Fractyl Health (NASDAQ:GUTS) Announces Earnings Results, Beats Expectations By $0.43 EPS

Fractyl Health (NASDAQ:GUTS) announced its earnings results on Thursday. The company reported ($1.07) EPS for the quarter, beating analysts’ consensus estimates of ($1.50) by $0.43, FiscalAI reports.

Here are the key takeaways from Fractyl Health’s conference call:

• Revita met REMAIN-1’s six-month co-primary endpoint with high statistical significance; participants retained about 80% of the weight they had lost on tirzepatide, and the company said the difference versus sham widened over time. The 12-month endpoint is still pending, and the reported benefit with longer ablations comes from post-hoc analyses.
• Fractyl plans to submit its De Novo application later this quarter, with the 12-month data expected in Q1 2027 to complete the clinical evidence package. CMS is also expected to clarify by early 2027 whether its proposed RAPID coverage pathway could apply to Revita; coverage is not yet assured.
• The company cut its workforce by about 45% and discontinued internal development of its Rejuva gene therapy program as it refocuses on Revita. It expects cash spending to fall by roughly half to $8 million per quarter by the end of Q2 2027, but says its $31.5 million in quarter-end cash funds operations only into that quarter and additional capital will be needed to bring Revita to market.
• Fractyl is planning a focused launch through established bariatric and metabolic centers, arguing that these sites already have relevant patients, physicians, and procedure infrastructure. A dedicated CPT Category III code is scheduled to take effect in January 2027, though commercial adoption will depend on regulatory authorization and reimbursement.

Fractyl Health Price Performance

GUTS stock traded down $0.07 during midday trading on Thursday, hitting $0.81. The stock had a trading volume of 172,866 shares, compared to its average volume of 1,183,451. The company has a quick ratio of 3.15, a current ratio of 3.15 and a debt-to-equity ratio of 1.41. Fractyl Health has a 12-month low of $0.80 and a 12-month high of $29.34. The company’s 50-day moving average price is $4.04 and its 200 day moving average price is $6.99.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on GUTS shares. Wall Street Zen downgraded Fractyl Health from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Morgan Stanley dropped their price objective on Fractyl Health to $4.00 and set an “equal weight” rating for the company in a research report on Monday, October 19th. Craig Hallum set a $5.00 target price on shares of Fractyl Health in a research note on Monday, October 19th. Finally, Weiss Ratings lowered shares of Fractyl Health from a “sell (d-)” rating to a “sell (e+)” rating in a report on Thursday, September 3rd. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Fractyl Health has a consensus rating of “Hold” and an average target price of $50.25.

About Fractyl Health

Fractyl Health, Inc. is a biotechnology company focused on developing therapies for metabolic diseases, including obesity and type 2 diabetes. The company aims to create treatments that address the underlying biology of these conditions and provide longer-lasting alternatives to frequently administered medicines. Fractyl Health’s technology platforms include Revita, an endoscopic procedure designed to modify the lining of the duodenum and potentially improve metabolic function, and a gene therapy platform intended to enable the body to produce therapeutic levels of metabolic hormones such as glucagon-like peptide-1 (GLP-1).