Breaking Down Precision BioSciences, Inc. (DTIL) Financial Health: Key Insights for Investors

You're looking at Precision BioSciences, Inc. (DTIL) and seeing the classic biotech dilemma: a zero-revenue profile against a high-potential pipeline. The company's third quarter 2025 financials were a tough read, with total revenue coming in at less than $0.1 million, a significant miss, and the net loss widening to $21.8 million. That kind of cash burn is a serious headwind, so your focus needs to shift entirely to the balance sheet and the clinic. Here's the quick math: the company reported approximately $71.2 million in cash, cash equivalents, and restricted cash as of September 30, 2025. But, to be fair, they recently announced a $75 million capital raise in November 2025, which is defintely a huge dilution event but pushes their cash runway into the second half of 2027. The real action is in the clinical updates, like the positive Phase 1 data for PBGENE-HBV presented in November, because a clinical breakthrough is the only thing that changes this financial equation. The risk is clear-a high burn rate-but the opportunity is a clinical breakthrough.

Revenue Analysis

The direct takeaway for Precision BioSciences, Inc. (DTIL) is a dramatic year-over-year reduction in top-line revenue for the 2025 fiscal year, driven by the planned conclusion of major collaboration agreements. The company's primary revenue stream is not product sales but rather revenue recognized from these strategic collaboration and license agreements (a common model in early-stage biotechnology).

This business model means revenue is lumpy and dependent on achieving milestones or completing services. For example, in the third quarter of 2025, total revenue was less than $0.1 million. This is a severe drop from the $0.6 million reported in the third quarter of 2024, primarily due to less billable effort under the Novartis Agreement as pre-clinical work winds down. The second quarter of 2025 showed a similar trend, with revenue of less than $0.1 million compared to a substantial $49.9 million in Q2 2024; that prior-year spike was largely a non-cash recognition of $48.2 million in deferred revenue from the concluded Prevail Therapeutics Agreement. That's a massive, expected swing.

Here's the quick math on the quarterly decline, which illustrates the transitional nature of their revenue:

For the full 2025 fiscal year, the consensus revenue forecast is approximately $22.1 million. Compared to the $68.70 million reported for the full year 2024, this represents an expected year-over-year revenue decline of about -67.83%. This sharp decrease is a deliberate consequence of the company's strategic pivot to focus resources on its wholly-owned in vivo gene editing pipeline, specifically the PBGENE-HBV and PBGENE-DMD programs, rather than on external collaborations. The revenue stream is shrinking, but the focus is on a higher-value, internal pipeline.

Still, near-term revenue opportunities exist. For instance, Precision BioSciences, Inc. expects to receive an $8 million milestone payment from its partner Imagine in the fourth quarter of 2025, tied to the progress of the allogeneic CAR T cell therapy, Azer-cel. This type of milestone payment is the core of their current revenue model. To understand the institutional conviction behind this strategic shift, you should read Exploring Precision BioSciences, Inc. (DTIL) Investor Profile: Who's Buying and Why?

• Revenue source is almost exclusively from collaboration agreements.
• 2025 revenue is in a steep, planned decline (consensus down -67.83% YoY).
• The decrease is due to the conclusion of the Prevail, TG Therapeutics, and Caribou Biosciences agreements.
• The business is shifting to wholly-owned clinical programs (PBGENE-HBV, PBGENE-DMD).
• Near-term revenue is dependent on milestone payments, like the expected $8 million from Imagine in Q4 2025.

Profitability Metrics

The financial health of Precision BioSciences, Inc. (DTIL) in the 2025 fiscal year is typical for a clinical-stage biotechnology company: revenue is minimal, and profitability ratios are deeply negative due to high research and development (R&D) spend. Your investment thesis here must focus on pipeline progress, not near-term earnings.

For the third quarter ended September 30, 2025, Precision BioSciences, Inc. reported total revenue of just $0.01 million. The resulting net loss for the quarter was $21.8 million. This massive disparity is the single most important number to understand.

