Extreme Networks, Inc. — Earnings Quality Grade F
EXTR · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO increased by 11 days
AR growth 41.5% exceeds revenue growth 2.0%
Revenue 2.0%, CFFO 174.0%. Cash follows revenue
Expense Quality
Inventory -27.3% vs COGS -11.4%. Normal
CapEx growth 36.4% is >2x revenue growth 2.0%
SG&A/Gross Profit = 65.9%. Normal
Gross margin swung +5.7pp (56.5% → 62.2%)
Cash Flow Quality
CFFO/NI = -20.36. Below 1.0
FCF $0.1B, FCF/NI = -17.05
Accruals ratio = -13.8%. Low accruals
Cash $0.2B covers debt $0.2B
Balance Sheet Health
Goodwill+Intangibles $0.4B = 619% of equity. Over 50%
Debt/EBITDA = 5.7x (>4x). Interest coverage = 1.2x (<2x). Financial stress
Other assets grew 54.3% vs revenue 2.0%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -2.76 (< -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