Fractyl Health, Inc. (GUTS) AI Stock Analysis

• Market Cap: $183.75M
• Dividend Yield: N/A
• Average Volume (3M): 5.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: -85.71%
• EPS Growth: 66.38%
• Country: US
• Employees: 107
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.56
• Shares Outstanding: 132,193,770
• 10 Day Avg. Volume: 2,932,318
• 30 Day Avg. Volume: 5,247,998
• 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: 0.65
• Enterprise Value/Revenue: 6.99K
• Enterprise Value/Gross Profit: -216.14
• Enterprise Value/Ebitda: -1.18
• 1Y Price Target: $6.52
• Price Target Upside: 372.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 46 Neutral
• Price Target: $1.50 ▲(8.70% Upside)

Fractyl Health's overall stock score is primarily impacted by its challenging financial performance, with persistent losses and high leverage posing significant risks. The earnings call provided some optimism with strategic initiatives and promising program data, but the company's valuation remains unattractive due to negative earnings. Technical indicators suggest a neutral market position, contributing moderately to the score.

Positive Factors

Innovative Product Offering

Revita's potential as a one-time intervention for obesity positions Fractyl Health as a leader in innovative metabolic treatments, offering a durable competitive advantage in the growing market for metabolic disease solutions.

Strengthened Financial Position

The successful public offering enhances Fractyl's financial stability, extending its cash runway and supporting strategic initiatives, which is crucial for long-term operational sustainability and growth.

Positive Clinical Data

The promising clinical data supports Revita's efficacy, strengthening Fractyl's market position and potential for regulatory approval, which could drive future revenue growth and market expansion.

Negative Factors

High Leverage

High leverage poses financial risks, limiting Fractyl's ability to invest in growth initiatives and increasing vulnerability to economic downturns, which could impact long-term financial health.

Negative Cash Flow

Negative cash flow indicates operational challenges and reliance on external financing, which may hinder Fractyl's ability to sustain operations independently and invest in future growth.

Increased Net Loss

The rising net loss reflects ongoing financial challenges, potentially affecting investor confidence and the company's ability to fund future R&D and commercialization efforts.

Fractyl Health, Inc. Business Overview & Revenue Model

Company Description

Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is based in Lexington, Massachusetts.

How the Company Makes Money

Fractyl Health generates revenue primarily through the commercialization of its Revita procedure and related technologies. Key revenue streams include the sale of medical devices used in the procedure, as well as potential licensing agreements and collaborations with healthcare facilities and providers. Additionally, the company may receive funding from strategic partnerships with pharmaceutical companies and research institutions that are interested in metabolic health innovations. As the market for metabolic disease treatments continues to grow, Fractyl Health aims to expand its reach and establish a broader presence in the healthcare ecosystem, which will contribute to its earnings over time.

Fractyl Health, Inc. Financial Statement Overview

Summary

Fractyl Health faces significant financial challenges characterized by persistent operating losses, high leverage, and negative equity. The company has been unable to generate substantial revenue or profits, relying heavily on external financing to cover its cash needs. While the cash position has improved, the overall financial situation remains precarious, with substantial risks due to high debt levels and negative cash flows.

Income Statement

Fractyl Health has shown a pattern of operating losses over the years, with a significant negative EBIT and net income. The gross profit margin is not applicable due to minimal revenue in the latest period. Revenue growth is negative, with a substantial decline in total revenue from previous periods. This indicates challenges in generating sales and controlling operational costs.

Balance Sheet

The company has a high level of debt relative to its equity, indicating high leverage and potential financial risk. The negative stockholders' equity and high debt-to-equity ratio signal financial instability. However, cash reserves have improved in the latest period, which could provide some liquidity cushion despite overall negative equity.

Cash Flow

Fractyl Health is experiencing negative operating and free cash flows, reflecting operational challenges and a reliance on external financing for cash needs. Although operating cash flow has improved compared to the previous year, the free cash flow remains negative, indicating the business is not self-sustaining through its operations alone.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.00K	93.00K	120.00K	0.00	0.00	0.00
Gross Profit	-550.00K	43.00K	43.00K	-452.00K	-676.00K	-770.00K
EBITDA	-100.66M	-92.85M	-50.55M	-48.93M	-36.25M	-28.19M
Net Income	-99.77M	-68.69M	-77.09M	-46.45M	-38.73M	-30.48M
Balance Sheet
Total Assets	62.01M	108.08M	76.21M	60.96M	102.55M	34.76M
Cash, Cash Equivalents and Short-Term Investments	22.29M	67.46M	33.21M	49.27M	95.47M	29.11M
Total Debt	61.72M	62.50M	86.39M	306.81M	304.34M	202.78M
Total Liabilities	80.22M	79.65M	401.27M	313.27M	311.87M	207.48M
Stockholders Equity	-18.21M	28.42M	-325.06M	-252.32M	-209.32M	-172.72M
Cash Flow
Free Cash Flow	-82.34M	-67.29M	-43.18M	-46.30M	-33.51M	-31.07M
Operating Cash Flow	-81.35M	-65.52M	-42.82M	-46.24M	-33.46M	-31.07M
Investing Cash Flow	-992.00K	-1.76M	-359.00K	-56.00K	-51.00K	-2.00K
Financing Cash Flow	1.88M	101.23M	27.44M	4.35M	99.88M	54.39M

Fractyl Health, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.38
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GUTS, the sentiment is Positive. The current price of 1.38 is below the 20-day moving average (MA) of 1.40, above the 50-day MA of 1.15, and below the 200-day MA of 1.48, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 56.21 is Neutral, neither overbought nor oversold. The STOCH value of 54.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GUTS.

