Financial leverage has increased significantly, with the debt-to-equity ratio surging from 0.10 in 2023Q4 to 1.49 by 2026Q1, indicating a growing reliance on debt to fund operations.
| Total Current Assets | 137.89M | 181.29M | 211.89M | 142.98M | 296.62M | 270.58M | 53.4M | 8.7M |
| Cash & Short-Term Investments | 135.5M | 177.68M | 190.44M | 121.67M | 293.92M | 269.62M | 53.33M | 8.65M |
| Cash Only | 64.11M | 63.03M | 182.48M | 41.57M | 187.62M | 185.42M | 36.98M | 8.65M |
| Short-Term Investments | 71.39M | 114.65M | 7.97M | 80.09M | 106.3M | 84.2M | 16.35M | 0 |
| Accounts Receivable | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Days Sales Outstanding | 2.71 | - | - | - | - | - | - | - |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - | - | - | - | - | - |
| Other Current Assets | 2.39M | 3.61M | 14.67M | 2.25M | 246K | 0 | 0 | 50K |
| Total Non-Current Assets | 156.84M | 161.44M | 85.62M | 50.88M | 63.7M | 31.28M | 1.38M | 0 |
| Property, Plant & Equipment | 142.15M | 146.75M | 71.56M | 36.6M | 48.55M | 15.68M | 596K | 0 |
| Fixed Asset Turnover | 0.03x | 0.03x | 0.04x | - | - | - | 8.74x | - |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Long-Term Investments | 13.69M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 14.69M | 14.69M | 14.06M | 14.28M | 15.14M | 15.6M | 785K | 0 |
| Total Assets | 294.73M | 342.73M | 297.51M | 193.85M | 360.31M | 301.86M | 54.78M | 8.7M |
| Asset Turnover | 0.01x | 0.01x | 0.01x | - | - | - | 0.10x | - |
| Asset Growth % | 28.14% | 15.2% | 53.47% | -46.2% | 19.37% | 451% | 529.91% | - |
| Total Current Liabilities | 36.29M | 37.45M | 37.96M | 56.42M | 26.71M | 57.98M | 19.44M | 7.31M |
| Accounts Payable | 12.32M | 8.89M | 11.35M | 19.54M | 4.33M | 1.44M | 250K | 0 |
| Days Payables Outstanding | 70.66 | 443.08 | - | - | - | - | 30.62 | - |
| Short-Term Debt | 8.55M | 8.14M | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Revenue (Current) | 30.41M | 7.82M | 7.09M | 0 | 0 | 0 | 0 | 0 |
| Other Current Liabilities | 8.1M | 12.6M | 6.93M | 10.91M | 6.98M | 14.66M | 19.08M | 7.31M |
| Current Ratio | 3.80x | 4.84x | 5.58x | 2.53x | 11.10x | 4.67x | 2.75x | 1.19x |
| Quick Ratio | 3.80x | 4.84x | 5.58x | 2.53x | 11.10x | 4.67x | 2.75x | 1.19x |
| Cash Conversion Cycle | -67.94 | - | - | - | - | - | - | - |
| Total Non-Current Liabilities | 181.74M | 184.42M | 106.4M | 4.36M | 17.33M | 4.31M | 1.87M | 0 |
| Long-Term Debt | 105.97M | 108.29M | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital Lease Obligations | 112.48M | 0 | 37.18M | 4.36M | 17.05M | 3.07M | 0 | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 279K | 1.24M | 1.87M | 0 |
| Other Non-Current Liabilities | 75.78M | 76.13M | 6M | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | 218.03M | 221.87M | 144.36M | 60.78M | 44.04M | 62.3M | 21.31M | 7.31M |
| Total Debt | 114.51M | 116.43M | 40.79M | 13.63M | 28.75M | 10.41M | 0 | 0 |
| Net Debt | 50.41M | 53.4M | -141.68M | -27.94M | -158.88M | -175.01M | -36.98M | -8.65M |
| Debt / Equity | 1.49x | 0.96x | 0.27x | 0.10x | 0.09x | 0.04x | - | - |
| Debt / EBITDA | -0.58x | - | - | - | - | - | - | - |
| Net Debt / EBITDA | -0.25x | - | - | - | - | - | - | -1.99x |
| Interest Coverage | - | - | - | - | - | - | - | - |
| Total Equity | 76.7M | 120.87M | 153.15M | 133.07M | 316.27M | 239.56M | 33.47M | 1.39M |
| Equity Growth % | -133% | -21.08% | 15.09% | -57.92% | 32.02% | 615.66% | 2309.94% | - |
| Book Value per Share | 0.43 | 0.81 | 1.29 | 1.46 | 3.25 | 2.50 | 0.35 | 0.01 |
| Total Shareholders' Equity | 76.7M | 120.87M | 153.15M | 133.07M | 316.27M | 239.56M | 33.47M | 1.39M |
| Common Stock | 2K | 2K | 2K | 2K | 2K | 0 | 0 | 1K |
| Retained Earnings | -937.48M | -888.35M | -687.21M | -491.33M | -293.2M | -171.38M | -6.01M | -2.6M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -1K | 82K | 1K | -15K | -384K | -27K | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insufficient liquidity runway
