📊 FATE Key Takeaways
Is FATE a Good Investment? Thesis Analysis
FATE is a pre-revenue stage biotech company burning significant cash (-$106.1M operating CF) with collapsing revenues (-51.2% YoY) and extreme negative margins exceeding -2000%. The company faces a critical cash runway issue despite adequate liquidity, requiring substantial additional funding or clinical/commercial success to remain viable.
Why Buy FATE? Key Strengths
- Strong liquidity position with 5.79x current ratio and $46.6M cash on hand
- Relatively low leverage with 0.07x debt-to-equity ratio providing financial flexibility
- Moderate long-term debt burden of only $14.0M limits near-term refinancing pressure
FATE Investment Risks to Consider
- Severe cash burn of $112.1M free cash flow with only ~5 quarters of cash runway at current burn rate
- Revenue collapse of 51.2% YoY indicating clinical/commercial development setbacks or failed pipeline programs
- Persistent unprofitability with operating losses of $147.7M and negative 2222% operating margin reflects fundamental business model challenges
- Dilution risk from required capital raises to fund continued R&D and operations
Key Metrics to Watch
- Quarterly cash burn trends and cash runway to next major catalysts
- Revenue trends - stabilization or further deterioration signals pipeline success/failure
- Operating cash flow and path to profitability timeline from management guidance
- Clinical trial progress and regulatory milestones for lead programs
FATE Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 5.79x current ratio provides a solid financial cushion.
FATE Profitability Ratios
FATE vs Healthcare Sector
How FATE THERAPEUTICS INC compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FATE Overvalued or Undervalued?
Based on fundamental analysis, FATE 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.
FATE Balance Sheet & Liquidity
FATE 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: FATE THERAPEUTICS INC's revenue has declined by 76% over the 5-year period, indicating business contraction. The most recent EPS of $-1.64 indicates the company is currently unprofitable.
FATE Growth Metrics (YoY)
FATE Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.7M | -$32.3M | $-0.27 |
| Q2 2025 | $1.9M | -$34.1M | $-0.29 |
| Q1 2025 | $1.6M | -$37.6M | $-0.32 |
| Q3 2024 | $1.9M | -$18.9M | $-0.40 |
| Q2 2024 | $933.0K | -$18.9M | $-0.33 |
| Q1 2024 | $1.9M | -$18.9M | $-0.19 |
| Q3 2023 | $1.9M | -$18.9M | $-0.46 |
| Q2 2023 | $933.0K | -$18.9M | $-0.54 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FATE Capital Allocation
FATE SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for FATE THERAPEUTICS INC (CIK: 0001434316)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FATE
What is the AI rating for FATE?
FATE THERAPEUTICS INC (FATE) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FATE's key strengths?
Claude: Strong liquidity position with 5.79x current ratio and $46.6M cash on hand. Relatively low leverage with 0.07x debt-to-equity ratio providing financial flexibility.
What are the risks of investing in FATE?
Claude: Severe cash burn of $112.1M free cash flow with only ~5 quarters of cash runway at current burn rate. Revenue collapse of 51.2% YoY indicating clinical/commercial development setbacks or failed pipeline programs.
What is FATE's revenue and growth?
FATE THERAPEUTICS INC reported revenue of $6.6M.
Does FATE pay dividends?
FATE THERAPEUTICS INC does not currently pay dividends.
Where can I find FATE SEC filings?
Official SEC filings for FATE THERAPEUTICS INC (CIK: 0001434316) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FATE's EPS?
FATE THERAPEUTICS INC has a diluted EPS of $-1.15.
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 FATE a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, FATE THERAPEUTICS INC has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FATE stock overvalued or undervalued?
Valuation metrics for FATE: ROE of -65.8% (sector avg: 15%), net margin of -2,051.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FATE stock in 2026?
Our dual AI analysis gives FATE 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 FATE's free cash flow?
FATE THERAPEUTICS INC's operating cash flow is $-106.1M, with capital expenditures of $6.0M. FCF margin is -1,685.8%.
How does FATE compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -2,051.1% (avg: 12%), ROE -65.8% (avg: 15%), current ratio 5.79 (avg: 2).