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Lineage Cell Therapeutics, Inc. (LCTX)
XASE:LCTX
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Lineage Therap (LCTX) AI Stock Analysis

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LCTX

Lineage Therap

(NYSE MKT:LCTX)

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Neutral 47 (OpenAI - Gpt-5.6Sol)
Rating:47Neutral
Price Target:
$1.00
▼(-10.71% Downside)
Action:Reiterated
Date:09/26/26
The score is primarily held back by weak financial performance driven by ongoing losses and substantial cash burn, despite a relatively conservative balance sheet. Technicals add further pressure given the downtrend signals (below major moving averages and negative MACD). The latest earnings call provides a partial offset via extended cash runway guidance and notable operational/partnership progress, but revenue decline and noncash-driven profitability keep risk elevated. Valuation offers limited support given negative earnings and no dividend yield data.
Positive Factors
Scalable allogeneic manufacturing platform
Validated GMP banking and production provide a reusable foundation for multiple cell types and programs. If the platform continues to support low-cost, scalable manufacturing, it can shorten development timelines, improve partner appeal, and increase the commercial potential of Lineage’s broader pipeline.
Negative Factors
Persistent operating losses and cash burn
Ongoing negative operating and free cash flow shows that Lineage is not yet self-funding its research and development activities. Continued losses can consume the existing runway, increase reliance on financing or partners, and limit strategic flexibility if programs require more capital than currently expected.
Read all positive and negative factors
Positive Factors
Negative Factors
Scalable allogeneic manufacturing platform
Validated GMP banking and production provide a reusable foundation for multiple cell types and programs. If the platform continues to support low-cost, scalable manufacturing, it can shorten development timelines, improve partner appeal, and increase the commercial potential of Lineage’s broader pipeline.
Read all positive factors

Lineage Therap (LCTX) vs. SPDR S&P 500 ETF (SPY)

Lineage Therap Business Overview & Revenue Model

Company Description
Lineage Cell Therapeutics, Inc., a clinical-stage biotechnology company, developing cell replacement therapies to treat serious medical conditions in the United States and internationally. The company develops OpRegen, an allogeneic retinal pigmen...
How the Company Makes Money
Lineage primarily makes money through (1) collaboration and license-related revenue and (2) raising capital, rather than through product sales, because it is a clinical-stage company without broadly commercialized products. Collaboration/licensing...

Lineage Therap Earnings Call Summary

Earnings Call Date:Aug 06, 2026
(Q2-2026)
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% Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presented meaningful technical and strategic progress: demonstrated scalable GMP manufacturing (AlloSCOPE), rapid internal pipeline expansion (COR1, ILT1, ReSonance), and partnership validation (Roche/Genentech, Demant). Financial reporting showed an apparent improvement to net income, extension of cash runway into Q3 2028, and an incremental $4.6M ATM raise. However, material weaknesses and near-term risks remain: Q2 revenue dropped substantially (~60.7% YoY), reported profitability was driven by noncash accounting items, cash runway still depends on contingent exercises/milestones, OpRegen advancement timing is dependent on partner-driven surgical optimization, and ILT1 faces major manufacturing scale challenges. Overall, positives around technology, partnerships and program breadth are tempered by funding, revenue dynamics and technical/partner-dependent execution risks.
Positive Updates
Manufacturing Platform Demonstrated and Reused
AlloSCOPE platform achieved a 2-tier GMP banking and GMP production system; material from those banks cleared by FDA and used in OpRegen clinical trial. AlloSCOPE has been applied to other cell types and cell lines, enabling rapid generation of new assets and supporting claims of scalable, low-cost allogeneic manufacturing.
Negative Updates
Quarterly Revenue Decline
Total revenues were $1.1M in Q2 2026, a decrease of $1.7M versus $2.8M in Q2 2025 (a ~60.7% year-over-year decline), driven primarily by lower collaboration revenue recognized under the Roche agreement and lower revenues tied to a prior-year collaboration termination.
Read all updates
Q2-2026 Updates
Negative
Manufacturing Platform Demonstrated and Reused
AlloSCOPE platform achieved a 2-tier GMP banking and GMP production system; material from those banks cleared by FDA and used in OpRegen clinical trial. AlloSCOPE has been applied to other cell types and cell lines, enabling rapid generation of new assets and supporting claims of scalable, low-cost allogeneic manufacturing.
Read all positive updates
Company Guidance
Key guidance and metrics from the call: cash, cash equivalents and marketable securities were $50.8M as of June 30, 2026, expected to fund operations into Q3 2028; Lineage raised ≈$4.6M via an ATM on June 26 at a $1.28 weighted‑average price, is eligible for ≈$32M from warrant exercises (strike $0.91, 3‑year maturity; accelerates to 90 days on certain Roche/Genentech disclosures) and remains eligible for up to $615M in Roche/Genentech development/commercial milestones (management also cited the original collaboration included a $50M upfront + $620M in potential milestones), Q2 revenue was $1.1M (down $1.7M YoY from $2.8M), operating expenses were $10M (vs $22.5M YoY), R&D $4.8M, G&A $5.2M, loss from operations $8.9M (improved from $19.8M), other income of $10.5M from warrant remeasurement drove a net income of $1.5M (~$0.01 basic) versus a $30.5M loss a year earlier; operational milestones include OpRegen’s GAlette expansion from 6 to 17 sites and EMA IRIS registration, COR1 advancing to preclinical with in‑vivo data targeted by year‑end, AlloSCOPE 5D demonstrating a 0.5‑L suspension process and larger multi‑tier runs with a claimed ability to produce “millions” of vials, ReSonance’s Demant‑funded preclinical program (up to $12M) completing 3 engineering runs and a first GMP run now in release testing, and the DOSED study having dosed two chronic patients (one at 1 year, one at ~90 days) with no unexpected device/product‑related AEs and 1‑month DSMB pauses between the first four patients.

