Werewolf Therapeutics (HOWL) AI Stock Analysis

• Market Cap: $68.14M
• Dividend Yield: N/A
• Average Volume (3M): 180.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• Revenue Growth: -100.00%
• EPS Growth: -22.09%
• Country: US
• Employees: 46
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.40
• Shares Outstanding: 45,729,000
• 10 Day Avg. Volume: 269,209
• 30 Day Avg. Volume: 180,406
• 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: 0.13
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -3.81
• Enterprise Value/Ebitda: -0.13
• 1Y Price Target: $7.00
• Price Target Upside: 369.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 48 Neutral
• Price Target: $1.50 ▲(0.67% Upside)

The overall stock score of 48 reflects significant financial challenges, with ongoing losses and negative cash flows being the most impactful factors. While technical analysis shows some short-term bullish momentum, the negative valuation metrics due to losses weigh heavily on the score. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Product Development

The introduction of WTX-1011 expands Werewolf's pipeline, potentially enhancing its market position in cancer immunotherapy and supporting long-term growth.

Clinical Progress

Progress in clinical trials for WTX-124 indicates advancing product development, which is crucial for future revenue generation and market expansion.

Cash Position

A strong cash position provides financial stability, enabling continued investment in R&D and supporting operational activities without immediate liquidity concerns.

Negative Factors

Negative Cash Flow

Persistent negative cash flow from operations suggests challenges in generating cash internally, increasing reliance on external financing and impacting long-term sustainability.

Revenue Decline

Declining revenue trends can hinder growth prospects and limit the company's ability to invest in new projects, affecting its competitive position in the market.

Ongoing Losses

Consistent losses reflect operational inefficiencies and high costs, which can strain resources and challenge the company's ability to achieve profitability in the long term.

Werewolf Therapeutics Business Overview & Revenue Model

Company Description

Werewolf Therapeutics, Inc., a biopharmaceutical company, develops therapeutics engineered to stimulate the body's immune system for the treatment of cancer. The company, through its proprietary PREDATOR platform, designs conditionally activated molecules that stimulate adaptive and innate immunity for addressing the limitations of conventional proinflammatory immune therapies. Its lead product candidates are WTX-124, a conditionally activated Interleukin-2 INDUKINE molecule for the treatment of advanced solid tumors; and WTX-330, a conditionally activated Interleukin-12 INDUKINE molecule for the treatment of relapsed or refractory advanced or metastatic solid tumors or lymphoma. The company is also developing WTX-613, a conditionally activated interferon alpha INDUKINE molecule for the treatment of solid tumors and hematologic malignancies. Werewolf Therapeutics, Inc. was incorporated in 2017 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Werewolf Therapeutics generates revenue primarily through a combination of product development partnerships, licensing agreements, and potential future sales of its proprietary therapeutics. The company collaborates with pharmaceutical companies and research institutions to co-develop new therapies, which may involve upfront payments, milestone payments based on development progress, and royalties from future sales. Additionally, the company may pursue grants and funding from governmental and non-governmental organizations aimed at supporting innovative biotech solutions, further contributing to its revenue streams.

Werewolf Therapeutics Financial Statement Overview

Summary

Werewolf Therapeutics faces significant financial challenges typical of a biotechnology firm in early stages, with ongoing operating losses and negative cash flows. The reliance on financing suggests potential liquidity risks, while inconsistent revenue growth and declining equity pose challenges for future stability and expansion. Strategic focus on improving operational efficiency and revenue generation is crucial.

Income Statement

Werewolf Therapeutics has shown inconsistent revenue figures over the years with a recent drop from 2023 to 2024. Gross profit margins are highly volatile, and the company has been operating with negative net profit margins consistently, indicating ongoing losses. EBIT and EBITDA margins are negative, reflecting operating inefficiencies and high operational costs relative to revenue.

Balance Sheet

The company has a moderate debt-to-equity ratio, which has improved over time due to a reduction in total debt. However, the equity ratio has been declining, indicating a decrease in equity relative to assets. Return on equity is negative, as losses have been persistent. The financial stability is moderate with a reasonable cash position compared to liabilities, yet the trend is concerning with shrinking equity.

Cash Flow

Operating cash flows have been negative, indicating cash burn, and free cash flows have also been consistently negative, showing challenges in generating cash from operations. Financing cash flows have been positive, suggesting reliance on external financing to support operations. The ratios of cash flows to net income highlight issues in converting revenue into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	1.89M	19.94M	16.40M	0.00	0.00
Gross Profit	-2.25M	71.00K	18.18M	13.89M	-735.00K	-777.00K
EBITDA	-66.34M	-64.05M	-32.47M	-51.30M	-49.25M	-14.26M
Net Income	-73.14M	-70.52M	-37.37M	-53.81M	-49.77M	-14.94M
Balance Sheet
Total Assets	92.57M	126.93M	174.83M	160.25M	179.25M	96.40M
Cash, Cash Equivalents and Short-Term Investments	78.49M	111.00M	134.34M	129.31M	157.53M	92.57M
Total Debt	10.04M	37.09M	51.92M	14.68M	15.66M	2.54M
Total Liabilities	51.10M	53.54M	63.46M	37.91M	26.46M	148.26M
Stockholders Equity	41.46M	73.39M	111.37M	122.34M	152.79M	-51.86M
Cash Flow
Free Cash Flow	-60.95M	-56.44M	-33.38M	-44.21M	-43.37M	-19.18M
Operating Cash Flow	-60.83M	-56.19M	-32.61M	-40.60M	-42.88M	-18.62M
Investing Cash Flow	-126.00K	-254.00K	-769.00K	-3.61M	-498.00K	-560.00K
Financing Cash Flow	2.93M	13.08M	58.43M	15.91M	109.43M	93.86M

Werewolf Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOWL, the sentiment is Positive. The current price of 1.49 is above the 20-day moving average (MA) of 1.38, above the 50-day MA of 1.32, and above the 200-day MA of 1.26, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 64.48 is Neutral, neither overbought nor oversold. The STOCH value of 71.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOWL.

Werewolf Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATRA	53 Neutral	84.63M	-28.35	-16.54%	―	202.41%	98.99%
HOWL	48 Neutral	$68.14M	―	-100.55%	―	-100.00%	-22.09%
KPTI	47 Neutral	46.91M	-0.37	41.08%	―	-5.77%	-22.78%
NRXP	45 Neutral	70.60M	-1.33	0.00%	―	0.00%	18.51%
XFOR	44 Neutral	71.16M	-0.21	0.00%	―	5721.31%	-671.01%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Werewolf Therapeutics Corporate Events

Werewolf Therapeutics Reports Q2 2025 Financial Results

Werewolf Therapeutics reported its second-quarter 2025 financial results and provided a business update, highlighting progress in their clinical trials and product development. The company is on track for an interim data readout of its WTX-124 Phase 1/1b trial in late 2025, targeting melanoma and renal cell carcinoma. They also plan to engage with the FDA regarding potential pathways for WTX-124. Additionally, Werewolf introduced WTX-1011, a new T-cell engager candidate for prostate cancer, and announced plans to nominate another candidate by year-end. Financially, the company reported a net loss of $18 million for the quarter, with sufficient cash to fund operations into late 2026.

Werewolf Therapeutics Adopts New Bylaws and Elects Directors

On June 12, 2025, Werewolf Therapeutics, Inc. adopted new bylaws to clarify procedural mechanics for stockholder nominations and proposals, specify meeting presiders, and make administrative updates. During the same annual meeting, stockholders elected three directors for three-year terms and ratified Ernst & Young LLP as the independent accounting firm for 2025.