Foghorn Therapeutics Inc. (FHTX) AI Stock Analysis

Foghorn Therapeutics Inc. is an advanced-stage biopharmaceutical company specializing in the discovery and development of therapies that target genetically determined dependencies within the chromatin regulatory system. Leveraging its Gene Traffic Control platform, the company identifies, validates, and drugs targets to address challenging medical conditions. Its pipeline includes FHD-286, a small molecule inhibitor of BRG1 and BRM being studied for metastatic uveal melanoma, acute myeloid leukemia, and myelodysplastic syndrome. It also develops FHD-609, a protein degrader aimed at BRD9 for synovial sarcoma, along with selective modulators of BRM and ARID1B. Foghorn collaborates with Merck Sharp & Dohme Corp. and Loxo Oncology.

Foghorn's annual revenue grew from $1.3M in FY2021 to $19.2M in FY2022 and $34.2M in FY2023, before dropping 33.8% to $22.6M in FY2024. In FY2025, revenue recovered by 36.8% to $30.9M, supported by an 89.2% gross margin, but operating margin remained negative at -265.6% and net income was -$74.3M. R&D expense was $85.5M in FY2025. Over the trailing twelve months, revenue reached $36.7M with an operating margin of -54.8% and a net profit margin of -175.8%. For the latest quarter ended June 30, 2026, quarterly revenue grew 112.7% year-over-year.

As of June 30, 2026, Foghorn held $167.6M in cash and short-term investments against $43.1M in total debt, yielding net cash of $124.5M and a current ratio of 3.36. Total assets were $203.4M, while shareholders' equity stood at -$81.0M. Operating cash flow in FY2025 was -$86.1M, matching free cash flow of -$86.1M after $50,000 in capital expenditures. Share count increased by 91.0% over five years.

FHTX closed at $1.85 on October 16, 2026, representing a market capitalization of $109.9M and an enterprise value of $105.3M. The stock trades at a price-to-sales multiple of 3.0x and an EV-to-revenue ratio of 2.9x, compared to a median price-to-sales of 4.1x for its US-listed Healthcare peers. Over the past year, FHTX dropped 57.1%, while the S&P 500 (SPY) returned 16.8%. Over five years, the stock returned -85.1% compared to an 83.0% gain for the benchmark.

Ten analysts cover Foghorn Therapeutics, with 5 Strong Buy and 5 Hold ratings. The mean price target is $4.17, which is 125.2% above the last close of $1.85. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $28.7M and an EPS of -$0.93. For the next fiscal year, 8 analysts project revenue to fall 62.4% to $10.8M, with an EPS of -$1.03. Foghorn beat EPS estimates in 3 of the last 4 quarters, with its next earnings release scheduled for November 4, 2026.

This page is an AI-written research summary of Foghorn Therapeutics Inc. (FHTX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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