Mesoblast (MESO) AI Stock Analysis

• Market Cap: $2.12B
• Dividend Yield: N/A
• Average Volume (3M): 278.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 191.53%
• EPS Growth: 5.09%
• Country: US
• Employees: 73
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.43
• Shares Outstanding: 128,296,720
• 10 Day Avg. Volume: 191,647
• 30 Day Avg. Volume: 278,137
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 238.47
• Enterprise Value/Gross Profit: -59.92
• Enterprise Value/Ebitda: -27.36
• 1Y Price Target: $29.50
• Price Target Upside: 67.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 53 Neutral
• Price Target: $17.50 ▼(-0.85% Downside)

Mesoblast's overall stock score reflects a company with strong growth potential but significant financial challenges. The earnings call provided positive insights into future prospects, which are offset by current profitability issues and valuation concerns. Technical indicators suggest moderate positive momentum.

Positive Factors

Revenue Growth

Strong revenue growth driven by Ryoncil's successful launch indicates robust market demand and enhances long-term financial prospects.

Regulatory Approval

FDA approval of Ryoncil enhances credibility and market access, providing a competitive edge in the regenerative medicine sector.

Insurance Coverage

Extensive insurance coverage for Ryoncil ensures broad patient access, supporting sustained revenue streams and market penetration.

Negative Factors

Profitability Challenges

Ongoing profitability issues indicate operational inefficiencies, which could hinder long-term financial stability and growth.

Increased Expenses

Rising operational expenses due to product launches may pressure margins, affecting the company's ability to achieve profitability.

Cash Flow Concerns

Negative cash flow highlights liquidity challenges, potentially limiting investment in growth initiatives and operational flexibility.

Mesoblast Business Overview & Revenue Model

Company Description

Mesoblast Limited (NASDAQ: MESO) is a global leader in developing innovative cellular medicines. The company focuses on regenerative medicine, specifically the use of adult stem cells to treat various diseases and conditions, including heart disease, chronic lower back pain, and inflammatory conditions. Mesoblast's proprietary technology platforms enable the development of products that leverage the unique properties of mesenchymal stem cells (MSCs) to promote healing and repair in damaged tissues.

How the Company Makes Money

Mesoblast generates revenue primarily through the commercialization of its cellular therapies, which include its lead product candidates such as remestemcel-L and MPC-150-IM. The company earns money through product sales, licensing agreements, and partnerships with pharmaceutical companies for research and development. Significant partnerships, such as those with leading healthcare organizations, help expand its market reach and enhance its product pipeline, providing additional revenue opportunities through milestone payments and royalties on sales. Furthermore, Mesoblast may receive funding from grants and research initiatives aimed at advancing its innovative therapies.

Mesoblast Financial Statement Overview

Summary

Mesoblast's financial performance shows significant revenue growth but persistent profitability challenges. The income statement reveals substantial losses, and while the balance sheet is stable with moderate leverage, cash flow issues persist. The company needs to improve operational efficiencies and profitability.

Income Statement

Mesoblast's income statement reveals significant challenges. Despite a notable revenue growth rate of 203.32% in the latest year, the company continues to face substantial losses, with a net profit margin of -5.94% and negative EBIT and EBITDA margins. This indicates ongoing operational inefficiencies and a struggle to achieve profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.21, suggesting manageable leverage levels. However, the return on equity is negative at -17.10%, reflecting the company's inability to generate profits from its equity base. The equity ratio stands at a healthy level, indicating a stable capital structure.

Cash Flow

Cash flow analysis highlights some concerns, with negative operating cash flow and free cash flow. However, the free cash flow to net income ratio is slightly above 1, indicating that the company is generating cash relative to its net losses. The free cash flow growth rate of 140.51% suggests some improvement in cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.67M	17.20M	5.90M	7.50M	10.21M	7.46M
Gross Profit	-22.57M	12.07M	-35.17M	-47.42M	-53.36M	-78.28M
EBITDA	-49.42M	-73.66M	-56.08M	-58.55M	-76.57M	-107.60M
Net Income	-103.35M	-102.14M	-87.96M	-81.89M	-91.35M	-98.81M
Balance Sheet
Total Assets	653.32M	784.68M	669.15M	669.41M	662.14M	744.72M
Cash, Cash Equivalents and Short-Term Investments	38.03M	161.16M	62.56M	70.92M	60.03M	136.88M
Total Debt	126.11M	128.16M	118.92M	116.50M	106.91M	105.50M
Total Liabilities	192.06M	187.24M	188.80M	167.58M	165.10M	163.32M
Stockholders Equity	461.26M	597.44M	480.36M	501.84M	497.04M	581.40M
Cash Flow
Free Cash Flow	-21.07M	-50.68M	-48.79M	-63.58M	-66.01M	-108.33M
Operating Cash Flow	-20.66M	-49.95M	-48.46M	-63.27M	-65.78M	-106.68M
Investing Cash Flow	618.00K	120.00K	-97.00K	-194.00K	-232.00K	-1.65M
Financing Cash Flow	4.39M	147.34M	40.25M	74.50M	-9.87M	114.47M

Mesoblast Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MESO, the sentiment is Neutral. The current price of 17.65 is below the 20-day moving average (MA) of 17.72, above the 50-day MA of 16.32, and above the 200-day MA of 14.31, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 44.49 is Neutral, neither overbought nor oversold. The STOCH value of 7.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MESO.

Mesoblast Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRMY	―	$1.69B	9.45	27.58%	―	17.74%	59.96%
IMCR	―	$1.65B	―	-5.38%	―	26.90%	62.72%
ADPT	―	$2.62B	-21.15	-57.55%	―	21.60%	44.48%
MESO	―	$2.12B	―	-18.96%	―	191.53%	5.09%
SRPT	―	$2.29B	-30.91	-4.76%	―	64.89%	-221.56%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
COGT	―	$2.25B	―	-107.55%	―	―	2.25%

Mesoblast Corporate Events

Mesoblast Reports Strong Revenue Growth with Ryoncil® Adoption

On October 20, 2025, Mesoblast Limited reported a significant increase in revenues for the quarter ended September 30, 2025, driven by the adoption of Ryoncil®, which saw a 69% increase in net sales. The assignment of a permanent J-Code by CMS on October 1, 2025, is expected to further enhance product adoption. Mesoblast has onboarded 40 transplant centers and expanded coverage to over 260 million US lives. The company plans a pivotal trial for Ryoncil® in adults with severe SR-aGvHD, aiming to extend its label to a larger population. Mesoblast’s financial position remains strong with $145 million in cash and new funding options.

Mesoblast’s U.S. Origin Designation Shields Products from Tariffs

On September 26, 2025, Mesoblast Limited announced that its allogeneic cell therapy products, including Ryoncil®, are designated as U.S. origin products and are not subject to tariffs on imported branded or patented pharmaceutical products. This designation aligns with U.S. FDA and Customs regulatory guidance, ensuring that Mesoblast’s products remain competitive in the market. The announcement underscores Mesoblast’s commitment to manufacturing its therapies from U.S. donors at U.S. sites, which is crucial for maintaining its market position and operational efficiency. This development is significant for stakeholders as it reinforces the company’s strategic positioning in the global market for cellular medicines.