Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Oct 11, 2026
Wave Life Sciences, Inc. (WVE)
A forensic read on Wave Life Sciences, 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
Grey Zone
Financial health
1.1
Distress distance
Clean
Earnings quality
3
Forensic signals
-3.2
P / E (ttm)
-39.4%
ROE
$684M
Market cap
0.00%
Dividend yield
-60.5%
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.
Wave Life Sciences, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 1.1, placing it in the Grey zone. 3 forensic signals were flagged in its latest SEC filings, led by share-count dilution.
What the filings flag
+26.1%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +59% over the last 2 years to FY2025 (+26.1%/yr). The count is growing — 106.1M shares in FY2023, 168.6M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~26.1% 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 ~37%.
11d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 5 to 11 days FY2024→FY2025 (receivables -10% vs revenue -61%). Receivables are creeping up relative to sales. Across FY2023–FY2025 the day count ran 68 → 5 → 11 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. 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.
58% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 58% of revenue in FY2025 — about $0.15 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 26.1% 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$42.7M
Revenue Growth YoY-60.5%
Revenue CAGR (2yr)-38.6%
Net Margin-478.3%
Free Cash Flow-$188.2M
Return on Equity-39.4%
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 Wave Life Sciences, Inc.'s actual 10-K/10-Q/8-K filings?