Q4 Revenue Miss of 48% Triggers Investor Sell-Off
Lenz Therapeutics (NASDAQ: LENZ) shares fell by nearly 20% during the trading week ending March 27, 2026, after the company's fourth-quarter earnings report disappointed investors. On March 24, Lenz announced revenue of approximately $1.6 million for the quarter ended December 31, 2025. This figure, representing the first sales from its newly launched presbyopia eye drop VIZZ, fell 48% short of the collective analyst estimate of $3.1 million.
The revenue miss was compounded by escalating costs associated with the product's commercialization. The company's net loss widened significantly to $35.9 million, or $1.16 per share, compared to a $12.7 million loss in the same quarter of 2024. The increased deficit was primarily driven by a surge in Selling, General, and Administrative (SG&A) expenses, which rose to $39.6 million as Lenz built out its sales force and marketing infrastructure.
Citigroup Halves Price Target to $26
The day after the earnings release, two major banks aggressively lowered their valuations for Lenz stock, signaling waning confidence from Wall Street. Citigroup analyst Yigal Nochomovitz slashed his price target in half, reducing it from $52 to $26 per share. In a more moderate but still bearish move, Jason Gerberry of Bank of America Securities cut his price target to $29 per share from a previous $35.
These downward revisions reflect concerns that the initial market uptake of VIZZ is not strong enough to justify the company's high operational spending. The sharp cuts from prominent analysts intensified selling pressure on the stock throughout the week, contributing directly to its significant decline.
Lenz Expands Sales Force Amid Market Doubts
Despite the market's negative reaction, Lenz Therapeutics management projected confidence and reaffirmed its growth strategy. The company is actively investing to accelerate adoption, announcing plans to expand its sales force from 88 to 117 territories in the second quarter of 2026. Management also highlighted positive underlying metrics, noting that VIZZ is on pace to surpass 45,000 paid prescriptions by the end of Q1 2026, with over 10,000 unique eye care professionals prescribing the treatment.
We are encouraged by the early performance of VIZZ. We undoubtedly have a product that works, with broad prescriber uptake and early signs of encouraging refill dynamics reinforcing its best-in-class profile.
— Eef Schimmelpennink, President and Chief Executive Officer of LENZ Therapeutics.
To further boost awareness, the company launched a direct-to-consumer campaign in January 2026 featuring celebrity Sarah Jessica Parker. With $292.3 million in cash and marketable securities as of December 31, 2025, Lenz appears well-capitalized to fund its expansion, betting that increased marketing and sales reach will translate initial prescription growth into the revenue figures investors are demanding.
