📊 CARL Key Takeaways
Investment Thesis
CarlsMed exhibits strong revenue growth (+85.9% YoY) and excellent gross margins (75.3%), indicating solid product-market fit and pricing power in the medical device sector. However, the company is deeply unprofitable with a -58.7% net margin, negative operating cash flow of -29.6M, and deteriorating cash position despite strong liquidity, suggesting unsustainable cash burn that will erode the substantial equity base if profitability is not achieved soon.
CARL Strengths
- Exceptional revenue growth of 85.9% YoY demonstrates strong market demand
- Industry-leading gross margin of 75.3% indicates pricing power and operational efficiency in manufacturing
- Fortress balance sheet with $85.8M cash, minimal debt (0.16x D/E ratio), and current ratio of 8.87x provides substantial runway
CARL Risks
- Operating losses of -$30.6M on $50.5M revenue indicate severe profitability challenges despite gross margin strength
- Negative operating cash flow of -$29.6M and free cash flow burn at -58.6% margin unsustainable; cash depletion at current burn rate in ~2.9 years
- High operating expenses relative to revenue suggest inability to scale profitably; improvement in R&D and SG&A discipline required immediately
Key Metrics to Watch
- Path to operating profitability and reduction of operating margin from -60.5% to breakeven
- Operating cash flow inflection; currently burning $29M annually with negative FCF trajectory
- Cash balance runway and quarterly burn rate; assess if current $85.8M cash survives to profitability
CARL Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 8.87x current ratio provides a solid financial cushion.
CARL Profitability Ratios
CARL vs Healthcare Sector
How CARLSMED, INC. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CARL Balance Sheet & Liquidity
CARL 5-Year Financial Trend
5-Year Trend Summary: CARLSMED, INC.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-6.11 indicates the company is currently unprofitable.
CARL Growth Metrics (YoY)
CARL Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $6.6M | -$5.4M | $-0.40 |
| Q2 2025 | $6.1M | -$5.4M | $-1.47 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CARL Capital Allocation
CARL SEC Filings
Access official SEC EDGAR filings for CARLSMED, INC. (CIK: 0001794546)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CARL
What is the AI rating for CARL?
CARLSMED, INC. (CARL) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CARL's key strengths?
Exceptional revenue growth of 85.9% YoY demonstrates strong market demand. Industry-leading gross margin of 75.3% indicates pricing power and operational efficiency in manufacturing.
What are the risks of investing in CARL?
Operating losses of -$30.6M on $50.5M revenue indicate severe profitability challenges despite gross margin strength. Negative operating cash flow of -$29.6M and free cash flow burn at -58.6% margin unsustainable; cash depletion at current burn rate in ~2.9 years.
What is CARL's revenue and growth?
CARLSMED, INC. reported revenue of $50.5M.
Does CARL pay dividends?
CARLSMED, INC. does not currently pay dividends.
Where can I find CARL SEC filings?
Official SEC filings for CARLSMED, INC. (CIK: 0001794546) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CARL's EPS?
CARLSMED, INC. has a diluted EPS of $-2.12.
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.