Surface Oncology, Inc. (SURF) Stock Analysis

Surface Oncology, Inc. (SURF) Healthcare & Pipeline Overview

Surface Oncology, Inc. is a clinical-stage biotechnology firm specializing in immuno-oncology, developing antibody therapies like NZV930 and SRF617 to target adenosine production and CD39 activity, aiming to enhance anti-tumor immune responses in the competitive healthcare landscape.

What Is the Investment Thesis for SURF?

Surface Oncology presents a high-risk, high-reward investment opportunity within the immuno-oncology sector. The company's focus on novel targets like adenosine production (NZY930 and SRF617) and interleukin 27 (SRF388) offers potential for breakthrough therapies. Upcoming clinical trial results for these programs will be critical catalysts. The collaborations with GlaxoSmithKline and Vaccinex provide validation and potential revenue streams. However, the company's negative profit margin of -217.7% and reliance on clinical trial success pose significant risks. The company's market capitalization is $0.07B as of 2026-03-18.

Based on FMP financials and quantitative analysis

SURF Key Highlights

Market capitalization of $65.1M reflects the company's current valuation in the biotechnology market.

• Gross margin of 100.0% indicates strong potential profitability if clinical programs are successful and can be commercialized.
• Negative profit margin of -217.7% highlights the significant R&D expenses and lack of product revenue typical of clinical-stage biotech companies.
• Beta of 1.75 suggests higher volatility compared to the overall market, reflecting the speculative nature of the stock.
• No dividend yield reflects the company's focus on reinvesting earnings into research and development activities.

Who Are SURF's Competitors?

SURF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are SURF's Key Strengths?

Novel immuno-oncology targets (adenosine, CD39, IL-27).

• Strategic partnerships with GlaxoSmithKline and Vaccinex.
• Experienced management team with expertise in drug development.
• Strong intellectual property portfolio.

What Are SURF's Weaknesses?

Limited financial resources and reliance on external funding.

• High dependence on clinical trial success.
• Negative profit margin and lack of product revenue.
• Small number of employees.

What Could Drive SURF Stock Higher?

Phase 1/2 clinical trial results for NZV930 in solid tumors (expected in late 2026).

• Phase 1 clinical trial results for SRF617 in advanced cancers (expected in early 2027).
• Enrollment and data monitoring in ongoing clinical trials for SRF388.
• Potential for new strategic partnerships and licensing agreements.

What Are the Key Risks for SURF?

Financial-distress signal — its Altman Z-Score of -6.63 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-61.5%) — the business is not currently generating profit on shareholder capital.
• Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
• Clinical trial failures for lead programs (NZV930, SRF617, SRF388).
• Regulatory hurdles and delays in drug approval processes.
• Competition from larger pharmaceutical companies with greater resources.
• Dependence on external funding and market volatility.
• Intellectual property challenges and patent disputes.

What Are the Growth Opportunities for SURF?

• Expansion of NZV930 Clinical Trials: NZV930, targeting extracellular adenosine production, represents a significant growth opportunity. Adenosine suppresses immune responses in the tumor microenvironment. Positive Phase 1/2 trial results could lead to accelerated development and potential partnerships. The market for adenosine-targeting therapies is estimated to reach $1-2 billion by 2030, driven by the increasing understanding of adenosine's role in cancer progression. Success in clinical trials could position Surface Oncology as a leader in this area.
• Advancement of SRF617 Program: SRF617, inhibiting CD39 enzymatic activity, offers another promising avenue for growth. CD39 plays a critical role in adenosine production and ATP breakdown, impacting immune cell function. Progressing SRF617 through clinical trials and demonstrating efficacy could unlock significant value. The market for CD39 inhibitors is projected to grow to $500 million - $1 billion by 2028, fueled by the increasing recognition of CD39 as a key target in immuno-oncology.
• Development of SRF388 Targeting Interleukin 27: SRF388, targeting interleukin 27 (IL-27), presents a unique growth opportunity. IL-27 is an immunosuppressive cytokine in the tumor microenvironment. Successful development and clinical validation of SRF388 could open up a new market segment. The market for IL-27 targeted therapies is estimated to reach $300-700 million by 2027, driven by the potential to enhance anti-tumor immunity.
• Strategic Partnerships and Licensing Agreements: Surface Oncology's existing partnerships with GlaxoSmithKline and Vaccinex demonstrate the potential for further strategic collaborations. Licensing agreements for SRF813 and SRF114 can generate revenue and expand the company's pipeline. The market for licensing agreements in immuno-oncology is robust, with deals ranging from $10 million to over $1 billion depending on the stage of development and potential market size.
• Expansion into New Therapeutic Areas: While currently focused on specific cancer types, Surface Oncology could expand its pipeline to address a broader range of malignancies. This could involve developing new therapies or repurposing existing assets. The global oncology market is projected to reach $300 billion by 2028, offering significant opportunities for companies with innovative approaches to cancer treatment. Expanding into new therapeutic areas could diversify the company's risk and increase its long-term growth potential.

