📊 SMTK Key Takeaways
Is SmartKem, Inc. (SMTK) a Good Investment?
SmartKem is a pre-commercial semiconductor company generating only $20K in quarterly revenue while burning $1.7M in free cash flow, resulting in a $19.4M net loss. Despite excellent 80% gross margins, the company has approximately 4-5 quarters of cash runway at current burn rates and faces imminent need for capital raise or dramatic revenue acceleration.
SmartKem, Inc. Key Strengths (SMTK)
- Exceptional gross margin of 80% indicates strong underlying unit economics if scale is achieved
- Strong cash position of $7.6M with minimal debt ($3.6K) provides adequate near-term R&D runway
- Impressive 750% YoY revenue growth demonstrates early commercial traction and product validation
SMTK Stock Risks: SmartKem, Inc. Investment Risks
- Catastrophic operating losses of $2.6M against minimal $20K revenue - fundamentally unsustainable business model
- Negative free cash flow of $1.7M per quarter implies only 4-5 quarters of cash runway remaining
- Pre-commercial stage with no visible path to profitability; significant additional capital raises likely needed
- Semiconductor industry capital intensity means company will likely face shareholder dilution or debt burden
- Massive operating expenses relative to revenue suggests business model not yet viable at scale
Key Metrics to Watch
- Quarterly revenue growth and absolute revenue levels - must reach meaningful scale
- Operating expense ratio trend - critical to improve cash burn rate
- Cash balance and runway - when next capital raise becomes necessary
- Gross margin sustainability - whether 80% margins persist as production scales
SmartKem, Inc. (SMTK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.29x current ratio provides a solid financial cushion.
SMTK Profit Margin, ROE & Profitability Analysis
SMTK vs Technology Sector: How SmartKem, Inc. Compares
How SmartKem, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is SmartKem, Inc. Stock Overvalued? SMTK Valuation Analysis 2026
Based on fundamental analysis, SmartKem, Inc. has mixed fundamental signals relative to the Technology 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.
SmartKem, Inc. Balance Sheet: SMTK Debt, Cash & Liquidity
SMTK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: SmartKem, Inc.'s revenue has grown significantly by 641% over the 5-year period, indicating strong business expansion. The most recent EPS of $-6.00 indicates the company is currently unprofitable.
SMTK Revenue Growth, EPS Growth & YoY Performance
SMTK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $20.0K | -$2.1M | $-0.32 |
| Q3 2025 | $40.0K | -$1.7M | $-0.45 |
| Q2 2025 | $32.0K | -$1.7M | $-0.30 |
| Q1 2025 | $23.0K | -$1.7M | $-0.32 |
| Q3 2024 | $3.0K | -$1.7M | $-0.86 |
| Q2 2024 | $8.0K | -$1.7M | $-0.98 |
| Q1 2024 | $16.0K | -$1.7M | $-2.45 |
| Q3 2023 | $3.0K | -$2.0M | $-1.78 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
SmartKem, Inc. Dividends, Buybacks & Capital Allocation
SMTK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for SmartKem, Inc. (CIK: 0001817760)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SMTK
What is the AI rating for SMTK?
SmartKem, Inc. (SMTK) has an AI grade of D with 94% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SMTK's key strengths?
Claude: Exceptional gross margin of 80% indicates strong underlying unit economics if scale is achieved. Strong cash position of $7.6M with minimal debt ($3.6K) provides adequate near-term R&D runway.
What are the risks of investing in SMTK?
Claude: Catastrophic operating losses of $2.6M against minimal $20K revenue - fundamentally unsustainable business model. Negative free cash flow of $1.7M per quarter implies only 4-5 quarters of cash runway remaining.
What is SMTK's revenue and growth?
SmartKem, Inc. reported revenue of $20.0K.
Does SMTK pay dividends?
SmartKem, Inc. does not currently pay dividends.
Where can I find SMTK SEC filings?
Official SEC filings for SmartKem, Inc. (CIK: 0001817760) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SMTK's EPS?
SmartKem, Inc. has a diluted EPS of $-1.34.
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 grade reflects both perspectives for balanced insights.
What is SMTK's fundamental grade?
Based on our AI fundamental analysis in May 2026, SmartKem, Inc. has a D grade with 94% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SMTK stock overvalued or undervalued?
Valuation metrics for SMTK: ROE of -358.3% (sector avg: 22%), net margin of -96,845.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is SMTK's AI grade for 2026?
Our dual AI analysis gives SmartKem, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SMTK's free cash flow?
SmartKem, Inc.'s operating cash flow is $-1.6M, with capital expenditures of $123.0K. FCF margin is -8,475.0%.
How does SMTK compare to other Technology stocks?
Vs Technology sector averages: Net margin -96,845.0% (avg: 18%), ROE -358.3% (avg: 22%), current ratio 2.29 (avg: 2.5).