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Fate Therapeutics (FATE)
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Fate Therapeutics (FATE) AI Stock Analysis

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FATE

Fate Therapeutics

(NASDAQ:FATE)

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Neutral 45 (OpenAI - 4o)
Rating:45Neutral
Price Target:
$1.50
▲(16.28% Upside)
Fate Therapeutics' overall stock score is primarily impacted by its financial performance, which is marked by persistent losses and negative cash flow. The technical analysis provides some positive momentum signals, but the valuation remains a significant concern due to the negative P/E ratio. Investors should be cautious given the financial instability and lack of profitability.
Positive Factors
Innovative Technology
Fate Therapeutics' use of iPSC technology represents a significant competitive advantage in developing advanced cellular therapies, potentially leading to breakthrough treatments in cancer and immune disorders.
Strategic Partnerships
Strategic alliances provide Fate Therapeutics with essential funding and resources, enhancing its ability to advance therapeutic candidates and potentially accelerating market entry through established channels.
Manageable Leverage
A low debt-to-equity ratio indicates that Fate Therapeutics has maintained financial flexibility, reducing risk and providing a stable foundation for future growth and investment in R&D.
Negative Factors
Persistent Losses
Ongoing losses and cash flow deficits highlight operational challenges, limiting Fate Therapeutics' ability to self-fund growth and necessitating external financing, which could dilute shareholder value.
Declining Revenue
A significant decline in revenue suggests potential issues with product development or market competition, impacting the company's ability to sustain operations and invest in future growth.
Negative Profit Margins
Negative profit margins indicate high costs relative to revenues, challenging Fate Therapeutics' ability to achieve profitability and necessitating cost management or revenue enhancement strategies.

Fate Therapeutics (FATE) vs. SPDR S&P 500 ETF (SPY)

Fate Therapeutics Business Overview & Revenue Model

Company DescriptionFate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops programmed cellular immunotherapies for cancer and immune disorders worldwide. Its NK- and T-cell immuno-oncology programs under development include FT516 for the treatment of acute myeloid leukemia (AML) B-cell lymphoma, and advanced solid tumor; FT596 to treat B-cell lymphoma and chronic lymphocytic leukemia; FT538 to treat AML and multiple myeloma; FT576 to treat multiple myeloma; FT819 to treat hematologic malignancies and solid tumors; FT536 to treat solid tumors; and FT500 for the treatment of advanced solid tumors. The company has a collaboration and option agreement with Ono Pharmaceutical Co. Ltd. for the development and commercialization of two off-the-shelf iPSC-derived CAR T-cell product candidates; strategic research collaboration and license agreement with Juno Therapeutics, Inc. to screen for and identify small molecule modulators that enhance the therapeutic properties of genetically-engineered T-cell immunotherapies; and a collaboration and option agreement with Janssen Biotech, Inc. Fate Therapeutics, Inc. was incorporated in 2007 and is headquartered in San Diego, California.
How the Company Makes MoneyFate Therapeutics generates revenue primarily through the development of its therapeutic candidates, which are funded by collaborations and partnerships with larger pharmaceutical companies. The company engages in strategic alliances that provide upfront payments, milestone payments tied to clinical progress, and royalties on future sales of products developed using its technology. Additionally, Fate Therapeutics may receive funding through government grants and research contracts. Its revenue model is heavily reliant on successful research and development outcomes, regulatory approvals for its therapies, and the commercialization of its products in collaboration with partners.

