Breaking Down Shattuck Labs, Inc. (STTK) Financial Health: Key Insights for Investors

You are looking at Shattuck Labs, Inc. (STTK) and seeing a classic biotech dilemma: clinical promise versus a lack of product revenue, but the recent financials tell a more nuanced story. Honestly, the biggest near-term risk-cash runway-just got defintely pushed out, which changes the calculus for investors. As of September 30, 2025, Shattuck Labs reported a net loss of only $10.1 million for the quarter, a significant improvement from the prior year, with Research and Development (R&D) expenses dropping to $7.6 million as they focus on their lead candidate, SL-325. Plus, the August 2025 private placement, which could bring in up to $103 million, has extended their cash and short-term investments of $86.1 million into 2029, giving them ample time to hit their Phase 2 milestones. The market's current 'Moderate Buy' consensus and an average price target of $3.06 reflect this new financial stability, but the success of a Phase 1 trial for SL-325 is the real catalyst to watch.

Revenue Analysis

You're looking at Shattuck Labs, Inc. (STTK), a clinical-stage biotech, so you need to adjust your thinking on revenue. This isn't a company selling a finished product yet. Their financial health hinges on their pipeline, not commercial sales.

The direct takeaway here is that Shattuck Labs' revenue for the trailing twelve months (TTM) ending Q3 2025 was a modest $1.0 million, a sharp decrease of 84.46% year-over-year. This massive drop is a deliberate, expected outcome of their strategic shift, not a commercial failure.

Breaking Down Primary Revenue Streams

For Shattuck Labs, revenue is a single, concentrated stream: License and Collaboration Revenue. This income comes from upfront payments, milestones, and reimbursements tied to strategic partnerships, not from selling drugs to patients. It's a key distinction.

In the 2025 fiscal year, this single segment contributed essentially 100% of the company's total revenue, which is typical for a pre-commercial biotechnology firm. The revenue is recognized as the company satisfies its performance obligations under these agreements, which is why the amounts can be lumpy and unpredictable.

• Source: License and Collaboration Revenue.
• Contribution: 100% of total revenue.
• Key Driver: Milestone achievement and contract obligation completion.

Year-over-Year Revenue Volatility

The 2025 numbers show extreme volatility, which is defintely a near-term risk. Here's the quick math: the TTM revenue as of September 30, 2025, stood at $1.0 million, down from the 2024 annual revenue of $5.72 million. This translates to an 84.46% decline in TTM revenue.

To be fair, the decline was most pronounced early in the year. In Q1 2025, for instance, collaboration revenue dropped to $0 from $1.115 million in Q1 2024, a 100% decline for that quarter. This happened because Shattuck Labs completed all of its obligations under a prior collaboration agreement. When a biotech finishes its work on a contract, the revenue recognition stops. It's a one-time event, not a recurring sales metric.

Significant Changes and Future Opportunities

The biggest shift in the revenue profile is the move away from older collaboration payments toward a focus on their lead candidate, SL-325, for inflammatory and immune-mediated diseases. The lack of collaboration revenue in Q1 and Q2 2025 signals the end of those older, non-core revenue streams.

The Q3 2025 revenue of $1.0 million indicates a new or resumed recognition event, but the overall trend is clear: the company is now almost entirely dependent on its capital position-which was recently bolstered by a private placement of up to $103 million in August 2025-to fund operations into 2029. This means future revenue is less about old partnerships and more about securing new, high-value deals based on their current pipeline, like SL-325. For more on the strategic focus, you can check out the Mission Statement, Vision, & Core Values of Shattuck Labs, Inc. (STTK).

The real opportunity for future revenue growth isn't in the 2025 numbers; it's in the clinical data from their Phase 1 trial for SL-325. Positive data is what triggers new, lucrative collaboration deals or a potential buyout.

Profitability Metrics

You're looking at Shattuck Labs, Inc. (STTK) and the first thing you have to understand is that for a clinical-stage biotechnology company, traditional profitability metrics are almost meaningless. They are not selling a product yet; they are selling a pipeline. So, you're not looking for a positive net profit, you're looking for controlled burn and a long cash runway.

