Sonnet BioTherapeutics Holdings (SONN) AI Stock Analysis

• Market Cap: $22.65M
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.93
• Revenue Growth: 1689.52%
• EPS Growth: 66.05%
• Country: US
• Employees: 13
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.92
• Shares Outstanding: 7,077,852
• 10 Day Avg. Volume: 396,484
• 30 Day Avg. Volume: 1,260,471
• PEG Ratio: <0.01
• Price to Book (P/B): -9.02
• Price to Sales (P/S): 235.35
• P/FCF Ratio: -0.51
• Enterprise Value/Market Cap: 0.21
• Enterprise Value/Revenue: 4.66
• Enterprise Value/Gross Profit: -4.90
• Enterprise Value/Ebitda: -0.33
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $4.00 ▼(-3.85% Downside)

Sonnet BioTherapeutics Holdings' overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative profitability, and high leverage. Technical analysis indicates a bearish trend with weak momentum, while valuation metrics are unattractive due to a negative P/E ratio and no dividend yield. These factors collectively suggest significant risks and challenges for the company.

Positive Factors

Innovative Technology Platform

Sonnet's proprietary SET platform is a key competitive advantage, enabling the development of precision medicine therapies that could enhance efficacy and reduce side effects, potentially leading to successful product candidates and partnerships.

Revenue Growth Potential

Despite current challenges, the potential for revenue growth exists through product development agreements, partnerships, and licensing, which can provide significant financial upside if successful.

Strategic Partnerships

Strategic partnerships provide access to additional resources, expertise, and commercialization capabilities, crucial for a biotech firm to advance its pipeline and achieve market success.

Negative Factors

Financial Instability

High leverage and negative equity highlight financial instability, posing risks to operations and necessitating urgent restructuring or capital infusion to ensure long-term viability.

Negative Cash Flow

Persistent negative cash flow indicates ongoing cash burn, which, without sufficient inflow, can hinder the company's ability to sustain operations and invest in growth opportunities.

Declining Revenue

Declining revenue over several years suggests challenges in product commercialization and market penetration, impacting the company's ability to achieve sustainable growth and profitability.

Sonnet BioTherapeutics Holdings Business Overview & Revenue Model

Company Description

Sonnet BioTherapeutics Holdings, Inc., a clinical stage oncology-focused biotechnology company, develops platform for biologic medicines of single or bispecific action. The company develops fully human albumin binding technology, which utilizes human single chain antibodies fragment that binds to and hitch-hikes on human serum albumin for transport to target tissues. Its lead candidate is SON-1010, a fully human version of interleukin 12 for the treatment non-small cell lung cancer, and head and neck cancer. The company is also developing SON-080, a fully human version of interleukin 6 for chemotherapy-induced peripheral neuropathy and diabetic peripheral neuropathy. It has a license agreement with New Life Therapeutics PTE, LTD. to develop and commercialize pharmaceutical preparations containing a specific recombinant human interleukin 6. Sonnet BioTherapeutics Holdings, Inc. is based in Princeton, New Jersey.

How the Company Makes Money

Sonnet BioTherapeutics generates revenue through a combination of product development agreements, partnerships, and potential licensing agreements for its therapeutic candidates. The company may also receive milestone payments and royalties from collaborations with pharmaceutical firms that seek to utilize its innovative therapeutic technologies. Additionally, government grants and funding may contribute to its financial resources, especially for early-stage development projects. Significant partnerships with larger biotech or pharmaceutical companies can enhance its revenue streams by providing access to additional resources, expertise, and commercialization capabilities.

Sonnet BioTherapeutics Holdings Financial Statement Overview

Summary

Sonnet BioTherapeutics Holdings faces significant financial challenges, characterized by declining revenues, negative profitability, and high leverage. The company's financial health is concerning, with negative equity and cash flow issues. These factors suggest a need for strategic restructuring or capital infusion to stabilize operations and improve financial performance.

Income Statement

Sonnet BioTherapeutics Holdings has struggled with consistent revenue generation, showing a significant decline from 2019 to 2024. The company has experienced negative net income and EBIT margins, indicating ongoing operational challenges and lack of profitability. The revenue growth rate is volatile, reflecting instability in revenue streams.

Balance Sheet

The balance sheet reveals high leverage with negative stockholders' equity, indicating financial distress. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is negative, highlighting a precarious financial position. The company's assets have significantly decreased over the years, further stressing its financial instability.