Fate Therapeutics Earnings Call Summary

Earnings Call Date:Oct 30, 2025
(Q1-2024)
|
% Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in clinical trials, particularly with FT819 and FT522, alongside a strong financial position. However, revenue growth remains limited and operating expenses are high, suggesting a balanced outlook with promising clinical achievements countered by financial challenges.
Q1-2024 Updates
Positive Updates
FT819 and FT522 Data Presentation
Presented promising data from FT819 and FT522 programs at the ASGCT Annual Meeting, showing potential disease-modifying effects and immune reset in B-cell-mediated autoimmune diseases.
First Lupus Patient Treated
The first lupus patient was treated with FT819, showing no notable adverse events post-treatment.
Strong Financial Position and Fundraising
Raised $100 million through an underwritten offering and a private placement, ending the quarter with $391 million in cash, cash equivalents, and investments.
FT522 Safety Assessment
First 3 patients in FT522 study completed safety assessment without dose-limiting toxicities.
Negative Updates
Limited Revenue Growth
Reported revenue of $1.9 million, consistent with prior quarters, reflecting limited growth.
High Operating Expenses
Total operating expenses for the quarter increased by 7% relative to the fourth quarter of 2023 to $53 million.
Company Guidance
During the Fate Therapeutics Q1 2024 earnings call, the company provided guidance on its clinical and financial outlook. Key program initiatives were discussed, including the FT819 CAR T-cell and FT522 CAR NK cell programs, with notable translational data presented at the American Society of Gene and Cell Therapy Annual Meeting. The company highlighted its plans to achieve several clinical milestones across its iPSC product pipeline, targeting both cancer and autoimmune diseases. Financially, Fate Therapeutics raised $100 million through an underwritten offering and private placement, ending the first quarter with approximately $391 million in cash. Operating expenses for the full year are projected between $215 million and $230 million, with a year-end cash balance exceeding $270 million. The company's strategic focus is on demonstrating the disease-modifying potential of its therapies while maintaining a strong financial position to support ongoing and future clinical development.

Fate Therapeutics Financial Statement Overview

Summary
Fate Therapeutics faces substantial financial challenges, with persistent losses and negative cash flow raising concerns about its operational sustainability. The company has a negative gross profit margin and deeply negative net profit margins. The balance sheet shows a manageable debt-to-equity ratio but a declining equity base, raising sustainability concerns.
Income Statement
40
Negative
Fate Therapeutics has faced significant challenges in its income statement metrics. The company experienced a significant decline in total revenue from 2020 to 2024, with a revenue growth rate of -78.54% from 2023 to 2024. The gross profit margin has been negative for several years, indicating high costs relative to revenues. Net profit margins are also deeply negative, reflecting persistent losses. EBIT and EBITDA margins are similarly negative, demonstrating the company’s struggle to cover its operating costs and generate positive earnings.
Balance Sheet
50
Neutral
The balance sheet reveals a mixed picture. The debt-to-equity ratio has remained reasonably low, suggesting manageable leverage levels. However, the return on equity is negative due to consistent net losses, indicating a lack of profitability. The equity ratio is relatively high at 72.31% in 2024, showcasing financial stability and reliance on equity financing. Still, the equity base has shrunk over the years, raising concerns over long-term sustainability.
Cash Flow
45
Neutral
Cash flow metrics highlight the company’s ongoing cash challenges. Free cash flow remains negative, though there was a small improvement in 2024. The operating cash flow to net income ratio is negative, indicating operational cash flow deficits. The free cash flow to net income ratio also remains negative, underlining the company's struggle to generate sufficient cash to cover its expenditures without external financing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.47M13.63M63.53M96.30M55.85M31.43M
Gross Profit5.19M13.63M-93.65M82.54M50.00M-94.19M
EBITDA-164.88M-176.58M-172.23M-294.63M-211.14M-125.00M
Net Income-171.52M-186.26M-160.93M-281.72M-212.15M-173.39M
Balance Sheet
Total Assets371.63M440.69M506.22M705.56M921.46M622.46M
Cash, Cash Equivalents and Short-Term Investments222.83M279.07M315.18M436.23M615.91M482.92M
Total Debt81.33M85.27M103.54M109.34M114.82M97.30M
Total Liabilities110.27M121.97M137.80M221.62M242.62M238.01M
Stockholders Equity261.36M318.73M368.42M483.94M678.84M384.44M
Cash Flow
Free Cash Flow-118.77M-123.60M-138.42M-283.77M-213.57M-44.16M
Operating Cash Flow-115.61M-122.87M-132.26M-248.21M-162.87M-39.23M
Investing Cash Flow110.54M12.22M112.67M166.75M-324.02M-161.08M
Financing Cash Flow4.46M99.89M85.00K9.21M453.13M282.84M