Lineage Therap Financial Statement Overview

Summary
Balance sheet strength (low leverage; modest debt vs. equity) is a positive, but it is outweighed by persistent losses and material cash burn (TTM operating cash flow and free cash flow both around -$24M). Revenue has also been uneven with a recent TTM decline, raising funding-sustainability risk despite very high gross margins.
Income Statement
33
Negative
Balance Sheet
71
Positive
Cash Flow
30
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue13.08M14.56M9.50M8.95M14.70M3.90M
Gross Profit12.64M13.71M9.16M8.27M13.97M2.47M
EBITDA-36.65M-67.95M-17.97M-22.59M-25.09M-42.40M
Net Income-32.26M-63.53M-18.61M-21.49M-26.27M-43.02M
Balance Sheet
Total Assets106.22M112.58M113.22M101.02M123.66M174.54M
Cash, Cash Equivalents and Short-Term Investments50.83M55.78M47.80M35.49M57.88M58.36M
Total Debt2.30M2.42M2.51M2.95M3.90M2.80M
Total Liabilities46.42M69.24M36.21M39.00M51.73M83.65M
Stockholders Equity60.92M44.55M78.38M63.42M73.34M92.22M
Cash Flow
Free Cash Flow-23.94M-19.44M-23.66M-29.24M646.00K-23.91M
Operating Cash Flow-23.82M-18.92M-23.09M-28.57M1.06M-23.56M
Investing Cash Flow-13.71M-13.46M-2.31M46.45M-46.16M9.74M
Financing Cash Flow32.24M26.95M35.86M6.42M1.63M36.93M

Lineage Therap Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.12
Price Trends
50DMA
1.06
Negative
100DMA
1.16
Negative
200DMA
1.40
Negative
Market Momentum
MACD
-0.04
Positive
RSI
34.83
Neutral
STOCH
22.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCTX, the sentiment is Negative. The current price of 1.12 is above the 20-day moving average (MA) of 1.02, above the 50-day MA of 1.06, and below the 200-day MA of 1.40, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 34.83 is Neutral, neither overbought nor oversold. The STOCH value of 22.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LCTX.

Lineage Therap Risk Analysis

Lineage Therap disclosed 79 risk factors in its most recent earnings report. Lineage Therap 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

Lineage Therap Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
$790.54M-5.15-41.33%―278712.12%26.59%
54
Neutral
$274.60M-8.97-5.99%―-15.63%74.20%
54
Neutral
$651.27M-3.42-73.18%――9.05%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
47
Neutral
$241.70M-6.34-71.14%―19.87%23.17%
46
Neutral
$732.66M-2.83-119.47%――37.51%
45
Neutral
$16.67M-0.47-145.40%―-100.00%82.57%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LCTX
Lineage Therap
0.93
-0.76
-44.97%
AMRN
Amarin
12.35
-6.49
-34.45%
TVRD
Tvardi Therapeutics
1.15
-39.08
-97.14%
DBVT
DBV Technologies SA - American
10.55
-2.35
-18.22%
FDMT
4D Molecular Therapeutics
13.67
5.12
59.88%
AURA
Aura Biosciences Inc
6.09
0.04
0.66%
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: Sep 26, 2026