📊 INSM Key Takeaways
Is INSM a Good Investment? Thesis Analysis
Insmed exhibits severe operational losses despite strong revenue growth of 66.7% YoY, indicating the company is burning significant cash to drive sales. With negative free cash flow of -$967.6M and an operating cash burn rate of -$935M, the company's financial runway is limited, creating substantial existential risk even with $510.4M in cash reserves.
Why Buy INSM? Key Strengths
- Strong revenue growth of 66.7% YoY demonstrates significant commercial traction and market demand
- Healthy liquidity position with current ratio of 3.83x and $510.4M in cash providing near-term operational buffer
- Moderate leverage with debt-to-equity ratio of 0.74x indicates manageable debt burden relative to equity base
INSM Investment Risks to Consider
- Severe profitability crisis with -210.5% net margin and -205.6% operating margin indicating unsustainable unit economics
- Catastrophic cash burn of -$967.6M in free cash flow annually will exhaust $510.4M cash reserves within 6 months at current burn rate
- Negative interest coverage of -14.9x shows company cannot service debt from operations, forcing reliance on capital markets or asset liquidation
- Operating losses of -$1.2B on revenue of only $606.4M indicate fundamental business model challenges, not temporary startup losses
Key Metrics to Watch
- Quarterly operating cash flow trend and projected cash runway duration
- Gross margin expansion pathway as product mix matures and manufacturing scales
- Path to operating profitability with timeline and key milestones
INSM Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 3.83x current ratio provides a solid financial cushion.
INSM Profitability Ratios
INSM vs Healthcare Sector
How INSMED Inc compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is INSM Overvalued or Undervalued?
Based on fundamental analysis, INSMED Inc shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
INSM Balance Sheet & Liquidity
INSM 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: INSMED Inc's revenue has grown significantly by 222% over the 5-year period, indicating strong business expansion. The most recent EPS of $-5.34 indicates the company is currently unprofitable.
INSM Growth Metrics (YoY)
INSM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $93.4M | -$220.5M | $-1.27 |
| Q2 2025 | $90.3M | -$300.6M | $-1.70 |
| Q1 2025 | $75.5M | -$157.1M | $-1.06 |
| Q3 2024 | $79.1M | -$158.9M | $-1.11 |
| Q2 2024 | $77.2M | -$244.8M | $-1.78 |
| Q1 2024 | $65.2M | -$157.1M | $-1.06 |
| Q3 2023 | $67.7M | -$131.1M | $-1.09 |
| Q2 2023 | $65.2M | -$95.6M | $-0.80 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
INSM Capital Allocation
INSM SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for INSMED Inc (CIK: 0001104506)
📋 Recent SEC Filings
❓ Frequently Asked Questions about INSM
What is the AI rating for INSM?
INSMED Inc (INSM) has an AI rating of SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are INSM's key strengths?
Claude: Strong revenue growth of 66.7% YoY demonstrates significant commercial traction and market demand. Healthy liquidity position with current ratio of 3.83x and $510.4M in cash providing near-term operational buffer.
What are the risks of investing in INSM?
Claude: Severe profitability crisis with -210.5% net margin and -205.6% operating margin indicating unsustainable unit economics. Catastrophic cash burn of -$967.6M in free cash flow annually will exhaust $510.4M cash reserves within 6 months at current burn rate.
What is INSM's revenue and growth?
INSMED Inc reported revenue of $606.4M.
Does INSM pay dividends?
INSMED Inc does not currently pay dividends.
Where can I find INSM SEC filings?
Official SEC filings for INSMED Inc (CIK: 0001104506) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is INSM's EPS?
INSMED Inc has a diluted EPS of $-6.42.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is INSM a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, INSMED Inc has a SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is INSM stock overvalued or undervalued?
Valuation metrics for INSM: ROE of -172.8% (sector avg: 15%), net margin of -210.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy INSM stock in 2026?
Our dual AI analysis gives INSMED Inc a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is INSM's free cash flow?
INSMED Inc's operating cash flow is $-935.0M, with capital expenditures of $32.6M. FCF margin is -159.6%.
How does INSM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -210.5% (avg: 12%), ROE -172.8% (avg: 15%), current ratio 3.83 (avg: 2).