Forensic Analysis · Healthcare Providers & Services · as of Nov 8, 2026
Exagen Inc. (XGN)
A forensic read on Exagen 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
-14.9
Distress distance
Clean
Earnings quality
4
Forensic signals
-147.8%
ROE
19.7%
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 (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.
Exagen Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -14.9, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by receivables vs revenue.
What the filings flag
60d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 51 to 60 days FY2024→FY2025 (receivables +39% vs revenue +20%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections. Across FY2023–FY2025 the day count ran 46 → 51 → 60 days — the latest step continues a climb that was already under way, which is the persistence that separates a collection problem from a busy quarter. Deferred revenue was roughly flat (0%) 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.
-101.7%
FY2025
Return on invested capital.Return on invested capital is -101.7% in the latest fiscal year and rising across FY2023–FY2025 from -204.7%. After-tax operating profit was ($18M) in FY2023 and ($11M) in FY2025, with operating income at -43.5% of revenue in FY2023, -24.5% in FY2024 and -21.1% in FY2025. The capital base behind it grew +24% across FY2023–FY2025, from $9M to $11M, and the return did not fall doing it, so the dollars added over that window earned at least the -204.7% the older base was already earning.
+10.4%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +22% over the last 2 years to FY2025 (+10.4%/yr). The count is growing — 17.7M shares in FY2023, 21.6M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~10.4% 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 ~18%.
3% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 3% of revenue in FY2025 — about $0.10 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 10.4% 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.
Key fundamentals
Latest Revenue$66.6M
Revenue Growth YoY+19.7%
Revenue CAGR (2yr)+12.6%
Net Margin-30.0%
Free Cash Flow-$14.3M
Return on Equity-147.8%
Debt / Equity1.31x
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 Exagen Inc.'s actual 10-K/10-Q/8-K filings?