Lobe Sciences (LOBE) AI Stock Analysis

• Market Cap: C$17.52M
• Dividend Yield: N/A
• Average Volume (3M): 19.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• 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: 46 Neutral
• Price Target: C$0.06 ▲(60.00% Upside)

The score is held down primarily by weak financial performance (no reported revenue in 2025, persistent losses, and ongoing cash burn). Technicals are comparatively supportive due to strong momentum above major moving averages, but overbought signals raise near-term risk. Valuation remains constrained by negative earnings and no dividend yield data.

Positive Factors

Improved balance sheet with positive equity and low debt

A materially improved balance sheet—positive equity and modest debt—reduces immediate solvency risk and extends runway for R&D. This durable improvement lowers near-term refinancing pressure, giving management more time to advance programs or secure partnerships without urgent liquidity stress.

Progress in reducing net losses

Sustained narrowing of net losses over multiple years indicates improving cost control or operational efficiency. That trend enhances the company's ability to preserve capital, makes future fundraising less dilutive, and increases the probability that operations can be sustained long enough to reach key clinical or licensing milestones.

Focused on mental health and psychedelic therapeutics

A focused strategy on mental health and psychedelic-related treatments aligns with a structurally expanding area of medical research and commercial interest. Specialization can create differentiated IP, attract partnerships or licensing, and tap growing demand for novel CNS therapies over a multi‑quarter horizon.

Negative Factors

Zero revenue in latest fiscal year

Absence of revenue in the most recent year shows the company remains pre‑commercial and unproven as a revenue generator. This structural weakness forces reliance on financing, creates execution risk for commercial launch plans, and reduces predictable cash flow needed to fund R&D or scale operations.

Persistent negative operating and free cash flow

Consistent annual cash burn and negative free cash flow indicate the business cannot self‑fund development. Over months this necessitates external capital or partnerships, increasing dilution and execution risk; structurally constrains strategic flexibility and the pace of clinical/program advancement.

Volatile asset base and prior negative equity history

Large swings in assets and a history of negative equity suggest episodic financings or write‑downs, creating uncertainty about capitalization and sustainability. This structural volatility complicates long‑term planning, raises execution risk for multi‑quarter programs, and can deter strategic partners or long‑term investors.

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

Lobe Sciences is facing substantial financial challenges with declining revenues, consistent losses, and negative equity, indicating financial instability. The high reliance on external financing raises concerns about the company's ability to sustain operations without significant changes. Urgent measures are necessary to improve financial performance and stabilize the company's trajectory.

Income Statement

The income statement reflects significant challenges with decreasing revenue and persistent net losses. The TTM data indicates a negative net profit margin and declining EBIT and EBITDA margins, highlighting profitability issues. Revenue growth is negative, indicating a downward trend. The company is struggling with high operating losses and declining sales, which impacts overall financial stability.

Balance Sheet

The balance sheet shows concerning financial health with a negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is not calculable due to negative equity, and the equity ratio is also negative, reflecting high leverage and financial instability. These factors suggest significant financial risk and potential liquidity issues.

Cash Flow

Cash flow analysis indicates persistent negative free cash flow and operating cash flow, which are not covered by net income. The cash flow from operations remains negative, and free cash flow growth is negative, raising concerns about cash management and sustainability. The company relies heavily on financing activities to cover cash shortfalls, which is unsustainable in the long term.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	136.21K	840.53K	0.00	0.00
Gross Profit	0.00	0.00	134.45K	772.83K	-10.22K	0.00
EBITDA	-4.30M	-4.27M	-4.12M	-4.40M	-11.96M	-6.16M
Net Income	-4.43M	-4.43M	-4.42M	-4.71M	-12.25M	-22.82M
Balance Sheet
Total Assets	7.59M	7.59M	258.57K	2.30M	1.75M	12.10M
Cash, Cash Equivalents and Short-Term Investments	7.54M	7.54M	237.77K	140.29K	907.54K	7.43M
Total Debt	273.35K	273.35K	1.75M	332.64K	0.00	0.00
Total Liabilities	2.70M	2.70M	3.37M	2.46M	1.30M	804.70K
Stockholders Equity	2.36M	2.36M	-3.11M	-160.13K	445.69K	11.29M
Cash Flow
Free Cash Flow	-1.42M	-1.42M	-462.29K	-1.72M	-2.73M	-5.04M
Operating Cash Flow	-1.42M	-1.42M	-462.29K	-1.72M	-2.73M	-5.04M
Investing Cash Flow	-1.77M	6.56M	0.00	0.00	1.74M	1.07M
Financing Cash Flow	8.84M	514.40K	563.51K	950.01K	753.12K	4.92M

Lobe Sciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.04 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 76.64 is Negative, neither overbought nor oversold. The STOCH value of 80.00 is Negative, 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%
ATLE	50 Neutral	C$58.12M	-2.88	-19.76%	―	26.91%	81.01%
TGIF	50 Neutral	C$7.44M	13.64	―	―	-2.30%	―
LOBE	46 Neutral	C$17.52M	-2.93	―	―	-100.00%	-8.70%
BBM	44 Neutral	C$4.95M	-2.70	-150.44%	―	55.74%	-27.59%
FFNT	39 Underperform	C$4.58M	-0.18	―	―	―	―
AYUR	38 Underperform	C$3.89M	-0.89	-271.33%	―	15.95%	-1.81%

Lobe Sciences Corporate Events

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.

Lobe Sciences Strengthens Financial Position with Debt Settlement

Lobe Sciences Ltd. has completed a debt settlement involving the issuance of 3,837,686 common shares to settle USD 137,130 in related party liabilities. This move is aimed at strengthening the company’s balance sheet and preserving cash for strategic growth initiatives. The transaction, involving Clearway Global, LLC, a related party, is exempt from certain regulatory requirements and reflects Lobe’s proactive financial management strategy. The settlement is expected to have implications for the company’s operational flexibility and long-term growth potential.

Lobe Sciences Strengthens Financial Position with Debt Settlement

Lobe Sciences Ltd. has completed a debt settlement by issuing 3,837,686 common shares to settle USD 137,130 in related party liabilities, thereby strengthening its balance sheet and preserving cash for strategic growth. This transaction, involving Clearway Global, LLC, reflects Lobe’s proactive financial management and commitment to long-term growth, while the issued shares are subject to a statutory hold period under Canadian securities laws.