Editas Medicine (EDIT) AI Stock Analysis

• Market Cap: $260.34M
• Dividend Yield: N/A
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.11
• Revenue Growth: -24.90%
• EPS Growth: 7.19%
• Country: US
• Employees: 246
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.06
• Shares Outstanding: 97,872,000
• 10 Day Avg. Volume: 1,781,207
• 30 Day Avg. Volume: 1,697,905
• PEG Ratio: 0.03
• Price to Book (P/B): 6.67
• Price to Sales (P/S): 4.49
• P/FCF Ratio: -1.10
• Enterprise Value/Market Cap: 0.50
• Enterprise Value/Revenue: 3.24
• Enterprise Value/Gross Profit: 3.30
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.15
• Price Target Upside: 93.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -1.12
• Revenue Forecast (FY): $16.65M

• Rating: 52 Neutral
• Price Target: $2.50 ▼(-6.02% Downside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is held down primarily by weak financial performance (revenue collapse to $0, persistent losses, and heavy negative free cash flow) despite relatively low debt and some cost containment. Technicals are a notable offset, with the stock trading above major moving averages and positive MACD, but valuation remains constrained by unprofitability (negative P/E) and no dividend support.

Positive Factors

Proprietary CRISPR platform

Editas’s proprietary CRISPR-centered platform and pipeline targeting diseases like Leber congenital amaurosis and sickle cell provide a durable technology moat. Platform-driven R&D can yield multiple programs, enabling recurring long-term upside if clinical progress continues and commercial approvals follow.

Relatively low leverage

Modest debt levels and declining absolute debt reduce near-term solvency risk and interest expense pressure. For a cash-burning biotech, lower leverage preserves optionality to pursue partnerships or equity financings and limits refinancing risk during multi-year clinical development cycles.

Cost containment and historical gross margins

Management’s cost containment and historically strong gross margins imply the company can stretch runway and that product-level economics could be attractive. If clinical success restores revenue, disciplined cost structure and good gross margins support faster path to positive operating leverage.

Negative Factors

Revenue collapse to zero

A complete revenue collapse removes internal cash generation and signals material commercial or collaboration disruption. Long-term viability now hinges on successful clinical milestones or external funding, weakening bargaining power and increasing reliance on dilutive financing or partner deals to sustain development.

Persistent negative cash flow

Consistent, deep operating and free cash flow deficits indicate ongoing cash burn that erodes runway and forces frequent capital raises. Structural inability to generate positive cash from operations limits reinvestment in trials and increases dilution risk, constraining long-term strategic flexibility.

Balance sheet erosion & negative ROE

Steep equity erosion and persistently negative ROE reflect sustained value destruction and weaken the balance sheet cushion. This diminishes capacity to absorb setbacks, raises cost of capital, and limits ability to use debt financing, making long-term commercialization and growth harder without clear turnaround milestones.

Editas Medicine Business Overview & Revenue Model

Company Description

Editas Medicine, Inc., a clinical stage genome editing company, focuses on developing transformative genomic medicines to treat a range of serious diseases. It develops a proprietary gene editing platform based on CRISPR technology. The company develops EDIT-101, which is in Phase 1/2 clinical trial for Leber Congenital Amaurosis 10 that leads to inherited childhood blindness. It also develops EDIT-102 for the treatment of Usher Syndrome 2A, which is a form of retinitis pigmentosa that also includes hearing loss; autosomal dominant retinitis pigmentosa, a progressive form of retinal degeneration; and EDIT-301 to treat sickle cell disease and transfusion-dependent beta-thalassemia. In addition, the company is developing gene-edited Natural Killer cell medicines to treat solid tumor cancers; alpha-beta T cells for multiple cancers; and gamma delta T cell therapies to treat cancer, as well as has an early discovery program to develop a therapy to treat a neurological disease. It has a research collaboration with Juno Therapeutics, Inc. to develop engineered T cells for cancer; strategic alliance and option agreement with Allergan Pharmaceuticals International Limited to discover, develop, and commercialize new gene editing medicines for a range of ocular disorders; and research collaboration with Asklepios BioPharmaceutical, Inc. to develop a therapy to treat a neurological disease, as well as research collaboration with AskBio. The company was formerly known as Gengine, Inc. and changed its name to Editas Medicine, Inc. in November 2013. Editas Medicine, Inc. was incorporated in 2013 and is based in Cambridge, Massachusetts.