Here's the quick math on the key profitability margins for Q3 2025:

• Gross Profit Margin: Approximately 100%. Revenue for clinical-stage biotechs often comes from collaboration and license agreements, which generally have no associated Cost of Goods Sold (COGS), so Gross Profit equals Revenue.
• Operating Profit Margin: Approximately -206,900%. The operating loss was roughly $20.69 million (Revenue of $0.01M minus R&D of $13.4M and G&A of $7.3M). This margin is extremely negative, showing the burn rate relative to current revenue.
• Net Profit Margin: Approximately -218,000%. The Net Loss of $21.8 million against the minimal revenue drives this astronomical negative percentage.

This isn't a sign of poor management; it's the financial model of a company focused on drug development. They are investing heavily in their proprietary ARCUS® genome editing platform. You're paying for future cures, not current cash flow. For a deeper look at the long-term strategy, check out the Mission Statement, Vision, & Core Values of Precision BioSciences, Inc. (DTIL).

Trends and Operational Efficiency

The trend in profitability is volatile, driven by the timing of collaboration revenue recognition. For example, Q1 2024 saw a net income of $8.6 million compared to a net loss of $20.6 million in Q1 2025. This shift was due to Q1 2025 total revenues being less than $0.1 million, a sharp drop from $17.6 million in Q1 2024. This isn't a sustainable revenue stream yet, so the focus shifts to cost management.

To be fair, the company is showing some fiscal discipline. General and Administrative (G&A) expenses actually decreased to $7.3 million in Q3 2025, down from $8.8 million in the year-ago quarter, primarily due to reduced employee-related costs. Still, Research and Development (R&D) expenses increased to $13.4 million in Q3 2025, up from $13.1 million in Q3 2024, driven by the advancement of the PBGENE-DMD program. That R&D increase is a necessary cost of doing business in this industry.

Industry Comparison: A Sobering Reality

Comparing Precision BioSciences, Inc.'s margins to the broader industry shows that its financial structure is not an anomaly, but rather the norm for clinical-stage biotechs.

The average profitability for the Biotechnology industry as of November 2025 paints a clear picture of the sector's risk profile.

Precision BioSciences, Inc.'s gross margin is defintely higher than the industry average of 86.3%, which reflects that their minimal revenue is nearly pure profit from licensing and collaboration with no COGS. However, its Net Profit Margin of roughly -218,000% is significantly more negative than the industry average Net Profit Margin of -177.1%. This simply means that their R&D and G&A expense base is very large relative to the small, lumpy revenue they are currently generating. The company is in a capital-intensive race to clinical data readouts, which is the only thing that will change these negative margins.

The consensus for the full fiscal year 2025 is a Net Loss per share of -$4.57 on an estimated revenue of $22.1 million. This forecast suggests that while revenue is expected to pick up in Q4 2025, the company will remain deeply unprofitable as it pushes its two lead wholly owned programs, PBGENE-HBV and PBGENE-DMD, toward Phase 1 data readouts in 2026.

Next Step: Portfolio Managers should model the probability of a successful Phase 1 data readout for PBGENE-DMD and PBGENE-HBV, as that is the primary driver of future valuation, not the current negative margins.

Debt vs. Equity Structure

You need to know how Precision BioSciences, Inc. (DTIL) funds its operations because that tells you about its risk profile and future dilution potential. The direct takeaway is that the company operates with a significantly higher leverage ratio than its peers, but it is actively prioritizing equity funding to fuel its clinical pipeline, which is typical for a clinical-stage biotech.

As of the most recently reported quarter in 2025, Precision BioSciences, Inc.'s total debt stood at $29.13 million. Here's a quick math breakdown of the debt composition:

• Long-Term Debt (Q2 2025): $22.35 million
• Short-Term Debt (Inferred MRQ): Approximately $6.78 million (The difference between total and long-term debt)

The majority of the company's debt is long-term, which is a bit better for cash flow management, but still represents a fixed obligation that must be serviced as they continue to burn cash on research and development (R&D).

The Debt-to-Equity (D/E) ratio is what really jumps out. This ratio measures the proportion of a company's assets financed by debt versus shareholder equity. Precision BioSciences, Inc.'s D/E ratio is currently at 175.11% (or 1.75). To be fair, this is a high leverage position. The average D/E ratio for the broader Biotechnology sector is often cited around 0.17, though some models place it higher, around 1.377. Either way, Precision BioSciences, Inc.'s ratio of 1.75 shows a greater reliance on debt relative to its equity base than most of its peers.