Fractyl Health, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHRS	54 Neutral	$195.26M	-1.21	-860.65%	―	-53.67%	-330.15%
GNFT	53 Neutral	$219.90M	-5.09	-51.06%	―	-44.94%	-274.42%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GUTS	46 Neutral	$183.75M	―	-379.75%	―	-85.71%	66.38%
IPHA	46 Neutral	$192.40M	―	-271.32%	―	-75.77%	-31.24%
SLS	43 Neutral	$243.90M	-5.82	-180.71%	―	―	64.43%
TARA	39 Underperform	$200.24M	-3.16	-43.02%	―	―	48.80%

Fractyl Health, Inc. Corporate Events

Fractyl Health Approves Share Issuance in Special Meeting

On October 3, 2025, Fractyl Health, Inc. held a Special Meeting of Stockholders where 64.12% of the company’s common stock voting power was represented. During the meeting, stockholders approved the issuance of shares in accordance with Nasdaq rules related to a financing transaction and also approved the potential adjournment of the meeting to solicit additional proxies if necessary.

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

Fractyl Health Announces $60M Stock Offering Pricing

On September 26, 2025, Fractyl Health, Inc. announced the pricing of an underwritten offering of 60 million shares of its common stock at $1.00 per share, expected to raise approximately $56 million in net proceeds. The offering, managed by BofA Securities and Evercore ISI, is anticipated to close on September 29, 2025, and aims to fund the company’s operations and capital expenditures into early 2027, potentially strengthening its position in the metabolic therapeutics industry.

The most recent analyst rating on (GUTS) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Fractyl Health, Inc. stock, see the GUTS Stock Forecast page.

Fractyl Health Reveals Promising REMAIN-1 Study Results

On September 26, 2025, Fractyl Health announced the 3-month interim results from its REMAIN-1 Midpoint Cohort study, which evaluates the Revita DMR System’s potential to maintain weight loss after GLP-1 drug discontinuation. The study showed that Revita-treated patients lost an additional 2.5% total body weight after stopping tirzepatide, while sham patients regained 10%, indicating strong statistical significance. These findings suggest Revita could be a first-in-class treatment for post-GLP-1 weight maintenance, offering a new therapeutic category in obesity care. The study’s positive results bolster confidence in the ongoing Pivotal Cohort study, which is expected to complete randomization in early 2026, with further data and potential PMA filing anticipated later that year.

The most recent analyst rating on (GUTS) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Fractyl Health, Inc. stock, see the GUTS Stock Forecast page.

Fractyl Health Appoints New Directors Amid Leadership Changes

On August 29, 2025, Fractyl Health, Inc. announced the appointment of Christopher Thompson, M.D. as a Class I director and Ian Sheffield as a Class II director, effective September 2, 2025. Dr. Thompson’s term will expire at the 2028 annual meeting, while Mr. Sheffield’s term will end at the 2026 meeting. Mr. Sheffield will also join the audit committee. Both directors will participate in the Non-Employee Director Compensation Program, receiving annual retainers and initial equity awards. Additionally, Amy W. Schulman resigned as a Class I director and from the Nominating and Corporate Governance Committee, effective September 2, 2025, without any disputes with the company.

The most recent analyst rating on (GUTS) stock is a Buy with a $3.60 price target. To see the full list of analyst forecasts on Fractyl Health, Inc. stock, see the GUTS Stock Forecast page.

Fractyl Health’s Earnings Call: Strategic Gains Amid Financial Challenges

Fractyl Health’s recent earnings call revealed a mixed sentiment, highlighting both strategic advancements and financial challenges. The company has made significant strides in its clinical focus, particularly with the positive outcomes of its Revita therapy. However, financial hurdles remain, with an increased net loss and rising R&D expenses posing challenges.

Fractyl Health Reports Q2 2025 Financial Results and Progress

Fractyl Health, Inc. is a metabolic therapeutics company focused on innovative treatments for obesity and type 2 diabetes, aiming to address the root causes of these conditions through its Revita and Rejuva platforms.

Fractyl Health Raises $20.7M Through Stock Offering

On August 6, 2025, Fractyl Health, Inc. entered into an underwriting agreement with Ladenburg Thalmann & Co. Inc. for an offering of 19,047,619 shares of common stock and associated warrants, raising approximately $20.7 million in net proceeds. The company plans to use these funds to support its pipeline programs and general corporate purposes, with potential additional proceeds from warrant exercises. The offering closed on August 7, 2025, and includes conditions for warrant exercises and stockholder approvals, impacting the company’s financial strategy and stakeholder engagement.

The most recent analyst rating on (GUTS) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Fractyl Health, Inc. stock, see the GUTS Stock Forecast page.