📊 ITRM Key Takeaways
Is Iterum Therapeutics plc (ITRM) a Good Investment?
Iterum Therapeutics faces severe financial distress with negative stockholders' equity of -$7.4M, indicating liabilities exceed assets. The company is generating minimal revenue ($390K) while burning significant cash ($15.3M operating cash flow negative) and accumulating losses ($20.4M net loss), with no clear path to profitability in the near term.
Iterum Therapeutics' fundamentals remain very weak: revenue is negligible relative to its cost structure, operating losses are severe, and free cash flow is deeply negative. While liquidity ratios are acceptable in the near term and diluted EPS improved year over year, the combination of persistent cash burn, negative equity, and meaningful debt points to fragile financial health and low-quality growth.
Why Buy Iterum Therapeutics plc Stock? ITRM Key Strengths
- Adequate short-term liquidity with current ratio of 2.13x and $11.0M cash on hand providing near-term runway
- Substantial reduction in diluted EPS loss (57.4% improvement YoY) suggests some operational progress or accounting improvements
- Pharmaceutical sector positioning could enable future value creation if pipeline advances succeed
- Near-term liquidity is still adequate with a 2.13x current ratio and $11.00M in cash
- Diluted EPS improved materially year over year, indicating some loss-per-share reduction
- Capital expenditure is minimal, which limits additional cash strain from fixed investment
ITRM Stock Risks: Iterum Therapeutics plc Investment Risks
- Critical: Negative stockholders' equity of -$7.4M indicates technical insolvency and structural balance sheet deterioration
- Severe cash burn of $15.3M annually with only $11.0M cash reserves provides approximately 9 months of runway at current burn rate
- Revenue of only $390K is inconsistent with meaningful commercial operations, suggesting pre-commercial or failed commercialization stage
- Substantial long-term debt of $20.0M against negative equity creates debt service risk without profitability
- Zero insider buying activity in last 90 days signals lack of management confidence in company trajectory
- Profitability is extremely weak, with operating margin of -4351.3% and net margin of -5225.4%
- Balance sheet is stressed by negative stockholders equity and $20.05M of long-term debt
- Operating cash flow and free cash flow are both deeply negative, increasing financing risk if revenue does not scale
Key Metrics to Watch
- Quarterly cash burn rate and remaining cash runway
- Revenue growth trajectory and achievement of commercial milestones
- Progress toward positive EBITDA or sustained operating cash flow improvement
- Changes in stockholders' equity and path to balance sheet solvency
- Debt refinancing needs and ability to secure additional capital
- Quarterly operating cash burn relative to cash on hand
- Revenue growth and any improvement in operating loss as commercialization progresses
Iterum Therapeutics plc (ITRM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.13x current ratio provides a solid financial cushion.
ITRM Profit Margin, ROE & Profitability Analysis
ITRM vs Healthcare Sector: How Iterum Therapeutics plc Compares
How Iterum Therapeutics plc compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Iterum Therapeutics plc Stock Overvalued? ITRM Valuation Analysis 2026
Based on fundamental analysis, Iterum Therapeutics plc 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.
Iterum Therapeutics plc Balance Sheet: ITRM Debt, Cash & Liquidity
ITRM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Iterum Therapeutics plc's revenue has declined by 96% over the 5-year period, indicating business contraction. The most recent EPS of $-3.63 indicates the company is currently unprofitable.
ITRM Revenue Growth, EPS Growth & YoY Performance
ITRM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $390.0K | -$6.1M | $-0.20 |
| Q3 2020 | $37.0K | -$12.2M | N/A |
| Q2 2020 | $37.0K | -$12.5M | N/A |
| Q1 2020 | $37.0K | -$16.1M | N/A |
| Q3 2019 | $37.0K | -$24.9M | N/A |
| Q2 2019 | $37.0K | -$15.7M | N/A |
| Q1 2019 | $37.0K | -$12.1M | N/A |
| Q3 2018 | $159.0K | -$8.2M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Iterum Therapeutics plc Dividends, Buybacks & Capital Allocation
ITRM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Iterum Therapeutics plc (CIK: 0001659323)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ITRM
What is the AI rating for ITRM?
Iterum Therapeutics plc (ITRM) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 94% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ITRM's key strengths?
Claude: Adequate short-term liquidity with current ratio of 2.13x and $11.0M cash on hand providing near-term runway. Substantial reduction in diluted EPS loss (57.4% improvement YoY) suggests some operational progress or accounting improvements. ChatGPT: Near-term liquidity is still adequate with a 2.13x current ratio and $11.00M in cash. Diluted EPS improved materially year over year, indicating some loss-per-share reduction.
What are the risks of investing in ITRM?
Claude: Critical: Negative stockholders' equity of -$7.4M indicates technical insolvency and structural balance sheet deterioration. Severe cash burn of $15.3M annually with only $11.0M cash reserves provides approximately 9 months of runway at current burn rate. ChatGPT: Profitability is extremely weak, with operating margin of -4351.3% and net margin of -5225.4%. Balance sheet is stressed by negative stockholders equity and $20.05M of long-term debt.
What is ITRM's revenue and growth?
Iterum Therapeutics plc reported revenue of $390.0K.
Does ITRM pay dividends?
Iterum Therapeutics plc does not currently pay dividends.
Where can I find ITRM SEC filings?
Official SEC filings for Iterum Therapeutics plc (CIK: 0001659323) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ITRM's EPS?
Iterum Therapeutics plc has a diluted EPS of $-0.51.
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 ITRM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Iterum Therapeutics plc has a STRONG SELL rating with 94% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ITRM stock overvalued or undervalued?
Valuation metrics for ITRM: ROE of N/A (sector avg: 15%), net margin of -5,225.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ITRM stock in 2026?
Our dual AI analysis gives Iterum Therapeutics plc 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 ITRM's free cash flow?
Iterum Therapeutics plc's operating cash flow is $-15.3M, with capital expenditures of $14.0K. FCF margin is -3,915.9%.
How does ITRM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -5,225.4% (avg: 12%), ROE N/A (avg: 15%), current ratio 2.13 (avg: 2).