Terns maintains a conservative capital structure with a debt-to-equity ratio of 0.00 and a robust cash balance of $524.7 million as of 2025Q4.
| Total Current Assets | 1.02B | 362.11M | 267.43M | 285.19M | 166.93M | 90.87M | 22.22M | 88.48M |
| Cash & Short-Term Investments | 1.02B | 358.16M | 263.44M | 283.11M | 165.98M | 74.85M | 19.65M | 86.88M |
| Cash Only | 524.75M | 161.44M | 79.93M | 143.24M | 47.7M | 74.85M | 12.33M | 82.52M |
| Short-Term Investments | 494.24M | 196.72M | 183.51M | 139.88M | 118.28M | 0 | 7.32M | 4.36M |
| Accounts Receivable | 0 | 0 | 0 | 0 | 0 | 12.72M | 0 | 0 |
| Days Sales Outstanding | - | - | - | - | - | - | - | - |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - | - | - | - | - | - |
| Other Current Assets | 5.21M | 3.94M | 3.99M | 2.07M | 0 | 2.14M | 461K | 162K |
| Total Non-Current Assets | 884K | 1.82M | 1.08M | 1.84M | 1.14M | 1.42M | 1.68M | 596K |
| Property, Plant & Equipment | 884K | 1.47M | 1.03M | 1.8M | 1.05M | 1.18M | 961K | 261K |
| Fixed Asset Turnover | - | - | - | - | 0.96x | - | - | - |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 0 | 350K | 56K | 37K | 94K | 246K | 719K | 335K |
| Total Assets | 1.03B | 363.93M | 268.52M | 287.03M | 168.07M | 92.29M | 23.9M | 89.07M |
| Asset Turnover | - | - | - | - | 0.01x | - | - | - |
| Asset Growth % | 181.67% | 35.53% | -6.45% | 70.78% | 82.11% | 286.09% | -73.16% | - |
| Total Current Liabilities | 16.41M | 15.65M | 11.94M | 8.47M | 6.82M | 22.82M | 4.95M | 2.38M |
| Accounts Payable | 1.72M | 2.15M | 2.52M | 1.65M | 2.13M | 935K | 1.64M | 914K |
| Days Payables Outstanding | - | - | - | - | - | - | 3.06K | 5.13K |
| Short-Term Debt | 0 | 428K | 0 | 0 | 0 | 12.88M | 0 | 0 |
| Deferred Revenue (Current) | 0 | 0 | 0 | 0 | 0 | 836K | 0 | 0 |
| Other Current Liabilities | 7.37M | 8.37M | 5.96M | 185K | 358K | 6.68M | 2.1M | 127K |
| Current Ratio | 62.41x | 23.14x | 22.39x | 33.68x | 24.48x | 3.98x | 4.49x | 37.25x |
| Quick Ratio | 62.41x | 23.14x | 22.39x | 33.68x | 24.48x | 3.98x | 4.49x | 37.25x |
| Cash Conversion Cycle | - | - | - | - | - | - | - | - |
| Total Non-Current Liabilities | 2.14M | 2.41M | 1.21M | 1.61M | 947K | 877K | 630K | 14.47M |
| Long-Term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital Lease Obligations | 445K | 919K | 0 | 544K | 0 | 0 | 0 | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 345K | 142K |
| Other Non-Current Liabilities | 1.7M | 1.49M | 1.21M | 1.07M | 947K | 877K | 285K | 14.32M |
| Total Liabilities | 18.55M | 18.06M | 13.15M | 10.08M | 7.77M | 23.7M | 5.58M | 16.84M |
| Total Debt | 919K | 1.35M | 603K | 1.21M | 0 | 12.88M | 0 | 0 |
| Net Debt | -523.83M | -160.09M | -79.32M | -142.03M | -47.7M | -61.97M | -12.33M | -82.52M |
| Debt / Equity | 0.00x | 0.00x | 0.00x | 0.00x | - | 0.19x | - | - |
| Debt / EBITDA | - | - | - | - | - | - | - | - |
| Net Debt / EBITDA | - | - | - | - | - | - | - | - |
| Interest Coverage | - | - | - | - | - | - | - | - |
| Total Equity | 1.01B | 345.87M | 255.37M | 276.94M | 160.3M | 68.59M | 18.32M | 86.56M |
| Equity Growth % | 191.01% | 35.44% | -7.79% | 72.76% | 133.71% | 274.33% | -78.83% | - |
| Book Value per Share | 10.80 | 4.35 | 3.58 | 7.69 | 6.34 | 2.73 | 0.73 | 3.61 |
| Total Shareholders' Equity | 1.01B | 345.87M | 255.37M | 276.94M | 160.3M | 68.59M | 4.21M | 72.23M |
| Common Stock | 11K | 9K | 6K | 5K | 3K | 0 | 0 | 0 |
