Forensic Analysis · Pharmaceuticals & Biotechnology · as of Nov 9, 2026
Travere Therapeutics, Inc. (TVTX)
A forensic read on Travere Therapeutics, Inc. 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
-5.4
Distress distance
Watch
Earnings quality
6
Forensic signals
-29.4%
ROE
110.5%
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 (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.
Travere Therapeutics, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -5.4, placing it in the Distress zone. 6 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of NOA).
What the filings flag
+101.7%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +101.7% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. Net operating assets also rose $9.9M through acquisitions (increase in goodwill and intangibles); that purchase is investing and is excluded from this ratio. The build is led by receivables up +196% against revenue +110%. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 567% of net operating assets, against an accruals ratio of 101.7%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.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.
-14.4%
FY2025
Return on invested capital.Return on invested capital is -14.4% in the latest fiscal year, against -55.5% in FY2023, having run between -57.6% and -14.4% across FY2023–FY2025 with no direction held. After-tax operating profit was ($307M) in FY2023 and ($50M) in FY2025, with operating income at -267.2% of revenue in FY2023, -138.9% in FY2024 and -12.8% in FY2025. The capital base behind it came down -38% across FY2023–FY2025, from $553M to $344M, so this return is struck on a smaller base than it started on. $230M of the $344M base at FY2025 is short-term investments and long-term marketable securities (66.9%) — 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.
+9.6%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +20% over the last 2 years to FY2025 (+9.6%/yr). The count is growing — 74.3M shares in FY2023, 89.2M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~9.6% 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 FY2023 has been diluted ~17%.
9% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 9% of revenue in FY2025 — about $0.50 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 9.6% 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.
-$479.7M
FY2023–FY2025
Cash burn vs. reported loss.Over FY2023–FY2025, the company reported a cumulative net loss of $458.5M against operating cash flow of -$479.7M. 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.
60d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 42 to 60 days FY2024→FY2025 (receivables +196% vs revenue +110%). Receivables are creeping up relative to sales. Across FY2023–FY2025 the day count ran 53 → 42 → 60 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in. Deferred revenue was roughly flat (-100%) over the same period, which doesn't corroborate a benign upfront-billing explanation for the receivables build. Both figures are measured on period-end balances rather than the beginning-plus-ending average, because averaging needs the balance a year before every reading — FY2024's opening balance is on file, but across the 3 fiscal years read here (FY2023–FY2025) the average yields only 2 day counts (1 step), too few to tell a climb from one year's move.DSO (days sales outstanding): the average days the company waits to collect cash after a sale.
Key fundamentals
Latest Revenue$490.7M
Revenue Growth YoY+110.5%
Revenue CAGR (2yr)+83.8%
Net Margin-5.2%
Return on Equity-29.4%
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 Travere Therapeutics, Inc.'s actual 10-K/10-Q/8-K filings?