Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Oct 11, 2026
Q32 Bio Inc. (QTTB)
A forensic read on Q32 Bio 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
Distress
Financial health
-2.1
Distress distance
Watch
Earnings quality
3
Forensic signals
8.8
P / E (ttm)
71.0%
ROE
$284M
Market cap
1797.5%
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 (red flags, 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.
Q32 Bio Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads -2.1, placing it in the Distress zone. 3 forensic signals were flagged in its latest SEC filings, led by share-count dilution.
What the filings flag
+494.0%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +3428% over the last 2 years to FY2025 (+494.0%/yr). The count is growing — 0.3M shares in FY2023, 12.3M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~494.0% 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 ~97%.
-$119.9M
FY2023–FY2025
Cash burn vs. reported loss.Over FY2023–FY2025, the company reported a cumulative net loss of $71.7M against operating cash flow of -$119.9M. Cash burn ran heavier than the reported loss — something outside net income (working capital, a cash item not in the P&L) is consuming cash faster than the loss alone implies.
10% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 10% of revenue in FY2025 — about $0.43 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 494.0% a year across FY2023–FY2025, and the rate is falling. 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$53.7M
Revenue Growth YoY+1797.5%
Revenue CAGR (2yr)+780.6%
Net Margin55.5%
Free Cash Flow-$33.5M
Return on Equity71.0%
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 Q32 Bio Inc.'s actual 10-K/10-Q/8-K filings?