📊 BDTX Key Takeaways
Is Black Diamond Therapeutics, Inc. (BDTX) a Good Investment?
Black Diamond Therapeutics demonstrates exceptional financial health with strong profitability (32% net margin, 19.9% ROE) and excellent cash generation ($29.6M operating cash flow on $70M revenue). The company's net income surge of 132% YoY and pristine balance sheet ($112.2M equity, zero debt, 8.42x current ratio) indicate solid operational execution and financial stability, though revenue scale remains modest for a biotech company.
Black Diamond Therapeutics shows unusually strong near-term fundamentals for a development-stage biotech, with positive operating income, net income, and free cash flow alongside a debt-free balance sheet and very high liquidity. However, the quality and durability of those earnings appear less certain given limited revenue visibility, no gross margin disclosure, and the likelihood that reported profitability may depend on episodic collaboration or licensing activity rather than a broad recurring commercial base.
Why Buy Black Diamond Therapeutics, Inc. Stock? BDTX Key Strengths
- Exceptional profitability with 32.0% net margin and 17.9% operating margin indicating strong pricing power or operational efficiency
- Outstanding cash flow generation with $29.6M free cash flow and 42.3% FCF margin, providing runway for R&D and clinical trials
- Fortress balance sheet with $112.2M stockholders equity, zero long-term debt, and $21M cash providing financial flexibility
- Strong year-over-year growth in net income (+132.1%) and EPS (+130.7%) demonstrating improving profitability trajectory
- Exceptional liquidity with 8.42x current ratio indicating robust short-term financial health
- Debt-free capital structure with strong liquidity, including an 8.42x current ratio and substantial equity relative to liabilities
- Positive operating cash flow and free cash flow of $29.61M indicate the company is not currently dependent on external financing for operations
- Net income rose 132.1% YoY and profitability metrics are strong, with 17.9% operating margin and 32.0% net margin
BDTX Stock Risks: Black Diamond Therapeutics, Inc. Investment Risks
- Limited revenue scale at $70M raises questions about competitive market position and market adoption for therapeutic products
- Gross margin data unavailable limiting visibility into cost of goods and manufacturing efficiency critical for biotech
- Modest revenue base creates vulnerability to product pipeline execution risk; single or few product dependence likely
- Operating margin dependent on revenue mix; any revenue decline would significantly impact profitability given fixed cost structure
- Biotech sector inherent risks including regulatory approvals, clinical trial outcomes, and competitive product introductions not reflected in historical metrics
- Revenue quality is unclear because YoY revenue growth and gross profit are unavailable, making sustainability harder to assess
- Profitability may be driven by non-recurring biotech partnership, licensing, or accounting items rather than durable operating leverage
- Cash balance of $20.99M is modest relative to the capital needs typical for biotech R&D, so future cash burn trends remain critical
Key Metrics to Watch
- Revenue growth trajectory and recurring revenue sustainability to assess market adoption and pipeline success
- Gross margin trends once available to evaluate manufacturing costs and operating leverage potential
- Cash burn rate and operating cash flow sustainability to determine runway for clinical development stage progression
- Debt/equity ratio monitoring given capital-intensive biotech requirements and potential financing needs
- Operating cash flow consistency across future periods
- Revenue composition and recurring vs. one-time sources
Black Diamond Therapeutics, Inc. (BDTX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 42.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 8.42x current ratio provides a solid financial cushion.
BDTX Profit Margin, ROE & Profitability Analysis
BDTX vs Healthcare Sector: How Black Diamond Therapeutics, Inc. Compares
How Black Diamond Therapeutics, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Black Diamond Therapeutics, Inc. Stock Overvalued? BDTX Valuation Analysis 2026
Based on fundamental analysis, Black Diamond Therapeutics, Inc. appears fundamentally strong 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.
Black Diamond Therapeutics, Inc. Balance Sheet: BDTX Debt, Cash & Liquidity
BDTX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Black Diamond Therapeutics, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-1.27 indicates the company is currently unprofitable.
BDTX Revenue Growth, EPS Growth & YoY Performance
BDTX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | N/A | -$8.5M | $-0.15 |
| Q2 2025 | N/A | -$10.6M | $-0.19 |
| Q1 2025 | N/A | -$18.2M | $-0.35 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Black Diamond Therapeutics, Inc. Dividends, Buybacks & Capital Allocation
BDTX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Black Diamond Therapeutics, Inc. (CIK: 0001701541)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BDTX
What is the AI rating for BDTX?
Black Diamond Therapeutics, Inc. (BDTX) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BDTX's key strengths?
Claude: Exceptional profitability with 32.0% net margin and 17.9% operating margin indicating strong pricing power or operational efficiency. Outstanding cash flow generation with $29.6M free cash flow and 42.3% FCF margin, providing runway for R&D and clinical trials. ChatGPT: Debt-free capital structure with strong liquidity, including an 8.42x current ratio and substantial equity relative to liabilities. Positive operating cash flow and free cash flow of $29.61M indicate the company is not currently dependent on external financing for operations.
What are the risks of investing in BDTX?
Claude: Limited revenue scale at $70M raises questions about competitive market position and market adoption for therapeutic products. Gross margin data unavailable limiting visibility into cost of goods and manufacturing efficiency critical for biotech. ChatGPT: Revenue quality is unclear because YoY revenue growth and gross profit are unavailable, making sustainability harder to assess. Profitability may be driven by non-recurring biotech partnership, licensing, or accounting items rather than durable operating leverage.
What is BDTX's revenue and growth?
Black Diamond Therapeutics, Inc. reported revenue of $70.0M.
Does BDTX pay dividends?
Black Diamond Therapeutics, Inc. does not currently pay dividends.
Where can I find BDTX SEC filings?
Official SEC filings for Black Diamond Therapeutics, Inc. (CIK: 0001701541) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BDTX's EPS?
Black Diamond Therapeutics, Inc. has a diluted EPS of $0.39.
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 BDTX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Black Diamond Therapeutics, Inc. has a BUY rating with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is BDTX stock overvalued or undervalued?
Valuation metrics for BDTX: ROE of 19.9% (sector avg: 15%), net margin of 32.0% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy BDTX stock in 2026?
Our dual AI analysis gives Black Diamond Therapeutics, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is BDTX's free cash flow?
Black Diamond Therapeutics, Inc.'s operating cash flow is $29.6M, with capital expenditures of $0.0. FCF margin is 42.3%.
How does BDTX compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 32.0% (avg: 12%), ROE 19.9% (avg: 15%), current ratio 8.42 (avg: 2).