Fate Therapeutics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.29
Price Trends
50DMA
1.21
Positive
100DMA
1.19
Positive
200DMA
1.17
Positive
Market Momentum
MACD
0.06
Positive
RSI
44.91
Neutral
STOCH
6.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FATE, the sentiment is Neutral. The current price of 1.29 is below the 20-day moving average (MA) of 1.48, above the 50-day MA of 1.21, and above the 200-day MA of 1.17, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 44.91 is Neutral, neither overbought nor oversold. The STOCH value of 6.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FATE.

Fate Therapeutics Risk Analysis

Fate Therapeutics disclosed 86 risk factors in its most recent earnings report. Fate Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Fate Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$154.33M-7.84-35.66%-48.16%-97.37%
$7.86B-0.30-43.30%2.27%22.53%-2.21%
$121.25M-1.59-73.39%-27.33%34.66%
$148.35M-91.93%-17.89%3.93%
$148.78M-52.11%-31.23%14.92%
$147.73M-26.94%26.33%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FATE
Fate Therapeutics
1.29
-1.08
-45.57%
CGEN
Compugen
1.65
0.05
3.12%
ONCY
Oncolytics Biotech
1.16
0.01
0.87%
TSE:ONC
Oncolytics Biotech
1.42
-0.17
-10.69%
CRDF
Cardiff Oncology
2.23
-0.89
-28.53%
NKTX
Nkarta
2.08
-1.00
-32.47%
STTK
Shattuck Labs
1.92
0.66
52.38%

Fate Therapeutics Corporate Events

Fate Therapeutics Advances CAR T-Cell Therapy with New Clinical Study
Oct 27, 2025

Fate Therapeutics Inc. is conducting a Phase 1 clinical study titled ‘A Phase 1, Open-Label Study of FT836, an Off-the-Shelf CAR T-Cell Therapy, With or Without Chemotherapy and/or Monoclonal Antibodies, in Participants With Advanced Solid Tumors.’ The study aims to evaluate the safety and tolerability of FT836, a novel CAR T-cell therapy, in treating various advanced solid tumors, including lung, colorectal, breast, ovarian, endometrial, and head and neck cancers. The primary goal is to establish the recommended phase 2 dose of FT836 in combination with trastuzumab or cetuximab, with or without paclitaxel chemotherapy.

Fate Therapeutics’ Phase 1 Study: A Potential Game-Changer in Autoimmune Disease Treatment
Oct 27, 2025

Study Overview: Fate Therapeutics Inc. is conducting a Phase 1 study titled A Phase 1 Study of FT819 in B-cell Mediated Autoimmune Disease. The study aims to evaluate the safety, pharmacokinetics, and anti-B-cell activity of FT819 in participants with moderate to severe autoimmune conditions such as systemic lupus erythematosus, ANCA-associated vasculitis, idiopathic inflammatory myositis, and systemic sclerosis. This study is significant as it explores a novel treatment approach for these challenging conditions.

Fate Therapeutics’ Innovative CAR T-Cell Therapy Study: A Potential Game-Changer in Cancer Treatment
Oct 27, 2025

Fate Therapeutics Inc. is conducting a Phase 1 study titled A Phase 1 Study of FT825/ONO-8250, an Off-the-Shelf CAR T-Cell Therapy, With or Without Monoclonal Antibodies, in HER2-Positive or Other Advanced Solid Tumors. The study aims to assess the safety, tolerability, and antitumor activity of FT825, a CAR T-cell therapy, with or without monoclonal antibodies in patients with advanced HER2-positive or other solid tumors. This study is significant as it explores innovative treatment options for challenging cancer types.

