LENZ Therapeutics (LENZ) Financials

LENZ Therapeutics Financial Analysis Overview (Last Four Years Ending Q2 2025)

LENZ Therapeutics, Inc. has exhibited consistent operational characteristics reflecting its status as a research-focused biopharmaceutical company. Here is a summary of the key financial trends and relevant data points from its quarterly financial statements over the past four years:

• Cash and Equivalents have remained robust, with $37.6 million reported in Q2 2025, supported by substantial short-term investments exceeding $171 million, indicating strong liquidity and capital reserves.
• Total Common Equity increased from approximately $204 million in Q4 2023 to $206 million in Q2 2025, reflecting stable book equity despite ongoing losses.
• Regular equity fundraises were evident, with issuance of common equity contributing significant financing: e.g., $26.3 million in Q2 2025, supporting ongoing operations and investments.
• The company regularly generates positive cash flows from investing activities linked to sales and maturities of investments, helping finance ongoing R&D and capital needs without heavy reliance on debt.

• LENZ Therapeutics' quarterly total revenues began to register in Q2 2025 with $5 million, compared with no revenues for prior quarters over the last several years, suggesting early commercial activities or milestone recognitions.
• Weighted average shares outstanding have fluctuated but generally increased due to common stock issuances, leading to diluted shares reported at around 28 million in Q2 2025.
• Non-cash adjustments and amortization expenses are significant and fluctuate quarter-to-quarter, impacting net income figures but not affecting cash flow directly.
• Selling, General & Administrative (SG&A) and Research & Development (R&D) expenses dominate expenditure lines, consistently totaling over $21 million in Q2 2025, reflecting the company's investment in pipeline and administrative activities.

• LENZ has recorded continuous net losses every quarter for the past four years. For instance, Q2 2025 consolidated net loss was $14.9 million and operating losses remain substantial, reflecting ongoing costs without offsetting revenues until very recently.
• Negative earnings trends have persisted despite slight revenue emergence, with Q2 2025 basic and diluted EPS both at -$0.53, indicating no profitability and dilution from share issuances.
• Operating cash flows have been negative in all recent quarters, reaching -$11.5 million in Q2 2025 and as low as -$23.9 million in early 2024, highlighting that cash burn persists and operational activities are not yet self-sustaining.
• The company's total liabilities remain manageable but include accrued expenses and accounts payable that reflect ongoing financial obligations; for example, total liabilities at $10.97 million in Q2 2025.

Summary: LENZ Therapeutics continues to operate at a net loss, typical for a company in advanced development or pre-commercial stages. Its financial position benefits from strong cash reserves and short-term investments, aided by equity financing, which supports ongoing expensive R&D efforts. The initiation of revenue recognition in 2025 Q2 may suggest approaching or nascent commercialization phases, but profitability and positive operating cash flows remain distant goals. Retail investors should consider the company's cash runway, progress in product development, and strategy for revenue growth when evaluating LENZ.