Palladyne AI Corp. — Earnings Quality Grade F
PDYN · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 67 days (6 → 73)
Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.
AR growth 687.3% exceeds revenue growth -32.6%
Revenue -32.6%, CFFO -22.1%. Cash follows revenue
Expense Quality
Inventory growth 377.5% exceeds COGS -22.9%
CapEx growth 169.1% is >2x revenue growth -32.6%
SG&A/Gross Profit = 858.5%, exceeds 70%
Gross margin swung -6.5pp (55.2% → 48.7%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = 39.4%. Exceeds 10%
Cash $0.0B covers debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 34% of equity
Debt/EBITDA = -0.3x. Healthy
Other assets 5.0% vs revenue -32.6%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Insufficient data
Manipulation Score
M-Score = 22.44 (> -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