Lineage Cell Therapeutics Inc. Common Stock (LCTX)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach a clinical-stage biotech like Lineage with Graham's caution. The company is developing cell replacement therapies, with OpRegen and OPC1 still in trials, and just 72 employees. There is no approved product, so there is no durable revenue stream, no demonstrated pricing power, and no clear moat. In fiscal 2025, the year ended 2025-12-31, revenue was $14.6 million, while net loss was $63.5 million; in fiscal 2024, the year ended 2024-12-31, revenue was $9.5 million and net loss $18.6 million. The latest reported quarter, fiscal Q2 2026, the quarter ended 2026-06-30, showed revenue of $1.1 million and net income of $1.5 million, but diluted EPS was still negative $0.03, and the prior quarter, fiscal Q1 2026, the quarter ended 2026-03-31, had a $4.8 million net loss. Trailing free cash flow is negative $24.4 million, a negative 10.6% FCF yield. The balance sheet shows low debt, D/E 0.04, but Altman Z-score of -2.98 and Piotroski F-score of 3/9 signal financial fragility. FairStock's ROE is -60.06% and ROCE is -17.04%, confirming poor returns on capital. At the 2026-10-13 close of $0.91, FairStock's P/B is 3.79, and with no positive earnings, P/E is -4.79. The market cap of $230.1 million against fiscal 2025 revenue of $14.6 million is about 16 times sales. That is not a bargain for a loss-making trial-stage company, even at $0.91, near the 52-week low. The upside depends entirely on trial results and financing. I prefer businesses with proven earning power and a margin of safety; here the margin of safety is not visible in the numbers.

In plain English: Lineage Cell Therapeutics is a small medical research company working on cell replacement therapies; it has no approved products and has lost money each year. Revenue in fiscal Q2 2026, the quarter ended 2026-06-30, was $1.1 million, down from $2.8 million in fiscal Q2 2025, the quarter ended 2025-06-30, and yearly losses have been large. At the 2026-10-13 close of $0.91 a share, the price looks risky rather than cheap, because the company depends on clinical trials and future financing.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer