Why TPST Stock dropped -7.07% Today — RQD Quant Desk Flash

Per the Roarable RQD rating, TPST scores 35 out of 100 with a letter grade of D-, labeled "Roarable Sell — Vulnerable Balance Sheet & Flow." The five pillars are:

• Fundamental Cash Engine: 6 / 20 (ROIC -35%; FCF yield 0%). Per the market data, the company shows negative return on invested capital and no free-cash-flow yield, indicating the business is not currently generating cash returns on capital employed.
• Whale / 13F Flow: 5 / 20 (Institutional accumulation and options positioning). The rating reflects weak institutional support signals; no holder detail is available in the source data to explain the score further.
• Insider Conviction: 5 / 20 (SEC Form 4 and Congressional PTR cluster flow). Insider and congressional flow signals are scored low; the underlying trade records are not available in the source data.
• Macro Regime Fit: 9 / 20 (Beta 1.0; sector sensitivity). Beta of 1.0 means the stock is scored as moving in line with the broader market, with a sector-sensitivity drag.
• Forensic Balance Sheet: 10 / 20 (Altman Z 2.5; Piotroski F 2/9; Debt/Equity 0.5). This is the highest-scoring pillar but still sits in the lower half, with a weak Piotroski reading.

For a prospective investor, the upside case rests on the company's ability to reach a point where its cash position and financing position stabilize, which the rating does not show yet. The valuation tradeoff is stark: the market capitalization is $10.7M against reported net losses in each of the three fiscal years shown, so any investment thesis depends on future development outcomes that the source data does not describe. The rating is a factual scoring of current conditions, not a recommendation to buy or sell.

Per the SEC financials, operating and net losses appear in all three reported years, with gross, operating, and net margins each shown as 0% in the market data. Per the Roarable RQD rating, ROIC is -35%. Altman Z-Score is 2.5 and Piotroski F-Score is 2/9, with Debt/Equity at 0.5. Cash declined from $30.3M at FY 2024 to $7.7M at FY 2025, and the FY 2025 free cash flow of $-26.8M is large relative to that remaining cash balance.

Per the recent news and catalysts feed, six items are tagged to TPST, each marked YELLOW with a MARKET WIRE impact label:

• A Yahoo Finance UK item on seasonal returns, with no further detail in the source data.
• An Investing.com report that Tempest Therapeutics adjourned a special meeting and set a reconvened date for November.
• A TradingView estimates item, with no further detail in the source data.
• A scanx.trade report that the company secured a $50M equity purchase agreement with Lincoln Park.
• A TradingView report that John Frederick was appointed to the Board as a Class III director.
• A Benzinga pre-market mention among health care stocks.

Risk watch items: the Lincoln Park equity agreement implies potential ongoing share issuance, and the adjourned special meeting is an open governance item. Per the Butterfly Supply-Chain Graph, the supply chain is listed as NONE, with no butterfly links and no proprietary signals.

Per the Butterfly Supply-Chain Graph, no upstream or downstream dependencies, sector correlations, or proprietary signals are mapped for TPST. Investors should note the sector classification (Health Care / Pharmaceutical Preparations) but the source data does not identify specific supplier, customer, or partner bottlenecks.

• What is the company's pipeline status and development timeline, given the absence of revenue and the reported operating losses?
• What are the terms and expected dilution impact of the $50M Lincoln Park equity purchase agreement relative to the $10.7M market capitalization?
• What is the agenda and outcome of the adjourned special meeting set for November?
• Does the FY 2025 cash balance of $7.7M cover the company's planned operating spending over the next reporting period?
• What insider, 13F, or congressional positions exist for TPST, given that the holders section is empty?