Lobe Sciences (LOBE) AI Stock Analysis

• Market Cap: C$16.17M
• Dividend Yield: N/A
• Average Volume (3M): 19.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -100.00%
• EPS Growth: -8.70%
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 269,487,120
• 10 Day Avg. Volume: 13,139
• 30 Day Avg. Volume: 19,648
• PEG Ratio: 0.13
• Price to Book (P/B): 2.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: C$0.06 ▼(-3.33% Downside)

The score is weighed down primarily by weak financial performance (no revenue, ongoing losses, and persistent cash burn with funding risk). Technicals are somewhat supportive with a mild uptrend and neutral momentum, but valuation remains unattractive due to losses and no dividend support.

Positive Factors

Lower leverage trend

Modest recent leverage (debt-to-equity ~0.19 TTM and ~0.12 latest annual) reduces near-term refinancing pressure and gives management flexibility to prioritize R&D and partnerships. Lower debt improves resilience through multi-year development timelines and limits default risk.

Improving cash-flow direction

Although absolute cash flow remains negative, the directionally improving free cash flow in the TTM suggests better operating efficiency or cost control. Sustained improvement would materially reduce funding frequency and dilution risk, aiding long-term execution of clinical programs.

Focused psychedelic/mental-health R&D

Concentration on mental-health and psychedelic/psilocybin therapies aligns with a structural industry trend toward novel CNS treatments and growing clinical/regulatory interest. A clear therapeutic focus can create differentiated IP and partnerships if clinical progress validates the approach.

Negative Factors

No revenue and ongoing losses

Persistent zero revenue and multi‑million operating losses mean the company cannot self-fund development. This structural deficit forces reliance on external capital, increasing execution risk if markets or financing conditions tighten and potentially delaying clinical timelines.

Sustained cash burn

Meaningful negative operating and free cash flow (~-$1.75M TTM) and multi‑year cash burn create a structural runway constraint. Continued outflows elevate dilution risk, may force accelerated financing, and can compromise long-term program continuity absent durable funding sources.

Historical equity volatility & past negative equity

Past negative equity and volatile shareholders' equity signal historical recapitalizations or losses that erode investor confidence. This structural record increases the likelihood of future dilutive financing or distressed terms, complicating long-term capital planning for R&D.

Lobe Sciences Business Overview & Revenue Model

Company Description

Lobe Sciences Ltd., a life sciences company, focuses on the research and development of psychedelic medicines. It develops psilocybin-based therapeutics in combination with N-acetylcysteine for the treatment of mild traumatic brain injuries and post-traumatic stress disorder, as well as devices for the efficient application of medications. The company was formerly known as Greenstar Biosciences Corp. and changed its name to Lobe Sciences Ltd. in November 2020. Lobe Sciences Ltd. is headquartered in Vancouver, Canada.

How the Company Makes Money

Lobe Sciences generates revenue primarily through the development and commercialization of its proprietary therapeutic products. The company's revenue model is based on advancing its research and development pipeline to create marketable treatments for mental health disorders. It engages in partnerships and collaborations with other biotechnology firms, research institutions, and healthcare providers to enhance its research capabilities and facilitate the commercialization process. Additional revenue streams may include licensing agreements, joint ventures, and strategic alliances that enable the company to leverage its intellectual property and technological advancements. Significant factors contributing to Lobe Sciences' earnings include successful clinical trials, regulatory approvals, and the establishment of distribution channels for its therapeutic products.

Lobe Sciences Financial Statement Overview

Summary

Financials remain very weak: 2025 revenue is effectively zero, losses are persistent (about -4.4M net loss), and cash burn continues (about -1.4M free cash flow). The balance sheet is a relative bright spot with positive equity (~2.36M) and modest debt (~273k), but prior instability (negative equity in 2023–2024 and large asset swings) elevates risk.

Income Statement

Revenue is highly inconsistent and effectively absent in the latest year (2025 annual revenue of 0 vs. 136k in 2024 and 841k in 2023), indicating a weak and volatile top-line base. Profitability is persistently negative with large operating losses (2025 EBIT of about -4.2M and net loss of about -4.4M), and historical margins are deeply negative in years with revenue (e.g., 2024 net margin around -32x revenue). The main positive is that net losses have narrowed materially from 2021–2022 levels (e.g., 2022 net loss ~-12.3M vs. 2025 ~-4.4M), but the business still lacks sustainable revenue and earnings power.