How the Company Makes Money

Editas Medicine generates revenue through a combination of funding from collaborations, partnerships, and grants, as well as potential future product sales. The company partners with pharmaceutical companies and research institutions to co-develop gene editing therapies, which can lead to milestone payments and royalties on product sales. Additionally, Editas may receive funding from government grants aimed at supporting innovative medical research. As the company progresses through clinical trials and towards commercialization of its therapies, it anticipates revenue from the sale of its gene editing products.

Editas Medicine Financial Statement Overview

Summary

Weak fundamentals dominate: revenue deteriorated sharply to $0 in 2025, losses remain persistent, and operating/free cash flow are deeply negative (ongoing cash burn). Low leverage is a relative positive, and cost containment (lower R&D and G&A) may help runway, but balance sheet erosion and sustained losses keep the financial profile pressured.

Income Statement

EDIT’s revenue trajectory has been highly volatile and has deteriorated sharply, culminating in 2025 annual revenue of $0 (down 100% year over year) after already declining from 2023 to 2024. Profitability remains very weak: the company is consistently loss-making with negative operating results across the period, and 2024 showed extremely large losses relative to revenue. A positive is that gross profitability was strong in 2021–2024 (high gross margins), but this benefit has not translated into bottom-line improvement, and the 2025 revenue collapse is a major red flag.

Balance Sheet

Leverage is relatively low in most years, with debt-to-equity staying modest and improving in 2025 as absolute debt declined. However, financial flexibility has weakened meaningfully: equity has fallen steeply from 2021 to 2025, reflecting sustained losses and balance sheet erosion. Returns on equity are deeply negative throughout, indicating the company is not generating shareholder value and is consuming capital, even if debt levels are not currently the primary risk.

Cash Flow

Cash generation is a clear weakness, with operating cash flow and free cash flow deeply negative every year shown, consistent with a cash-burning business model. Free cash flow did improve in 2023 versus 2022, but worsened again in 2024 and remained heavily negative in 2025. A modest positive is that free cash flow has generally tracked reported losses (free cash flow roughly in line with net loss), suggesting losses are not being driven by unusually large non-cash gains, but the magnitude and persistence of cash burn remains a key risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	40.52M	32.31M	78.12M	19.71M	25.54M
Gross Profit	35.24M	32.31M	72.06M	13.38M	20.49M
EBITDA	-94.06M	-233.11M	-163.12M	-219.61M	-188.09M
Net Income	-160.06M	-237.09M	-153.22M	-220.43M	-192.50M
Balance Sheet
Total Assets	186.53M	341.59M	499.15M	514.32M	677.48M
Cash, Cash Equivalents and Short-Term Investments	146.65M	269.91M	323.11M	344.27M	499.85M
Total Debt	18.10M	35.03M	48.54M	43.95M	26.38M
Total Liabilities	159.25M	207.31M	150.06M	153.64M	123.84M
Stockholders Equity	27.29M	134.27M	349.10M	360.68M	553.64M
Cash Flow
Free Cash Flow	-165.85M	-219.11M	-136.90M	-181.47M	-171.78M
Operating Cash Flow	-165.24M	-210.28M	-132.18M	-177.35M	-163.80M
Investing Cash Flow	138.67M	162.15M	-3.73M	114.07M	-54.47M
Financing Cash Flow	40.47M	56.03M	118.04M	1.28M	282.11M

Editas Medicine Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDIT, the sentiment is Positive. The current price of 2.66 is above the 20-day moving average (MA) of 2.03, above the 50-day MA of 2.04, and above the 200-day MA of 2.55, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 67.89 is Neutral, neither overbought nor oversold. The STOCH value of 84.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDIT.

Editas Medicine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLLS	54 Neutral	$290.58M	121.36	-31.79%	―	158.54%	66.90%
EDIT	52 Neutral	$260.34M	-1.14	-348.55%	―	-24.90%	7.19%
FHTX	52 Neutral	$330.99M	-4.58	105.48%	―	-3.91%	37.89%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VOR	50 Neutral	$617.82M	-0.10	274.58%	―	―	-1072.48%
CRBU	45 Neutral	$190.38M	-1.42	-74.28%	―	-19.00%	-2.72%
ELTX	43 Neutral	$206.20M	-4.53	-5657.87%	―	―	17.36%