Forensic Analysis · Pharmaceuticals & Biotechnology · as of Nov 9, 2026
Pelthos Therapeutics Inc. (PTHS)
A forensic read on Pelthos Therapeutics Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Distress
Financial health
-1.5
Distress distance
Not computable
Earnings quality
4
Forensic signals
-239.5%
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.
Pelthos Therapeutics Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads -1.5, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-61.6%
FY2025
Return on invested capital.Return on invested capital is -61.6% in the latest fiscal year.
stopped
FY2024→FY2025
Shareholder returns — halted.Capital returns have STOPPED — $75,000 of buybacks + dividends in FY2024, but ~$0 in FY2025. A halt usually means the company is conserving cash.
n/m (sign flip)
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets flipped from negative to positive FY2024→FY2025 (FY2024 $-3.2M to FY2025 $+20.9M) — 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.
33% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 33% of revenue in FY2025 — about $2.90 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 237.3% 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$16.8M
Revenue Growth YoY—
Net Margin-257.9%
Free Cash Flow-$22.7M
Return on Equity-239.5%
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 Pelthos Therapeutics Inc.'s actual 10-K/10-Q/8-K filings?