The balance sheet has deteriorated dramatically, with shareholders' equity collapsing from $243.8M in Q1 2024 to $39.8M in Q2 2026 and the debt-to-equity ratio surging to 2.83, indicating a fundamental shift towards necessity-driven borrowing.
Prime Medicine, Inc. (PRME) balance sheet — 7-year assets, liabilities & shareholders' equity history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Total Current Assets | 96.8M | 181.29M | 211.89M | 142.98M | 296.62M | 270.58M | 53.4M | 8.7M |
| Cash & Short-Term Investments | 95.07M | 177.68M | 190.44M | 121.67M | 293.92M | 269.62M | 53.33M | 8.65M |
| Cash Only | 47.45M | 63.03M | 182.48M | 41.57M | 187.62M | 185.42M | 36.98M | 8.65M |
| Short-Term Investments | 47.62M | 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 | - | - | - | - | - | - | - | - |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - | - | - | - | - | - |
| Other Current Assets | 1.73M | 3.61M | 14.67M | 2.25M | 246K | 0 | 0 | 50K |
| Total Non-Current Assets | 152.24M | 161.44M | 85.62M | 50.88M | 63.7M | 31.28M | 1.38M | 0 |
| Property, Plant & Equipment | 137.54M | 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 | 0 | 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 | 249.04M | 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 % | 9.97% | 15.2% | 53.47% | -46.2% | 19.37% | 451% | 529.91% | - |
| Total Current Liabilities | 31.69M | 37.45M | 37.96M | 56.42M | 26.71M | 57.98M | 19.44M | 7.31M |
| Accounts Payable | 5.81M | 8.89M | 11.35M | 19.54M | 4.33M | 1.44M | 250K | 0 |
| Days Payables Outstanding | 72.4 | 443.08 | - | - | - | - | 30.62 | - |
| Short-Term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Revenue (Current) | 30.03M | 7.82M | 7.09M | 0 | 0 | 0 | 0 | 0 |
| Other Current Liabilities | 8.98M | 9.04M | 6.93M | 10.91M | 6.98M | 14.66M | 19.08M | 7.31M |
| Current Ratio | 3.05x | 4.84x | 5.58x | 2.53x | 11.10x | 4.67x | 2.75x | 1.19x |
| Quick Ratio | 3.05x | 4.84x | 5.58x | 2.53x | 11.10x | 4.67x | 2.75x | 1.19x |
| Cash Conversion Cycle | - | - | - | - | - | - | - | - |
| Total Non-Current Liabilities | 177.54M | 184.42M | 106.4M | 4.36M | 17.33M | 4.31M | 1.87M | 0 |
| Long-Term Debt | 0 | 108.29M | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital Lease Obligations | 213.93M | 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 | 18M | 76.13M | 6M | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | 209.23M | 221.87M | 144.36M | 60.78M | 44.04M | 62.3M | 21.31M | 7.31M |
| Total Debt | 112.48M | 116.43M | 40.79M | 13.63M | 28.75M | 10.41M | 0 | 0 |
| Net Debt | 65.03M | 53.4M | -141.68M | -27.94M | -158.88M | -175.01M | -36.98M | -8.65M |
| Debt / Equity | 2.83x | 0.96x | 0.27x | 0.10x | 0.09x | 0.04x | - | - |
| Debt / EBITDA | -0.59x | - | - | - | - | - | - | - |
| Net Debt / EBITDA | -0.34x | - | - | - | - | - | - | -1.99x |
| Interest Coverage | - | - | - | - | - | - | - | - |
| Total Equity | 39.81M | 120.87M | 153.15M | 133.07M | 316.27M | 239.56M | 33.47M | 1.39M |
| Equity Growth % | -98.54% | -21.08% | 15.09% | -57.92% | 32.02% | 615.66% | 2309.94% | - |
| Book Value per Share | 0.22 | 0.81 | 1.29 | 1.46 | 3.25 | 2.50 | 0.35 | 0.01 |
| Total Shareholders' Equity | 39.81M | 120.87M | 153.15M | 133.07M | 316.27M | 239.56M | 33.47M | 1.39M |
| Common Stock | 2K | 2K | 2K | 2K | 2K | 1K | 0 | 1K |
| Retained Earnings | -979.59M | -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 | -9K | 82K | 1K | -15K | -384K | -27K | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
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.
Key Metrics
Top Statement Risk
Rapid equity erosion and leverage spike
Metrics are mathematically derived from official filings.
Balance Sheet Deterioration Accelerates
Prime Medicine's balance sheet has weakened dramatically over the past year, with total equity collapsing from $243.8M in 2024Q1 to just $39.8M in 2026Q2, driven by persistent net losses and a significant increase in debt.
The trajectory shows a clear and concerning deterioration. The company's equity base has been eroded by over $200M in cumulative losses, as evidenced by the retained earnings deficit ballooning from -$537.1M to -$979.6M. This erosion has been accompanied by a tripling of total debt from $43.8M to $112.5M, suggesting the company is increasingly reliant on external financing to fund its operations as its internal capital base shrinks.
Leverage Spike Signals Funding Pressure
The debt-to-equity ratio has surged from a conservative 0.18 in 2024Q1 to a highly leveraged 2.83 in 2026Q2, indicating a fundamental shift in the company's capital structure towards necessity-driven borrowing.
This dramatic increase in leverage is not strategic but appears to be a direct consequence of equity depletion from ongoing losses. The D/E ratio now significantly exceeds the peer average, with only Editas Medicine (2.81) showing similar strain. The company's ability to service this debt is questionable given its minimal revenue and negative cash flow, raising concerns about refinancing risk and the potential for further balance sheet stress.
Cash Runway Under Severe Pressure
Prime Medicine's cash position has dwindled from $182.5M in 2024Q4 to $47.5M in 2026Q2, while the current ratio has compressed from 5.58 to 3.05, signaling a rapidly narrowing liquidity buffer against its substantial quarterly cash burn.
The liquidity profile has deteriorated in lockstep with the balance sheet. While a current ratio above 3.0 still appears adequate on the surface, the absolute cash level is now critically low relative to the company's operating losses, which have consistently exceeded $40M per quarter. This suggests the company's cash runway is now measured in quarters, not years, without additional financing or a significant partnership infusion.
Equity Base Eroded by Persistent Losses
Shareholders' equity has been decimated, falling from $243.8M to $39.8M over ten quarters, with the retained earnings deficit now approaching $1 billion, indicating that the company's operations are consuming capital at an unsustainable rate.
The equity analysis reveals the core vulnerability of the business model. The erosion is not driven by share repurchases or dividends but by the relentless accumulation of net losses. The negative retained earnings figure is a stark representation of the total capital consumed since inception, and the pace of this erosion appears to be accelerating, leaving a minimal equity cushion to absorb further operational setbacks.
Deferred Revenue Volatility Masks True Burn
The erratic swings in deferred revenue, from $6.0M to over $80M and back to $64.0M, suggest unpredictable, non-recurring cash inflows that may temporarily obscure the true underlying cash burn rate from operations.
The most non-obvious distortion is the volatility in deferred revenue, which does not correlate with the company's minimal reported revenue. This pattern suggests large, lumpy prepayments or grant-related receipts that provide temporary liquidity boosts but are not indicative of a sustainable commercial revenue stream. Investors should monitor whether these inflows are becoming less frequent, as their absence would expose the full severity of the operational cash burn.