Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 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
Altman Z-score
Watch
Earnings quality
5
Forensic signals
-26.8%
ROE
$5.5B
Market cap
Travere Therapeutics, Inc. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -5.4, placing it in the Distress zone. 5 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+190.3%Accruals ratio.Net operating assets grew +190.3% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -567% of net operating assets.
60d DSOReceivables vs revenue.Days sales outstanding moved from 42 to 60 days FY2024→FY2025 (receivables +196% vs revenue +110%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections.
-14%Return on invested capital.Return on invested capital is -14% and rising from -54% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+13.3%/yrShare-count dilution.Diluted share count changed +40% over the last 3 years to FY2025 (+13.3%/yr). The count is GROWING — existing holders are being diluted. That's ~13.3% 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 FY2022 has been diluted ~40%.
9% of revStock-based comp load.Stock-based compensation ran 9% of revenue and 119% of free cash flow in FY2025 — about $0.50 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
Key fundamentals
Net Margin-5.2%
Debt / Equity0.20x
Free Cash Flow$37.1M
Latest Revenue$490.7M
Return on Equity-22.2%
Revenue Growth YoY+110.5%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Travere Therapeutics, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about TVTX's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown