Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Sep 25, 2026
Tarsus Pharmaceuticals, Inc. (TARS)
A forensic read on Tarsus Pharmaceuticals, 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
Safe
Financial health
13.8
Distress distance
Watch
Earnings quality
3
Forensic signals
-71.6
P / E (ttm)
-19.3%
ROE
$3.5B
Market cap
0.00%
Dividend yield
146.7%
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, valuation). 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.
Tarsus Pharmaceuticals, Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads 13.8, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-23.1%
FY2025
Return on invested capital.Return on invested capital is -23.1% in the latest fiscal year and rising across FY2023–FY2025 from -3134.6%. After-tax operating profit was ($113M) in FY2023 and ($56M) in FY2025, with operating income at -820.5% of revenue in FY2023, -65.9% in FY2024 and -15.7% in FY2025. The capital base behind it grew +6630% across FY2023–FY2025, from $4M to $243M, and the return did not fall doing it, so the dollars added over that window earned at least the -3134.6% the older base was already earning. $234M of the $243M base at FY2025 is short-term investments (96.2%) — securities held beside cash, which the base keeps because only cash is subtracted from it; they earn the balance sheet's yield, which is not in the operating profit above, so the loss on the operating capital is larger than this rate shows.
+19.2%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +42% over the last 2 years to FY2025 (+19.2%/yr). The count is growing — 29.4M shares in FY2023, 41.8M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~19.2% 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 ~30%.
9% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 9% of revenue in FY2025 — about $1.00 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 19.2% 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$451.4M
Revenue Growth YoY+146.7%
Revenue CAGR (2yr)+408.1%
Net Margin-14.7%
Free Cash Flow-$22.3M
Return on Equity-19.3%
Debt / Equity0.21x
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 Tarsus Pharmaceuticals, Inc.'s actual 10-K/10-Q/8-K filings?