What is Terns Pharmaceuticals, Inc.'s earnings per share (EPS)?

Terns Pharmaceuticals, Inc. (TERN) reported diluted earnings per share of $-1.03 for fiscal year 2025. This represents a 8.0% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Terns Pharmaceuticals, Inc. Financials

TERN

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows Terns Pharmaceuticals, Inc. (TERN) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 6 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI TERN FY2025 2026-04-27

External financing rather than operations is expanding the balance sheet, while R&D-led cash burn remains the business's defining mechanic.

From FY2023 to FY2025, annual operating cash burn rose from -$67.4M to -$82.2M, so the core model is consuming more cash, not less. At the same time, external financing lifted cash to $524.7M while liabilities stayed at just $18.6M, meaning solvency improved even though the business still does not fund itself.

In FY2025, free cash flow matched operating cash flow at -$82.2M because capex was $0; cash is leaving through research and overhead rather than through a fixed-asset buildout. That makes the company asset-light: losses are not being masked by heavy investment that would only show up later in depreciation.

Financing inflows of $743.5M and a much larger share count show the balance sheet was reinforced with new capital rather than debt, which explains why assets could jump past $1.0B without a comparable rise in liabilities. The practical trade-off is dilution instead of leverage: balance-sheet flexibility improved, but existing ownership was spread across more shares.

Financial Health Signals

Financial Profile 33/100

Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of Terns Pharmaceuticals, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Leverage

100

Terns Pharmaceuticals, Inc. carries a low D/E ratio of 0.02, meaning only $0.02 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

100

With a current ratio of 62.41, Terns Pharmaceuticals, Inc. holds $62.41 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 100/100.

Returns

Terns Pharmaceuticals, Inc. generates a -9.6% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is up from -25.7% the prior year.

Piotroski F-Score Weak

3/9

Terns Pharmaceuticals, Inc. passes 3 of 9 financial strength tests. 2 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass.

Earnings Quality Low Quality

0.85x

For every $1 of reported earnings, Terns Pharmaceuticals, Inc. generates $0.85 in operating cash flow (-$82.2M OCF vs -$96.2M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

Key Financial Metrics

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Earnings & Revenue

Revenue

N/A

EBITDA

-$110.0M

YoY-8.4%

Terns Pharmaceuticals, Inc.'s EBITDA was -$110.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 8.4% from the prior year.

Net Income

-$96.2M

YoY-8.3%

Terns Pharmaceuticals, Inc. reported -$96.2M in net income in fiscal year 2025. This represents a decrease of 8.3% from the prior year.

EPS (Diluted)

$-1.03

YoY+8.0%

Terns Pharmaceuticals, Inc. earned $-1.03 per diluted share (EPS) in fiscal year 2025. This represents an increase of 8.0% from the prior year.

Cash & Balance Sheet

Free Cash Flow

-$82.2M

YoY-17.3%

Terns Pharmaceuticals, Inc. generated -$82.2M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 17.3% from the prior year.

Cash & Debt

$524.7M

YoY+225.0%

5Y CAGR+47.6%

Terns Pharmaceuticals, Inc. held $524.7M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

112M

YoY+28.9%

Terns Pharmaceuticals, Inc. had 112M shares outstanding in fiscal year 2025. This represents an increase of 28.9% from the prior year.

Margins & Returns

Gross Margin

N/A

Operating Margin

N/A

Net Margin

N/A

Return on Equity

-9.6%

YoY+16.1pp

Terns Pharmaceuticals, Inc.'s ROE was -9.6% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 16.1 percentage points from the prior year.

Capital Allocation

R&D Spending

$77.9M

YoY+11.1%

5Y CAGR+22.7%

Terns Pharmaceuticals, Inc. invested $77.9M in research and development in fiscal year 2025. This represents an increase of 11.1% from the prior year.

Share Buybacks

N/A

Capital Expenditures

YoY-100.0%

Terns Pharmaceuticals, Inc. invested $0 in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 100.0% from the prior year.

TERN Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	N/A	N/A	N/A	$0-100.0%	$1.0M	$0
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	$77.9M+11.1%	$70.1M+10.4%	$63.5M+60.3%	$39.6M+26.5%	$31.3M+11.7%	$28.0M
SG&A Expenses	$32.2M+1.5%	$31.8M-18.7%	$39.1M+74.3%	$22.4M+14.6%	$19.5M+117.3%	$9.0M
Operating Income	-$110.1M-8.1%	-$101.9M+0.7%	-$102.6M-65.3%	-$62.0M-24.4%	-$49.9M-34.7%	-$37.0M
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	$581K+123.5%	$260K+8.8%	$239K-33.2%	$358K-29.5%	$508K-37.5%	$813K
Net Income	-$96.2M-8.3%	-$88.9M+1.5%	-$90.2M-49.5%	-$60.3M-20.3%	-$50.2M-25.2%	-$40.1M
EPS (Diluted)	$-1.03+8.0%	$-1.12+11.8%	$-1.27+24.0%	$-1.67+24.4%	$-2.21	N/A

