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LENZ Therapeutics
(NASDAQ:LENZ)
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Rating:45Neutral
Price Target:
$3.50
▼(-27.23% Downside)
Action:Reiterated
Date:08/19/26
The score is held down primarily by substantial ongoing losses and heavy cash burn despite strong revenue growth and high gross margins, along with weak technical momentum (price below major moving averages, negative MACD). The earnings call added some support via improving early commercial signals and a strong cash balance, but product revenue remains small relative to operating costs, limiting the overall score.
Positive Factors
Rapid Revenue Growth and High Gross Margin
Rapid revenue growth indicates increasing commercial traction, while gross margins near 90% suggest attractive product economics once sales scale. If adoption continues, the combination could support operating leverage and improve the company’s ability to fund expansion from internally generated revenue.
Negative Factors
Large Ongoing Losses
The scale of current losses remains disproportionate to revenue, showing that commercialization has not yet produced operating leverage. Continued negative earnings could require prolonged external funding and may constrain strategic flexibility until revenue grows enough to absorb the expense base.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid Revenue Growth and High Gross Margin
Rapid revenue growth indicates increasing commercial traction, while gross margins near 90% suggest attractive product economics once sales scale. If adoption continues, the combination could support operating leverage and improve the company’s ability to fund expansion from internally generated revenue.
Read all positive factors
LENZ Therapeutics (LENZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$114.53M
Dividend Yield89.01%
Average Volume (3M)738.90K
Price to Earnings (P/E)―
Beta (1Y)1.75
Revenue Growth329.50%
EPS Growth-114.98%
CountryUS
Employees152
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-4.09
Shares Outstanding31,420,343
10 Day Avg. Volume794,641
30 Day Avg. Volume738,905
Financial Highlights & Ratios
PEG Ratio-0.26
Price to Book (P/B)1.62
Price to Sales (P/S)24.15
P/FCF Ratio-6.59
Enterprise Value/Market Cap-0.36
Enterprise Value/Revenue-1.92
Enterprise Value/Gross Profit-2.13
Enterprise Value/Ebitda0.33
Forecast
1Y Price Target
$24.40Price Target Upside407.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)-4.49
Revenue Forecast (FY)$18.98M
LENZ Therapeutics Business Overview & Revenue Model
Company Description
LENZ Therapeutics, Inc. is a biopharmaceutical firm whose primary mission involves the advancement and commercialization of new treatments designed to enhance vision for individuals in the United States. The company's portfolio features two invest...
LENZ Therapeutics Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call presented a mix of encouraging commercial signals and meaningful operational/financial challenges. Positive indicators include strong early patient persistence in the e‑pharmacy channel (60%+ repeat purchasers and mature cohorts trending to ~5 packs/year), a notable >45% month‑over‑month script lift in July after launching telehealth and national TV, expanding global partnerships and multiple regulatory submissions, and a strong cash balance (~$220M) with an expected high direct product gross margin (~90%). Offsetting these positives are modest product revenue ($1.7M) relative to high operating expenses (Q2 net loss $31.9M; SG&A $39.4M), limited retail channel pickup and visibility, and the caveat that July’s improvement is an early one‑month signal that may not yet represent a durable trend. Management emphasized discipline in capital allocation and a data‑driven reallocation of commercial spend to activities that demonstrably drive durable patient growth.Positive Updates
Strong Early Patient Persistence
More than 60% of e‑pharmacy patients who purchased VIZZ have purchased more than one multipack since launch; the more mature cohorts (Q4'25 and Q1'26) are tracking toward an average annualized purchase rate of ~5 monthly packs, with the Q4 cohort already slightly above 5 packs prior to one year.
Negative Updates
Modest Product Revenue Relative to Operating Spend
Product revenue was $1.7M in Q2 on ~27k monthly packs, while SG&A (total) was $39.4M, highlighting a large gap between early product sales and operating expenses.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Early Patient Persistence
More than 60% of e‑pharmacy patients who purchased VIZZ have purchased more than one multipack since launch; the more mature cohorts (Q4'25 and Q1'26) are tracking toward an average annualized purchase rate of ~5 monthly packs, with the Q4 cohort already slightly above 5 packs prior to one year.
