Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Sep 19, 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
-114.3%
ROE
19.7%
Revenue growth
The financial-health reading above compares this company's equity at BOOK value, not at what the market currently pays for it — this free snapshot doesn't pull live market data. Treat it as a rough read, not the final word.
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, valuation). 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 (based on book value, not market value, since this free snapshot doesn't pull live market data — treat this zone as a rough read, not the final word). 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-90.5%
FY2025
Return on invested capital.Return on invested capital is -90.5% in the latest fiscal year, against -129% in FY2021, having run between -252.7% and -90.5% across FY2021–FY2025 with no direction held — well below the ~10% cost of capital we hold this sector to, and it has been across FY2019–FY2025, so reinvested dollars have not been earning their keep. The capital base behind it came down -16% across FY2021–FY2025, from $15M to $12M, so this is a return struck on a smaller base rather than a record of money put to work.
+8.1%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +26% over the last 3 years to FY2025 (+8.1%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~8.1% 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 FY2022 has been diluted ~21%.
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 8.3% a year 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.
$6M
FY2022–FY2022
Goodwill impairments.Took $6M of goodwill writedowns across 1 year (FY2022 ($6M)). Writedowns mean past acquisitions underperformed what was paid for them.
Key fundamentals
Latest Revenue$66.6M
Revenue Growth YoY+19.7%
Revenue CAGR (3yr)+13.5%
Net Margin-30.0%
Free Cash Flow-$14.3M
Return on Equity-114.3%
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?