EarningsGradeEarningsGrade

Technology — Earnings Quality Screening

330 Technology stocks screened with 18 forensic accounting checks

Grade Distribution

B: 23
C: 68
D: 21
F: 205
A13 — Strong — minimal red flags
B23 — Good — generally healthy
C68 — Fair — some red flags
D21 — Weak — significant concerns
F205 — Fail — major red flags

Earnings Quality Characteristics in Technology

Technology companies present unique earnings quality challenges because their business models often blur the line between genuine growth and financial engineering. Stock-based compensation (SBC) is pervasive — many tech firms add back SBC to report "adjusted" EBITDA, masking the real cost of dilution to shareholders. R&D capitalization is another grey area: companies may capitalize development costs to inflate current earnings, shifting expenses into future periods. Deferred revenue from subscription and SaaS models complicates revenue recognition timing — a company reporting strong billings may still have weak cash collection. The transition from one-time license sales to recurring subscriptions can temporarily depress reported revenue while the underlying business is actually strengthening, or vice versa. Our screening checks DSO trends, AR-vs-revenue divergence, and cash flow quality specifically to catch these distortions. In a sector where 44 out of 89 screened stocks receive an F grade, investors need to look beyond adjusted metrics and examine the raw accounting data.

Common Red Flags in Technology

  • ⚠Stock-based compensation exceeding 15% of revenue, inflating "adjusted" earnings while diluting shareholders
  • ⚠Accounts receivable growing significantly faster than revenue for multiple consecutive years, suggesting aggressive revenue recognition
  • ⚠R&D capitalization ratios increasing over time — shifting current expenses to the balance sheet to boost short-term profits
  • ⚠Large discrepancies between operating cash flow and reported net income, often driven by non-cash adjustments

All 330 Technology Stocks

AStrong — minimal red flags(13 stocks)

A
ASMLASML Holding N.V. - New York Re
A
BHEBenchmark Electronics, Inc.
A
CXMSprinklr, Inc.
A
DAKTDaktronics, Inc.
A
DIODDiodes Incorporated
A
FTNTFortinet, Inc.
A
INODInnodata Inc.
A
PGYPagaya Technologies Ltd.
A
POWIPower Integrations, Inc.
A
QLYSQualys, Inc.
A
RMBSRambus, Inc.
A
SMCISuper Micro Computer, Inc.
A
WLTHWealthfront Corporation

BGood — generally healthy(23 stocks)

B
AMATApplied Materials, Inc.
B
BKTIBK Technologies Corporation
B
CRCTCricut, Inc.
B
DSPViant Technology Inc.
B
EPAMEPAM Systems, Inc.
B
GCTGigaCloud Technology Inc
B
GDYNGrid Dynamics Holdings, Inc.
B
KLACKLA Corporation
B
MPTIM-tron Industries, Inc.
B
MPWRMonolithic Power Systems, Inc.
B
NAVNNavan, Inc.
B
NOWServiceNow, Inc.
B
ONON Semiconductor Corporation
B
PLABPhotronics, Inc.
B
PLUSePlus inc.
B
PUBMPubMatic, Inc.
B
RDVTRed Violet, Inc.
B
RELLRichardson Electronics, Ltd.
B
RELYRemitly Global, Inc.
B
ROGRogers Corporation
B
SANMSanmina Corporation
B
UBERUber Technologies, Inc.
B
VICRVicor Corporation

CFair — some red flags(68 stocks)