Balance Sheet

The latest balance sheet shows modest debt (2025 total debt ~273k) and positive equity (~2.36M), which is a clear improvement versus prior years where equity was negative (2023–2024). However, the balance sheet has been unstable: total assets fell dramatically in 2024 (~259k) before rebounding in 2025 (~7.6M), suggesting significant changes in asset base or capitalization. Returns on equity are poor due to ongoing losses (2025 ROE about -1.88), and the historical period includes negative equity and distorted leverage/return signals, which elevates financial risk despite currently low debt-to-equity (~0.12 in 2025).

Cash Flow

Cash generation remains weak with ongoing cash burn: 2025 operating cash flow was about -1.4M and free cash flow was about -1.4M, following negative figures in every year shown. There is improvement versus the worst burn years (e.g., 2021 operating cash flow about -5.0M), but cash flow still does not support self-funding operations. Free cash flow has also been volatile (e.g., 2024 free cash flow ~-0.46M vs. 2025 ~-1.4M), highlighting execution and funding risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	136.21K	840.53K	0.00	0.00
Gross Profit	0.00	134.45K	772.83K	-10.22K	0.00
EBITDA	-4.27M	-4.12M	-4.40M	-11.96M	-6.16M
Net Income	-4.43M	-4.42M	-4.71M	-12.25M	-22.82M
Balance Sheet
Total Assets	7.59M	258.57K	2.30M	1.75M	12.10M
Cash, Cash Equivalents and Short-Term Investments	7.54M	237.77K	140.29K	907.54K	7.43M
Total Debt	273.35K	1.75M	332.64K	0.00	0.00
Total Liabilities	2.70M	3.37M	2.46M	1.30M	804.70K
Stockholders Equity	2.36M	-3.11M	-160.13K	445.69K	11.29M
Cash Flow
Free Cash Flow	-1.42M	-462.29K	-1.72M	-2.73M	-5.04M
Operating Cash Flow	-1.42M	-462.29K	-1.72M	-2.73M	-5.04M
Investing Cash Flow	6.56M	0.00	0.00	1.74M	1.07M
Financing Cash Flow	514.40K	563.51K	950.01K	753.12K	4.92M

Lobe Sciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LOBE, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.05, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.40 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LOBE.

Lobe Sciences 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%
OILS	49 Neutral	C$7.57M	-50.00	11.57%	―	-1.14%	―
GWAY	49 Neutral	C$21.16M	-28.07	-7.43%	―	19.66%	84.34%
AVCN	46 Neutral	C$24.18M	-12.50	-77.67%	―	2.41%	74.61%
LABS	45 Neutral	C$27.35M	-3.37	-19.10%	―	18.06%	34.58%
LOBE	44 Neutral	C$16.17M	-2.86	―	―	-100.00%	-8.70%
PCLO	44 Neutral	C$13.85M	-2.51	―	―	15.64%	58.47%

Lobe Sciences Corporate Events

Lobe Sciences Bolsters Board with Capital Markets Expert as It Builds on 2025 Momentum

Lobe Sciences has strengthened its board of directors with the appointment of corporate and securities lawyer Nick Karakochuk, whose expertise in mergers and acquisitions, capital markets, and governance is expected to support the company’s strategic growth initiatives following momentum built in fiscal 2025. As part of his appointment, Karakochuk received 3.5 million restricted share units, underscoring the company’s intent to align governance and capital markets capabilities with its clinical-stage biopharmaceutical ambitions in rare and orphan neurological and psychiatric diseases, including the development of its proprietary L-130 compound through majority-owned Cynaptec Pharmaceuticals.

The most recent analyst rating on (TSE:LOBE) stock is a Hold with a C$0.07 price target. To see the full list of analyst forecasts on Lobe Sciences stock, see the TSE:LOBE Stock Forecast page.

Lobe Sciences Strengthens Balance Sheet and Refocuses Pipeline After Leadership Overhaul

Lobe Sciences reported a substantial improvement in its fiscal 2025 financial position following a leadership transition and board renewal, with cash rising to $5.9 million, new short-term investments of $1.7 million, and working capital swinging from a deficit to a $5.2 million surplus, while eliminating its current portion of convertible notes and significantly reducing derivative liabilities. Despite a slightly higher net loss attributable to the parent company, the strengthened balance sheet, simplified corporate structure, and focused investment in core subsidiaries are expected to reduce liquidity risk and better support business development, as the company advances its L-130 CNS therapeutic program under Cynaptec and prioritizes S-100 for sickle cell disease through Altemia, positioning Lobe to pursue value-accretive transactions and partnerships aligned with shareholder interests.

The most recent analyst rating on (TSE:LOBE) stock is a Hold with a C$0.04 price target. To see the full list of analyst forecasts on Lobe Sciences stock, see the TSE:LOBE Stock Forecast page.