F

Gladstone Commercial Corporatio — Earnings Quality Grade F

GOOD · Real Estate

Major red flags

Revenue
$161M
2025
Net Income
$19M
2025
Gross Margin
78.1%
Free Cash Flow
$88M
01

Screening Summary

10
Passed
1
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

Insufficient data

A3Revenue vs CFFO

Revenue 8.0%, CFFO 54.8%. Cash follows revenue

02

Expense Quality

!
B1Inventory vs COGS

Inventory growth 140.4% exceeds COGS 11.9%

B2CapEx vs Revenue

Insufficient data

B3SG&A Ratio

SG&A/Gross Profit = 5.3%, excellent (<30%)

B4Gross Margin

Gross margin 78.1%, change -0.8pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 4.57. Profits backed by cash

C2Free Cash Flow

FCF $0.1B, FCF/NI = 4.57

C3Accruals Ratio

Accruals ratio = -5.5%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 1% of debt $0.9B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.1B = 67% of equity. Over 50%

D2Leverage

Debt/EBITDA = 7.1x (>4x). Interest coverage = 1.4x (<2x). Financial stress

D3Soft Asset Growth

Other assets -11.5% vs revenue 8.0%. Normal

D4Asset Impairment

Write-offs normal

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 22% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

Insufficient data

Portfolio monitoring

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Altman Z-Score — Not Applicable

Gladstone Commercial Corporatio is a financial company. Z-Score is designed for non-financial companies.

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