Pelthos Therapeutics Inc. (PTHS) Revenue-to-Profit Sankey Flow & SEC XBRL Financials

Per the Roarable RQD rating, PTHS scores 34 out of 100, earning an E grade labeled "Roarable Strong Sell — Forensic Risk / Avoid." The five pillars are:

• Fundamental Cash Engine: 3 / 20 (ROIC -35%; FCF yield 0%). This is the weakest pillar and indicates the business is not currently generating returns on invested capital or free cash flow relative to its valuation.
• Whale 13F Flow: 12 / 20 (institutional accumulation and options positioning). This is a moderate score; the source data does not itemize the underlying 13F holdings (see Analyst View section).
• Insider Conviction: 3 / 20 (SEC Form 4 and Congressional PTR cluster flow). This low score reflects insider and related-party flow in the source data; the recent news wire includes a director sale (see Catalysts).
• Macro Regime Fit: 11 / 20 (Beta 1.0; sector sensitivity). A beta of 1.0 means the stock is modeled to move in line with the market; the sector-sensitivity component is not further decomposed in the source data.
• Forensic Balance Sheet: 5 / 20 (Altman Z 0.2; Piotroski F 3/9; Debt/Equity 0.5). The Altman Z-Score of 0.2 is in the distress zone per the source's own scoring, and the Piotroski F-Score of 3 out of 9 signals weak fundamental quality.

For a prospective investor evaluating the stock today, the implication is that the rating's weakest inputs are cash generation and balance-sheet forensics, which are the components most directly tied to downside risk. The 3/20 cash-engine score and 0% FCF yield mean the valuation rests on expectations of future cash generation rather than current cash flow. The 5/20 forensic score amplifies this concern. Upside drivers would have to come from pipeline or commercial execution rather than the existing financial base. The 12/20 whale-flow score is the strongest pillar, but it does not offset the fundamental and forensic weaknesses, and it should be weighed against the 3/20 insider score.

Pelthos Therapeutics Inc. is a NYSE-listed issuer in the Health Care sector, classified under Biotechnology: Biological Products (No Diagnostic Substances), per the company profile. Per the recent news wire, the company's commercial product is referred to as Zelsuvmi, and its launch estimates were recently cut by analysts. The source data does not specify the customer base, geographic reach, or detailed revenue model. Reported FY 2025 revenue is $16.8M, indicating a commercial revenue stream exists alongside substantial operating losses.

Per the SEC financials, the company moved from zero reported revenue in FY 2023 and FY 2024 to $16.8M in FY 2025, while net losses widened from $-7.4M to $-43.3M over the same span. Gross margin is 76.3%, but operating margin and net margin are both -60%, and ROIC is -35%. The source data reports an Altman Z-Score of 0.2 and a Piotroski F-Score of 3 out of 9 within the forensic pillar of the RQD rating. Debt/Equity is 0.5. Reported cash rose to $18.0M in FY 2025 from $0.5M in FY 2024, while FCF remained deeply negative.

• Analyst estimate cut (RISK WATCH, RED): A Yahoo Finance-sourced item reports that analysts cut Zelsuvmi launch estimates and that fair value fell.
• Castle Creek merger (RISK WATCH, RED): A TradingView-sourced item reports the stock sank after a merger deal with Castle Creek Biosciences. A separate citybiz-sourced item describes the merger as including up to $300 Million in milestones.
• Director stock sale (MARKET WIRE, YELLOW): An Investing.com-sourced item reports director Peter Greenleaf sold $16,872 in stock.
• Post-announcement decline (RISK WATCH, RED): A GuruFocus-sourced item reports shares dropped 35% following the merger announcement.
• Market analysis (MARKET WIRE, YELLOW): A Simply Wall St-sourced item provides general stock analysis.

The price change of -43.17% and the 52-week range of $9.02 to $37.5 are consistent with the sequence of negative catalysts described. The butterfly supply-chain graph contains no links or proprietary signals.

Per the Butterfly Supply-Chain Graph, the supply chain is NONE, with no butterfly links and no proprietary signals. The source data therefore does not establish upstream suppliers, downstream customers, or cross-company dependencies. For a prospective investor, the key ripple to monitor is the Castle Creek merger and its milestone structure, since any change in the merger's status or milestone achievement would affect the company's capital position and strategic direction. Commercial performance of Zelsuvmi is the second-order driver to track, given the analyst estimate cut. Supply-chain-level bottlenecks cannot be assessed from the source data.

• What is the current status and expected timeline of the Castle Creek merger, and what conditions must be met to trigger the up-to-$300 Million in milestones?
• What are the drivers behind the cut to Zelsuvmi launch estimates, and what is the revenue trajectory beyond the FY 2025 reported figure?
• What is the company's cash runway given FY 2025 FCF of $-22.7M against $18.0M in reported cash?
• What are the reported EPS, P/E, and EV/EBITDA figures, which are currently unavailable in the source data?
• What specific institutional holders and insider transactions make up the whale-flow and insider pillar scores?