📊 CARM Key Takeaways
Is Carisma Therapeutics Inc. (CARM) a Good Investment?
Despite impressive top-line growth and operational profitability metrics, Carisma Therapeutics faces severe financial distress with negative shareholders' equity, liabilities exceeding assets, and substantial negative operating cash flow indicating the company is burning cash despite reported profitability. The disconnect between reported net income and negative cash flow, combined with weak liquidity (0.86x current ratio) and high long-term debt, suggests financial instability that outweighs the positive revenue growth.
Reported profitability looks superficially strong, but the quality of earnings appears weak given deeply negative operating cash flow, negative free cash flow, and negative stockholders' equity. Liquidity is strained with a sub-1.0 current ratio, while the balance sheet is highly fragile relative to liabilities and debt. Revenue growth is encouraging, but the company’s financial health suggests the latest profit figures may not reflect a durable, self-funding operating model.
Why Buy Carisma Therapeutics Inc. Stock? CARM Key Strengths
- Strong revenue growth of 31.5% year-over-year demonstrates market demand and business expansion
- High operating margin of 58.6% and net margin of 52.4% indicate efficient cost structure and pricing power
- Diluted EPS growth of 43.6% YoY shows improving earnings per share trajectory
- Revenue grew 31.5% year over year, indicating commercial or partnership momentum
- Latest period showed positive operating income and net income with high reported margins
- Cash burn, while significant, occurred without capital expenditure demands, which may preserve some flexibility
CARM Stock Risks: Carisma Therapeutics Inc. Investment Risks
- Negative shareholders' equity of -$867K indicates balance sheet insolvency and potential covenant violations or forced restructuring
- Operating cash flow of -$14.1M versus reported net income of $25.7M reveals severe cash generation problems and questions about earnings quality
- Current ratio of 0.86x indicates liquidity stress with liabilities exceeding current assets, limiting ability to meet near-term obligations
- Total liabilities of $7.4M exceed total assets of $6.6M by $800K, creating financial distress conditions
- Long-term debt of $10.0M against minimal asset base creates unsustainable leverage
- Negative stockholders' equity indicates a distressed balance sheet and weak financial cushion
- Operating cash flow was negative $14.06M despite positive net income, signaling poor earnings quality
- Current and quick ratios of 0.86x point to near-term liquidity pressure, alongside $10.00M of long-term debt
Key Metrics to Watch
- Operating cash flow trend - critical to determine if negative cash burn improves or deteriorates
- Shareholders' equity trajectory - must return to positive territory to restore financial stability
- Current ratio and working capital position - essential to monitor liquidity crisis development
- Debt refinancing requirements - assess ability to service or refinance $10M long-term debt
- Operating cash flow relative to net income
- Cash balance and current ratio
Carisma Therapeutics Inc. (CARM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
CARM Profit Margin, ROE & Profitability Analysis
CARM vs Healthcare Sector: How Carisma Therapeutics Inc. Compares
How Carisma Therapeutics Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Carisma Therapeutics Inc. Stock Overvalued? CARM Valuation Analysis 2026
Based on fundamental analysis, Carisma Therapeutics 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.
Carisma Therapeutics Inc. Balance Sheet: CARM Debt, Cash & Liquidity
CARM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Carisma Therapeutics Inc.'s revenue has grown significantly by 32% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.59 indicates the company is currently unprofitable.
CARM Revenue Growth, EPS Growth & YoY Performance
CARM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.4M | -$9.3M | $-0.31 |
| Q2 2025 | $3.7M | -$9.3M | $-0.23 |
| Q1 2025 | $3.4M | -$9.3M | $-0.22 |
| Q3 2024 | $3.4M | -$11.2M | $-0.31 |
| Q2 2024 | $3.6M | -$11.2M | $-0.27 |
| Q1 2024 | $3.2M | -$19.0M | $-0.46 |
| Q3 2023 | $2.6M | -$18.3M | $-0.53 |
| Q2 2023 | $2.7M | -$14.8M | $-0.49 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Carisma Therapeutics Inc. Dividends, Buybacks & Capital Allocation
CARM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Carisma Therapeutics Inc. (CIK: 0001485003)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CARM
What is the AI rating for CARM?
Carisma Therapeutics Inc. (CARM) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (STRONG SELL) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CARM's key strengths?
Claude: Strong revenue growth of 31.5% year-over-year demonstrates market demand and business expansion. High operating margin of 58.6% and net margin of 52.4% indicate efficient cost structure and pricing power. ChatGPT: Revenue grew 31.5% year over year, indicating commercial or partnership momentum. Latest period showed positive operating income and net income with high reported margins.
What are the risks of investing in CARM?
Claude: Negative shareholders' equity of -$867K indicates balance sheet insolvency and potential covenant violations or forced restructuring. Operating cash flow of -$14.1M versus reported net income of $25.7M reveals severe cash generation problems and questions about earnings quality. ChatGPT: Negative stockholders' equity indicates a distressed balance sheet and weak financial cushion. Operating cash flow was negative $14.06M despite positive net income, signaling poor earnings quality.
What is CARM's revenue and growth?
Carisma Therapeutics Inc. reported revenue of $49.0M.
Does CARM pay dividends?
Carisma Therapeutics Inc. does not currently pay dividends.
Where can I find CARM SEC filings?
Official SEC filings for Carisma Therapeutics Inc. (CIK: 0001485003) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CARM's EPS?
Carisma Therapeutics Inc. has a diluted EPS of $0.61.
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 CARM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Carisma Therapeutics Inc. has a SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CARM stock overvalued or undervalued?
Valuation metrics for CARM: ROE of N/A (sector avg: 15%), net margin of 52.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CARM stock in 2026?
Our dual AI analysis gives Carisma Therapeutics Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CARM's free cash flow?
Carisma Therapeutics Inc.'s operating cash flow is $-14.1M, with capital expenditures of $0.0. FCF margin is -28.7%.
How does CARM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 52.4% (avg: 12%), ROE N/A (avg: 15%), current ratio 0.86 (avg: 2).