Honstly, for a clinical-stage biotech, a high D/E ratio is a major risk indicator, but it's not an automatic death sentence. It simply means the company has less of a buffer if clinical trials fail or if the market turns sour. Biotech firms, particularly those in the gene-editing space, often rely heavily on equity funding (selling stock) since their assets are largely intangible-intellectual property (IP) and pipeline programs-which makes traditional debt financing harder to secure.

The company's recent actions defintely confirm this preference for equity. In November 2025, Precision BioSciences, Inc. announced a $75 million offering of common stock and warrants. This is a massive injection of equity capital, not debt. It shows a clear strategy to fund the clinical development of their lead programs, like PBGENE-HBV and PBGENE-DMD, by diluting existing shareholders rather than taking on more interest-bearing debt. This move is a double-edged sword: it shores up the balance sheet with non-repayable capital, but it also increases the share count, which can weigh on future earnings per share (EPS).

Here's the quick map of their capital structure:

What this estimate hides is that the $75 million in equity funding is a one-time event that will significantly lower the D/E ratio when it hits the balance sheet, providing a much-needed runway into the second half of 2027. To understand the full picture of the company's financial standing, you should also look at the full analysis in Breaking Down Precision BioSciences, Inc. (DTIL) Financial Health: Key Insights for Investors.

Next Step: Check the Q4 2025 filings to see the final D/E ratio after the $75 million equity raise is officially recorded.

Liquidity and Solvency

You need to know if Precision BioSciences, Inc. (DTIL) has enough short-term cash to fund its ambitious clinical pipeline-and the answer is yes, for now. The company's liquidity position is strong, backed by a significant cash reserve that management projects will last into the second half of 2027.

A clinical-stage biotech like DTIL is always going to burn cash, but the key is the rate of that burn versus the cash on hand. As of September 30, 2025, the company had approximately $71.2 million in cash, cash equivalents, and restricted cash. That's a solid cushion for a company focused on advancing its PBGENE-HBV and PBGENE-DMD programs.

Current and Quick Ratios

The most direct measure of liquidity is the current ratio (current assets divided by current liabilities). Precision BioSciences, Inc.'s most recent current ratio stands at a healthy 3.45. This means the company has $3.45 in current assets for every dollar of current liabilities, showing a strong ability to cover its near-term obligations.

The quick ratio (or acid-test ratio) is even more stringent, excluding inventory, which is often illiquid in biotech. The quick ratio is a robust 2.99. Both figures are well above the typical 1.0 benchmark, indicating excellent operational liquidity. The company's short-term assets were approximately $51.7 million, easily covering its short-term liabilities of around $15.0 million. That's a great sign.

Working Capital and Cash Flow Trends

The working capital-the difference between current assets and current liabilities-is approximately $36.7 million, which is a comfortable buffer for day-to-day operations. However, the cash flow statement tells the real story of the burn rate. For the trailing twelve months (TTM) leading up to the recent reporting period, Cash Flow from Operations was a negative $73.28 million. That's the cost of doing business in a research-heavy industry.

Here's the quick math on the cash flow components for the TTM period:

• Operating Cash Flow: -$73.28 million (The money lost from core business activities).
• Investing Cash Flow: -$406.00 thousand (Minimal capital expenditure).
• Financing Cash Flow: Primarily driven by capital raises or milestone payments.

The net loss for Q3 2025 was $21.8 million, which is a key driver of that negative operating cash flow. Research and Development expenses alone hit $13.4 million in the quarter, reflecting the intense focus on moving their gene editing therapies forward. You need to watch that R&D spend defintely.

Liquidity Strengths and Concerns

The primary strength is the projected cash runway extending into the second half of 2027. This projection is crucial because it gives the company time to hit clinical milestones-like the anticipated Phase 1 initiation for PBGENE-DMD in the first half of 2026-before needing to raise more capital. Plus, they received an $8 million milestone payment from Imugene in Q3 2025, which helped bolster the cash position.

The main concern is the low revenue, which was less than $0.1 million in Q3 2025. The business model relies on clinical success and partnership milestones, not product sales yet. The long runway buys time, but the eventual need for a major financing event or a significant partnership will loom as that 2027 date approaches. To understand the long-term vision driving this spending, you should review the Mission Statement, Vision, & Core Values of Precision BioSciences, Inc. (DTIL).