C
AAPLApple Inc.
C
ADBEAdobe Inc.
C
ADPAutomatic Data Processing, Inc.
C
AGYSAgilysys, Inc.
C
ALRMAlarm.com Holdings, Inc.
C
AMDAdvanced Micro Devices, Inc.
C
ANETArista Networks, Inc.
C
APHAmphenol Corporation
C
ATENA10 Networks, Inc.
C
AVPTAvePoint, Inc.
C
BLBlackLine, Inc.
C
BLKBBlackbaud, Inc.
C
BMIBadger Meter, Inc.
C
BOXBox, Inc.
C
BTDRBitdeer Technologies Group
C
CALXCalix, Inc
C
CIENCiena Corporation
C
CNXNPC Connection, Inc.
C
COHUCohu, Inc.
C
CRMSalesforce, Inc.
C
CSCOCisco Systems, Inc.
C
CVLTCommvault Systems, Inc.
C
DAVEDave Inc.
C
FFIVF5, Inc.
C
FORMFormFactor, Inc.
C
FRSHFreshworks Inc.
C
FSLRFirst Solar, Inc.
C
GRMNGarmin Ltd.
C
HLITHarmonic Inc.
C
IBTAIbotta, Inc.
C
IDCCInterDigital, Inc.
C
IMXIInternational Money Express, In
C
INSGInseego Corp.
C
INTUIntuit Inc.
C
ITGartner, Inc.
C
ITRIItron, Inc.
C
JKHYJack Henry & Associates, Inc.
C
KLICKulicke and Soffa Industries, I
C
LRCXLam Research Corporation
C
MQMarqeta, Inc.
C
MSFTMicrosoft Corporation
C
MUMicron Technology, Inc.
C
NTCTNetScout Systems, Inc.
C
NTGRNETGEAR, Inc.
C
NVECNVE Corporation
C
NXTNextpower Inc.
C
PANWPalo Alto Networks, Inc.
C
PAYOPayoneer Global Inc.
C
PDFSPDF Solutions, Inc.
C
PENGPenguin Solutions, Inc.
C
PLTRPalantir Technologies Inc.
C
PLXSPlexus Corp.
C
QTWOQ2 Holdings, Inc.
C
RAMPLiveRamp Holdings, Inc.
C
RMNIRimini Street, Inc.
C
SCSCScanSource, Inc.
C
SEMRSEMrush Holdings, Inc.
C
SHOPShopify Inc.
C
SNDKSandisk Corporation
C
SPSCSPS Commerce, Inc.
C
SWKSSkyworks Solutions, Inc.
C
TRAKReposiTrak, Inc.
C
TSSITSS, Inc.
C
TYLTyler Technologies, Inc.
C
VECOVeeco Instruments Inc.
C
VERXVertex, Inc.
C
VPGVishay Precision Group, Inc.
C
VTEXVTEX

DWeak — significant concerns(21 stocks)

D
ACNAccenture plc
D
ADSKAutodesk, Inc.
D
AVNWAviat Networks, Inc.
D
BULLWebull Corporation
D
CDNSCadence Design Systems, Inc.
D
CLMBClimb Global Solutions, Inc.
D
CTSCTS Corporation
D
CTSHCognizant Technology Solutions
D
FIVNFive9, Inc.
D
FLYWFlywire Corporation - Voting
D
FNFabrinet
D
INTCIntel Corporation
D
JBLJabil Inc.
D
KEYSKeysight Technologies Inc.
D
NOVTNovanta Inc.
D
NTAPNetApp, Inc.
D
QCOMQUALCOMM Incorporated
D
TERTeradyne, Inc.
D
VIAVViavi Solutions Inc.
D
WDAYWorkday, Inc.
D
YEXTYext, Inc.

FFail — major red flags(205 stocks)