What Are SURF's Competitive Advantages?

• Proprietary antibody technologies targeting novel pathways in immuno-oncology.
• Strong intellectual property portfolio protecting its drug candidates.
• Strategic partnerships with established pharmaceutical companies.
• Expertise in developing therapies that modulate the tumor microenvironment.

What Does SURF Do?

Surface Oncology, Inc., founded in 2014 and headquartered in Cambridge, Massachusetts, is a clinical-stage immuno-oncology company dedicated to developing novel cancer therapies. The company focuses on modulating the tumor microenvironment to enhance the body's immune response against cancer. Their pipeline includes a range of antibodies targeting different pathways involved in immune suppression and tumor growth. Key programs include NZV930, a fully human immunoglobulin G4 monoclonal antibody designed to block the production of extracellular adenosine, and SRF617, a monoclonal antibody that inhibits CD39 enzymatic activity, which is crucial for adenosine production and ATP breakdown. Surface Oncology is also developing SRF388, which targets interleukin 27, and GSK4381562, an antibody targeting CD112R, an inhibitory protein found on natural killer and T cells. Additionally, SRF114 targets the chemokine receptor CCR8. The company collaborates with other entities, including a license agreement with GlaxoSmithKline Intellectual Property (No. 4) Limited to develop SRF813-targeting antibodies, and Vaccinex, Inc. for SRF114-targeting antibodies. Surface Oncology operates primarily in the United States, focusing on innovative approaches to cancer treatment by targeting the tumor microenvironment.

What Products and Services Does SURF Offer?

• Develops antibody therapies for cancer treatment.
• Targets the tumor microenvironment to enhance immune responses.
• Focuses on modulating adenosine pathways to overcome immune suppression.
• Develops monoclonal antibodies to inhibit CD39 enzymatic activity.
• Creates therapies targeting interleukin 27 to stimulate anti-tumor immunity.
• Partners with other companies to develop and commercialize new therapies.
• Conducts clinical trials to evaluate the safety and efficacy of its drug candidates.

How Does SURF Make Money?

• Develops and patents novel antibody therapies for cancer.
• Out-licenses or co-develops therapies with larger pharmaceutical companies.
• Generates revenue through milestone payments and royalties from partnered programs.

What Industry Does SURF Operate In?

Surface Oncology operates within the competitive and rapidly evolving immuno-oncology sector. This sector is characterized by high growth potential, driven by increasing cancer prevalence and advancements in immunotherapy. Key trends include the development of combination therapies, personalized medicine approaches, and novel targets within the tumor microenvironment. Competitors include companies like ACHL, ALVR, HTBX, IGMS, and KRON, all vying for market share in this space. Surface Oncology's focus on modulating adenosine pathways and other novel targets positions it uniquely within this landscape.

Who Are SURF's Key Customers?

• Larger pharmaceutical companies seeking to expand their oncology portfolios.
• Patients with cancer who may benefit from novel immuno-oncology therapies.
• Healthcare providers who prescribe cancer treatments.

Company Profile

Surface Oncology, Inc. operates in the Biotechnology industry within the Healthcare sector. It is headquartered in Cambridge, US. The company is led by CEO Lisa McGrath. SURF has traded publicly since 2018.

Surface Oncology, Inc.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -6.63 places it in the distress zone, a signal of elevated financial risk.

Return on equity for Surface Oncology, Inc. stands at -61.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -40.8%, showing how much profit it generates from its asset base. Its free cash flow yield is -92.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 7.94 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -109.5%, the inverse of the P/E and a quick read on earnings relative to price.

SURF Valuation & Market Position

With a $65.1M market cap, Surface Oncology, Inc. sits in the micro-cap segment of the market.

SURF Financials

SURF Latest News

No recent news available for SURF.

Common Questions About SURF (Healthcare)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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