The clear takeaway for the 2025 fiscal year is that Shattuck Labs, Inc. is executing a disciplined cost-reduction strategy, which is significantly narrowing its net loss despite virtually no product revenue. The company's focus is on conserving capital to advance its lead candidate, SL-325.

Gross, Operating, and Net Profit Margins

Shattuck Labs, Inc. operates without a Gross Profit (or its margin) in the traditional sense because it has no commercial product sales. In Q1 2025, collaboration revenue dropped to $0 from $1.115 million in Q1 2024, and the company reported no revenue in Q2 2025, reflecting its transition to a pure-play clinical-stage firm. This means the Gross Profit Margin is effectively 0% or undefined.

The real metric to watch is the Net Loss, which dictates the cash burn rate. Here's the quick math on the 2025 year-to-date (9-month) loss:

• Q1 2025 Net Loss: $13.7 million
• Q2 2025 Net Loss: $12.5 million
• Q3 2025 Net Loss: $10.1 million

This puts the total Net Loss for the first nine months of 2025 at approximately $36.3 million. Analysts forecast the full-year 2025 Net Loss to be around $50.9 million. That's a massive negative Net Profit Margin, but it's defintely by design.

Trends in Profitability and Operational Efficiency

The most compelling trend is the significant narrowing of the quarterly net loss throughout 2025, which signals strong operational efficiency. The Q3 2025 Net Loss of $10.1 million is a sharp improvement from the Q2 2024 loss of $21.6 million. This isn't just luck; it's a strategic shift.

The company achieved this by aggressively managing its operating expenses, particularly Research and Development (R&D). This is a textbook move for a biotech focusing its resources on a single, high-potential asset (SL-325) while discontinuing others (like SL-172154). You want to see management cut the fat and focus on the main event.

Here's the breakdown of the cost management focus:

In Q2 2025, R&D expenses fell an even steeper 54.7% year-over-year to $8.7 million. This level of cost discipline is a positive signal for investors concerned about the cash burn rate, especially since the company secured a private placement of up to $103 million in August 2025, which is expected to fund operations into 2029.

Comparison with Industry Averages

When comparing Shattuck Labs, Inc. to the US Biotechnology industry, the difference in profitability is stark, but expected for a clinical-stage firm. The industry's average forecast revenue growth rate is a massive 104.82%, reflecting companies with approved drugs or late-stage pipelines nearing commercialization. Shattuck Labs, Inc.'s forecast revenue growth for 2025 is -100% due to the wind-down of collaboration revenue, which is a deliberate trade-off.

What this estimate hides is the potential for a massive revenue spike if SL-325 hits its clinical milestones. For now, the company is valued on its pipeline progress, not its income statement. The operational efficiency shown by the narrowing loss is the key to maintaining the cash runway until those milestones are reached. You can read more about the company's financial position and outlook in Breaking Down Shattuck Labs, Inc. (STTK) Financial Health: Key Insights for Investors.

Finance: Monitor R&D spend vs. clinical trial progress for SL-325 quarterly.

Debt vs. Equity Structure

When you look at Shattuck Labs, Inc. (STTK), the first thing that jumps out is its capital structure: it's almost entirely funded by equity. This is a classic, low-risk profile for a clinical-stage biotechnology company. They are essentially debt free, which dramatically simplifies their financial picture for investors.

As of the most recent data from the 2025 fiscal year, specifically around June 2025, Shattuck Labs, Inc. reports a total debt of approximately $0.0. This means they carry no significant long-term or short-term interest-bearing debt on their balance sheet. Their total shareholder equity, the capital contributed by investors, stood at about $57.019 million. This is a strong indicator of financial health, especially in an industry where cash burn is the norm.

Here's the quick math on what that means for financial leverage:

• Total Debt: ~$0.0
• Total Equity: ~$57.019 million
• Debt-to-Equity Ratio: 0%

A Debt-to-Equity (D/E) ratio is a measure of a company's financial leverage, comparing total debt to shareholder equity. Shattuck Labs, Inc.'s ratio of 0% is exceptionally low. To put that in perspective, the average D/E ratio for the Biotechnology industry in late 2025 is around 0.17. This tells you Shattuck Labs, Inc. is not reliant on borrowing to fund its R&D pipeline; it's using investor capital, which is less risky than debt.

