Investment Thesis
Cartesian Therapeutics exhibits acute financial distress with negative stockholders equity of -$126.2M and catastrophic operating losses of -$143.4M on minimal $2.8M revenue, indicating technical insolvency. While 599% YoY revenue growth signals early-stage product commercialization, the $73.9M annual operating cash burn rate will deplete the $125.1M cash position within 18-24 months absent capital restructuring or dramatic operational improvement, creating imminent solvency risk.
Strengths
- Exceptional 599% YoY revenue growth suggests early-stage product commercialization and market acceptance
- Adequate cash position of $125.1M provides near-term operational funding capacity
- Strong liquidity ratios (Current Ratio 8.65x, Quick Ratio 8.65x) provide working capital flexibility
Risks
- Negative stockholders equity of -$126.2M represents technical insolvency on book value basis
- Unsustainable operating cash burn of -$73.9M annually with limited 18-24 month runway at current burn rates
- Operating losses of -$143.4M against $2.8M revenue demonstrate extreme unit economics with no visible path to profitability
- Liabilities of $422.7M exceed assets of $296.4M, creating substantial creditor and dilution risk
Key Metrics to Watch
- Monthly cash burn rate and remaining runway timeline
- Gross margin realization as revenue scales and manufacturing efficiency improves
- Achievement of clinical/regulatory milestones required for revenue growth acceleration
Financial Metrics
Revenue
2.8M
Net Income
-130.3M
EPS (Diluted)
$-5.02
Free Cash Flow
-79.4M
Total Assets
296.4M
Cash
125.1M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-5,127.1%
Net Margin
-4,658.6%
ROE
N/A
ROA
-44.0%
FCF Margin
-2,838.6%
Balance Sheet & Liquidity
Current Ratio
8.65x
Quick Ratio
8.65x
Debt/Equity
N/A
Debt/Assets
142.6%
Interest Coverage
N/A
Long-term Debt
N/A
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: 2026-04-10T01:00:25.759869 |
Data as of: 2025-12-31 |
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