Sonnet BioTherapeutics Holdings (SONN) AI Stock Analysis

• Market Cap: $14.97M
• Dividend Yield: N/A
• Average Volume (3M): 5.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: 978.39%
• EPS Growth: 69.65%
• Country: US
• Employees: 13
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.92
• Shares Outstanding: 3,165,810
• 10 Day Avg. Volume: 16,659,670
• 30 Day Avg. Volume: 5,583,575
• PEG Ratio: 0.10
• Price to Book (P/B): 26.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.22
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 5.87
• Enterprise Value/Gross Profit: -3.53
• Enterprise Value/Ebitda: -0.24
• 1Y Price Target: $1.00
• Price Target Upside: -78.45% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: $4.50 ▼(-3.02%Downside)

Sonnet BioTherapeutics Holdings is severely challenged by financial instability, non-compliance issues with Nasdaq, and overbought technical signals. The negative valuation metrics further exacerbate concerns. Immediate strategic actions are crucial to avert potential delisting and stabilize the company's financial position.

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 primarily through collaborations, licensing agreements, and strategic partnerships related to its proprietary FHAB platform and therapeutic candidates. The company may receive upfront payments, milestone payments, and royalties based on the successful development and commercialization of its drug candidates. Additionally, Sonnet might engage in research and development partnerships with other pharmaceutical companies, leveraging its technology platform to co-develop and out-license drug candidates, thereby creating additional revenue streams. As a clinical-stage company, significant revenue from product sales is not yet realized, as its therapies are still under development and have not received regulatory approval for commercialization.

Sonnet BioTherapeutics Holdings Financial Statement Overview

Summary

Sonnet BioTherapeutics Holdings is facing severe financial challenges, with declining revenues, negative net income, and high leverage. The financial health is precarious, with negative equity and consistent cash flow issues, suggesting a dire need for strategic restructuring or capital infusion.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.00M	18.63K	147.81K	349.94K	483.63K	0.00
Gross Profit	-3.46M	18.63K	147.81K	256.69K	-16.15M	-58.31K
EBITDA	-13.69M	-11.77M	-18.72M	-29.58M	-24.99M	-24.24M
Net Income	-13.29M	-7.44M	-18.83M	-29.77M	-25.01M	-31.06M
Balance Sheet
Total Assets	3.84M	2.77M	5.43M	5.83M	28.99M	7.99M
Cash, Cash Equivalents and Short-Term Investments	2.06M	149.46K	2.27M	3.05M	27.62M	7.35M
Total Debt	90.45K	130.86K	203.91K	255.99K	125.88K	353.25K
Total Liabilities	3.17M	3.26M	5.66M	8.37M	6.73M	4.97M
Stockholders Equity	662.26K	-485.74K	-225.98K	-2.54M	22.26M	3.02M
Cash Flow
Free Cash Flow	-11.63M	-8.61M	-21.79M	-28.58M	-22.56M	-15.69M
Operating Cash Flow	-11.62M	-8.61M	-21.34M	-27.69M	-22.55M	-15.61M
Investing Cash Flow	-24.00K	-12.00K	-443.25K	-896.48K	-3.62K	-76.18K
Financing Cash Flow	9.92M	6.49M	21.01M	4.01M	42.83M	23.01M

Sonnet BioTherapeutics Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONN, the sentiment is Positive. The current price of 4.64 is above the 20-day moving average (MA) of 1.97, above the 50-day MA of 1.55, and above the 200-day MA of 2.35, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 84.66 is Negative, neither overbought nor oversold. The STOCH value of 71.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SONN.

Sonnet BioTherapeutics Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$7.49B	0.22	-61.87%	2.28%	16.62%	1.08%
SONN	42 Neutral	$14.97M	―	-714.96%	―	978.39%	69.65%
KZIA	31 Underperform	$7.63M	―	-3028.18%	―	―	19.58%
GLTO	29 Underperform	$4.39M	―	-91.32%	―	―	48.81%
NLSP		$8.35M	―		―	―	―
BJDX	29 Underperform	$2.48M	―	-200.56%	―	―	81.35%
SPRC		$3.41M	―	-79.71%	―	―	―

Sonnet BioTherapeutics Holdings Corporate Events

Sonnet BioTherapeutics Completes $2 Million Convertible Notes Sale

On June 30, 2025, Sonnet BioTherapeutics Holdings, Inc. completed a sale of $2.0 million in convertible notes to accredited investors, along with warrants to purchase 865,052 shares of common stock. The convertible notes, maturing on June 30, 2026, can be converted into up to 1,730,104 shares of common stock at a conversion price of $1.156. If a subsequent issuance of at least $5.0 million occurs within 90 days, the notes will automatically convert into the same securities issued in that offering.

The most recent analyst rating on (SONN) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Sonnet BioTherapeutics Holdings stock, see the SONN Stock Forecast page.

Sonnet BioTherapeutics Faces Nasdaq Non-Compliance Notice

On May 30, 2025, Sonnet BioTherapeutics Holdings received a notice from Nasdaq indicating non-compliance with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market. The company reported stockholders’ equity of $662,262, significantly below the $2.5 million requirement. Sonnet has until July 14, 2025, to submit a compliance plan, with potential extensions up to 180 days. Failure to regain compliance could lead to delisting, impacting liquidity, trading volume, and the company’s ability to raise capital, thereby affecting its business operations and investor confidence.

The most recent analyst rating on (SONN) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Sonnet BioTherapeutics Holdings stock, see the SONN Stock Forecast page.