The company's strategy is clear: prioritize equity funding to maintain maximum financial flexibility. Their most significant financing activity in 2025 was a large private placement that closed in August. This was an equity raise of up to approximately $103 million, which included the issuance of common stock warrants. This capital injection, assuming the full exercise of the warrants, is expected to fund operations well into 2029. That's a huge runway.

What this estimate hides, however, is the reliance on continuous equity financing, which causes dilution for existing shareholders. While zero debt avoids interest payments and credit rating concerns, the trade-off is that every new share sale reduces the ownership percentage of previous investors. This is the defintely the core balancing act for a pre-revenue biotech firm.

For a deeper dive into the company's overall financial health, you can check out the full analysis here: Breaking Down Shattuck Labs, Inc. (STTK) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You need to know if Shattuck Labs, Inc. (STTK) has the cash to fund its drug pipeline, and the short answer is a resounding yes. The company's liquidity position as of September 30, 2025, is exceptionally strong, driven by a recent capital raise that extended their cash runway well into 2029.

Current and Quick Ratios (Liquidity Positions)

Shattuck Labs, Inc.'s liquidity ratios are sky-high, which is a significant strength for a clinical-stage biotechnology company with no commercial revenue. The high ratios indicate the company can cover its immediate obligations many times over.

Here's the quick math on their current liquidity as of the third quarter of 2025 (Q3 2025):

• Current Ratio: The ratio of total current assets to total current liabilities is approximately 17.00.
• Quick Ratio: The ratio of highly liquid assets (Cash and Investments) to total current liabilities is approximately 16.14.

A ratio of 1.0 is considered healthy, so a Current Ratio of 17.00 is a massive buffer. This means for every dollar of short-term debt, Shattuck Labs, Inc. holds $17.00 in assets that can be converted to cash within a year. This is defintely a gold-plated balance sheet.

Analysis of Working Capital Trends

The company's working capital (current assets minus current liabilities) has seen a healthy increase, primarily due to a successful capital raise. As of September 30, 2025, the working capital stood at approximately $85.386 million, up from $70.298 million at the end of 2024. This increase of roughly $15.088 million reflects a stronger net current asset base available to fund ongoing operations, especially the critical research and development (R&D) expenses.

Cash Flow Statements Overview

Like most development-stage biotech firms, Shattuck Labs, Inc. is a cash-consuming operation. You see this clearly in the cash flow statement, but it's being managed through strategic financing.

The nine months ended September 30, 2025, showed a net cash outflow from core operations of approximately $(36.216) million. This is the cash burn rate-the money going out the door for R&D, general and administrative (G&A) costs, and other daily expenses.

The cash flow trends break down like this:

• Operating Cash Flow: Consistently negative, reflecting the high costs of clinical trials and drug development.
• Investing Cash Flow: Positive, with a trailing twelve months (TTM) inflow of approximately $3.11 million as of September 30, 2025, primarily from the net effect of buying and selling marketable securities.
• Financing Cash Flow: Strongly positive, with a TTM inflow of approximately $44.37 million, largely from the issuance of common stock, including the August 2025 private placement.

The financing activity is the engine offsetting the operating burn. You can dive deeper into this financial structure and the strategic implications of their lead candidate, SL-325, in the full post: Breaking Down Shattuck Labs, Inc. (STTK) Financial Health: Key Insights for Investors.

Potential Liquidity Concerns or Strengths

The primary strength is the massive cash cushion. The company closed a private placement of up to $103 million in August 2025, and management expects current cash and investments to fund operations into 2029, assuming the full exercise of outstanding warrants.

The only real concern, typical for this sector, is the dependency on that cash runway. If clinical trials for SL-325 face delays or unexpected costs, the 2029 runway could shorten. However, with the current cash balance of $86.1 million in cash and short-term investments as of September 30, 2025, and virtually no debt, the near-term liquidity risk is minimal.

