C

Revolve Group, Inc. — Earnings Quality Grade C

RVLV · Consumer Cyclical

Some red flags

Revenue
$1.2B
2025
Net Income
$62M
2025
Gross Margin
53.5%
Free Cash Flow
$48M
01

Screening Summary

12
Passed
5
Watch
0
Failed
-1.96
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 5 days, change +2 days YoY

!
A2AR vs Revenue Growth

AR growth 60.2% exceeds revenue growth 8.5%

A3Revenue vs CFFO

Revenue 8.5%, CFFO 122.5%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 9.9% vs COGS 6.2%. Normal

!
B2CapEx vs Revenue

CapEx growth 101.9% is >2x revenue growth 8.5%

!
B3SG&A Ratio

SG&A/Gross Profit = 82.7%, exceeds 70%

B4Gross Margin

Gross margin 53.5%, change +1.0pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 0.96. Profits backed by cash

C2Free Cash Flow

FCF $0.0B, FCF/NI = 0.78

C3Accruals Ratio

Accruals ratio = 0.3%. Low accruals

C4Cash vs Debt

Cash $0.3B covers debt $0.0B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.0B = 1% of equity. Manageable

D2Leverage

Debt/EBITDA = 0.4x. Healthy

!
D3Soft Asset Growth

Other assets grew 63.6% vs revenue 8.5%

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 3% YoY. Normal

06

Manipulation Score

!
F1Beneish M-Score

M-Score = -1.96 (grey zone)

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-1.96
-4.0 Clean-2.22 Grey-1.78 Danger0
1.477
DSRI
AR growing faster than revenue?
0.981
GMI
Gross margin declining?
1.083
AQI
Asset quality deteriorating?
1.085
SGI
Revenue growth rate
0.812
DEPI
Depreciation slowing?
0.99
SGAI
SG&A ratio changing?
0.003
TATA
Accruals level
1.023
LVGI
Leverage increasing?
05

Altman Z-Score

7.92
Safe Zone
0 Distress1.102.605.0+ Safe
0.5444
Liquidity
0.4813
Cumulative profit
0.0971
Operating efficiency
2.0301
Leverage

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