Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 2026
Wave Life Sciences Ltd. (WVE)
A forensic read on Wave Life Sciences Ltd. 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
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-55.7%
ROE
$1.1B
Market cap
Wave Life Sciences Ltd. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is 1.1, placing it in the Grey zone. 4 forensic signals were flagged in its latest SEC filings, led by receivables vs revenue.
What the filings flag
11d DSOReceivables vs revenue.Days sales outstanding moved from 5 to 11 days FY2024→FY2025 (receivables -10% vs revenue -61%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections.
-869%Return on invested capital.Return on invested capital is -869% and steady — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+38.0%/yrShare-count dilution.Diluted share count changed +114% over the last 3 years to FY2025 (+38.0%/yr). The count is GROWING — existing holders are being diluted. That's ~38.0% 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 FY2022 has been diluted ~114%.
58% of revStock-based comp load.Stock-based compensation ran 58% of revenue in FY2025 — about $0.15 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin-478.3%
Free Cash Flow$-188.2M
Latest Revenue$42.7M
Return on Equity-39.4%
Revenue Growth YoY-60.5%
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 Wave Life Sciences Ltd.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about WVE'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