CARM earnings analysis
What we found in CARM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Q3 2025 results were driven by a one-time collaboration revenue of $45.25M that turned the company profitable: net income of $44.717M and EPS of $1.07 versus a loss of $12.702M and EPS of $(0.31) in Q3 2024. Operating income was $43.814M (96.8% of revenue) compared with an operating loss of $13.144M in the prior-year quarter. Despite the quarter’s accounting gain, the company is pursuing asset monetizations and an orderly wind down, has only $2.777M of cash, and faces Nasdaq delisting and substantial doubt about going concern.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Large one‑time collaboration revenue
- Collaboration revenues were $45.25M in Q3 2025 versus $3.385M in Q3 2024 (increase of $41.865M).
- Swing to profitability
- Net income of $44.717M in Q3 2025 (EPS $1.07) compared with a net loss of $12.702M (EPS $(0.31)) in Q3 2024, a quarter-to-quarter swing of $57.419M in earnings impact.
- Strong operating margin this quarter
- Operating income was $43.814M, representing a 96.8% operating margin for the quarter versus an operating loss of $13.144M in Q3 2024.
- Reduced operating expense run‑rate
- Total operating expenses fell to $1.436M in Q3 2025 from $16.529M in Q3 2024 (decline of $15.093M), driven by lower R&D ($197k vs $11.326M) and G&A ($1.239M vs $5.203M).
- Operating cash outflow improved year‑over‑year
- Net cash used in operating activities for the nine months ended Sept 30, 2025 was $(14.063)M versus $(51.565)M for the nine months ended Sept 30, 2024 (improvement of $37.502M).
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Severe liquidity and going‑concern risk
- Cash and cash equivalents were $2.777M as of Sept 30, 2025 and management states it "does not have sufficient cash...to support its operations for more than one year," creating substantial doubt about the Company's ability to continue as a going concern.
- Nasdaq delisting and trading suspension
- The company received a delisting determination from Nasdaq on Oct 9, 2025 and its common stock was suspended from Nasdaq effective Oct 13, 2025 and began trading on the OTCID tier on Oct 13, 2025 (loss of primary exchange).
- Merger termination receivable uncertain
- Company recorded a receivable of $1.3M (Termination Fee $0.8M + Expense Reimbursement $0.5M) related to the terminated OrthoCellix merger which it has not received and which may not be collectible.
- Deferred revenue largely recognized
- Deferred revenue on the balance sheet went from $44.979M (3,729K current + 41,250K long‑term at Dec 31, 2024) to $0 at Sept 30, 2025, indicating one‑time recognition of previously deferred amounts and reduced future contracted revenue visibility.
- Asset base and leases reduced
- Property and equipment, net declined from $4.385M at Dec 31, 2024 to $0 at Sept 30, 2025, and the company recorded a $0.9M loss on abandonment of an operating lease ROU asset during the nine months ended Sept 30, 2025.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.07
- Gross margin
- 100.0%
- Operating margin
- 96.8%
- Segment
- Single operating segment — Collaboration revenue $45,250,000 for Q3 2025; R&D expense $197,000 and G&A $1,239,000 for Q3 2025 (company reports one segment).
What they said about what is next.
No numeric forward guidance provided. Management states it "expects to pay the majority" of workforce reduction amounts by the end of 2025, "expects to continue to attempt to sell or otherwise dispose of or monetize its remaining assets and pursue an orderly wind down," and "does not expect to be able to continue to file reports with SEC, including...Form 10-K for the fiscal year ending December 31, 2025."
The filing reads worse than the one before it.
What came before.
- 10-Q · August 7, 2025
- Carisma Therapeutics experienced a significant decline in revenue with no reported collaboration revenues for Q2 2025, compared to $9.2 million in Q2 2024. The company reported a net loss of $9.8 million for the quarter…
- 10-K · April 1, 2024
- Carisma Therapeutics (formerly Sesen Bio) is a clinical‑stage CAR‑M company that completed a March 7, 2023 business combination and in late March 2024 adopted a revised operating plan to focus on higher‑value near‑term…
- 10-Q · November 9, 2023
- Carisma reported Q3 collaboration revenue of $3.827M, up from $2.578M in Q3 2022 (+$1.249M, +48.4%), but operating loss widened to $22.344M. Cash and marketable securities totaled $94.1M at September 30, 2023, which…
- 10-K · February 28, 2023
- The 10-K centers on Sesen Bio’s strategic shift to consummate a merger with CARISMA Therapeutics (Merger Agreement dated September 20, 2022) after the company voluntarily paused further U.S. development of Vicineum on…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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