Business Operations and StrategyProduct-Related Announcements
Fate Therapeutics Reports Promising Phase 1 Trial Results
Positive
Oct 27, 2025

On October 26, 2025, Fate Therapeutics announced promising results from a Phase 1 clinical trial of its FT819 CAR T-cell therapy for systemic lupus erythematosus (SLE), presented at the ACR Convergence 2025. The trial, involving 10 patients, demonstrated significant reductions in disease activity scores and favorable safety profiles, suggesting potential for outpatient treatment and same-day discharge. The company is also advancing its clinical programs with plans for a pivotal study in 2026, aiming to enhance its market position in autoimmune disease treatment.

The most recent analyst rating on (FATE) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Fate Therapeutics stock, see the FATE Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Fate Therapeutics Appoints New CFO Kamal Adawi
Neutral
Oct 14, 2025

On October 10, 2025, John D. Mendlein and Neelufar Mozaffarian resigned from Fate Therapeutics‘ Board, leading to a reduction in the Board’s size from ten to eight members. Subsequently, on October 13, 2025, Kamal Adawi was appointed as the new Chief Financial Officer, effective October 20, 2025. Adawi, with over 20 years of financial leadership experience in the life sciences industry, is expected to play a crucial role in advancing the company’s financial strategy and supporting its clinical programs, particularly the development of FT819 in systemic lupus erythematosus (SLE).

The most recent analyst rating on (FATE) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Fate Therapeutics stock, see the FATE Stock Forecast page.

Fate Therapeutics Faces Nasdaq Delisting Risk: Implications for Investors
Aug 14, 2025

Fate Therapeutics Inc. faces a significant risk if its common stock is delisted from the Nasdaq Global Market, as this would negatively impact the liquidity and market price of its shares. The company must adhere to Nasdaq’s minimum requirements, such as maintaining a closing bid price of at least $1.00 per share, to avoid delisting. Failure to meet these criteria could hinder Fate Therapeutics’ ability to raise funds and materially affect the value of investments in the company. This potential delisting poses a substantial threat to the company’s financial stability and investor confidence.

Fate Therapeutics Reports Q2 2025 Financial Results
Aug 14, 2025

Fate Therapeutics Inc. is a clinical-stage biopharmaceutical company specializing in the development of off-the-shelf, multiplexed-engineered, induced pluripotent stem cell (iPSC)-derived cellular immunotherapies, primarily focusing on innovative treatments in the biotechnology sector.

Business Operations and StrategyFinancial Disclosures
Fate Therapeutics Announces Corporate Restructuring Plan
Neutral
Aug 12, 2025

On August 7, 2025, Fate Therapeutics‘ Board of Directors approved a corporate restructuring to streamline operations, reduce expenses, and extend its cash runway, which includes a 12% reduction in workforce. The restructuring is expected to incur charges of $0.9 million to $1.2 million for severance and related costs in the third quarter of 2025. Additionally, the company reported significant progress in its clinical programs, particularly with its FT819 CAR T-cell product for autoimmune diseases, and plans to expand its trials to include other B cell-mediated autoimmune diseases. Fate Therapeutics is also advancing its pipeline with collaborations and new technologies, aiming to optimize resource allocation and extend its cash runway through the end of 2027.

The most recent analyst rating on (FATE) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Fate Therapeutics stock, see the FATE Stock Forecast page.

Fate Therapeutics’ Phase 1 Study: A New Hope for Autoimmune Diseases
Aug 1, 2025

Fate Therapeutics Inc. is conducting a Phase 1 study titled A Phase 1 Study of FT819 in B-cell Mediated Autoimmune Disease. The study aims to evaluate the safety and effectiveness of FT819, a potential treatment for autoimmune diseases such as systemic lupus erythematosus and systemic sclerosis. This study is significant as it explores a novel approach to treating these complex conditions.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 30, 2025