Zentalis Pharmaceuticals (ZNTL) AI Stock Analysis

• Market Cap: $184.24M
• Dividend Yield: N/A
• Average Volume (3M): 716.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.58
• 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: 0.85
• Enterprise Value/Revenue: 5.86
• Enterprise Value/Gross Profit: 5.91
• Enterprise Value/Ebitda: -1.09
• 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: 53 Neutral
• Price Target: $2.50 ▲(77.30% Upside)

The score is primarily held back by large ongoing operating losses and meaningful cash burn despite early revenue traction and strong gross margins. Offsetting factors include a constructive longer-term price trend and supportive corporate updates (clear 2026 milestones and cash runway into late 2027), while valuation is difficult to support due to negative earnings and no dividend.

Positive Factors

Cash runway into late 2027

A sizable cash balance funding operations into late 2027 materially reduces near-term financing risk and gives management time to execute key trials (ASPENOVA initiation, DENALI readouts). This runway supports long-term program de-risking and value realization without immediate dilution.

FDA alignment on Phase 3 design

Regulatory alignment on a randomized Phase 3 confirmatory trial lowers structural approval uncertainty and streamlines development planning. A clear regulatory pathway improves the probability that positive data can translate into a registration route and long-term commercial opportunity.

High gross margins and revenue traction

Very high gross margins suggest attractive unit economics for any approved product and imply strong scalability. The transition from no revenue to meaningful sales demonstrates initial commercialization capability, which is a durable positive if clinical programs progress to approved therapies.

Negative Factors

Heavy operating cash burn

Sustained negative operating cash flow of this magnitude creates an ongoing structural need for external financing, increasing dilution risk and constraining strategic flexibility. If trial timelines slip or costs rise, the burn profile could force accelerated fundraising before commercial inflection points.

Large and persistent operating losses

Deep operating losses and extreme negative margins reflect a business still far from profitability. Even with revenue growth, the company must materially improve operating leverage or secure steady product sales to generate durable earnings, a structural challenge for biotech developers.

Declining shareholders' equity

A shrinking equity base signals cumulative losses and reduces the balance sheet buffer to absorb setbacks. Lower equity limits financial flexibility for partnerships, acquisitions, or larger capex, increasing dependence on external capital and weakening resilience to adverse clinical or market 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

Mixed fundamentals: revenue has begun to ramp (TTM $26.9M; $67.4M in 2024) and gross margin is very high (~97%), but losses remain severe (TTM EBIT -$165.3M; net margin ~-606%) and cash burn is heavy (TTM operating cash flow and free cash flow both -$134.0M). The balance sheet is a relative strength with low leverage (debt-to-equity ~0.14) and positive equity ($252.9M), but equity has been eroding with ongoing losses.

Income Statement

TTM (Trailing-Twelve-Months) revenue is $26.9M with an exceptionally high gross margin (~97%), but operating losses remain very large (EBIT of -$165.3M) and profitability is deeply negative (net margin around -606%). Annual results show the company moved from $0 revenue in 2020–2023 to $67.4M in 2024, indicating commercialization progress, but losses are persistent and still overwhelm the revenue base.

Balance Sheet

Leverage appears manageable with low debt relative to equity (debt-to-equity ~0.14 in TTM (Trailing-Twelve-Months)), and equity remains positive at $252.9M. However, the equity base has declined versus prior years (from $437.3M in 2023 to $337.2M in 2024 to $252.9M TTM), reflecting ongoing losses, and returns to shareholders remain strongly negative (return on equity about -52% TTM).

Cash Flow

Cash burn remains heavy: operating cash flow is -$134.0M in TTM (Trailing-Twelve-Months) and free cash flow is also -$134.0M. While burn improved versus 2024 (operating cash flow of -$170.9M), the company still consumes substantial cash to fund operations, and free cash flow growth is sharply negative in the TTM period, highlighting elevated funding needs if trends persist.

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: Neutral
• Last Price: 1.41
• 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 ZNTL, the sentiment is Neutral. The current price of 1.41 is below the 20-day moving average (MA) of 2.93, below the 50-day MA of 2.03, and below the 200-day MA of 1.59, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 44.40 is Neutral, neither overbought nor oversold. The STOCH value of 24.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZNTL.

Zentalis Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZNTL	53 Neutral	$184.24M	-1.06	-49.18%	―	-33.76%	17.54%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SRZN	50 Neutral	$202.71M	-0.97	―	―	-63.96%	-28.50%
ANIX	49 Neutral	$97.47M	-8.17	-62.16%	―	―	11.78%
MGNX	48 Neutral	$109.44M	-1.41	-81.13%	―	-9.70%	23.23%
SPRO	48 Neutral	$129.02M	―	-95.29%	―	-67.38%	-1076.54%
VTGN	46 Neutral	$20.78M	-0.32	―	―	-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.