Forensic Analysis · Machinery & Fabricated Metal Products · as of Nov 11, 2026
Terrestrial Energy Inc. /De/ (IMSR)
A forensic read on Terrestrial Energy Inc. /De/ 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
Grey Zone
Financial health
17.1
Distress distance
3
Forensic signals
-19.7%
ROE
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.
Terrestrial Energy Inc. /De/ earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 17.1, placing it in the Grey zone. 3 forensic signals were flagged in its latest SEC filings, led by share-count dilution.
What the filings flag
+18.6%/yr
FY2024–FY2025
Share-count dilution.Diluted share count changed +19% over the last 1 year to FY2025 (+18.6%/yr). The count is growing — 60.4M shares in FY2024, 71.6M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~18.6% 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 FY2024 has been diluted ~16%.
n/m (sign flip)
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets flipped from negative to positive FY2024→FY2025 (FY2024 $-16.5M to FY2025 $+198.2M) — the standard accruals ratio divides by the average of the two, which collapses toward zero right as the sign changes, so the resulting percentage is a denominator artifact, not a real accrual measurement. Treat this as a structural balance-sheet shift to understand on its own terms rather than a clean or dirty accruals read.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
270% of rev
FY2024
Stock-based comp load.Stock-based compensation ran 270% of revenue in FY2024 — about $0.01 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 18.6% a year across FY2024–FY2025, above the level at which the count is a material claim on a stake, and only one year's change is on file — enough to state what a holder gave up, not enough to say whether the rate is climbing or coming down. 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$248,357
Net Margin-4624.6%
Free Cash Flow-$17.5M
Return on Equity-19.7%
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 Terrestrial Energy Inc. /De/'s actual 10-K/10-Q/8-K filings?