F

The RMR Group Inc. — Earnings Quality Grade F

RMR · Real Estate

Major red flags

Revenue
$700M
2025
Net Income
$18M
2025
Gross Margin
39.3%
Free Cash Flow
$72M
01

Screening Summary

10
Passed
3
Watch
1
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

Insufficient data

A2AR vs Revenue Growth

Insufficient data

A3Revenue vs CFFO

Revenue -22.0%, CFFO 23.4%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth -5.6% vs revenue -22.0%. Normal

!
B3SG&A Ratio

SG&A/Gross Profit = 77.7%, exceeds 70%

!
B4Gross Margin

Gross margin swung +7.2pp (32.1% → 39.3%)

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 4.30. Profits backed by cash

C2Free Cash Flow

FCF $0.1B, FCF/NI = 4.10

C3Accruals Ratio

Accruals ratio = -8.1%. Low accruals

C4Cash vs Debt

Cash $0.1B covers only 31% of debt $0.2B

04

Balance Sheet Health

!
D1Goodwill + Intangibles

Goodwill+Intangibles $0.1B = 43% of equity

D2Leverage

Debt/EBITDA = 3.3x. Healthy

D3Soft Asset Growth

Other assets -8.9% vs revenue -22.0%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 6% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

Insufficient data

Portfolio monitoring

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05

Altman Z-Score

3.97
Safe Zone
0 Distress1.102.605.0+ Safe
0.1042
Liquidity
0.6318
Cumulative profit
0.0705
Operating efficiency
0.7199
Leverage

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