PagerDuty, Inc. — Earnings Quality Grade F
PD · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 80 days, change -3 days YoY
AR growth 1.0% vs revenue growth 5.4%
Revenue 5.4%, CFFO -2.6%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 28.5% is >2x revenue growth 5.4%
SG&A/Gross Profit = 68.3%. Normal
Gross margin 84.9%, change +2.0pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF $0.1B, FCF/NI = 0.59
Accruals ratio = 5.9%. Elevated
Cash $0.5B covers debt $0.4B
Balance Sheet Health
Goodwill+Intangibles $0.2B = 60% of equity. Over 50%
Debt/EBITDA = 10.4x (>4x). Interest coverage = 0.9x (<2x). Financial stress
Other assets grew 26.0% vs revenue 5.4%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -3% YoY. Normal
Manipulation Score
M-Score = -1.78 (> -1.78). LIKELY MANIPULATOR
Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.
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