F
AAOIApplied Optoelectronics, Inc.
F
ACIWACI Worldwide, Inc.
F
ACLSAxcelis Technologies, Inc.
F
ACMRACM Research, Inc.
F
ADEAAdeia Inc.
F
ADIAnalog Devices, Inc.
F
ADTNADTRAN Holdings, Inc.
F
AEHRAehr Test Systems
F
AEVAAeva Technologies, Inc.
F
AEYEAudioEye, Inc.
F
AIC3.ai, Inc.
F
AIOTPowerFleet, Inc.
F
AIPArteris, Inc.
F
AISPAirship AI Holdings, Inc
F
AKAMAkamai Technologies, Inc.
F
ALITAlight, Inc.
F
ALKTAlkami Technology, Inc.
F
ALMUAeluma, Inc.
F
ALNTAllient Inc.
F
AMBAAmbarella, Inc.
F
AMBQAmbiq Micro, Inc.
F
AMPLAmplitude, Inc.
F
AOSLAlpha and Omega Semiconductor L
F
APLDApplied Digital Corporation
F
APPNAppian Corporation
F
APPSDigital Turbine, Inc.
F
ARMArm Holdings plc
F
ARRYArray Technologies, Inc.
F
ASANAsana, Inc.
F
ASGNASGN Incorporated
F
ASURAsure Software Inc
F
ATOMAtomera Incorporated
F
AVGOBroadcom Inc.
F
BANDBandwidth Inc.
F
BBAIBigBear.ai, Inc.
F
BDCBelden Inc
F
BELFABel Fuse Inc.
F
BELFBBel Fuse Inc.
F
BKKTBakkt, Inc.
F
BLNDBlend Labs, Inc.
F
BLZEBackblaze, Inc.
F
BRBroadridge Financial Solutions,
F
BRZEBraze, Inc.
F
BZAIBlaize Holdings, Inc.
F
CCSIConsensus Cloud Solutions, Inc.
F
CDWCDW Corporation
F
CEVACEVA, Inc.
F
CIFRCipher Digital Inc.
F
CLFDClearfield, Inc.
F
CMRCCommerce.com, Inc. - Series 1
F
CNDTConduent Incorporated
F
COHRCoherent Corp.
F
CORZCore Scientific, Inc.
F
CPAYCorpay, Inc.
F
CRDOCredo Technology Group Holding
F
CRNCCerence Inc.
F
CRSRCorsair Gaming, Inc.
F
CRWDCrowdStrike Holdings, Inc.
F
CSGSCSG Systems International, Inc.
F
CSPICSP Inc.
F
CTLPCantaloupe, Inc.
F
CWANClearwater Analytics Holdings,
F
DBDDiebold Nixdorf Incorporated
F
DDD3D Systems Corporation
F
DDOGDatadog, Inc.
F
DELLDell Technologies Inc.
F
DFINDonnelley Financial Solutions,
F
DGIIDigi International Inc.
F
DJCODaily Journal Corp. (S.C.)
F
DMRCDigimarc Corporation
F
DOCNDigitalOcean Holdings, Inc.
F
DOMODomo, Inc.
F
EGANeGain Corporation
F
EGHT8x8 Inc
F
ESEESCO Technologies Inc.
F
EVCMEverCommerce Inc.
F
EVTCEvertec, Inc.
F
EXFYExpensify, Inc.
F
EXTRExtreme Networks, Inc.
F
FEIMFrequency Electronics, Inc.
F
FICOFair Isaac Corporation
F
FISFidelity National Information S
F
FSLYFastly, Inc.
F
FTVFortive Corporation
F
GDDYGoDaddy Inc.
F
GENGen Digital Inc.
F
GLWCorning Incorporated
F
GRNDGrindr Inc.
F
HCKTThe Hackett Group, Inc.
F
HPEHewlett Packard Enterprise Comp
F
HPQHP Inc.
F
IBEXIBEX Limited
F
IBMInternational Business Machines
F
ICHRIchor Holdings
F
IIIInformation Services Group, Inc
F
IIIVi3 Verticals, Inc.
F
IMMRImmersion Corporation
F
INDIindie Semiconductor, Inc.
F
INTAIntapp, Inc.
F
IONQIonQ, Inc.
F
KLTRKaltura, Inc.
F
KNKnowles Corporation
F
KOPNKopin Corporation
F
KULRKULR Technology Group, Inc.
F
LASRnLIGHT, Inc.
F
LAWCS Disco, Inc.
F
LDOSLeidos Holdings, Inc.
F
LIFLife360, Inc.
F
LITELumentum Holdings Inc.
F
LYTSLSI Industries Inc.
F
MCHPMicrochip Technology Incorporat
F
MEIMethode Electronics, Inc.
