📊 CARM Key Takeaways
Investment Thesis
Despite impressive top-line growth and operational profitability metrics, Carisma Therapeutics faces severe financial distress with negative shareholders' equity, liabilities exceeding assets, and substantial negative operating cash flow indicating the company is burning cash despite reported profitability. The disconnect between reported net income and negative cash flow, combined with weak liquidity (0.86x current ratio) and high long-term debt, suggests financial instability that outweighs the positive revenue growth.
CARM Strengths
- Strong revenue growth of 31.5% year-over-year demonstrates market demand and business expansion
- High operating margin of 58.6% and net margin of 52.4% indicate efficient cost structure and pricing power
- Diluted EPS growth of 43.6% YoY shows improving earnings per share trajectory
CARM Risks
- Negative shareholders' equity of -$867K indicates balance sheet insolvency and potential covenant violations or forced restructuring
- Operating cash flow of -$14.1M versus reported net income of $25.7M reveals severe cash generation problems and questions about earnings quality
- Current ratio of 0.86x indicates liquidity stress with liabilities exceeding current assets, limiting ability to meet near-term obligations
- Total liabilities of $7.4M exceed total assets of $6.6M by $800K, creating financial distress conditions
- Long-term debt of $10.0M against minimal asset base creates unsustainable leverage
Key Metrics to Watch
- Operating cash flow trend - critical to determine if negative cash burn improves or deteriorates
- Shareholders' equity trajectory - must return to positive territory to restore financial stability
- Current ratio and working capital position - essential to monitor liquidity crisis development
- Debt refinancing requirements - assess ability to service or refinance $10M long-term debt
CARM Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
CARM Profitability Ratios
CARM vs Healthcare Sector
How Carisma Therapeutics Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CARM Balance Sheet & Liquidity
CARM 5-Year Financial Trend
5-Year Trend Summary: Carisma Therapeutics Inc.'s revenue has grown significantly by 32% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.59 indicates the company is currently unprofitable.
CARM Growth Metrics (YoY)
CARM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.4M | -$9.3M | $-0.31 |
| Q2 2025 | $3.7M | -$9.3M | $-0.23 |
| Q1 2025 | $3.4M | -$9.3M | $-0.22 |
| Q3 2024 | $3.4M | -$11.2M | $-0.31 |
| Q2 2024 | $3.6M | -$11.2M | $-0.27 |
| Q1 2024 | $3.2M | -$19.0M | $-0.46 |
| Q3 2023 | $2.6M | -$18.3M | $-0.53 |
| Q2 2023 | $2.7M | -$14.8M | $-0.49 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CARM Capital Allocation
CARM SEC Filings
Access official SEC EDGAR filings for Carisma Therapeutics Inc. (CIK: 0001485003)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CARM
What is the AI rating for CARM?
Carisma Therapeutics Inc. (CARM) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CARM's key strengths?
Strong revenue growth of 31.5% year-over-year demonstrates market demand and business expansion. High operating margin of 58.6% and net margin of 52.4% indicate efficient cost structure and pricing power.
What are the risks of investing in CARM?
Negative shareholders' equity of -$867K indicates balance sheet insolvency and potential covenant violations or forced restructuring. Operating cash flow of -$14.1M versus reported net income of $25.7M reveals severe cash generation problems and questions about earnings quality.
What is CARM's revenue and growth?
Carisma Therapeutics Inc. reported revenue of $49.0M.
Does CARM pay dividends?
Carisma Therapeutics Inc. does not currently pay dividends.
Where can I find CARM SEC filings?
Official SEC filings for Carisma Therapeutics Inc. (CIK: 0001485003) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CARM's EPS?
Carisma Therapeutics Inc. has a diluted EPS of $0.61.
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.