Fate Therapeutics, Inc.
FATE Healthcare Biotechnology
Fate Therapeutics, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $6.6 million, down 51.2% from fiscal 2024. In the quarter to June 2026, revenue grew 9.18%, EPS grew 13.8% and free cash flow grew 8.96%, each against the same quarter a year earlier. Operating cash flow growth for three consecutive years.
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Fate Therapeutics, Inc. (FATE) Altman Z-score
Fate Therapeutics, Inc.'s Altman Z-score for fiscal 2025 is −6.97, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | −6.97 | (2.60) |
| FY2024 | −4.37 | (2.20) |
| FY2023 | −2.17 | (2.09) |
| FY2022 | −0.09 | (12.63) |
| FY2021 | 12.54 | (5.25) |
| FY2020 | 17.79 | 5.92 |
| FY2019 | 11.87 | 5.53 |
| FY2018 | 6.34 | 4.01 |
| FY2017 | 2.33 | 2.81 |
| FY2016 | −0.48 | 1.12 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.54 | — | 0.65 | |
| Retained earnings / total assets | (4.81) | — | −6.73 | |
| EBIT / total assets | (0.46) | — | −1.53 | |
| Market value of equity / total liabilities | 1.04 | — | 0.63 | |
| Sales / total assets | 0.02 | — | 0.02 | |
| Altman Z-score | Distress zone | −6.97 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −13.30 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| KROS Keros Therapeutics, Inc. compare | 13.5× |
| IMRX Immuneering Corporation compare | 4.5× |
| SLGL Sol-Gel Technologies Ltd. compare | −0.5× |
| QTTB Q32 Bio Inc. compare | −0.8× |
| SABS SAB Biotherapeutics, Inc. compare | −5.5× |
| FATE Fate Therapeutics, Inc. | −7.0× |
| GLSI Greenwich LifeSciences, Inc. compare | — |
| LXEO Lexeo Therapeutics, Inc. compare | — |
| BBOT BridgeBio Oncology Therapeutics, Inc compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets