Scholar Rock Holding (SRRK) AI Stock Analysis

• Market Cap: $4.75B
• Dividend Yield: N/A
• Average Volume (3M): 879.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: N/A
• EPS Growth: -31.71%
• Country: US
• Employees: 128
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.90
• Shares Outstanding: 102,007,454
• 10 Day Avg. Volume: 959,622
• 30 Day Avg. Volume: 879,246
• PEG Ratio: -0.73
• Price to Book (P/B): 11.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -21.46
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -2.90K
• Enterprise Value/Ebitda: -13.41
• 1Y Price Target: $51.70
• Price Target Upside: 7.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $42.00 ▼(-12.41% Downside)

SRRK scores mid-range primarily due to very weak financial performance (widening losses, substantial cash burn, and no recent revenue) despite a balance-sheet cushion. The earnings call adds support via runway into 2027 and strong clinical results, but regulatory delay risk remains significant. Technicals are mixed, and valuation is constrained by negative earnings and no dividend.

Positive Factors

SMA Program Progress

The successful BLA submission for apitegromab marks a significant milestone in Scholar Rock's SMA program, indicating strong potential for future revenue from this innovative treatment.

Leadership Changes

The appointment of a new CEO and key executives is a strategic move to enhance Scholar Rock's global commercial capabilities, potentially accelerating growth and innovation.

Commercial Preparation for Apitegromab

Preparations for the U.S. launch of apitegromab demonstrate Scholar Rock's commitment to commercializing its products, which could significantly boost future revenue streams.

Negative Factors

Financial Challenges

The lack of revenue and ongoing losses highlight financial instability, which could hinder long-term sustainability and necessitate reliance on external funding.

Negative Cash Flow

Negative cash flow indicates that Scholar Rock is not generating sufficient cash from operations, posing risks to its financial health and operational continuity.

Regulatory Uncertainty in Obesity Trials

Regulatory uncertainties in the obesity program could delay product development and impact Scholar Rock's ability to capitalize on this market opportunity.

Scholar Rock Holding Business Overview & Revenue Model

Company Description

Scholar Rock Holding Corporation, a biopharmaceutical company, focuses on the discovery and development of medicines for the treatment of serious diseases in which signaling by protein growth factors plays a fundamental role. The company develops Apitegromab, an inhibitor of the activation of latent myostatin that has completed the Phase 3 clinical trials for the treatment of spinal muscular atrophy; and SRK-181, which is in Phase 1 clinical trials for the treatment of cancers that are resistant to checkpoint inhibitor therapies, such as anti-PD-1 or anti-PD-L1 antibody therapies. It is also developing a pipeline of novel product candidates with potential to transform the lives of patients suffering from a range of serious diseases, including neuromuscular disorders, cancer, and fibrosis. The company has a collaboration agreement with Gilead Sciences, Inc. to discover and develop specific inhibitors of transforming growth factor beta activation for the treatment of fibrotic diseases. Scholar Rock Holding Corporation was founded in 2012 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Scholar Rock makes money primarily through the development and commercialization of its proprietary drug candidates. The company's revenue model includes partnerships and collaborations with larger pharmaceutical companies, which provide upfront payments, milestone payments, and royalties on future sales of successfully developed drugs. Additionally, Scholar Rock may generate income through licensing agreements, where it grants other companies the rights to develop and market its therapeutic candidates. The company's financial performance is heavily influenced by the progress of its clinical trials, regulatory approvals, and the successful commercialization of its products.

Scholar Rock Holding Financial Statement Overview

Summary

Financials reflect a development-stage biotech under pressure: TTM net loss widened to about -$353.4M with $0 revenue in 2023–TTM, and operating/free cash flow are deeply negative (OCF about -$274.1M; FCF about -$274.6M). The balance sheet is a partial offset with meaningful equity (~$245.0M), but rising debt (~$110.1M vs ~$65.1M in 2024) increases funding risk if losses persist.

Income Statement

Profitability remains very weak: the company is deeply loss-making with EBIT of about -$362.1M and net income of about -$353.4M in TTM (Trailing-Twelve-Months), worse than the -$246.3M net loss in 2024. Revenue is currently reported at $0 in 2023–TTM (Trailing-Twelve-Months), limiting visibility on operating leverage and making margins effectively non-informative in recent periods. The main positive is that earlier years (2020–2022) showed some revenue base, but the current run-rate indicates heavy reliance on funding rather than commercial performance.

Balance Sheet

The balance sheet is mixed but not distressed. Stockholders’ equity is still sizable at ~$245.0M in TTM (Trailing-Twelve-Months), supporting the asset base (~$411.7M). Leverage is moderate with debt-to-equity around 0.45 in TTM (Trailing-Twelve-Months), but debt has increased versus 2024 (total debt ~$110.1M vs ~$65.1M), which raises financial risk if losses persist. Returns are very negative (ROE about -1.22 in TTM (Trailing-Twelve-Months)), highlighting that equity is being consumed by ongoing losses.

