Relay Therapeutics (RLAY) opened 2026 with Q1 revenue of US$3 million, basic EPS of a US$0.41 loss, and a net loss excluding extra items of US$73.3 million, setting a clear snapshot of where the business is starting the year. The company has seen quarterly revenue move between US$0 and US$7.7 million since early 2024, while basic EPS has ranged from a US$0.32 loss to a US$0.46 loss over the same period, giving investors a consistent view of a revenue generating but loss making biotech with tight ranges around its per-share results. With analyst forecasts pointing to rapid revenue growth but no near-term profitability, the latest quarter keeps the focus firmly on how quickly margins can improve from here.

See our full analysis for Relay Therapeutics.

With the headline numbers on the table, the next step is to see how this latest set of results lines up with the prevailing market narratives and what the community has been expecting from Relay Therapeutics.

US$272.7 million trailing losses frame the earnings story

• Over the last twelve months, Relay Therapeutics reported total revenue of US$10.7 million against a net loss excluding extra items of US$272.7 million and a basic EPS loss of US$1.57. This puts the Q1 loss of US$73.3 million into a broader pattern of ongoing spending ahead of profitability.
• Consensus narrative highlights strong forecast revenue growth of about 63.9% per year while the company is expected to remain loss making for at least three years. This growth-at-a-loss profile sits alongside trailing losses of more than US$270 million, which keeps the focus on how long this level of spending can be supported without a shift toward profitability.
  • Supporters of the growth story can point to trailing revenue of US$10.7 million compared with earlier quarters where revenue was as low as US$0, while critics will focus on the fact that losses over the same trailing period remain in the hundreds of millions of US dollars.
  • That mix of improving top line and persistent losses is also visible in quarterly data, where revenue has moved between US$0 and US$7.7 million since early 2024 while quarterly net losses excluding extra items have stayed between roughly US$54.9 million and US$77.1 million.

63.9% revenue growth forecast vs ongoing unprofitability

• Analysts in the provided dataset forecast revenue growth of about 63.9% per year, yet the company is currently unprofitable and is not expected to reach profitability within the next three years. Q1 revenue of US$3 million therefore arrives against a backdrop of strong growth expectations but no near term break even point.
• What stands out in the bullish view is that heavy forecast revenue growth and a modest 1.1% annual improvement in losses over five years are seen as laying the groundwork for a stronger business. The same data also show that margins remain negative and recent quarterly net losses excluding extra items, such as US$73.3 million in Q1 2026 and US$77.1 million in Q1 2025, still dominate the income statement.
  • The bullish take leans on the trend in trailing basic EPS moving from a loss of US$2.36 twelve months ago to a loss of US$1.57 now, while more cautious readers may focus on the fact that even with that improvement, the company recorded over US$270 million in trailing losses.
  • Supporters might also argue that quarterly EPS losses have held within a relatively tight band between about US$0.32 and US$0.46 since early 2024, whereas skeptics can point out that staying within that band still means consistent per share losses with no profitable quarter in the data provided.

Bulls argue that this mix of high forecast growth and gradually improving losses could set up Relay Therapeutics for a stronger future, while skeptics focus on the scale and duration of those losses and what they imply for dilution and funding needs in a stock currently trading at US$12.92. 📊 Read the what the Community is saying about Relay Therapeutics.

P/B of 3.9x and 62.5% implied upside

• Relay Therapeutics trades on a P/B of 3.9x, which is higher than the broader US biotech industry average of 2.3x but slightly below the peer average of 4.3x. With a current share price of US$12.92 against analyst price targets of US$21.00, the provided data imply about 62.5% upside based on those targets.
• Supporters of the stock argue that paying a premium to the industry on P/B is justified by strong forecast revenue growth of about 63.9% per year and a five year pattern of 1.1% annual loss reduction. Critics question that premium given trailing twelve month net losses of US$272.7 million and no profitability expected within three years, so the key question is whether the growth that analysts expect will be enough to support both the current P/B and the implied upside to US$21.00.
  • Bulls can point out that the stock sits below its peer P/B average of 4.3x despite these growth expectations, which they may see as room for re rating if the forecasts are met, whereas bears may argue that a company with this level of ongoing loss should trade closer to or even below the broader industry P/B of 2.3x.
  • The difference between the current price of US$12.92 and the US$21.00 analyst target also reflects this tension, with price targets implying around 62.5% upside while the financials still show a business that generated only US$10.7 million of trailing revenue against large and persistent losses.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Relay Therapeutics's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Given the mix of optimism and concern in the data, it makes sense to move quickly, review the numbers yourself, and see how they line up with your outlook by weighing the 3 key rewards and 1 important warning sign.

See What Else Is Out There

Relay Therapeutics combines small trailing revenue of US$10.7 million with US$272.7 million in losses, persistent negative EPS, and no profitability expected within three years.

If you want ideas that aim to avoid that kind of heavy ongoing loss profile, check out 74 resilient stocks with low risk scores and look for businesses with steadier fundamentals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.