LAVA Therapeutics (LVTX) AI Stock Analysis

• Market Cap: $38.93M
• Dividend Yield: N/A
• Average Volume (3M): 430.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: -32.55%
• EPS Growth: -15.83%
• Country: US
• Employees: 34
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.32
• Shares Outstanding: 26,305,296
• 10 Day Avg. Volume: 419,635
• 30 Day Avg. Volume: 430,902
• 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: -0.53
• Enterprise Value/Revenue: -4.14
• Enterprise Value/Gross Profit: 1.04
• Enterprise Value/Ebitda: 0.80
• 1Y Price Target: $1.37
• Price Target Upside: -14.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 44 Neutral
• Price Target: $1.50 ▼(-6.83% Downside)

LAVA Therapeutics' overall stock score is primarily impacted by its weak financial performance, characterized by persistent losses and cash flow challenges. While technical indicators show some positive trends, the company's negative valuation metrics further weigh down the score.

Positive Factors

Strategic Partnerships

LAVA's focus on forming strategic partnerships can provide stable revenue streams through milestone payments and royalties, enhancing long-term financial stability.

Innovative Platform

The proprietary Gammabody platform positions LAVA as a leader in innovative cancer treatments, potentially driving future growth and competitive advantage in oncology.

Acquisition by XOMA

The acquisition by XOMA could provide LAVA with additional resources and market reach, potentially accelerating the development and commercialization of its therapies.

Negative Factors

Negative Cash Flow

Persistent negative cash flow highlights inefficiencies in operations, potentially limiting LAVA's ability to invest in R&D and sustain long-term growth.

Declining Stockholders' Equity

Declining equity indicates financial instability, which could hinder LAVA's ability to secure financing and invest in future growth opportunities.

Erratic Revenue Growth

Inconsistent revenue growth reflects challenges in market penetration and product adoption, potentially impacting LAVA's long-term financial performance.

LAVA Therapeutics Business Overview & Revenue Model

Company Description

LAVA Therapeutics (LVTX) is a biotechnology company focused on developing innovative treatments for cancer through its proprietary Gammabody platform, which leverages the unique properties of gamma delta T cells. The company specializes in advancing bispecific antibody therapies designed to enhance the immune system's ability to target and destroy cancer cells. LAVA operates primarily in the biopharmaceutical sector, concentrating on oncology and immunotherapy.

How the Company Makes Money

LAVA Therapeutics generates revenue primarily through the development of its therapeutic candidates, which may include milestone payments from partnerships and collaborations with larger pharmaceutical companies. The company seeks to establish strategic alliances that can provide upfront payments, research funding, and royalties on future sales of products developed using its technologies. Additionally, successful clinical trials may lead to partnerships with larger entities looking to commercialize effective treatments. The company's revenue model is further supported by potential grants and funding from governmental and non-governmental organizations interested in advancing cancer therapies.

LAVA Therapeutics Financial Statement Overview

Summary

LAVA Therapeutics is facing significant financial challenges typical of many biotechnology firms in their growth phase. The company has erratic revenue growth, consistently negative net income, and negative cash flows, indicating ongoing operational challenges and inefficiencies.

Income Statement

LAVA Therapeutics has shown erratic revenue growth, with a drop from 2022 to 2023 followed by a recovery in 2024. However, the company has consistently reported negative net income, leading to negative net profit margins. The EBIT and EBITDA margins are also negative, indicating ongoing operational challenges. Despite a gross profit margin that is positive, the firm struggles to control costs and generate profit.

Balance Sheet

The debt-to-equity ratio has been relatively low, indicating conservative use of debt. However, the stockholders' equity has been declining, and the equity ratio is decreasing, suggesting weakening financial stability. The return on equity remains negative, reflecting the company's inability to generate profit from shareholders' funds.

Cash Flow

Operating cash flow has been negative, though there was a slight improvement in 2024. Free cash flow remains negative, indicating that the company is struggling to generate cash from operations after capital expenditures. The free cash flow to net income ratio is poor, highlighting inefficiencies in converting revenue into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.99M	11.98M	6.77M	19.39M	5.35M	3.75M
Gross Profit	-19.89M	11.98M	3.29M	19.39M	5.35M	-11.95M
EBITDA	-25.76M	-23.50M	-40.53M	-30.88M	-41.02M	-14.65M
Net Income	-28.38M	-25.11M	-41.97M	-31.91M	-42.35M	-15.93M
Balance Sheet
Total Assets	60.55M	80.83M	101.71M	143.43M	157.87M	25.16M
Cash, Cash Equivalents and Short-Term Investments	56.17M	76.58M	95.57M	132.87M	151.01M	19.43M
Total Debt	0.00	5.28M	6.31M	5.45M	5.52M	5.01M
Total Liabilities	40.61M	53.09M	50.53M	57.38M	23.67M	15.80M
Stockholders Equity	19.93M	27.75M	51.18M	86.04M	134.19M	9.36M
Cash Flow
Free Cash Flow	-21.78M	-19.57M	-41.01M	3.46M	-33.34M	-9.81M
Operating Cash Flow	-21.76M	-19.54M	-38.97M	4.04M	-32.48M	-9.31M
Investing Cash Flow	24.08M	12.47M	-17.64M	9.35M	-49.37M	-502.00K
Financing Cash Flow	-574.00K	-569.00K	-571.00K	283.00K	171.37M	18.97M

LAVA Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LVTX, the sentiment is Positive. The current price of 1.61 is above the 20-day moving average (MA) of 1.56, above the 50-day MA of 1.55, and above the 200-day MA of 1.32, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 88.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LVTX.

