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CRVO Stock Analysis - CervoMed Inc. AI Rating

CRVO Nasdaq Pharmaceutical Preparations DE CIK: 0001053691
Recently Updated • Analysis: Mar 23, 2026 • SEC Data: 2025-12-31
AI Rating
STRONG SELL
92% Confidence

📊 CRVO Key Takeaways

Revenue: $4.0M
Net Margin: -673.1%
Free Cash Flow: $-23.9M
Current Ratio: 4.91x
Debt/Equity: 0.00x
EPS: $-1.22
AI Rating: STRONG SELL with 92% confidence

Investment Thesis

CervoMed is a pharmaceutical company in severe financial distress with dramatically deteriorating fundamentals. Revenue collapsed 58.9% YoY to just $4.0M while operating losses expanded to -$28.3M, indicating the company is burning cash at an unsustainable rate with no clear path to profitability. Despite adequate near-term liquidity, the company's burn rate of -$23.4M in operating cash flow against minimal revenue suggests runway of approximately 5 months at current levels.

CRVO Strengths

  • + Strong current ratio of 4.91x provides near-term liquidity cushion
  • + No long-term debt reduces financial obligations and restructuring complexity
  • + Cash reserves of $8.2M provide some runway for operations or strategic pivots

CRVO Risks

  • ! Massive operating losses of -$28.3M against $4.0M revenue indicates core business failure
  • ! Operating cash burn of -$23.4M annually with only $8.2M cash will exhaust liquidity in ~3-5 months without capital injection
  • ! Zero gross profit and 0% gross margin indicate product offerings generate no value or are not selling
  • ! Severe negative profitability margins (-706% operating margin, -673% net margin) reflect fundamental business model breakdown
  • ! Revenue decline of 58.9% YoY demonstrates accelerating commercial failure, not temporary headwinds

Key Metrics to Watch

CRVO Financial Metrics

Revenue
$4.0M
Net Income
$-27.0M
EPS (Diluted)
$-1.22
Free Cash Flow
$-23.9M
Total Assets
$22.9M
Cash Position
$8.2M

💡 AI Analyst Insight

Strong liquidity with a 4.91x current ratio provides a solid financial cushion.

CRVO Profitability Ratios

Gross Margin 0.0%
Operating Margin -706.2%
Net Margin -673.1%
ROE -148.0%
ROA -117.9%
FCF Margin -596.5%

CRVO vs Healthcare Sector

How CervoMed Inc. compares to Healthcare sector averages

Net Margin
CRVO -673.1%
vs
Sector Avg 12.0%
CRVO Sector
ROE
CRVO -148.0%
vs
Sector Avg 15.0%
CRVO Sector
Current Ratio
CRVO 4.9x
vs
Sector Avg 2.0x
CRVO Sector
Debt/Equity
CRVO 0.0x
vs
Sector Avg 0.6x
CRVO Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CRVO Balance Sheet & Liquidity

Current Ratio
4.91x
Quick Ratio
4.91x
Debt/Equity
0.00x
Debt/Assets
20.4%
Interest Coverage
N/A
Long-term Debt
N/A

CRVO 5-Year Financial Trend

CRVO 5-year financial data: Year 2023: Revenue $7.1M, Net Income -$5.8M, EPS N/A. Year 2024: Revenue $9.7M, Net Income -$2.2M, EPS N/A. Year 2025: Revenue $9.7M, Net Income -$16.3M, EPS N/A.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: CervoMed Inc.'s revenue has grown significantly by 36% over the 5-year period, indicating strong business expansion. The most recent EPS of $1,946,859.00 reflects profitable operations.

CRVO Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-596.5%
Free cash flow / Revenue

CRVO Quarterly Performance

Quarterly financial performance data for CervoMed Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $322.6K -$4.8M N/A
Q2 2025 $1.8M -$2.3M N/A
Q1 2025 $1.9M -$2.5M N/A
Q3 2024 $1.5M $190.5K $-0.55
Q2 2024 $1.7M -$1.4M N/A
Q1 2024 $1.4M -$534.3K N/A
Q3 2023 N/A $190.5K $-0.70

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CRVO Capital Allocation

Operating Cash Flow
-$23.4M
Cash generated from operations
Capital Expenditures
$447.8K
Investment in assets
Dividends
None
No dividend program

CRVO SEC Filings

Access official SEC EDGAR filings for CervoMed Inc. (CIK: 0001053691)

📋 Recent SEC Filings

Date Form Document Action
Mar 19, 2026 8-K crvo20260319_8k.htm View →
Mar 17, 2026 8-K crvo20260317_8k.htm View →
Mar 13, 2026 10-K crvo20251231_10k.htm View →
Mar 4, 2026 8-K crvo20260304_8k.htm View →
Feb 18, 2026 8-K crvo20260218_8k.htm View →

Frequently Asked Questions about CRVO

What is the AI rating for CRVO?

CervoMed Inc. (CRVO) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CRVO's key strengths?

Strong current ratio of 4.91x provides near-term liquidity cushion. No long-term debt reduces financial obligations and restructuring complexity.

What are the risks of investing in CRVO?

Massive operating losses of -$28.3M against $4.0M revenue indicates core business failure. Operating cash burn of -$23.4M annually with only $8.2M cash will exhaust liquidity in ~3-5 months without capital injection.

What is CRVO's revenue and growth?

CervoMed Inc. reported revenue of $4.0M.

Does CRVO pay dividends?

CervoMed Inc. does not currently pay dividends.

Where can I find CRVO SEC filings?

Official SEC filings for CervoMed Inc. (CIK: 0001053691) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CRVO's EPS?

CervoMed Inc. has a diluted EPS of $-1.22.

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.

Disclaimer: This analysis is generated by Claude 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 and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 23, 2026 | Data as of: 2025-12-31 | Powered by Claude AI