MeritValue

Cabaletta Bio, Inc.

CABAdata completeness 75%8 fiscal years on file

Data notes: no data for concept 'revenue'; no data for concept 'totalDebt'; no data for concept 'pretaxIncome'

The thesis, from the filings

Cabaletta Bio, Inc. earns about -69% on equity, but has diluted owners by 247% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue—————
Net income−$46.3M1−$53M2−$67.7M3−$115.9M4−$167.9M4
Operating cash flow−$34.1M5−$46.4M6−$53.5M7−$88.2M8−$131.1M8
Capital expenditure$1.17M9$2.45M10$687,00011$2.21M12$1.23M12
Free cash flow (derived)−$35.3M5−$48.8M6−$54.2M7−$90.4M8−$132.3M8
Total debt—————
Cash & equivalents$122.2M13$81.6M14$193.2M15$164M16$83M16
Diluted shares28.9M5.9M1.2M50.7M100.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$11.15
your share of equity
Profit it earned you last year
−$16.71
Free cash flow it threw off
−$13.17
Debt you’d be carrying
—

10 shares is a claim on $11.15 of net worth that earned you −$16.71 and generated −$13.17 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
-69% avg · 5y
FY21 -39%FY22 -51%FY23 -29%FY24 -76%FY25 -150%

It earned an average -69% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+247% shares · 5y

Share count is up 247% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000950170-23-008298 (NetIncomeLoss)
  2. 10-K · period ending 2022-12-31 · accession 0000950170-24-034422 (NetIncomeLoss)
  3. 10-K · period ending 2023-12-31 · accession 0000950170-25-047201 (NetIncomeLoss)
  4. 10-K · period ending 2024-12-31 · accession 0001759138-26-000011 (NetIncomeLoss)
  5. 10-K · period ending 2021-12-31 · accession 0000950170-23-008298 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2022-12-31 · accession 0000950170-24-034422 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2023-12-31 · accession 0000950170-25-047201 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2024-12-31 · accession 0001759138-26-000011 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2021-12-31 · accession 0000950170-23-008298 (PaymentsToAcquirePropertyPlantAndEquipment)
  10. 10-K · period ending 2022-12-31 · accession 0000950170-24-034422 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-12-31 · accession 0000950170-25-047201 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-12-31 · accession 0001759138-26-000011 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0000950170-23-008298 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0000950170-24-034422 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0000950170-25-047201 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-12-31 · accession 0001759138-26-000011 (CashAndCashEquivalentsAtCarryingValue)