📊 FHTX Key Takeaways
Is Foghorn Therapeutics Inc. (FHTX) a Good Investment?
Foghorn Therapeutics faces severe financial distress with negative stockholders' equity of -$108.5M, indicating liabilities exceed assets by a substantial margin. Despite 36.8% revenue growth, the company burns significant cash with operating losses of -$86.4M and free cash flow of -$86.1M, unsustainable without substantial capital raises or pivotal clinical successes. The negative gross margin environment combined with an accelerating cash burn rate threatens viability if revenue growth cannot rapidly expand or operating expenses are not dramatically reduced.
Foghorn Therapeutics shows some top-line growth, but the quality of that growth is weak relative to its cost structure: revenue of $30.91M is overwhelmed by operating losses of $86.39M and free cash flow burn of $86.15M. The balance sheet is a major concern, with negative stockholders' equity of $108.50M and cash of $80.88M that does not fully cover the recent annual cash burn, although the lack of long-term debt provides limited flexibility.
Why Buy Foghorn Therapeutics Inc. Stock? FHTX Key Strengths
- Revenue growth of 36.8% year-over-year indicates expanding commercial traction
- Adequate current liquidity ratio of 2.73x with $80.9M cash available
- Net loss improving by 14.2% YoY suggests some operational leverage emerging
- Revenue grew 36.8% year over year, indicating continued partnership or program-related inflows
- Current and quick ratios of 2.73x suggest acceptable near-term liquidity
- No long-term debt reduces financial strain from interest and refinancing risk
FHTX Stock Risks: Foghorn Therapeutics Inc. Investment Risks
- Negative stockholders' equity of -$108.5M indicates technical insolvency and balance sheet impairment
- Operating cash burn of -$86.1M annually with only $80.9M cash runway approximately 11-12 months
- Negative operating margin of -279.5% and negative gross margin suggest business model not yet viable at scale
- No long-term debt cushion; company dependent on equity financing or revenue acceleration for survival
- Operating losses (-$86.4M) far exceed revenue ($30.9M), indicating unprofitable operations cannot sustain without external capital
- Operating margin of -279.5% and net margin of -240.3% show an unsustainably unprofitable business model
- Negative stockholders' equity of $-108.50M signals a highly stressed capital structure
- Operating cash outflow of $86.10M versus cash of $80.88M raises significant funding and dilution risk
Key Metrics to Watch
- Cash runway and burn rate trajectory - critical for survival assessment
- Path to gross margin breakeven and operating profitability timeline
- Revenue growth sustainability and pipeline advancement for clinical programs
- Quarterly operating cash burn relative to cash and equivalents
- Revenue durability and whether operating losses narrow meaningfully
Foghorn Therapeutics Inc. (FHTX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.73x current ratio provides a solid financial cushion.
FHTX Profit Margin, ROE & Profitability Analysis
FHTX vs Healthcare Sector: How Foghorn Therapeutics Inc. Compares
How Foghorn Therapeutics Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Foghorn Therapeutics Inc. Stock Overvalued? FHTX Valuation Analysis 2026
Based on fundamental analysis, Foghorn Therapeutics Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Foghorn Therapeutics Inc. Balance Sheet: FHTX Debt, Cash & Liquidity
FHTX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Foghorn Therapeutics Inc.'s revenue has grown significantly by 2,243% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.58 indicates the company is currently unprofitable.
FHTX Revenue Growth, EPS Growth & YoY Performance
FHTX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $7.8M | -$15.8M | $-0.25 |
| Q2 2025 | $6.9M | -$17.9M | $-0.28 |
| Q1 2025 | $5.1M | -$18.8M | $-0.30 |
| Q3 2024 | $7.8M | -$14.3M | $-0.31 |
| Q2 2024 | $5.6M | -$23.0M | $-0.45 |
| Q1 2024 | $5.1M | -$25.0M | $-0.59 |
| Q3 2023 | $6.6M | -$14.3M | $-0.34 |
| Q2 2023 | $4.5M | -$26.9M | $-0.66 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Foghorn Therapeutics Inc. Dividends, Buybacks & Capital Allocation
FHTX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Foghorn Therapeutics Inc. (CIK: 0001822462)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FHTX
What is the AI rating for FHTX?
Foghorn Therapeutics Inc. (FHTX) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 90% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FHTX's key strengths?
Claude: Revenue growth of 36.8% year-over-year indicates expanding commercial traction. Adequate current liquidity ratio of 2.73x with $80.9M cash available. ChatGPT: Revenue grew 36.8% year over year, indicating continued partnership or program-related inflows. Current and quick ratios of 2.73x suggest acceptable near-term liquidity.
What are the risks of investing in FHTX?
Claude: Negative stockholders' equity of -$108.5M indicates technical insolvency and balance sheet impairment. Operating cash burn of -$86.1M annually with only $80.9M cash runway approximately 11-12 months. ChatGPT: Operating margin of -279.5% and net margin of -240.3% show an unsustainably unprofitable business model. Negative stockholders' equity of $-108.50M signals a highly stressed capital structure.
What is FHTX's revenue and growth?
Foghorn Therapeutics Inc. reported revenue of $30.9M.
Does FHTX pay dividends?
Foghorn Therapeutics Inc. does not currently pay dividends.
Where can I find FHTX SEC filings?
Official SEC filings for Foghorn Therapeutics Inc. (CIK: 0001822462) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FHTX's EPS?
Foghorn Therapeutics Inc. has a diluted EPS of $-1.18.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FHTX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Foghorn Therapeutics Inc. has a STRONG SELL rating with 90% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FHTX stock overvalued or undervalued?
Valuation metrics for FHTX: ROE of N/A (sector avg: 15%), net margin of -240.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FHTX stock in 2026?
Our dual AI analysis gives Foghorn Therapeutics Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FHTX's free cash flow?
Foghorn Therapeutics Inc.'s operating cash flow is $-86.1M, with capital expenditures of $50.0K. FCF margin is -278.7%.
How does FHTX compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -240.3% (avg: 12%), ROE N/A (avg: 15%), current ratio 2.73 (avg: 2).