F
MITKMitek Systems, Inc.
F
MLABMesa Laboratories, Inc.
F
MRVLMarvell Technology, Inc.
F
MSIMotorola Solutions, Inc.
F
MSTRStrategy Inc
F
MVISMicrovision, Inc.
F
MXLMaxLinear, Inc
F
NABLN-able, Inc.
F
NATLNCR Atleos Corporation
F
NEONNeonode Inc.
F
NNNextNav Inc.
F
NRDYNerdy Inc.
F
NSITInsight Enterprises, Inc.
F
NVDANVIDIA Corporation
F
NVTSNavitas Semiconductor Corporati
F
NXPINXP Semiconductors N.V.
F
OOMAOoma, Inc.
F
ORCLOracle Corporation
F
OSISOSI Systems, Inc.
F
OSPNOneSpan Inc.
F
OUSTOuster, Inc.
F
PAGSPagSeguro Digital Ltd.
F
PARPAR Technology Corporation
F
PAYSPaysign, Inc.
F
PAYXPaychex, Inc.
F
PDPagerDuty, Inc.
F
PDYNPalladyne AI Corp.
F
PIImpinj, Inc.
F
PRGSProgress Software Corporation
F
PRTHPriority Technology Holdings, I
F
PSFEPaysafe Limited
F
PTCPTC Inc.
F
QQnity Electronics, Inc.
F
QBTSD-Wave Quantum Inc.
F
QUBTQuantum Computing Inc.
F
RBBNRibbon Communications Inc.
F
RGTIRigetti Computing, Inc.
F
ROPRoper Technologies, Inc.
F
RPAYRepay Holdings Corporation
F
RPDRapid7, Inc.
F
RUNSunrun Inc.
F
RXTRackspace Technology, Inc.
F
RZLVRezolve AI PLC
F
SABRSabre Corporation
F
SHLSShoals Technologies Group, Inc.
F
SITMSiTime Corporation
F
SKYTSkyWater Technology, Inc.
F
SLABSilicon Laboratories, Inc.
F
SMTCSemtech Corporation
F
SNPSSynopsys, Inc.
F
SONOSonos, Inc.
F
SOUNSoundHound AI, Inc.
F
SPTSprout Social, Inc
F
SPWRSunPower Inc.
F
SSTISoundThinking, Inc.
F
STNEStoneCo Ltd.
F
STXSeagate Technology Holdings PLC
F
SVCOSilvaco Group, Inc.
F
SYNASynaptics Incorporated
F
TBCHTurtle Beach Corporation
F
TCXTucows Inc.
F
TDYTeledyne Technologies Incorpora
F
TELTE Connectivity plc
F
TENBTenable Holdings, Inc.
F
THRYThryv Holdings, Inc.
F
TLSTelos Corporation
F
TRMBTrimble Inc.
F
TTECTTEC Holdings, Inc.
F
TTGTTechTarget, Inc.
F
TTMITTM Technologies, Inc.
F
TXNTexas Instruments Incorporated
F
UCTTUltra Clean Holdings, Inc.
F
UISUnisys Corporation New
F
UPBDUpbound Group, Inc.
F
VIAVia Transportation, Inc.
F
VISNVistance Networks, Inc.
F
VRNSVaronis Systems, Inc.
F
VRRMVerra Mobility Corporation
F
VRSNVeriSign, Inc.
F
VSATViaSat, Inc.
F
VSHVishay Intertechnology, Inc.
F
VUZIVuzix Corporation
F
VYXNCR Voyix Corporation
F
WDCWestern Digital Corporation
F
WKWorkiva Inc.
F
WYFIWhiteFiber, Inc.
F
XPERXperi Inc.
F
XYZBlock, Inc.
F
YOUClear Secure, Inc.
F
ZBRAZebra Technologies Corporation
F
ZETAZeta Global Holdings Corp.
F
ZSZscaler, Inc.
F
ZSPCzSpace, Inc.

Understand Our Methodology

Every stock undergoes 18 systematic checks based on forensic accounting principles, including Beneish M-Score and Altman Z-Score quantitative models.

View Full Methodology →

Browse by Grade

Grade AGrade BGrade CGrade DGrade F

Featured Reports

CAAPLApple Inc.CADBEAdobe Inc.CADPAutomatic Data Processing, Inc.

Other Sectors

HealthcareIndustrialsFinancial ServicesConsumer CyclicalConsumer Defensive
Back to All Stock Screening →