📊 EDIT Key Takeaways
Is Editas Medicine, Inc. (EDIT) a Good Investment?
Editas Medicine demonstrates severe fundamental deterioration with massive operating losses (-$160M on $40.5M revenue) and negative free cash flow (-$165.8M), indicating the company is burning through cash at an unsustainable rate. Despite revenue growth of 25.4% YoY, profitability metrics are deeply negative with -395% net margin, and the company is consuming its cash reserves ($146.6M) to fund ongoing losses, leaving limited runway for R&D execution.
Editas Medicine shows weak fundamentals: despite 25.4% revenue growth, the business remains deeply unprofitable with operating and net margins near -395% and free cash flow of -$165.85M. Financial health is fragile because cash of $146.65M does not fully cover the current annual cash burn, while equity has been reduced to just $27.29M and leverage is elevated. The revenue growth appears low quality relative to the scale of losses, so the core issue remains sustainability rather than expansion.
Why Buy Editas Medicine, Inc. Stock? EDIT Key Strengths
- Strong liquidity position with $146.6M in cash and 3.54x current ratio providing near-term operational flexibility
- Revenue growth of 25.4% YoY shows commercial traction in their therapeutic programs
- Improvement in net loss by 32.5% YoY suggests operational efficiency gains are beginning to materialize
- Revenue grew 25.4% year over year
- Current and quick ratios of 3.54x indicate near-term balance sheet liquidity
- Cash and equivalents of $146.65M still provide some operating flexibility
EDIT Stock Risks: Editas Medicine, Inc. Investment Risks
- Unsustainable cash burn rate of -$165.8M in free cash flow with only ~11 months of cash runway at current burn rate
- Pre-commercial or early-stage company with -$160M operating loss and -395% net margin indicating no path to profitability in near-term
- High leverage with 1.96x debt-to-equity ratio limits financial flexibility and increases refinancing risk as cash depletes
- Gross margin data unavailable, preventing assessment of unit economics and cost structure sustainability
- Severe and persistent losses with operating income of -$160.01M and net margin of -395.0%
- Free cash flow of -$165.85M suggests cash runway pressure and likely need for external financing
- Very thin equity base of $27.29M combined with 1.96x debt-to-equity increases financial risk
Key Metrics to Watch
- Operating cash burn rate and remaining cash runway until profitability or capital raise needed
- Revenue growth acceleration and gross margin achievement as products move toward scale
- Clinical trial progress and regulatory milestones that could validate long-term commercial potential
- Quarterly operating cash burn versus cash and equivalents
- Revenue durability and whether losses narrow materially relative to revenue growth
Editas Medicine, Inc. (EDIT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.54x current ratio provides a solid financial cushion.
EDIT Profit Margin, ROE & Profitability Analysis
EDIT vs Healthcare Sector: How Editas Medicine, Inc. Compares
How Editas Medicine, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Editas Medicine, Inc. Stock Overvalued? EDIT Valuation Analysis 2026
Based on fundamental analysis, Editas Medicine, Inc. shows some fundamental concerns 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.
Editas Medicine, Inc. Balance Sheet: EDIT Debt, Cash & Liquidity
EDIT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Editas Medicine, Inc.'s revenue has declined by 55% over the 5-year period, indicating business contraction. The most recent EPS of $-2.88 indicates the company is currently unprofitable.
EDIT Revenue Growth, EPS Growth & YoY Performance
EDIT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $61.0K | -$25.1M | $-0.28 |
| Q2 2025 | $513.0K | -$53.2M | $-0.63 |
| Q1 2025 | $1.1M | -$62.0M | $-0.76 |
| Q3 2024 | $61.0K | -$40.3M | $-0.55 |
| Q2 2024 | $513.0K | -$40.3M | $-0.56 |
| Q1 2024 | $1.1M | -$49.0M | $-0.71 |
| Q3 2023 | $42.0K | -$40.3M | $-0.55 |
| Q2 2023 | $2.9M | -$40.3M | $-0.56 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Editas Medicine, Inc. Dividends, Buybacks & Capital Allocation
EDIT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Editas Medicine, Inc. (CIK: 0001650664)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EDIT
What is the AI rating for EDIT?
Editas Medicine, Inc. (EDIT) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 92% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EDIT's key strengths?
Claude: Strong liquidity position with $146.6M in cash and 3.54x current ratio providing near-term operational flexibility. Revenue growth of 25.4% YoY shows commercial traction in their therapeutic programs. ChatGPT: Revenue grew 25.4% year over year. Current and quick ratios of 3.54x indicate near-term balance sheet liquidity.
What are the risks of investing in EDIT?
Claude: Unsustainable cash burn rate of -$165.8M in free cash flow with only ~11 months of cash runway at current burn rate. Pre-commercial or early-stage company with -$160M operating loss and -395% net margin indicating no path to profitability in near-term. ChatGPT: Severe and persistent losses with operating income of -$160.01M and net margin of -395.0%. Free cash flow of -$165.85M suggests cash runway pressure and likely need for external financing.
What is EDIT's revenue and growth?
Editas Medicine, Inc. reported revenue of $40.5M.
Does EDIT pay dividends?
Editas Medicine, Inc. does not currently pay dividends.
Where can I find EDIT SEC filings?
Official SEC filings for Editas Medicine, Inc. (CIK: 0001650664) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EDIT's EPS?
Editas Medicine, Inc. has a diluted EPS of $-1.80.
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 EDIT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Editas Medicine, Inc. has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is EDIT stock overvalued or undervalued?
Valuation metrics for EDIT: ROE of -586.6% (sector avg: 15%), net margin of -395.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy EDIT stock in 2026?
Our dual AI analysis gives Editas Medicine, Inc. 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 EDIT's free cash flow?
Editas Medicine, Inc.'s operating cash flow is $-165.2M, with capital expenditures of $607.0K. FCF margin is -409.3%.
How does EDIT compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -395.0% (avg: 12%), ROE -586.6% (avg: 15%), current ratio 3.54 (avg: 2).
Is Editas Medicine, Inc. carrying too much debt?
EDIT has a debt-to-equity ratio of 1.96x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 3.54 suggests adequate short-term liquidity.