📊 CARL Key Takeaways
Is Carlsmed, Inc.. (CARL) a Good Investment?
CarlsMed exhibits strong revenue growth (+85.9% YoY) and excellent gross margins (75.3%), indicating solid product-market fit and pricing power in the medical device sector. However, the company is deeply unprofitable with a -58.7% net margin, negative operating cash flow of -29.6M, and deteriorating cash position despite strong liquidity, suggesting unsustainable cash burn that will erode the substantial equity base if profitability is not achieved soon.
CARLSMED is delivering very strong top-line growth and maintains an unusually strong cash position with low leverage, which gives it time to scale its platform. However, the business is still deeply unprofitable, with severely negative operating and free cash flow margins, so the core fundamental question is whether revenue growth can translate into materially better operating leverage. The company’s fundamentals support patience rather than outright conviction until loss compression becomes clearer.
Why Buy Carlsmed, Inc.. Stock? CARL Key Strengths
- Exceptional revenue growth of 85.9% YoY demonstrates strong market demand
- Industry-leading gross margin of 75.3% indicates pricing power and operational efficiency in manufacturing
- Fortress balance sheet with $85.8M cash, minimal debt (0.16x D/E ratio), and current ratio of 8.87x provides substantial runway
- Revenue growth is exceptionally strong at +85.9% YoY, indicating rising commercial adoption
- Gross margin of 75.3% suggests an attractive product mix and solid underlying unit economics before operating expenses
- Balance sheet is strong with $85.79M in cash, an 8.87x current ratio, and low debt-to-equity of 0.16x
CARL Stock Risks: Carlsmed, Inc.. Investment Risks
- Operating losses of -$30.6M on $50.5M revenue indicate severe profitability challenges despite gross margin strength
- Negative operating cash flow of -$29.6M and free cash flow burn at -58.6% margin unsustainable; cash depletion at current burn rate in ~2.9 years
- High operating expenses relative to revenue suggest inability to scale profitably; improvement in R&D and SG&A discipline required immediately
- Operating margin of -60.5% and net margin of -58.7% show the company is still far from sustainable profitability
- Free cash flow of -$29.62M and negative operating cash flow indicate continued cash burn
- Negative returns on equity and assets suggest capital is not yet being converted into efficient earnings growth
Key Metrics to Watch
- Path to operating profitability and reduction of operating margin from -60.5% to breakeven
- Operating cash flow inflection; currently burning $29M annually with negative FCF trajectory
- Cash balance runway and quarterly burn rate; assess if current $85.8M cash survives to profitability
- Operating expense growth relative to revenue growth, especially sales and marketing and R&D leverage
- Quarterly free cash flow burn and cash runway versus progress in operating margin improvement
Carlsmed, Inc.. (CARL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 8.87x current ratio provides a solid financial cushion.
CARL Profit Margin, ROE & Profitability Analysis
CARL vs Healthcare Sector: How Carlsmed, Inc.. Compares
How Carlsmed, Inc.. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Carlsmed, Inc.. Stock Overvalued? CARL Valuation Analysis 2026
Based on fundamental analysis, Carlsmed, Inc.. 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.
Carlsmed, Inc.. Balance Sheet: CARL Debt, Cash & Liquidity
CARL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Carlsmed, Inc..'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-6.11 indicates the company is currently unprofitable.
CARL Revenue Growth, EPS Growth & YoY Performance
CARL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $6.6M | -$5.4M | $-0.40 |
| Q2 2025 | $6.1M | -$5.4M | $-1.47 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Carlsmed, Inc.. Dividends, Buybacks & Capital Allocation
CARL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Carlsmed, Inc.. (CIK: 0001794546)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CARL
What is the AI rating for CARL?
Carlsmed, Inc.. (CARL) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CARL's key strengths?
Claude: Exceptional revenue growth of 85.9% YoY demonstrates strong market demand. Industry-leading gross margin of 75.3% indicates pricing power and operational efficiency in manufacturing. ChatGPT: Revenue growth is exceptionally strong at +85.9% YoY, indicating rising commercial adoption. Gross margin of 75.3% suggests an attractive product mix and solid underlying unit economics before operating expenses.
What are the risks of investing in CARL?
Claude: Operating losses of -$30.6M on $50.5M revenue indicate severe profitability challenges despite gross margin strength. Negative operating cash flow of -$29.6M and free cash flow burn at -58.6% margin unsustainable; cash depletion at current burn rate in ~2.9 years. ChatGPT: Operating margin of -60.5% and net margin of -58.7% show the company is still far from sustainable profitability. Free cash flow of -$29.62M and negative operating cash flow indicate continued cash burn.
What is CARL's revenue and growth?
Carlsmed, Inc.. reported revenue of $50.5M.
Does CARL pay dividends?
Carlsmed, Inc.. does not currently pay dividends.
Where can I find CARL SEC filings?
Official SEC filings for Carlsmed, Inc.. (CIK: 0001794546) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CARL's EPS?
Carlsmed, Inc.. has a diluted EPS of $-2.12.
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 CARL a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Carlsmed, Inc.. has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CARL stock overvalued or undervalued?
Valuation metrics for CARL: ROE of -30.0% (sector avg: 15%), net margin of -58.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CARL stock in 2026?
Our dual AI analysis gives Carlsmed, 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 CARL's free cash flow?
Carlsmed, Inc..'s operating cash flow is $-29.0M, with capital expenditures of $642.0K. FCF margin is -58.6%.
How does CARL compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -58.7% (avg: 12%), ROE -30.0% (avg: 15%), current ratio 8.87 (avg: 2).