Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 2026
Avalo Therapeutics, Inc. (AVTX)
A forensic read on Avalo Therapeutics, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-8.9
Altman Z-score
Clean
Earnings quality
5
Forensic signals
-77.8%
ROE
$957M
Market cap
Avalo Therapeutics, Inc. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -8.9, placing it in the Distress zone. 5 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+209.2%Accruals ratio.Net operating assets grew +209.2% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -82% of net operating assets.
-66%Return on invested capital.Return on invested capital is -66% and rising from -1130% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+11364.8%/yrShare-count dilution.Diluted share count changed +34094% over the last 3 years to FY2025 (+11364.8%/yr). The count is GROWING — existing holders are being diluted. That's ~11364.8% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~34094%.
23086% of revStock-based comp load.Stock-based compensation ran 23086% of revenue in FY2025 — about $1.02 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
$4MGoodwill impairments.Took $4M of goodwill writedowns across 1 year(s) (FY2023 ($4M)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.
Key fundamentals
Net Margin-132642.4%
Debt / Equity0.19x
Free Cash Flow$-51.5M
Latest Revenue59000.00
Return on Equity-94.2%
Revenue Growth YoY-86.6%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Avalo Therapeutics, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about AVTX's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown