (3M): 2.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.02
• 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: 1,906,281
• 30 Day Avg. Volume: 2,303,277
• 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: 0.94
• Enterprise Value/Revenue: 112.45
• Enterprise Value/Gross Profit: 146.36
• Enterprise Value/Ebitda: -5.94
• 1Y Price Target: $14.67
• Price Target Upside: 42.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -1.64
• Revenue Forecast (FY): $10.67M

• Rating: 60 Neutral
• Price Target: $11.00 ▲(7.21% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held back primarily by weak financial performance (large ongoing losses and cash burn), partly offset by strong technical momentum (price above key moving averages with positive MACD) and a supportive corporate catalyst (FDA Breakthrough Therapy designation). Valuation remains difficult to assess due to negative earnings and no indicated dividend yield.

Positive Factors

FDA Breakthrough Therapy designation

Breakthrough designation materially validates zovegalisib’s clinical promise and can accelerate development interactions with regulators. This structural regulatory support strengthens program credibility, may shorten timelines, and improves partner interest and licensing leverage over the coming months.

Proprietary protein motion technology platform

Relay’s protein motion platform is a durable competitive asset that differentiates drug discovery by targeting protein conformational dynamics. A platform approach supports multiple programs, recurring partnership opportunities, and long-term R&D productivity versus one-off assets.

Low financial leverage

Minimal debt reduces solvency risk and preserves financial flexibility to fund development or raise capital on reasonable terms. Low leverage is a lasting balance-sheet strength that limits fixed financing costs during protracted clinical development cycles.

Negative Factors

Sustained negative cash flow

Persistent negative operating and free cash flow forces reliance on external financing or partner milestones, creating dilution risk and potential delays in program funding. Weak cash generation constrains strategic optionality and increases execution risk over the medium term.

Large recurring operating and net losses

Chronic operating and net losses erode shareholder equity and limit retained capital for reinvestment. Continued negative profitability increases dependence on external capital, pressures returns, and raises the risk that key programs must be prioritized or delayed.

Small, volatile revenue and equity erosion

A small, inconsistent revenue base provides limited organic funding and makes forecasting difficult. Coupled with meaningful equity decline, this signals ongoing value erosion and reduces resilience to trial setbacks or slower-than-expected commercial progress.

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

Financial profile is weak overall: persistent large operating and net losses and sustained negative operating/free cash flow indicate ongoing cash burn. The balance sheet is a relative strength with low leverage, and 2025 revenue rebounded strongly vs. 2024, but equity has declined and profitability/cash generation remain key risks.

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	-299.18M	-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	84.02M	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: 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 10.26 is above the 20-day moving average (MA) of 8.86, above the 50-day MA of 8.36, and above the 200-day MA of 5.65, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 69.91 is Neutral, neither overbought nor oversold. The STOCH value of 66.80 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	60 Neutral	$1.83B	-6.36	-41.12%	―	-16.50%	33.02%
GERN	57 Neutral	$1.07B	-13.05	-34.05%	―	522.13%	62.68%
IMTX	56 Neutral	$1.39B	-9.46	-29.00%	―	-27.61%	-69.49%
TNGX	53 Neutral	$1.50B	-12.15	-51.65%	―	53.28%	21.77%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ZBIO	51 Neutral	$1.41B	-5.82	-68.33%	―	―	-38.04%
PROK	44 Neutral	$673.87M	-4.11	―	―	―	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.