The Lovesac Company — Earnings Quality Grade C
LOVE · Consumer Cyclical
Some red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 6 days, change -3 days YoY
AR growth -30.1% vs revenue growth 2.4%
Revenue 2.4%, CFFO 26.6%. Cash follows revenue
Expense Quality
Inventory -14.5% vs COGS 7.5%. Normal
CapEx growth 11.6% vs revenue 2.4%. Normal
SG&A/Gross Profit = 94.8%, exceeds 70%
Gross margin 56.4%, change -2.0pp. Stable
Cash Flow Quality
CFFO far exceeds NI (ratio 12.1x). Non-cash charges depressing profits
FCF $0.0B, FCF/NI = 6.23
Accruals ratio = -8.5%. Low accruals
Cash $0.1B covers 53% of debt $0.2B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 1% of equity. Manageable
Debt/EBITDA = 9.4x (>4x). Financial stress
Other assets -1.5% vs revenue 2.4%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 45% YoY
Manipulation Score
M-Score = -3.12 (< -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