Lineage Cell Therapeutics (NYSEAMERICAN:LCTX) Posts Quarterly Earnings Results, Hits Estimates

Key Points

• Lineage Cell Therapeutics met earnings expectations, reporting a quarterly loss of $0.03 per share, but revenue of $1.07 million fell short of the $1.84 million consensus estimate.
• The company reported $50.8 million in cash and marketable securities, extending its projected cash runway into the third quarter of 2028. However, revenue declined year over year while research and development spending increased.
• Lineage’s pipeline advanced, with OpRegen still dependent on Roche and Genentech’s optimization work, COR1 entering in-vivo testing, and partnered program ReSonance progressing toward potential regulatory filings.

Lineage Cell Therapeutics (NYSEAMERICAN:LCTX - Get Free Report) released its earnings results on Thursday. The company reported ($0.03) earnings per share for the quarter, hitting the consensus estimate of ($0.03), FiscalAI reports. Lineage Cell Therapeutics had a negative net margin of 434.44% and a negative return on equity of 89.36%. The business had revenue of $1.07 million for the quarter, compared to the consensus estimate of $1.84 million.

Here are the key takeaways from Lineage Cell Therapeutics' conference call:

• Cash runway extended into Q3 2028: Lineage reported $50.8 million in cash, cash equivalents, and marketable securities, aided by a $4.6 million ATM raise. The company also cited potential additional funding from warrant exercises, Roche milestones, and future partnerships.
• OpRegen remains dependent on Roche/Genentech optimization work, particularly surgical delivery for the GAlette study, before a potential multicenter controlled trial. Lineage pointed to expanded study sites, EMA IRIS registration, and Roche’s conference activity as encouraging signals, but acknowledged these steps do not commit Roche to a European study or advancement.
• Lineage highlighted rapid expansion of its internally owned “Lineage 3.0” pipeline using the AlloSCOPE manufacturing platform. COR1 corneal endothelial cells are entering in vivo testing with initial data targeted by year-end, while the ILT1 diabetes program is focused on solving the large-scale islet manufacturing challenge.
• ReSonance, the auditory neuronal cell therapy partnered with Demant, has completed three engineering runs and its first GMP run, with release testing underway. Demant may fund up to $12 million of preclinical work intended to support an IND and/or CTA filing.
• Second-quarter revenue declined to $1.1 million from $2.8 million a year earlier, while R&D spending increased to $4.8 million as Lineage invested in preclinical programs. Reported net income of $1.5 million was primarily driven by a non-cash gain from warrant remeasurement rather than operating performance.

Lineage Cell Therapeutics Price Performance

Shares of LCTX stock traded down $0.01 on Thursday, hitting $1.13. The company's stock had a trading volume of 711,637 shares, compared to its average volume of 999,886. The stock has a market capitalization of $281.71 million, a price-to-earnings ratio of -3.90 and a beta of 1.53. Lineage Cell Therapeutics has a fifty-two week low of $0.95 and a fifty-two week high of $2.09. The firm's fifty day moving average price is $1.21 and its 200-day moving average price is $1.45.

Institutional Trading of Lineage Cell Therapeutics

Institutional investors and hedge funds have recently made changes to their positions in the stock. Jump Financial LLC acquired a new position in shares of Lineage Cell Therapeutics during the 2nd quarter valued at about $28,000. DLD Asset Management LP acquired a new position in Lineage Cell Therapeutics during the fourth quarter valued at approximately $33,000. Qube Research & Technologies Ltd bought a new position in shares of Lineage Cell Therapeutics in the second quarter valued at approximately $35,000. Hudson Bay Capital Management LP acquired a new stake in shares of Lineage Cell Therapeutics in the second quarter worth $44,000. Finally, Kestra Advisory Services LLC boosted its holdings in shares of Lineage Cell Therapeutics by 174.7% during the 4th quarter. Kestra Advisory Services LLC now owns 27,747 shares of the company's stock worth $46,000 after buying an additional 17,647 shares during the period. Institutional investors and hedge funds own 62.47% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on LCTX. HC Wainwright restated a "buy" rating on shares of Lineage Cell Therapeutics in a research report on Tuesday, July 14th. D. Boral Capital reaffirmed a "buy" rating and set a $3.00 price objective on shares of Lineage Cell Therapeutics in a research report on Monday, May 4th. Finally, Canaccord Genuity Group began coverage on shares of Lineage Cell Therapeutics in a research report on Tuesday, April 28th. They issued a "buy" rating and a $9.00 target price for the company. Four equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $6.25.

About Lineage Cell Therapeutics

Lineage Cell Therapeutics is a clinical-stage biotechnology company developing novel, allogeneic cell therapies built on pluripotent stem cell platforms. The company focuses on three primary therapeutic areas—retinal disease, neural repair and immune-effector cell oncology—leveraging its proprietary manufacturing processes to create off-the-shelf cell therapy candidates designed for broad patient populations.

Its lead candidate, OpRegen, comprises retinal pigment epithelium cells intended to slow or reverse vision loss in patients with geographic atrophy secondary to age-related macular degeneration.

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