Action for investors: Monitor the quarterly net loss and R&D expense trends closely. Any significant jump in the burn rate without a corresponding increase in partnership milestones will shorten that 2027 runway.

Valuation Analysis

You're looking at Precision BioSciences, Inc. (DTIL) and wondering if the market has it right. Is it overvalued, or is there a deep discount here? The direct takeaway is that traditional valuation metrics are largely meaningless for this clinical-stage biotech, but the analyst community sees a massive, high-risk, high-reward opportunity. Based on the latest data, the stock is trading at a significant discount to the consensus price target, suggesting it is currently undervalued by Wall Street.

As of November 2025, the stock closed at approximately $4.82. Over the last 12 months, the price has decreased by 28.49%, which feels like a loss, but the year-to-date (YTD) return is actually up 57.09%, showing how volatile this sector is. It's a classic biotech story: high volatility, high potential. The 52-week range of $3.61 to $8.82 shows you're currently near the bottom of its recent trading history. One clean one-liner: This stock is a pure bet on pipeline success.

When we look at the standard valuation ratios, we hit a wall quickly. Precision BioSciences, Inc. is a pre-revenue or low-revenue company focused on its ARCUS genome editing platform, meaning it's not yet profitable. So, its Price-to-Earnings (P/E) ratio and Enterprise Value-to-EBITDA (EV/EBITDA) ratio are not meaningful (NM). Here's the quick math on why: a negative earnings per share (EPS) forecast of -$6.32 for the 2025 fiscal year makes the P/E ratio uncalculable in a useful way. What this estimate hides is the massive capital required to move therapies through clinical trials.

Still, we can use other metrics to gauge its value:

• Price-to-Book (P/B) Ratio: This ratio sits at approximately 3.50 (Trailing Twelve Months or TTM). For a biotech, this is a measure of how much investors are willing to pay for the company's net assets, which includes its intellectual property and cash.
• Enterprise Value-to-Sales (EV/Sales) Ratio: This is high at 143.67 (TTM). This tells you the market is valuing the company on its future sales potential, not its current meager revenue.

The company does not pay a dividend. The dividend payout is $0.00, and the dividend yield is 0.00%. This is defintely standard for a growth-focused biotech that needs to reinvest every dollar into R&D.

The most compelling data point is the analyst consensus. Wall Street analysts have a 'Strong Buy' rating on Precision BioSciences, Inc.. The average price target is a staggering $47.00, with a range from $34.00 to $60.00. This average target suggests an upside of over 875% from the current $4.82 price. This is a clear signal that the market's current valuation is dramatically lower than the professional view of the company's long-term potential, assuming the ARCUS platform delivers on its clinical promise, particularly with programs like PBGENE-HBV for chronic Hepatitis B.

To be fair, this valuation is based on success that is far from guaranteed. The high price target reflects the potential blockbuster revenue from a successful gene-editing therapy, but the low stock price reflects the high clinical and regulatory risk. For a deeper dive into the company's pipeline and risk factors, check out Breaking Down Precision BioSciences, Inc. (DTIL) Financial Health: Key Insights for Investors.

Next Step: Portfolio Manager: Draft a scenario analysis of the DTIL position, modeling a 50% probability of clinical trial failure and a 20% probability of reaching the $47.00 price target by next Tuesday.

Risk Factors

You're looking at Precision BioSciences, Inc. (DTIL), a clinical-stage gene editing company, and the core reality is this: your investment is a bet on science, not current cash flow. The company's financial health, while managed to extend its runway, is still defined by a significant burn rate and a near-zero revenue stream.

The biggest near-term financial risk is the cash burn. For the third quarter of 2025, Precision BioSciences reported a net loss of $21.8 million. That's a stark number. While they have approximately $71.2 million in cash, cash equivalents, and restricted cash as of September 30, 2025, that capital is finite. To manage this, the company recently announced a $75 million offering of common stock, pre-funded warrants, and warrants, which helps extend the runway but introduces shareholder dilution. It's a necessary trade-off to keep the lights on and the trials running.

• Dilution is the cost of staying in the game.

Operational and Strategic Hurdles

The operational risks are tied directly to their ARCUS genome editing platform. If the lead programs, PBGENE-HBV and PBGENE-DMD, fail to meet clinical endpoints, the stock price will crater. That's the nature of biotech. For example, Research and Development expenses were $13.4 million in Q3 2025, up from $13.1 million a year prior, largely driven by the PBGENE-DMD program. That R&D spend is a sunk cost if the trials fail.

