Clearwater Analytics Holdings, — Earnings Quality Grade F
CWAN · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 57 days, change +8 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 61.9%, CFFO 136.7%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 314.4% is >2x revenue growth 61.9%
SG&A/Gross Profit = 61.7%. Normal
Gross margin swung -5.5pp (72.8% → 67.3%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF $0.2B, FCF/NI = -3.97
Accruals ratio = -7.1%. Low accruals
Cash $0.1B covers only 11% of debt $0.9B
Balance Sheet Health
Goodwill+Intangibles $2.0B = 97% of equity. Over 50%
Debt/EBITDA = 10.6x (>4x). Interest coverage = -0.2x (<2x). Financial stress
Other assets grew 922.7% vs revenue 61.9%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 1822% YoY
Manipulation Score
M-Score = -2.70 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25