Zentalis Pharmaceuticals (ZNTL) AI Stock Analysis

• Market Cap: $253.60M
• Dividend Yield: N/A
• Average Volume (3M): 716.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.46
• Revenue Growth: -33.76%
• EPS Growth: 17.54%
• Country: US
• Employees: 166
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.37
• Shares Outstanding: 72,250,780
• 10 Day Avg. Volume: 819,524
• 30 Day Avg. Volume: 716,917
• PEG Ratio: 0.03
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 3.19
• P/FCF Ratio: -1.26
• Enterprise Value/Market Cap: -0.70
• Enterprise Value/Revenue: -6.65
• Enterprise Value/Gross Profit: -6.71
• Enterprise Value/Ebitda: 1.23
• 1Y Price Target: $6.60
• Price Target Upside: 368.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $3.00 ▲(112.77% Upside)

The score is held back primarily by weak financial performance (large losses and cash burn) despite early commercialization signs and a relatively solid balance sheet. Technicals are supportive but appear overextended, while corporate updates on azenosertib and runway into late 2027 are constructive. Valuation remains difficult to support due to negative earnings and no dividend.

Positive Factors

Regulatory alignment on Phase 3

Formal FDA alignment on the ASPENOVA Phase 3 design materially reduces regulatory uncertainty and clarifies endpoints and trial size. This durable milestone improves the probability of a clear registration path, helps prioritize resources, and strengthens partnerability for later-stage commercialization.

Cash runway into late 2027

A reported cash balance that is expected to fund operations into late 2027 materially extends the company’s ability to execute planned Phase 2/3 milestones without immediate dilution. This runway supports durable R&D continuity and gives management time to de-risk assets through clinical readouts.

Low leverage and high gross margin

Manageable leverage and a positive equity base, combined with an exceptionally high reported gross margin, suggest structural financial flexibility if a product reaches commercialization. Low debt reduces refinancing risk and high margin potential supports long-term profitability if approvals occur.

Negative Factors

High cash burn

Sustained negative operating and free cash flow of roughly -$134M TTM reflects ongoing cash consumption to fund trials. Persistently high burn increases dependence on external financing, heightens dilution risk, and creates a structural funding vulnerability if clinical timelines or costs extend.

Large operating losses

Deep operating losses and an extremely negative net margin indicate the company is far from breakeven; continued losses erode equity over time and require sustained capital raises or partnerships to finance development, limiting long-term shareholder returns absent successful approvals.

Reliance on external financing

As a clinical-stage biotech without meaningful recurring product revenue, the company structurally depends on equity financings and milestone-based collaborations. This creates ongoing execution and dilution risk, tying the firm's viability to capital markets access and successful trial outcomes.

Zentalis Pharmaceuticals Business Overview & Revenue Model

Company Description

Zentalis Pharmaceuticals (ZNTL) is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapeutics targeting fundamental biological pathways of cancers. The company operates in the biotechnology sector, leveraging its expertise in medicinal chemistry and translational science to develop drug candidates aimed at improving patient outcomes in oncology. Zentalis' core products include a pipeline of proprietary agents designed to address unmet medical needs in cancer treatment.

How the Company Makes Money

Zentalis Pharmaceuticals generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company raises funds through public offerings, private placements, and collaborations with other pharmaceutical firms and research institutions. Zentalis may engage in strategic partnerships or licensing agreements that provide upfront payments, milestone payments, and royalties based on the successful development and commercialization of its therapies. Additionally, the company might receive grants or funding from governmental and non-governmental organizations to support its research and development efforts. As a clinical-stage company, Zentalis is focused on advancing its pipeline through clinical trials, which is crucial for achieving regulatory approval and eventual market entry, thus unlocking potential revenue streams from sales and partnerships.

Zentalis Pharmaceuticals Financial Statement Overview

Summary

Zentalis Pharmaceuticals faces financial challenges with consistent losses and negative cash flows. Despite a stable balance sheet with low leverage, the company needs to improve its profitability to enhance its financial health.

Income Statement

Zentalis Pharmaceuticals shows a lack of revenue over multiple years, recently generating revenue in 2024. The company has been consistently operating at a loss with negative EBIT and EBITDA margins, reflecting ongoing financial challenges in achieving profitability.

Balance Sheet

The balance sheet reveals a reasonable equity base and low leverage, with a debt-to-equity ratio remaining manageable. However, the return on equity is negative due to ongoing losses, indicating a need to improve profitability.