Cash Flow

Cash flow analysis shows persistent negative free cash flow, indicating cash burn without sufficient inflow. Operating cash flow is consistently negative, and the free cash flow to net income ratio is unfavorable. Despite some financing inflows, the company struggles to generate positive cash flow from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.00M	18.63K	147.81K	349.94K	483.63K	0.00
Gross Profit	-951.93K	18.63K	147.81K	-21.09M	483.63K	-58.31K
EBITDA	-13.94M	-11.77M	-18.72M	-29.58M	-24.99M	-24.24M
Net Income	-13.56M	-7.44M	-18.83M	-29.77M	-25.01M	-24.27M
Balance Sheet
Total Assets	2.06M	2.77M	5.43M	5.83M	28.99M	7.99M
Cash, Cash Equivalents and Short-Term Investments	321.30K	149.46K	2.27M	3.05M	27.62M	7.35M
Total Debt	68.84K	130.86K	203.91K	255.99K	125.88K	353.25K
Total Liabilities	5.10M	3.26M	5.66M	8.37M	6.73M	4.97M
Stockholders Equity	-3.05M	-485.74K	-225.98K	-2.54M	22.26M	3.02M
Cash Flow
Free Cash Flow	-10.31M	-8.61M	-21.79M	-28.58M	-22.56M	-15.69M
Operating Cash Flow	-10.31M	-8.61M	-21.34M	-27.69M	-22.55M	-15.61M
Investing Cash Flow	-12.00K	-12.00K	-443.25K	-896.48K	-3.62K	-76.18K
Financing Cash Flow	7.09M	6.49M	21.01M	4.01M	42.83M	23.01M

Sonnet BioTherapeutics Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.16
• 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 SONN, the sentiment is Negative. The current price of 4.16 is below the 20-day moving average (MA) of 4.63, below the 50-day MA of 4.84, and above the 200-day MA of 3.00, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 26.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SONN.

Sonnet BioTherapeutics Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VYNE	45 Neutral	$8.34M	-0.36	-70.67%	―	6.29%	7.42%
SONN	40 Underperform	$22.65M	-0.39	―	―	1689.52%	66.05%
LGVN	39 Underperform	$16.26M	-0.58	-119.92%	―	-22.41%	78.88%
BGMS	38 Underperform	$3.56M	>-0.01	-226.28%	10.00%	9.46%	96.85%
CLDI	37 Underperform	$7.35M	-0.20	―	―	―	87.42%
TENX	36 Underperform	$56.19M	―	-44.80%	―	―	92.89%

Sonnet BioTherapeutics Holdings Corporate Events

Sonnet BioTherapeutics Announces Special Meeting for Business Combination Vote

Sonnet BioTherapeutics Holdings, Inc. has announced a special meeting for its stockholders to vote on a significant business combination agreement with Rorschach I LLC and Hyperliquid Strategies Inc. This agreement, initially entered on July 11, 2025, and amended on September 22, 2025, involves a series of mergers that will result in Sonnet becoming a wholly owned subsidiary of a new entity, Pubco. The transaction is expected to issue approximately 155 million shares of Pubco Common Stock and warrants for an additional 20 million shares, reflecting a strategic move to consolidate operations and potentially enhance market positioning. The meeting is set for November 18, 2025, and will be held virtually.

The most recent analyst rating on (SONN) stock is a Sell with a $3.50 price target. To see the full list of analyst forecasts on Sonnet BioTherapeutics Holdings stock, see the SONN Stock Forecast page.

Sonnet BioTherapeutics Approves Key Proposals at Meeting

On September 26, 2025, Sonnet BioTherapeutics Holdings held its annual stockholders meeting where several key proposals were approved. These included the election of five directors to the board, the approval of executive compensation, the determination of the frequency for executive compensation approval, and the ratification of KPMG LLP as the independent public accounting firm for the fiscal year ending September 30, 2025. The approval of these proposals reflects the company’s ongoing commitment to corporate governance and operational transparency, potentially strengthening its position in the biotherapeutics market.

The most recent analyst rating on (SONN) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Sonnet BioTherapeutics Holdings stock, see the SONN Stock Forecast page.

Sonnet Biotherapeutics Faces Earnings Volatility with New HYPE Treasury Strategy and Accounting Standards

Sonnet Biotherapeutics Holdings, Inc. faces a potential risk due to the recent initiation of its HYPE treasury strategy, which is not yet reflected in historical financial statements. The volatility of digital asset prices, combined with the new ASU 2023-08 accounting standards requiring fair value measurement and disclosure, could lead to significant variability in future earnings. This change mandates that gains and losses from HYPE holdings be recognized in net income each reporting period, potentially increasing earnings volatility compared to previous periods. Consequently, stakeholders should be prepared for more pronounced fluctuations in the company’s financial performance.