📊 CAI Key Takeaways
Investment Thesis
Caris Life Sciences demonstrates strong revenue growth (97% YoY) and solid free cash flow generation ($66.9M), indicating operational traction in its medical laboratory services business. However, the company is unprofitable at the net income level (-$68.1M, -8.4% margin) with weak interest coverage (0.8x), suggesting margin expansion challenges and debt servicing risks that must stabilize before a positive recommendation.
CAI Strengths
- Exceptional revenue growth of 97% YoY demonstrates strong market demand for oncology testing services
- Robust free cash flow of $66.9M (8.2% FCF margin) shows the business converts growth into cash despite net losses
- Excellent liquidity position with $796.3M cash and 7.85x current ratio provides significant financial flexibility and runway
- Positive operating cash flow of $83.2M indicates core operations generate cash before working capital and financing activities
CAI Risks
- Persistent net losses (-$68.1M) and negative net margin (-8.4%) indicate business model has not achieved profitability despite rapid scaling
- Weak interest coverage ratio of 0.8x is concerning with $378.4M long-term debt; company cannot cover interest from operating income alone
- Deteriorating EPS trend (-$3.22 diluted) despite revenue growth suggests margin compression and potential dilution from capital raises
- Operating margin of only 5.6% provides minimal buffer; slight revenue decline or cost increase could reverse cash generation
Key Metrics to Watch
- Path to net profitability and net margin expansion from current -8.4% level
- Interest coverage ratio improvement above 1.5x to ensure sustainable debt service capability
- Operating margin sustainability and whether economies of scale drive incremental margin improvement as revenue grows
- Cash burn rate and runway given unprofitability; validate $796.3M cash is sufficient to reach breakeven
CAI Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 7.85x current ratio provides a solid financial cushion.
CAI Profitability Ratios
CAI vs Healthcare Sector
How Caris Life Sciences, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CAI Balance Sheet & Liquidity
CAI 5-Year Financial Trend
5-Year Trend Summary: Caris Life Sciences, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-13.24 indicates the company is currently unprofitable.
CAI Growth Metrics (YoY)
CAI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $101.6M | $24.3M | $0.08 |
| Q2 2025 | $100.0M | -$66.2M | $-2.54 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CAI Capital Allocation
CAI SEC Filings
Access official SEC EDGAR filings for Caris Life Sciences, Inc. (CIK: 0002019410)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 10, 2026 | 4 | xslF345X05/wk-form4_1773180079.xml | View → |
| Mar 10, 2026 | 4 | xslF345X05/wk-form4_1773180021.xml | View → |
| Mar 10, 2026 | 4 | xslF345X05/wk-form4_1773179995.xml | View → |
| Mar 10, 2026 | 4 | xslF345X05/wk-form4_1773179971.xml | View → |
| Mar 10, 2026 | 4 | xslF345X05/wk-form4_1773179739.xml | View → |
❓ Frequently Asked Questions about CAI
What is the AI rating for CAI?
Caris Life Sciences, Inc. (CAI) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CAI's key strengths?
Exceptional revenue growth of 97% YoY demonstrates strong market demand for oncology testing services. Robust free cash flow of $66.9M (8.2% FCF margin) shows the business converts growth into cash despite net losses.
What are the risks of investing in CAI?
Persistent net losses (-$68.1M) and negative net margin (-8.4%) indicate business model has not achieved profitability despite rapid scaling. Weak interest coverage ratio of 0.8x is concerning with $378.4M long-term debt; company cannot cover interest from operating income alone.
What is CAI's revenue and growth?
Caris Life Sciences, Inc. reported revenue of $812.0M.
Does CAI pay dividends?
Caris Life Sciences, Inc. does not currently pay dividends.
Where can I find CAI SEC filings?
Official SEC filings for Caris Life Sciences, Inc. (CIK: 0002019410) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CAI's EPS?
Caris Life Sciences, Inc. has a diluted EPS of $-3.22.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.