Cash Flow

Cash flow analysis indicates persistent negative operating and free cash flow, driven by substantial operating losses. The company has relied on financing activities to sustain operations, which may not be sustainable long-term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.86M	67.42M	0.00	0.00	0.00	0.00
Gross Profit	26.60M	67.42M	0.00	0.00	0.00	0.00
EBITDA	-144.64M	-186.17M	-247.60M	-225.86M	-207.20M	-118.63M
Net Income	-149.32M	-165.84M	-292.19M	-236.81M	-158.72M	-117.84M
Balance Sheet
Total Assets	327.25M	430.34M	562.03M	553.46M	472.02M	365.56M
Cash, Cash Equivalents and Short-Term Investments	280.70M	371.08M	482.92M	437.37M	340.13M	338.50M
Total Debt	36.71M	42.65M	45.77M	47.33M	45.91M	2.00M
Total Liabilities	74.38M	93.15M	124.64M	119.43M	107.54M	32.18M
Stockholders Equity	252.87M	337.19M	437.28M	433.80M	363.95M	308.58M
Cash Flow
Free Cash Flow	-134.01M	-171.08M	-208.41M	-166.30M	-160.20M	-87.58M
Operating Cash Flow	-134.01M	-170.86M	-207.82M	-163.75M	-154.09M	-86.83M
Investing Cash Flow	131.46M	176.56M	-44.46M	-114.18M	-18.11M	-284.83M
Financing Cash Flow	304.00K	108.00K	237.30M	261.04M	178.52M	360.44M

Zentalis Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.41
• 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 ZNTL, the sentiment is Positive. The current price of 1.41 is below the 20-day moving average (MA) of 1.95, below the 50-day MA of 1.60, and below the 200-day MA of 1.48, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 84.62 is Negative, neither overbought nor oversold. The STOCH value of 82.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZNTL.

Zentalis Pharmaceuticals 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%
ZNTL	51 Neutral	$253.60M	-1.68	-49.18%	―	-33.76%	17.54%
SPRO	50 Neutral	$141.41M	-3.16	-95.29%	―	-67.38%	-1076.54%
SRZN	50 Neutral	$171.43M	-0.92	―	―	-63.96%	-28.50%
ANIX	49 Neutral	$110.48M	-9.83	-62.16%	―	―	11.78%
MGNX	48 Neutral	$112.60M	―	-81.13%	―	-9.70%	23.23%
VTGN	46 Neutral	$27.71M	-0.44	―	―	-33.00%	54.91%

Zentalis Pharmaceuticals Corporate Events

Zentalis outlines 2026 milestones for azenosertib program

On January 6, 2026, Zentalis Pharmaceuticals provided a corporate update highlighting 2025 progress and outlining key 2026 milestones for its azenosertib program in Cyclin E1-positive platinum-resistant ovarian cancer. In 2025, the company completed enrollment in Part 2a of its Phase 2 DENALI trial to confirm the dose for registration-intended studies, aligned with the U.S. Food and Drug Administration on the design of ASPENOVA, a randomized Phase 3 confirmatory trial versus standard chemotherapy in Cyclin E1-positive PROC, and reported strong data across three PROC studies, including clinically meaningful efficacy and a manageable safety profile at 400 mg once daily on a 5:2 schedule. Zentalis also reported holding $280.7 million in cash, cash equivalents and marketable securities as of September 30, 2025, which it expects to fund operations into late 2027 following a pipeline-focused restructuring, and it set 2026 targets that include DENALI Part 2a dose confirmation and ASPENOVA trial initiation in the first half of the year, as well as a DENALI Part 2 topline readout by year-end 2026 that could be pivotal for the company’s regulatory path and competitive positioning in ovarian cancer therapeutics.

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

Zentalis Pharmaceuticals Announces Stock Repurchase Agreement

Zentalis Pharmaceuticals announced on December 15, 2025, that it has entered into a Stock Purchase Agreement with Matrix Capital Master Fund, LP to repurchase 7,500,000 shares of its common stock at a discounted price of $1.33 per share. This repurchase is part of Matrix Capital Management’s plan to wind down its family of funds, and Zentalis does not anticipate this transaction will significantly affect its cash runway, which is projected to extend into late 2027.

The most recent analyst rating on (ZNTL) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Zentalis Pharmaceuticals stock, see the ZNTL Stock Forecast page.

Zentalis Pharmaceuticals Reports Q3 2025 Financial Results

Zentalis Pharmaceuticals reported its third quarter 2025 financial results, highlighting significant progress in its DENALI Phase 2 trial for azenosertib, which remains on track with topline data expected by the end of 2026. The company is financially robust with $280.7 million in cash, supporting operations into late 2027, and has reduced its research and development expenses compared to the previous year, reflecting a strategic focus on advancing azenosertib’s development, potentially leading to accelerated FDA approval.

The most recent analyst rating on (ZNTL) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Zentalis Pharmaceuticals stock, see the ZNTL Stock Forecast page.