EDIT

Editas is a pre-revenue-quality gene-editing story dressed in collaboration income. The $40.5M of FY2025 revenue (+25.4%) is 'substantially all' from the Vertex license and the BMS collaboration per the MD&A — not product sales — so the 8.8x P/S is not a revenue multiple in any durable sense; it's paying up for milestone/royalty cash flows around an unproven pipeline. Every profitability metric is catastrophic by construction: -394.9% operating margin, -395.0% net margin, -586.6% ROE, and a -$160M net loss against a cumulative -$1.63B accumulated deficit. This is a company that has burned through $1.6B and has yet to commercialize anything.

The balance sheet is the immediate problem. Operating cash flow was -$165M in FY2025 against just $147M of cash — that is under twelve months of runway at the trailing burn. Management explicitly guides R&D and G&A lower (R&D already fell 54.9% after the December 2024 discontinuation of the ex vivo reni-cel program and a ~65% / ~180-position workforce cut), so burn should moderate, but even a materially reduced burn leaves the company needing to raise capital in the near term. Shares outstanding already grew 18.0% in FY2025 and stockholders' equity collapsed 79.7% to $27.3M with liabilities/equity at 5.84x — the dilution machine is already running, and the next raise comes from a $357M market cap at a depressed $3.65 stock.