📊 EDIT Key Takeaways
Is Editas Medicine, Inc. (EDIT) a Good Investment?
Editas is a pre-commercial biotech burning $23M annually with minimal $2.8M revenue and unsustainably high debt-to-equity of 10.70x relative to its $4.4M equity base. While the $123.6M cash position provides 5+ years of runway, the combination of severe operating losses, negative cash flows, and excessive leverage creates significant downside risk without demonstrated clinical or commercial progress.
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.
Editas Medicine, Inc. Key Strengths (EDIT)
- Strong absolute cash position of $123.6M provides runway for R&D execution
- Revenue growing 25.4% YoY demonstrates some market traction despite small base
- Current liquidity ratios (3.22x) are healthy with minimal short-term solvency risk
- 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
- Debt-to-equity ratio of 10.70x is dangerously high for an unprofitable company with only $4.4M equity
- Operating cash burn of $23.1M annually is unsustainable relative to $2.8M revenue with no profitability timeline visible
- Extreme negative margins (-882% net margin) and dependence on R&D outcomes create execution risk with no near-term path to profitability
- 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
- Cash burn rate trend and runway extension through partnerships or capital raises
- Revenue growth trajectory and commercial product approval progress
- Debt refinancing terms and covenant compliance as cash reserves deplete
- 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 3.22x 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 |
|---|---|---|---|
| Q1 2026 | $2.8M | -$25.0M | $-0.26 |
| 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 |
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 Grade of C from Claude (C) and ChatGPT (D) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EDIT's key strengths?
Claude: Strong absolute cash position of $123.6M provides runway for R&D execution. Revenue growing 25.4% YoY demonstrates some market traction despite small base. 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: Debt-to-equity ratio of 10.70x is dangerously high for an unprofitable company with only $4.4M equity. Operating cash burn of $23.1M annually is unsustainable relative to $2.8M revenue with no profitability timeline visible. 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 $2.8M.
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 $-0.26.
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 EDIT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Editas Medicine, Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is EDIT stock overvalued or undervalued?
Valuation metrics for EDIT: ROE of -566.7% (sector avg: 15%), net margin of -882.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is EDIT's AI grade for 2026?
Our dual AI analysis gives Editas Medicine, Inc. a combined C grade 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 $-23.1M, with capital expenditures of $92.0K. FCF margin is -817.8%.
How does EDIT compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -882.4% (avg: 12%), ROE -566.7% (avg: 15%), current ratio 3.22 (avg: 2).
Is Editas Medicine, Inc. carrying too much debt?
EDIT has a debt-to-equity ratio of 10.70x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 3.22 suggests adequate short-term liquidity.