F

NexPoint Residential Trust, Inc — Earnings Quality Grade F

NXRT · Real Estate

Major red flags

Revenue
$251M
2025
Net Income
-$32M
2025
Gross Margin
56.4%
Free Cash Flow
$84M
01

Screening Summary

11
Passed
1
Watch
2
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

DSO 13 days, change -4 days YoY

A2AR vs Revenue Growth

AR growth -26.6% vs revenue growth -3.2%

A3Revenue vs CFFO

Revenue -3.2%, CFFO 13.6%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

Insufficient data

B3SG&A Ratio

SG&A/Gross Profit = 12.7%, excellent (<30%)

B4Gross Margin

Gross margin 56.4%, change -0.0pp. Stable

03

Cash Flow Quality

!
C1CFFO vs Net Income

CFFO/NI = -2.61. Below 1.0

C2Free Cash Flow

FCF $0.1B, FCF/NI = -2.61

C3Accruals Ratio

Accruals ratio = -6.1%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 1% of debt $1.6B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.0B = 0% of equity. Manageable

D2Leverage

Debt/EBITDA = 10.6x (>4x). Interest coverage = 0.3x (<2x). Financial stress

D3Soft Asset Growth

Other assets -20.5% vs revenue -3.2%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Insufficient data

06

Manipulation Score

F1Beneish M-Score

Insufficient data

Portfolio monitoring

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Altman Z-Score — Not Applicable

NexPoint Residential Trust, Inc 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