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	N/A	$19.9M-2.1%	$20.4M+8.7%	$18.7M	N/A	$15.2M-17.3%	$18.4M-1.3%	$18.6M
SG&A Expenses	N/A	$7.8M+10.9%	$7.0M-19.3%	$8.7M	N/A	$9.8M+36.0%	$7.2M+4.8%	$6.9M
Operating Income	N/A	-$27.7M-1.2%	-$27.4M+0.2%	-$27.4M	N/A	-$24.9M+2.3%	-$25.5M-0.4%	-$25.4M
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	N/A	$46K-28.1%	$64K-27.3%	$88K	N/A	$62K+1.6%	$61K-37.1%	$97K
Net Income	N/A	-$24.6M-2.2%	-$24.1M-0.8%	-$23.9M	N/A	-$21.9M+3.5%	-$22.7M-1.6%	-$22.4M
EPS (Diluted)	N/A	$-0.27-3.8%	$-0.260.0%	$-0.26	N/A	$-0.28+9.7%	$-0.31-3.3%	$-0.30

TERN Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$1.0B+181.7%	$363.9M+35.5%	$268.5M-6.4%	$287.0M+70.8%	$168.1M+82.1%	$92.3M
Current Assets	$1.0B+182.8%	$362.1M+35.4%	$267.4M-6.2%	$285.2M+70.8%	$166.9M+83.7%	$90.9M
Cash & Equivalents	$524.7M+225.0%	$161.4M+102.0%	$79.9M-44.2%	$143.2M+200.3%	$47.7M-36.3%	$74.9M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	N/A	N/A	N/A	N/A	N/A	N/A
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$18.6M+2.7%	$18.1M+37.3%	$13.2M+30.4%	$10.1M+29.8%	$7.8M-96.3%	$209.7M
Current Liabilities	$16.4M+4.9%	$15.7M+31.0%	$11.9M+41.0%	$8.5M+24.2%	$6.8M-70.1%	$22.8M
Long-Term Debt	N/A	N/A	$0-100.0%	$544K	N/A	N/A
Total Equity	$1.0B+191.0%	$345.9M+35.4%	$255.4M-7.8%	$276.9M+72.8%	$160.3M+236.5%	-$117.4M
Retained Earnings	-$517.7M-22.8%	-$421.5M-26.7%	-$332.6M-37.2%	-$242.4M-33.1%	-$182.1M-38.0%	-$131.9M

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Total Assets	$1.0B+239.8%	$301.7M-5.9%	$320.4M-5.6%	$339.3M-6.8%	$363.9M-3.8%	$378.2M+63.8%	$230.9M-6.4%	$246.8M
Current Assets	$1.0B+241.1%	$300.3M-5.8%	$319.0M-5.6%	$337.7M-6.7%	$362.1M-3.8%	$376.5M+63.5%	$230.2M-6.4%	$245.9M
Cash & Equivalents	$524.7M+248.2%	$150.7M+3.2%	$146.0M+5.0%	$139.0M-13.9%	$161.4M-40.2%	$270.1M+195.2%	$91.5M+40.5%	$65.1M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$18.6M+5.5%	$17.6M+15.8%	$15.2M+14.4%	$13.3M-26.5%	$18.1M+31.2%	$13.8M+12.8%	$12.2M+21.4%	$10.0M
Current Liabilities	$16.4M+6.7%	$15.4M+19.1%	$12.9M+18.1%	$10.9M-30.1%	$15.7M+37.1%	$11.4M+4.2%	$11.0M+24.1%	$8.8M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	$1.0M	$0	$0
Total Equity	$1.0B+254.3%	$284.1M-6.9%	$305.2M-6.4%	$326.0M-5.7%	$345.9M-5.1%	$364.5M+66.7%	$218.7M-7.6%	$236.7M
Retained Earnings	-$517.7M-4.8%	-$494.1M-5.2%	-$469.5M-5.4%	-$445.4M-5.7%	-$421.5M-5.5%	-$399.7M-5.8%	-$377.7M-6.4%	-$355.0M

TERN Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	-$82.2M-17.4%	-$70.0M-3.9%	-$67.4M-37.2%	-$49.1M-17.4%	-$41.8M-40.3%	-$29.8M
Capital Expenditures	$0-100.0%	$42K-19.2%	$52K-81.1%	$275K-19.1%	$340K-41.8%	$584K
Free Cash Flow	-$82.2M-17.3%	-$70.1M-3.9%	-$67.4M-36.6%	-$49.4M-17.1%	-$42.2M-38.7%	-$30.4M
Investing Cash Flow	-$298.0M-2301.6%	-$12.4M+67.3%	-$38.0M-70.6%	-$22.3M+81.4%	-$119.7M-1888.4%	$6.7M
Financing Cash Flow	$743.5M+353.4%	$164.0M+290.9%	$42.0M-74.9%	$167.1M+24.3%	$134.4M+57.2%	$85.5M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Operating Cash Flow	-$19.1M+3.5%	-$19.8M-4.7%	-$18.9M+22.7%	-$24.4M-67.6%	-$14.6M+11.4%	-$16.5M-1.7%	-$16.2M+29.0%	-$22.8M
Capital Expenditures	$0	$0	$0	$0	$0	$0-100.0%	$13K-55.2%	$29K
Free Cash Flow	-$19.1M+3.5%	-$19.8M-4.7%	-$18.9M+22.7%	-$24.4M-67.6%	-$14.6M+11.4%	-$16.5M-1.6%	-$16.2M+29.1%	-$22.8M
Investing Cash Flow	-$350.0M-1528.6%	$24.5M-3.9%	$25.5M+1201.7%	$2.0M+102.1%	-$94.3M-397.2%	$31.8M-24.7%	$42.2M+427.6%	$8.0M
Financing Cash Flow	$743.1M	$0-100.0%	$324K+376.5%	$68K-77.6%	$304K-99.8%	$163.3M+40825.3%	$399K	$0
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

