C

Inseego Corp. — Earnings Quality Grade C

INSG · Technology

Some red flags

Revenue
$166M
2025
Net Income
$1M
2025
Gross Margin
42.7%
Free Cash Flow
-$2M
01

Screening Summary

7
Passed
9
Watch
1
Failed
-1.94
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

DSO surged by 29 days (26 → 55)

Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.

!
A2AR vs Revenue Growth

AR growth 81.7% exceeds revenue growth -13.1%

A3Revenue vs CFFO

Revenue -13.1%, CFFO -78.5%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory -43.1% vs COGS -22.3%. Normal

!
B2CapEx vs Revenue

CapEx growth 83.3% is >2x revenue growth -13.1%

B3SG&A Ratio

SG&A/Gross Profit = 53.7%. Normal

!
B4Gross Margin

Gross margin swung +6.7pp (36.0% → 42.7%)

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 8.59. Profits backed by cash

!
C2Free Cash Flow

FCF is negative ($-0.0B)

C3Accruals Ratio

Accruals ratio = -6.8%. Low accruals

!
C4Cash vs Debt

Cash $0.0B covers 55% of debt $0.0B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.0B = -609% of equity. Manageable

!
D2Leverage

Interest coverage = 1.2x (<2x). Financial stress

!
D3Soft Asset Growth

Other assets grew 24.9% vs revenue -13.1%

D4Asset Impairment

No write-off data

05

Acquisition Risk

!
E1Serial Acquirer FCF

FCF after acquisitions negative for 2/3 years

E2Goodwill Surge

Goodwill+Intangibles change 8% YoY. Normal

06

Manipulation Score

!
F1Beneish M-Score

M-Score = -1.94 (grey zone)

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-1.94
-4.0 Clean-2.22 Grey-1.78 Danger0
2.091
DSRI
AR growing faster than revenue?
0.842
GMI
Gross margin declining?
1.16
AQI
Asset quality deteriorating?
0.869
SGI
Revenue growth rate
1.168
DEPI
Depreciation slowing?
1.323
SGAI
SG&A ratio changing?
-0.0678
TATA
Accruals level
0.912
LVGI
Leverage increasing?
05

Altman Z-Score

-30.15
Distress Zone
0 Distress1.102.605.0+ Safe
0.1668
Liquidity
-9.6833
Cumulative profit
0.0539
Operating efficiency
-0.0413
Leverage

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