| Retained Earnings | -517.69M | -421.48M | -332.63M | -242.42M | -182.07M | -131.91M | -91.86M | -23.25M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | 260K | -279K | -19K | -822K | -338K | -124K | -106K | 59K |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 14.12M | 14.32M |
Clinical trial execution risk
According to the 2025Q4 financial statements, Terns Pharmaceuticals holds $524.7 million in cash, providing a robust liquidity buffer that significantly exceeds the company's current liabilities of $18.6 million and supports ongoing clinical development efforts through the projected 2027 horizon without immediate reliance on external financing.
The current ratio of 62.41 indicates an exceptionally liquid position, which is typical for a pre-revenue biotech firm that has successfully tapped capital markets. This liquidity profile suggests the company is well-positioned to navigate potential clinical trial delays or increased R&D costs without facing immediate solvency concerns.
Based on reported figures, Terns Pharmaceuticals' equity base expanded to $1.0 billion in 2025Q4, a significant increase from $284.1 million in the previous quarter, which reflects the successful execution of capital-raising activities intended to fund the company's multi-asset clinical pipeline through upcoming data readouts.
While the equity expansion strengthens the balance sheet, investors should monitor the impact of persistent negative retained earnings, which reached -$517.7 million. This trend highlights the structural reliance on shareholder capital to offset ongoing operational losses, suggesting that future value creation remains entirely dependent on clinical success.
As indicated in the latest quarterly filings, Terns Pharmaceuticals maintains a negligible debt-to-equity ratio of 0.00, with total debt standing at only $919,000, underscoring a conservative financial strategy that avoids interest-bearing obligations during this high-risk, pre-commercial phase of the company's business lifecycle.
The absence of meaningful debt suggests that management is prioritizing financial flexibility and avoiding the restrictive covenants that could impede operational agility. This debt-free status is a strategic advantage, as it eliminates refinancing risk and allows the company to focus its entire capital base on R&D and clinical execution.
While the balance sheet appears pristine due to the lack of debt, the company's reliance on equity financing, as evidenced by the $1.0 billion equity position, suggests that shareholders face ongoing dilution risk as the firm continues to fund its operations through periodic capital market access.
The headline strength of the balance sheet may mask the underlying reality that the company's primary asset is its cash, which is being consumed at a steady rate to support clinical trials. Investors should interpret the current equity structure as a reflection of the company's need to continuously trade ownership for the capital required to reach commercial viability.
Quick answers to the most common questions about buying TERN stock.
As of 2025, Terns Pharmaceuticals, Inc. (TERN) had total assets of $1.03B including $1.02B in current assets.
Terns Pharmaceuticals, Inc. (TERN) carries total debt of $0.9M, offset by $1.02B in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Terns Pharmaceuticals, Inc. (TERN) has total shareholders' equity (book value) of $1.01B ($10.80 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Terns Pharmaceuticals, Inc. (TERN) reported a current ratio of 62.41x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.