Another strategic risk is the reliance on partnerships. The company's Q3 2025 revenue was a minimal $0.01 million, missing consensus estimates by 99.88%. This sharp drop was primarily due to reduced billable efforts under the Novartis Agreement. This shows how quickly revenue can disappear when a collaboration winds down, forcing the company to rely more heavily on its wholly-owned pipeline and capital raises.

External Risks and Mitigation

In the gene editing space, external risks are intense. You have fierce competition from companies using CRISPR and other editing technologies. Plus, the regulatory environment is a constant, high-stakes variable. The FDA's Investigational New Drug (IND) clearance for PBGENE-DMD, which is anticipated by the end of 2025, is a critical gate. A delay here pushes back the Phase 1 initiation, which is currently planned for the first half of 2026, and thus the initial data readout expected in the second half of 2026.

The good news is the clear mitigation strategy. Precision BioSciences has been disciplined, reducing General and Administrative expenses to $7.3 million in Q3 2025 from $8.8 million in Q3 2024. This fiscal discipline, combined with the recent capital raise, is expected to extend the cash runway into the second half of 2027. This buys them crucial time to hit those clinical milestones for PBGENE-HBV and PBGENE-DMD. You can read more about the company's financials in this deeper dive: Breaking Down Precision BioSciences, Inc. (DTIL) Financial Health: Key Insights for Investors.

The next concrete step for you as an investor is to monitor the PBGENE-DMD IND filing status by the end of 2025. That's the immediate trigger event.

Growth Opportunities

You are looking at a classic biotech inflection point: Precision BioSciences, Inc. (DTIL) is transitioning from a platform-validation story to a clinical-catalyst one. The near-term growth is not about product sales-their Q3 2025 revenue was less than $0.1 million-but about pipeline de-risking, which is the real value driver for a gene-editing company.

The consensus EPS estimate for the full 2025 fiscal year is a loss of -$4.57 on projected revenue of $22.1 million, but these numbers are secondary to clinical progress right now. The primary growth drivers are two key product innovations that use their proprietary ARCUS® platform (a non-CRISPR gene-editing technology).

• PBGENE-HBV: This is their lead therapy, targeting a functional cure for chronic Hepatitis B (HBV), a market valued at around $2 billion. The FDA granted it Fast Track designation in April 2025. Early Phase 1 data in November 2025 showed consistent antiviral activity and durable reductions in the Hepatitis B surface antigen, which is exactly what you want to see.
• PBGENE-DMD: This program for Duchenne Muscular Dystrophy (DMD) has Orphan Drug and Rare Pediatric Disease Designation from the FDA. It aims to permanently edit the patient's DNA to treat up to 60% of DMD patients. The company is on track to file an Investigational New Drug (IND) application by the end of 2025, with a Phase 1 trial expected to start in the first half of 2026.

The company is laser-focused on these two programs, which is smart. You can see their commitment to their core mission in their Mission Statement, Vision, & Core Values of Precision BioSciences, Inc. (DTIL).

Strategic initiatives and partnerships are also key to extending their cash runway and validating the technology. They recently completed an underwritten public offering in November 2025 to raise approximately $75 million, which is crucial for funding these expensive clinical trials. This capital, combined with the $71.2 million cash on hand as of September 30, 2025, is expected to extend their runway into the second half of 2027. They also have a partnered in vivo gene editing program with iECURE for Ornithine Transcarbamylase (OTC) deficiency, which provides external validation of the ARCUS platform.

Here's the quick math on their competitive advantage: the core is their ARCUS® platform, an engineered nuclease that is differentiated from rival CRISPR-based systems. It's smaller and simpler, which potentially allows for better delivery to a wider range of cells and tissues. Critically, recent peer-reviewed data showed ARCUS achieved transgene insertion efficiencies exceeding 85% in T lymphocytes, a high bar for gene editing. That level of precision is defintely a significant technical edge in this crowded space.

What this estimate hides is the binary risk of clinical trials. The next action for you is to monitor the Phase 1 data readouts for PBGENE-HBV and the IND clearance for PBGENE-DMD in early 2026, as these will be the true market-moving events.