Cash Flow

Cash burn is substantial and trending worse: operating cash flow is about -$274.1M in TTM (Trailing-Twelve-Months) versus -$200.9M in 2024, and free cash flow is similarly negative (~-$274.6M TTM (Trailing-Twelve-Months)). Free cash flow has recently improved on a growth basis (about +6.4% in TTM (Trailing-Twelve-Months)), but from a very negative level. Cash flow and net losses are closely aligned (free cash flow roughly matches net income in magnitude), suggesting losses are largely cash-based rather than purely accounting-driven.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	33.19M	18.82M	15.40M
Gross Profit	-1.63M	-1.94M	-2.84M	-89.85M	-89.65M	-58.66M
EBITDA	-351.63M	-237.52M	-162.94M	-129.48M	-127.29M	-85.39M
Net Income	-353.43M	-246.29M	-165.79M	-134.50M	-131.80M	-86.48M
Balance Sheet
Total Assets	411.72M	474.92M	311.04M	358.17M	304.44M	388.31M
Cash, Cash Equivalents and Short-Term Investments	369.63M	437.28M	279.94M	315.36M	252.99M	341.03M
Total Debt	110.08M	65.13M	61.82M	69.40M	84.47M	57.14M
Total Liabilities	166.72M	106.29M	85.82M	97.93M	132.37M	127.53M
Stockholders Equity	245.00M	368.63M	225.22M	260.24M	172.07M	260.77M
Cash Flow
Free Cash Flow	-274.64M	-201.05M	-145.30M	-133.76M	-132.04M	-64.36M
Operating Cash Flow	-274.05M	-200.95M	-145.23M	-132.69M	-126.79M	-60.27M
Investing Cash Flow	-15.65M	-76.06M	41.14M	-171.70M	134.31M	-63.50M
Financing Cash Flow	501.48M	353.03M	102.57M	194.83M	44.95M	247.82M

Scholar Rock Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.95
• 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 SRRK, the sentiment is Positive. The current price of 47.95 is above the 20-day moving average (MA) of 44.62, above the 50-day MA of 44.16, and above the 200-day MA of 36.11, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 60.23 is Neutral, neither overbought nor oversold. The STOCH value of 56.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRRK.

Scholar Rock Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XENE	59 Neutral	$3.20B	-10.84	-45.14%	―	―	-38.30%
IMVT	56 Neutral	$5.25B	-9.12	-95.93%	―	―	-27.70%
NAMS	55 Neutral	$3.58B	-16.16	-39.94%	―	―	―
VKTX	52 Neutral	$3.38B	-13.88	-29.23%	―	―	-126.16%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SRRK	50 Neutral	$4.75B	-14.75	-218.04%	―	―	-31.71%
RARE	47 Neutral	$2.39B	-4.18	-325.76%	―	20.63%	8.09%

Scholar Rock Holding Corporate Events

Scholar Rock Details 2026 Strategy and Regulatory Priorities

On January 12, 2026, Scholar Rock issued a corporate update outlining 2026 strategic priorities centered on securing U.S. and European regulatory approvals and commercial launch for apitegromab in children and adults with SMA, expanding development of apitegromab into infants under two years of age and FSHD, and advancing its broader anti-myostatin pipeline including subcutaneous apitegromab and SRK-439. The company reported an estimated $365 million in cash, cash equivalents and marketable securities as of December 31, 2025, providing runway into 2027, highlighted progress on remediation and capacity expansion at U.S. fill-finish manufacturers to underpin supply for apitegromab, and detailed 2025 milestones including major FDA and EMA regulatory steps, leadership restructuring to support its transition to a commercial-stage organization, and continued clinical execution across multiple trials that collectively strengthen its positioning as a potential leader in neuromuscular disease therapeutics.

The most recent analyst rating on (SRRK) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Scholar Rock Holding stock, see the SRRK Stock Forecast page.

Scholar Rock Faces FDA Warning, Plans 2026 Launch

On October 10, 2025, Scholar Rock Holding Corporation was informed by Catalent Indiana, part of Novo Nordisk, about an FDA warning letter following a July 14, 2025 inspection. Despite this, Scholar Rock anticipates resubmitting its biologics license application and launching apitegromab for spinal muscular atrophy in the U.S. in 2026, pending FDA approval.

The most recent analyst rating on (SRRK) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Scholar Rock Holding stock, see the SRRK Stock Forecast page.

Scholar Rock Announces $200M At-The-Market Offering

Scholar Rock Holding Corporation announced the filing of a prospectus supplement with the SEC for an at-the-market offering program, allowing the sale of up to $200 million in common stock through Jefferies LLC. This move, effective from November 14, 2025, is part of the company’s strategy to raise capital, potentially impacting its financial flexibility and market positioning.

The most recent analyst rating on (SRRK) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Scholar Rock Holding stock, see the SRRK Stock Forecast page.

Scholar Rock Holds Constructive FDA Meeting for Apitegromab

Scholar Rock reported its third quarter 2025 financial results and recent business highlights, including a constructive Type A meeting with the FDA for its apitegromab biologics license application. The company anticipates resubmitting the BLA and launching apitegromab in the U.S. in 2026, with accelerated timelines due to an additional fill-finish facility. Scholar Rock is also progressing with its Phase 2 OPAL study and plans to initiate clinical development for a second neuromuscular disorder by the end of 2025. Financially, the company reported a net loss of $102.2 million for the quarter, with cash reserves expected to fund operations into 2027.

The most recent analyst rating on (SRRK) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Scholar Rock Holding stock, see the SRRK Stock Forecast page.