TERN Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	N/A	-4986.0%	N/A
Net Margin	N/A	N/A	N/A	N/A	-5015.8%	N/A
Return on Equity	-9.6%+16.1pp	-25.7%+9.6pp	-35.3%-13.5pp	-21.8%+9.5pp	-31.3%	N/A
Return on Assets	-9.4%+15.0pp	-24.4%+9.2pp	-33.6%-12.6pp	-21.0%+8.8pp	-29.8%+13.6pp	-43.4%
Current Ratio	62.41+39.3	23.14+0.7	22.39-11.3	33.68+9.2	24.48+20.5	3.98
Debt-to-Equity	0.02-0.0	0.05+0.1	0.000.0	0.00-0.0	0.05+1.8	-1.79
FCF Margin	N/A	N/A	N/A	N/A	-4216.7%	N/A

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Equity	N/A	-8.7%-0.8pp	-7.9%-0.6pp	-7.3%	N/A	-6.0%+4.4pp	-10.4%-0.9pp	-9.4%
Return on Assets	N/A	-8.2%-0.6pp	-7.5%-0.5pp	-7.0%	N/A	-5.8%+4.0pp	-9.8%-0.8pp	-9.1%
Current Ratio	62.41+42.9	19.52-5.2	24.70-6.2	30.89+7.7	23.14-9.9	32.99+12.0	21.02-6.8	27.85
Debt-to-Equity	0.02-0.0	0.06+0.0	0.050.0	0.04-0.0	0.05+0.0	0.000.0	0.000.0	0.00
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

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Frequently Asked Questions

Is Terns Pharmaceuticals, Inc. profitable?

No, Terns Pharmaceuticals, Inc. (TERN) reported a net income of -$96.2M in fiscal year 2025.

What is Terns Pharmaceuticals, Inc.'s EBITDA?

Terns Pharmaceuticals, Inc. (TERN) had EBITDA of -$110.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

What is Terns Pharmaceuticals, Inc.'s return on equity (ROE)?

Terns Pharmaceuticals, Inc. (TERN) has a return on equity of -9.6% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Terns Pharmaceuticals, Inc.'s free cash flow?

Terns Pharmaceuticals, Inc. (TERN) generated -$82.2M in free cash flow during fiscal year 2025. This represents a -17.3% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Terns Pharmaceuticals, Inc.'s operating cash flow?

Terns Pharmaceuticals, Inc. (TERN) generated -$82.2M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Terns Pharmaceuticals, Inc.'s total assets?

Terns Pharmaceuticals, Inc. (TERN) had $1.0B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Terns Pharmaceuticals, Inc.'s capital expenditures?

Terns Pharmaceuticals, Inc. (TERN) invested $0 in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does Terns Pharmaceuticals, Inc. spend on research and development?

Terns Pharmaceuticals, Inc. (TERN) invested $77.9M in research and development during fiscal year 2025.

How many shares does Terns Pharmaceuticals, Inc. have outstanding?

Terns Pharmaceuticals, Inc. (TERN) had 112M shares outstanding as of fiscal year 2025.

What is Terns Pharmaceuticals, Inc.'s current ratio?

Terns Pharmaceuticals, Inc. (TERN) had a current ratio of 62.41 as of fiscal year 2025, which is generally considered healthy.

What is Terns Pharmaceuticals, Inc.'s debt-to-equity ratio?

Terns Pharmaceuticals, Inc. (TERN) had a debt-to-equity ratio of 0.02 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Terns Pharmaceuticals, Inc.'s return on assets (ROA)?

Terns Pharmaceuticals, Inc. (TERN) had a return on assets of -9.4% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Terns Pharmaceuticals, Inc.'s cash runway?

Based on fiscal year 2025 data, Terns Pharmaceuticals, Inc. (TERN) had $524.7M in cash against an annual operating cash burn of $82.2M. This gives an estimated cash runway of approximately 77 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.

What is Terns Pharmaceuticals, Inc.'s Piotroski F-Score?

Terns Pharmaceuticals, Inc. (TERN) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Terns Pharmaceuticals, Inc.'s earnings high quality?

Terns Pharmaceuticals, Inc. (TERN) has an earnings quality ratio of 0.85x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

How financially healthy is Terns Pharmaceuticals, Inc.?

Terns Pharmaceuticals, Inc. (TERN) scores 33 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.