Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 28, 2026
Eledon Pharmaceuticals, Inc. (ELDN)
A forensic read on Eledon Pharmaceuticals, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Clean
Earnings quality
4
Forensic signals
-72.0%
ROE
$292M
Market cap
Eledon Pharmaceuticals, Inc. earns a C (Mixed — selective) forensic quality grade. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-28%Return on invested capital.Return on invested capital is -28% and rising from -234% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+157.6%/yrShare-count dilution.Diluted share count changed +473% over the last 3 years to FY2025 (+157.6%/yr). The count is GROWING — existing holders are being diluted. That's ~157.6% 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 ~473%.
+15.5%Accruals ratio.Net operating assets grew +15.5% relative to their average in FY2025 — the accrual component of earnings. Accruals are building faster than is comfortable — part of profit sits in receivables, inventory or capitalized costs rather than cash. The cash-flow cross-check agrees: reported earnings ran ahead of operating cash by +16% of net operating assets.
$51MGoodwill impairments.Took $51M of goodwill writedowns across 2 year(s) (FY2019 ($2M), FY2022 ($49M)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.
Key fundamentals
Free Cash Flow$-62.4M
Return on Equity-56.3%
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 Eledon Pharmaceuticals, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about ELDN'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