Read all positive updates
Company Guidance
Management guided that it will use Q3 to evaluate which commercial activities drive durable patient growth and to allocate capital with discipline—concentrating investments on high‑impact initiatives while aligning spending to the scale of the business. Key metrics cited: a >45% month‑over‑month increase in scripts in July after launching telehealth and national TV (TV campaign began July 6); e‑pharmacy is the dominant channel (~60% of scripts) with >60% of e‑pharmacy patients buying more than one multipack and the Q4‑25/Q1‑26 cohorts tracking toward an annualized ~5 monthly packs; over 13,000 physicians have prescribed VIZZ ( >75% multiple prescribers) and VIZZ refill behavior (~42%) was highlighted versus VUITY’s peak (~10–12%). Financial guidance/benchmarks called out include Q2 results of $5.5M total revenue (≈$1.7M product revenue on ~27k monthly packs, +9% vs Q1; $3.8M license revenue), $300k cost of sales (targeting ~90% direct product gross margin over time), SG&A $39.4M ($34.9M adjusted, -14% QoQ), a Q2 net loss of $31.9M or $1.02/sh, ~$220M cash, five ex‑U.S. commercial partners covering >20 countries, and nine regulatory submissions under review with more expected by year‑end.LENZ Therapeutics Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
67
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.48M | 19.09M | 0.00 | 0.00 | 15.00M | 0.00 |
| Gross Profit | 19.36M | 18.38M | -58.00K | 0.00 | 15.00M | -734.00K |
| EBITDA | -125.54M | -81.34M | -49.71M | -70.13M | -10.46M | -70.03M |
| Net Income | -126.00M | -82.13M | -49.77M | -69.97M | -10.81M | -70.76M |
Balance Sheet | ||||||
| Total Assets | 236.60M | 305.88M | 215.30M | 70.38M | 46.95M | 18.34M |
| Cash, Cash Equivalents and Short-Term Investments | 220.00M | 292.35M | 209.03M | 65.79M | 44.44M | 18.31M |
| Total Debt | 122.00K | 815.00K | 1.38M | 329.00K | 250.00K | 0.00 |
| Total Liabilities | 17.33M | 21.54M | 11.22M | 163.09M | 71.12M | 32.55M |
| Stockholders Equity | 219.26M | 284.34M | 204.08M | -92.71M | -24.17M | -14.21M |
Cash Flow | ||||||
| Free Cash Flow | -114.42M | -70.00M | -59.86M | -60.41M | -94.57M | -58.59M |
| Operating Cash Flow | -113.91M | -69.17M | -59.39M | -60.38M | -87.98M | -52.85M |
| Investing Cash Flow | -23.23M | -75.67M | -154.48M | -29.62M | -241.86M | -5.74M |
| Financing Cash Flow | 123.62M | 149.75M | 199.00M | 80.70M | 597.00K | 417.47M |
LENZ Therapeutics Technical Analysis
Negative
4.81
Price Trends
4.59
Negative
5.39
Negative
9.00
Negative
Market Momentum
-0.32
Negative
36.38
Neutral
34.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LENZ, the sentiment is Negative. The current price of 4.81 is above the 20-day moving average (MA) of 3.89, above the 50-day MA of 4.59, and below the 200-day MA of 9.00, indicating a bearish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 34.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LENZ.
LENZ Therapeutics Risk Analysis
LENZ Therapeutics disclosed 59 risk factors in its most recent earnings report. LENZ 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
LENZ Therapeutics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $112.75M | -3.57 | -191.05% | ― | ― | 19.38% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $145.80M | -0.32 | 222.01% | ― | ― | ― | |
46 Neutral | $74.52M | -5.94 | -200.67% | ― | ― | -39.90% | |
45 Neutral | $114.53M | -0.89 | -53.39% | 89.01% | 329.50% | -114.98% | |
45 Neutral | $51.54M | -1.17 | -71.71% | ― | ― | 73.44% | |
42 Neutral | $55.28M | -2.37 | -53.14% | ― | ― | 54.84% |
* Healthcare Sector Average
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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.