Here is a summary of the key balance sheet components (in millions of USD) that drive this strong position:

Your next step should be to monitor the quarterly R&D expense-if it spikes significantly above the Q3 2025 level of $7.6 million, it's a signal to re-evaluate the cash runway projection.

Valuation Analysis

You're looking at Shattuck Labs, Inc. (STTK) and trying to figure out if the current price reflects its pipeline potential. My direct takeaway is that Wall Street sees a significant upside, but you must anchor your valuation to its substantial cash position, not its negative earnings. The consensus rating is a Moderate Buy, with a projected price target that suggests a strong return if the clinical milestones are met.

A clinical-stage biotechnology company like Shattuck Labs, Inc. is defintely a tough nut to crack using traditional metrics. Since they are pre-revenue, standard tools like the Price-to-Earnings (P/E) ratio are functionally useless for a positive valuation. Instead, we have to lean on the Price-to-Book (P/B) ratio and the cash runway to gauge the floor of the company's value.

Here's the quick math on the key valuation multiples as of late 2025:

• Price-to-Earnings (P/E): -1.64x (Trailing Twelve Months). This is negative because the company is not yet profitable, which is typical for a biotech focused on research and development (R&D).
• Price-to-Book (P/B): 0.7x (Latest Twelve Months). This is a crucial number. It suggests the stock is trading below its tangible book value per share, making it look undervalued compared to the US Biotechs industry average of 2.5x.
• Enterprise Value-to-EBITDA (EV/EBITDA): (53.8x) (Last 12 months). This is also negative, reflecting the high R&D expenses and negative earnings before interest, taxes, depreciation, and amortization (EBITDA).

Stock Performance and Analyst Consensus

The stock has been volatile over the past year, but the trend has been sharply upward from its 52-week low. The stock price, trading around $1.96 as of November 2025, is a long way from its 52-week low of $0.69, but it has pulled back from the 52-week high of $2.71. That volatility is the price you pay for the potential upside in a clinical-stage asset like their lead candidate, SL-325.

The good news is that the Street is bullish on the company's prospects. The average one-year price target from analysts is a solid $3.06 per share, a recent increase of 12.50% from an earlier estimate in November 2025. This target represents a potential upside of over 55% from the current price, which is a strong signal of confidence in the clinical progress of their pipeline. For a deeper dive into who is driving this confidence, you should be Exploring Shattuck Labs, Inc. (STTK) Investor Profile: Who's Buying and Why?

Since Shattuck Labs, Inc. is a growth-focused biotechnology firm, it does not currently pay a dividend. The dividend yield is 0.00% and the payout ratio is not applicable, so don't look here for income.

For a clear summary of the current analyst sentiment and valuation metrics, look at the table below. The key takeaway here is the cash position: the company reported $86.1 million in cash and short-term investments as of September 30, 2025, with a cash runway expected to fund operations into 2029 (assuming full warrant exercise from the recent private placement). That runway is your most important safety net.

Next Step: Finance/Strategy Team: Model the probability-adjusted net present value (NPV) of the SL-325 asset by the end of the month, using the $3.06 price target as the bull-case anchor.

Risk Factors

You're looking at Shattuck Labs, Inc. (STTK), a clinical-stage biotech, and you need to know where the landmines are buried. The short answer is that the core risks are exactly what you expect in this sector: clinical trial success, regulatory approval, and cash flow. But their recent moves have shifted the risk profile.

The biggest internal risk is the binary nature of their lead candidate, SL-325. This is a first-in-class Death Receptor 3 (DR3) antagonist antibody, and its entire valuation hinges on the outcome of its clinical trials. The company is currently dosing participants in the Phase 1 trial, with initial data expected by the end of the second quarter of 2026. If those results disappoint, the stock will defintely take a massive hit.

Operational risk is also tied to their strategic focus. They made the tough, but smart, decision to discontinue their SL-172154 program, which reduced their research and development (R&D) expenses to $7.6 million in Q3 2025, down from $16.3 million a year prior. That kind of pipeline prioritization is a double-edged sword: it saves cash, but it makes the success of SL-325 that much more critical. It's all or nothing now.

