📊 ITRM Key Takeaways
Is ITRM a Good Investment? Thesis Analysis
Iterum Therapeutics faces severe financial distress with negative stockholders' equity of -$7.4M, indicating liabilities exceed assets. The company is generating minimal revenue ($390K) while burning significant cash ($15.3M operating cash flow negative) and accumulating losses ($20.4M net loss), with no clear path to profitability in the near term.
Why Buy ITRM? Key Strengths
- Adequate short-term liquidity with current ratio of 2.13x and $11.0M cash on hand providing near-term runway
- Substantial reduction in diluted EPS loss (57.4% improvement YoY) suggests some operational progress or accounting improvements
- Pharmaceutical sector positioning could enable future value creation if pipeline advances succeed
ITRM Investment Risks to Consider
- Critical: Negative stockholders' equity of -$7.4M indicates technical insolvency and structural balance sheet deterioration
- Severe cash burn of $15.3M annually with only $11.0M cash reserves provides approximately 9 months of runway at current burn rate
- Revenue of only $390K is inconsistent with meaningful commercial operations, suggesting pre-commercial or failed commercialization stage
- Substantial long-term debt of $20.0M against negative equity creates debt service risk without profitability
- Zero insider buying activity in last 90 days signals lack of management confidence in company trajectory
Key Metrics to Watch
- Quarterly cash burn rate and remaining cash runway
- Revenue growth trajectory and achievement of commercial milestones
- Progress toward positive EBITDA or sustained operating cash flow improvement
- Changes in stockholders' equity and path to balance sheet solvency
- Debt refinancing needs and ability to secure additional capital
ITRM Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.13x current ratio provides a solid financial cushion.
ITRM Profitability Ratios
ITRM vs Healthcare Sector
How Iterum Therapeutics plc compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is ITRM Overvalued or Undervalued?
Based on fundamental analysis, Iterum Therapeutics plc has mixed fundamental signals 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.
ITRM Balance Sheet & Liquidity
ITRM 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Iterum Therapeutics plc's revenue has declined by 96% over the 5-year period, indicating business contraction. The most recent EPS of $-3.63 indicates the company is currently unprofitable.
ITRM Growth Metrics (YoY)
ITRM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $390.0K | -$6.1M | $-0.20 |
| Q3 2020 | $37.0K | -$12.2M | N/A |
| Q2 2020 | $37.0K | -$12.5M | N/A |
| Q1 2020 | $37.0K | -$16.1M | N/A |
| Q3 2019 | $37.0K | -$24.9M | N/A |
| Q2 2019 | $37.0K | -$15.7M | N/A |
| Q1 2019 | $37.0K | -$12.1M | N/A |
| Q3 2018 | $159.0K | -$8.2M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ITRM Capital Allocation
ITRM SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Iterum Therapeutics plc (CIK: 0001659323)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ITRM
What is the AI rating for ITRM?
Iterum Therapeutics plc (ITRM) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ITRM's key strengths?
Claude: Adequate short-term liquidity with current ratio of 2.13x and $11.0M cash on hand providing near-term runway. Substantial reduction in diluted EPS loss (57.4% improvement YoY) suggests some operational progress or accounting improvements.
What are the risks of investing in ITRM?
Claude: Critical: Negative stockholders' equity of -$7.4M indicates technical insolvency and structural balance sheet deterioration. Severe cash burn of $15.3M annually with only $11.0M cash reserves provides approximately 9 months of runway at current burn rate.
What is ITRM's revenue and growth?
Iterum Therapeutics plc reported revenue of $390.0K.
Does ITRM pay dividends?
Iterum Therapeutics plc does not currently pay dividends.
Where can I find ITRM SEC filings?
Official SEC filings for Iterum Therapeutics plc (CIK: 0001659323) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ITRM's EPS?
Iterum Therapeutics plc has a diluted EPS of $-0.51.
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 ITRM a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Iterum Therapeutics plc has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ITRM stock overvalued or undervalued?
Valuation metrics for ITRM: ROE of N/A (sector avg: 15%), net margin of -5,225.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ITRM stock in 2026?
Our dual AI analysis gives Iterum Therapeutics plc a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ITRM's free cash flow?
Iterum Therapeutics plc's operating cash flow is $-15.3M, with capital expenditures of $14.0K. FCF margin is -3,915.9%.
How does ITRM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -5,225.4% (avg: 12%), ROE N/A (avg: 15%), current ratio 2.13 (avg: 2).