F

Faraday Future Intelligent Elec — Earnings Quality Grade F

FFAI · Consumer Cyclical

Major red flags

Revenue
$1M
2025
Net Income
-$391M
2025
Gross Margin
-18239.9%
Free Cash Flow
-$115M
01

Screening Summary

8
Passed
5
Watch
3
Failed
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

Insufficient data

A2AR vs Revenue Growth

AR growth -100.0% vs revenue growth -31.2%

A3Revenue vs CFFO

Revenue -0.6%, CFFO -53.3%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory -88.1% vs COGS 17.0%. Normal

B2CapEx vs Revenue

CapEx growth 4.2% vs revenue -0.6%. Normal

B3SG&A Ratio

SG&A/Gross Profit = -69.6%, excellent (<30%)

!
B4Gross Margin

Gross margin swung -2750.1pp (-15489.8% → -18239.9%)

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO < Net Income for 3 consecutive years

Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.

!
C2Free Cash Flow

FCF is negative ($-0.1B)

C3Accruals Ratio

Accruals ratio = -101.9%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 30% of debt $0.1B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.0B = -111% of equity. Manageable

!
D2Leverage

Interest coverage = -21.1x (<2x). Financial stress

!
D3Soft Asset Growth

Other assets grew 777.5% vs revenue -0.6%

D4Asset Impairment

Write-offs normal

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions negative for 3 years

Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.

!
E2Goodwill Surge

Goodwill+Intangibles surged 2818% YoY

06

Manipulation Score

F1Beneish M-Score

Calculation error: float division by zero

Portfolio monitoring

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05

Altman Z-Score

-66.58
Distress Zone
0 Distress1.102.605.0+ Safe
-0.2866
Liquidity
-16.933
Cumulative profit
-1.3977
Operating efficiency
-0.1012
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25