LAVA Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XLO	54 Neutral	$38.52M	―	-277.74%	―	536.44%	63.68%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
RNXT	49 Neutral	$42.14M	―	-107.11%	―	―	38.12%
ELUT	45 Neutral	$37.76M	―	―	―	-5.22%	82.06%
LVTX	44 Neutral	$38.93M	―	-90.07%	―	-32.55%	-15.83%
OKUR	42 Neutral	$37.61M	―	-90.56%	―	―	68.13%
BCAB	35 Underperform	$36.06M	―	-813.88%	―	―	49.48%

LAVA Therapeutics Corporate Events

LAVA Therapeutics Amends Share Purchase Agreement

On October 17, 2025, LAVA Therapeutics N.V. and XOMA Royalty Corporation announced an amendment to their share purchase agreement, affecting the tender offer for LAVA’s shares. The amendment reduces the cash amount per share and introduces a contingent value right (CVR) with potential cash payments based on future proceeds from LAVA’s assets. The minimum net-cash closing condition was also lowered, and the offer’s expiration was extended to November 12, 2025. The amendment reflects current understandings of potential liabilities and expected cash balances, impacting LAVA’s shareholders and the company’s strategic positioning.

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

LAVA Therapeutics Extends Tender Offer Deadline

On October 2, 2025, LAVA Therapeutics and XOMA Royalty Corporation announced the extension of the tender offer expiration to purchase all outstanding shares of LAVA. Initially set to expire on October 3, 2025, the offer is now extended to October 17, 2025. The acquisition is expected to close in the fourth quarter of 2025, subject to customary conditions, with LAVA shareholders supporting the offer. The transaction aims to result in XOMA Royalty acquiring 100% of LAVA’s shares, with implications for LAVA’s business operations and shareholder value.

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

LAVA Therapeutics Postpones EGM for XOMA Deal

On September 30, 2025, LAVA Therapeutics announced the cancellation of its Extraordinary General Meeting (EGM) initially scheduled for the same day, which was intended to discuss a transaction with XOMA Royalty Corporation. The meeting will be rescheduled for early November 2025 to allow further discussions on the transaction’s terms, including cash forecasts and shareholder considerations. This delay aims to address potential liabilities and confirm the net cash to be delivered to shareholders, with the acquisition expected to close in the fourth quarter of 2025.

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

Lava Therapeutics Reports Q2 2025 Financial Results

Lava Therapeutics N.V. is a clinical-stage immuno-oncology company based in the Netherlands, specializing in the development of bispecific gamma delta T cell engagers for cancer treatment. The company recently released its earnings report for the second quarter of 2025, highlighting strategic shifts and financial performance. Key points from the report include a restructuring plan aimed at extending capital resources, a decrease in revenue compared to the previous year, and a significant reduction in operating expenses. The company also reported a net loss of $8.6 million for the quarter, with cash and cash equivalents standing at $26.4 million. Looking ahead, Lava Therapeutics is focused on executing strategic alternatives to enhance shareholder value, while continuing to advance its partnered programs with Johnson & Johnson and Pfizer.

LAVA Therapeutics Announces Acquisition by XOMA Corporation

On August 13, 2025, LAVA Therapeutics announced its acquisition by XOMA Royalty Corporation, with the transaction expected to close in the fourth quarter of 2025. The acquisition, valued at between $1.16 and $1.24 per share, includes a contingent value right related to LAVA’s partnered and unpartnered programs. Additionally, LAVA has decided to discontinue the development of its LAVA-1266 program for acute myeloid leukemia and myelodysplastic syndrome, reflecting a strategic shift in its operations. The company reported a net loss of $8.6 million for the second quarter of 2025, with decreased research and development expenses due to restructuring activities.

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

LAVA Therapeutics Agrees to Acquisition by XOMA

On August 3, 2025, LAVA Therapeutics entered into a share purchase agreement with XOMA Royalty Corporation, whereby XOMA will acquire all of LAVA’s outstanding shares through a tender offer. The acquisition, valued between $1.16 and $1.24 per share, includes a contingent value right for potential future payments. LAVA’s Board has endorsed the transaction, considering it beneficial for shareholders and stakeholders. Following the acquisition, LAVA will undergo a corporate reorganization, resulting in it no longer being publicly traded, and its shares will be delisted from Nasdaq. The transaction is expected to close in the fourth quarter of 2025, and LAVA plans to discontinue its Phase 1 clinical trial of LAVA-1266.

The most recent analyst rating on (LVTX) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on LAVA Therapeutics stock, see the LVTX Stock Forecast page.

Lava Therapeutics’ LAVA-1207 Study Terminated: Implications for Investors

Study Overview: Lava Therapeutics Nv recently updated its clinical study titled A Phase 1 Open-label Trial to Evaluate the Safety, Tolerability, PK, PD, Immunogenicity, and Antitumor Activity of LAVA-1207, a PSMA-targeting Bispecific γδ-T Cell Engager, Alone or With Low Dose Interleukin-2 or Pembrolizumab, in Patients With Therapy Refractory mCRPC. The study aimed to assess the safety and effectiveness of LAVA-1207 in treating metastatic castration-resistant prostate cancer (mCRPC) that is resistant to therapy. This study holds significance as it explores a novel treatment avenue for a challenging cancer type.