Forensic Analysis · Medical Devices · as of Nov 9, 2026
Pulmonx Corp (LUNG)
A forensic read on Pulmonx Corp 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
-11.0
Distress distance
Clean
Earnings quality
3
Forensic signals
-77.2%
ROE
8.0%
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.
Pulmonx Corp earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -11.0, 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
-76.9%
FY2025
Return on invested capital.Return on invested capital is -76.9% in the latest fiscal year, against -66.8% in FY2023, having run between -76.9% and -63.4% across FY2023–FY2025 with no direction held. After-tax operating profit was ($49M) in FY2023 and ($42M) in FY2025, with operating income at -90.2% of revenue in FY2023, -68.9% in FY2024 and -59.3% in FY2025. The capital base behind it came down -25% across FY2023–FY2025, from $73M to $55M, so this return is struck on a smaller base than it started on.
+3.5%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +7% over the last 2 years to FY2025 (+3.5%/yr). The count is growing — 38.0M shares in FY2023, 40.7M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~3.5% 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 ~7%.
23% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 23% of revenue in FY2025 — about $0.52 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 3.5% 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$90.5M
Revenue Growth YoY+8.0%
Revenue CAGR (2yr)+14.8%
Net Margin-59.7%
Free Cash Flow-$32.8M
Return on Equity-77.2%
Debt / Equity0.69x
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 Pulmonx Corp's actual 10-K/10-Q/8-K filings?