As reported in recent financial statements, Prime Medicine's total equity has contracted significantly from $243.8 million in 2024Q1 to $76.7 million by 2026Q1, reflecting a persistent erosion of the balance sheet as the company funds its research-heavy platform development through accumulated losses and capital consumption.
The consistent decline in equity highlights the company's reliance on external funding to offset its lack of commercial revenue. Investors should monitor whether this trajectory forces management to prioritize short-term capital preservation over the long-term development of its gene-editing pipeline.
Based on the provided balance sheet data, Prime Medicine's debt-to-equity ratio has surged from 0.10 in 2023Q4 to 1.49 in 2026Q1, indicating that the firm is increasingly utilizing debt to bridge the gap between its high research expenditures and its limited, milestone-dependent revenue inflows.
This shift toward higher leverage in a pre-commercial stage suggests a potential increase in financial risk, particularly if the company fails to reach clinical milestones that would otherwise trigger non-dilutive partnership payments. The reliance on debt financing warrants further investigation into the company's long-term solvency and refinancing capabilities.
According to quarterly filings, Prime Medicine's cash position has dwindled to $64.1 million as of 2026Q1, a sharp reduction from the $182.5 million peak observed in 2024Q4, which underscores the company's high cash burn rate and the urgent need for additional capital to sustain operations.
While the current ratio of 3.80 appears superficially healthy, the underlying cash burn suggests that the company's liquidity runway is narrowing rapidly. This environment may force management to seek dilutive equity raises, which could significantly impact shareholder value in the near term.
As indicated by the latest balance sheet, Prime Medicine's net property, plant, and equipment have grown to $142.2 million, representing a substantial portion of total assets, which reflects the company's heavy investment in specialized laboratory infrastructure required for its proprietary prime editing platform.
The concentration of assets in fixed infrastructure rather than liquid holdings suggests an asset-heavy business model that is difficult to scale down without significant impairment. This capital intensity implies that the company's future success is tethered to the successful utilization of these facilities for clinical-grade manufacturing.
Data from recent financial statements reveals an accumulated deficit of $937.5 million, which serves as a stark reminder of the massive capital investment required to date and the significant uncertainty surrounding the company's ability to ever achieve a self-sustaining, profitable business model.
This massive deficit suggests that the company's book value is heavily distorted by historical R&D spending that has yet to yield a commercial product. Investors should be wary that the balance sheet may not fully capture the potential for future impairment if the current pipeline fails to meet clinical expectations.
Quick answers to the most common questions about buying PRME stock.
As of 2025, Prime Medicine, Inc. (PRME) had total assets of $342.7M including $181.3M in current assets.
Prime Medicine, Inc. (PRME) carries total debt of $116.4M, offset by $177.7M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Prime Medicine, Inc. (PRME) has total shareholders' equity (book value) of $120.9M ($0.81 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Prime Medicine, Inc. (PRME) reported a current ratio of 4.84x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.