Investment Thesis
Edgewise is a pre-revenue biotech company with significant cash burn ($42.5M operating outflow annually) and deteriorating losses (-$49M net income, -12.4% YoY worsening). While the balance sheet is fortified with $493.2M equity and minimal debt, the cash runway appears limited relative to burn rate, and no revenue generation is evident to justify operational losses.
Strengths
- Fortress balance sheet with $493.2M stockholders equity and negligible debt ($59K)
- Excellent liquidity position with 22.61x current ratio providing operational flexibility
- Minimal financial leverage risk with debt-to-equity ratio near zero
Risks
- Pre-revenue stage with no commercial product generating income
- Significant operating cash burn of $42.5M annually with only $33.2M cash on hand
- Deteriorating EPS performance (-12.4% YoY), indicating worsening financial position
- Negative operating cash flow of -$42.8M free cash flow indicates cash runway concerns absent capital raise
Key Metrics to Watch
- Quarterly cash burn rate relative to cash reserves - critical for runway analysis
- Clinical trial progression and regulatory milestones that could support future revenue potential
- Capital raising activity and equity issuances - necessary to extend cash runway
Financial Metrics
Revenue
N/A
Net Income
-49.0M
EPS (Diluted)
$-0.46
Free Cash Flow
-42.8M
Total Assets
518.5M
Cash
33.2M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
-9.9%
ROA
-9.5%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
22.61x
Quick Ratio
22.61x
Debt/Equity
0.00x
Debt/Assets
4.9%
Interest Coverage
N/A
Long-term Debt
59.0K
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-16T09:05:33.473941 |
Data as of: 2026-03-31 |
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