Forensic Analysis · Pharmaceuticals & Biotechnology · as of Nov 9, 2026
Eton Pharmaceuticals, Inc. (ETON)
A forensic read on Eton Pharmaceuticals, 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
-2.0
Distress distance
3
Forensic signals
-18.2%
ROE
104.9%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Eton Pharmaceuticals, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -2.0, placing it in the Distress zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-1.7%
FY2025
Return on invested capital.Return on invested capital is -1.7% in the latest fiscal year, against -10.1% in FY2024. After-tax operating profit was ($2M) in FY2024 and ($666,760) in FY2025, with operating income at -6.7% of revenue in FY2024 and -1.1% in FY2025. The capital base behind it grew +91% across FY2024–FY2025, from $20M to $39M, and the return did not fall doing it, so the dollars added over that window earned at least the -10.1% the older base was already earning.
+2.4%/yr
FY2023–FY2025
Share-count dilution.Basic share count changed +5% over the last 2 years to FY2025 (+2.4%/yr). The count is growing — 25.6M shares in FY2023, 26.9M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~2.4% 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 FY2023 has been diluted ~5%.
7% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 7% of revenue and 54% of free cash flow in FY2025 — about $0.20 per basic share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the basic count still rose about 2.4% a year across FY2023–FY2025 and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$80.0M
Revenue Growth YoY+104.9%
Revenue CAGR (2yr)+59.0%
Net Margin-5.8%
Free Cash Flow$10.2M
Return on Equity-18.2%
Debt / Equity1.17x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Eton Pharmaceuticals, Inc.'s actual 10-K/10-Q/8-K filings?