On the external front, you have the usual suspects, plus a fierce competitive environment in inflammatory bowel disease (IBD). While Shattuck Labs, Inc. believes SL-325 offers superior efficacy over existing TL1A blocking antibodies, the competition is well-funded, and a regulatory hiccup from the U.S. Food and Drug Administration (FDA) could be catastrophic. Also, let's not forget the global macroeconomic conditions that can make future capital raises difficult, even for promising biotechs. Any volatility in the broader market hits speculative stocks hardest.

Here's a quick snapshot of the financial position as of Q3 2025, which maps directly to their liquidity risk:

The good news is that Shattuck Labs, Inc. has aggressively mitigated its financial risk. They closed a private placement of up to $103 million in August 2025. This financing, assuming the full exercise of the common stock warrants, is expected to fund operations into 2029. That is a fantastic cash runway for a clinical-stage company. It buys them time-four years-to deliver on the SL-325 data without the immediate pressure of a dilutive financing round. What this estimate hides, of course, is that the full runway relies on those warrants being exercised. If you want to dive deeper into who is taking on these risks, you should be Exploring Shattuck Labs, Inc. (STTK) Investor Profile: Who's Buying and Why?

The key risks boil down to:

• Clinical failure: SL-325 data must be positive.
• Regulatory hurdles: FDA approval is never guaranteed.
• Warrant exercise: Cash runway into 2029 depends on it.

Finance: Monitor the cash burn rate against the $10.1 million Q3 net loss and track the warrant exercise rate quarterly.

Growth Opportunities

You're looking at Shattuck Labs, Inc. (STTK) and seeing a clinical-stage biotech, which means their near-term growth isn't about product sales-it's about hitting key milestones that de-risk the pipeline and send the valuation soaring. The entire growth story for Shattuck Labs, Inc. hinges on their lead candidate, SL-325, a potential first-in-class Death Receptor 3 (DR3) blocking antibody. That's the big lever here.

This isn't just another drug; it's a novel approach to treating inflammatory bowel disease (IBD) and other inflammatory diseases. SL-325 targets the DR3/TL1A signaling pathway, and preclinical data suggests it can achieve a more complete blockade than current treatments that only block the TL1A ligand. That's a genuine competitive advantage in a multi-billion dollar market. If the clinical data confirms this superiority, the market expansion opportunity is huge, defintely. You can read more about the investor profile here: Exploring Shattuck Labs, Inc. (STTK) Investor Profile: Who's Buying and Why?

To be fair, this is a capital-intensive business, so the financial runway is a critical growth driver. Shattuck Labs, Inc. is in a solid position, having closed an oversubscribed private placement of up to $103 million in August 2025. This, combined with their existing cash, gives them approximately $86.1 million in cash and short-term investments as of September 30, 2025. Here's the quick math: management expects this capital to fund operations into 2029, which is a long runway for a biotech.

The company's strategic focus for 2025 was all about moving SL-325 into human trials, and they delivered. The Investigational New Drug (IND) application for SL-325 became effective in August 2025, and they dosed the first participants in the Phase 1 clinical trial in the third quarter of 2025. This transition from preclinical to clinical is the primary catalyst for the stock in the near term. What this estimate hides, of course, is the risk of clinical failure-it's a binary event.

While the company is pre-commercial, we still need to look at the numbers. Analysts are forecasting an average net loss of about -$50,914,962 for the full fiscal year 2025, which is standard for a development-stage biotech. Their Q3 2025 net loss was $10.1 million, with Research and Development (R&D) expenses at $7.6 million-that R&D spend is the investment in future growth.

The next major milestones that will drive the stock price are already mapped out:

• Enrollment for Phase 1 (SAD and MAD portions) is expected to be complete by Q2 2026.
• Initial Phase 1 data is anticipated by Q2 2026.
• Nomination of a lead DR3-based bispecific candidate is planned for the first half of 2026.

These data readouts are what you need to track. The average one-year price target from Wall Street analysts is $3.00, but that number will change dramatically based on the Phase 1 results.

Finance: Track the Q1 2026 financial report for any changes to the cash runway guidance.