📊 INSM Key Takeaways
Is INSMED Inc (INSM) a Good Investment?
Insmed exhibits severe operational losses despite strong revenue growth of 66.7% YoY, indicating the company is burning significant cash to drive sales. With negative free cash flow of -$967.6M and an operating cash burn rate of -$935M, the company's financial runway is limited, creating substantial existential risk even with $510.4M in cash reserves.
Insmed is delivering strong top-line growth, with revenue up 66.7% year over year, but that growth is currently low quality because it is accompanied by deeply negative operating and free cash flow margins. The balance sheet and liquidity position provide some runway, yet the scale of losses, weak gross margin, and negative interest coverage indicate the business remains heavily dependent on continued external funding or major operating improvement.
Why Buy INSMED Inc Stock? INSM Key Strengths
- Strong revenue growth of 66.7% YoY demonstrates significant commercial traction and market demand
- Healthy liquidity position with current ratio of 3.83x and $510.4M in cash providing near-term operational buffer
- Moderate leverage with debt-to-equity ratio of 0.74x indicates manageable debt burden relative to equity base
- Revenue growth is very strong at 66.7% year over year
- Liquidity is solid with a 3.83x current ratio and $510.44M in cash
- Debt/equity of 0.74x is manageable relative to many development-stage biotech peers
INSM Stock Risks: INSMED Inc Investment Risks
- Severe profitability crisis with -210.5% net margin and -205.6% operating margin indicating unsustainable unit economics
- Catastrophic cash burn of -$967.6M in free cash flow annually will exhaust $510.4M cash reserves within 6 months at current burn rate
- Negative interest coverage of -14.9x shows company cannot service debt from operations, forcing reliance on capital markets or asset liquidation
- Operating losses of -$1.2B on revenue of only $606.4M indicate fundamental business model challenges, not temporary startup losses
- Operating margin of -205.6% shows the core business is far from self-sustaining
- Free cash flow of -$967.58M and operating cash flow of -$935.01M imply heavy cash burn
- Gross margin of 15.5% is weak for a pharmaceutical company and limits operating leverage
Key Metrics to Watch
- Quarterly operating cash flow trend and projected cash runway duration
- Gross margin expansion pathway as product mix matures and manufacturing scales
- Path to operating profitability with timeline and key milestones
- Operating cash burn and free cash flow trend
- Gross margin and operating margin improvement
INSMED Inc (INSM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.83x current ratio provides a solid financial cushion.
INSM Profit Margin, ROE & Profitability Analysis
INSM vs Healthcare Sector: How INSMED Inc Compares
How INSMED Inc compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is INSMED Inc Stock Overvalued? INSM Valuation Analysis 2026
Based on fundamental analysis, INSMED 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.
INSMED Inc Balance Sheet: INSM Debt, Cash & Liquidity
INSM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: INSMED Inc's revenue has grown significantly by 222% over the 5-year period, indicating strong business expansion. The most recent EPS of $-5.34 indicates the company is currently unprofitable.
INSM Revenue Growth, EPS Growth & YoY Performance
INSM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $93.4M | -$220.5M | $-1.27 |
| Q2 2025 | $90.3M | -$300.6M | $-1.70 |
| Q1 2025 | $75.5M | -$157.1M | $-1.06 |
| Q3 2024 | $79.1M | -$158.9M | $-1.11 |
| Q2 2024 | $77.2M | -$244.8M | $-1.78 |
| Q1 2024 | $65.2M | -$157.1M | $-1.06 |
| Q3 2023 | $67.7M | -$131.1M | $-1.09 |
| Q2 2023 | $65.2M | -$95.6M | $-0.80 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
INSMED Inc Dividends, Buybacks & Capital Allocation
INSM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for INSMED Inc (CIK: 0001104506)
📋 Recent SEC Filings
❓ Frequently Asked Questions about INSM
What is the AI rating for INSM?
INSMED Inc (INSM) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are INSM's key strengths?
Claude: Strong revenue growth of 66.7% YoY demonstrates significant commercial traction and market demand. Healthy liquidity position with current ratio of 3.83x and $510.4M in cash providing near-term operational buffer. ChatGPT: Revenue growth is very strong at 66.7% year over year. Liquidity is solid with a 3.83x current ratio and $510.44M in cash.
What are the risks of investing in INSM?
Claude: Severe profitability crisis with -210.5% net margin and -205.6% operating margin indicating unsustainable unit economics. Catastrophic cash burn of -$967.6M in free cash flow annually will exhaust $510.4M cash reserves within 6 months at current burn rate. ChatGPT: Operating margin of -205.6% shows the core business is far from self-sustaining. Free cash flow of -$967.58M and operating cash flow of -$935.01M imply heavy cash burn.
What is INSM's revenue and growth?
INSMED Inc reported revenue of $606.4M.
Does INSM pay dividends?
INSMED Inc does not currently pay dividends.
Where can I find INSM SEC filings?
Official SEC filings for INSMED Inc (CIK: 0001104506) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is INSM's EPS?
INSMED Inc has a diluted EPS of $-6.42.
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 INSM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, INSMED 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 INSM stock overvalued or undervalued?
Valuation metrics for INSM: ROE of -172.8% (sector avg: 15%), net margin of -210.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy INSM stock in 2026?
Our dual AI analysis gives INSMED 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 INSM's free cash flow?
INSMED Inc's operating cash flow is $-935.0M, with capital expenditures of $32.6M. FCF margin is -159.6%.
How does INSM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -210.5% (avg: 12%), ROE -172.8% (avg: 15%), current ratio 3.83 (avg: 2).