F

Sunrise Realty Trust, Inc. — Earnings Quality Grade F

SUNS · Real Estate

Major red flags

Revenue
$26M
2025
Net Income
$12M
2025
Gross Margin
72.5%
Free Cash Flow
-$3M
01

Screening Summary

5
Passed
3
Watch
4
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 grew 143.2% but CFFO declined -309.1%

Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

Insufficient data

B3SG&A Ratio

SG&A/Gross Profit = 25.9%, excellent (<30%)

!
B4Gross Margin

Gross margin swung -18.0pp (90.5% → 72.5%)

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = -0.28. Only -28% of profit backed by cash

Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.

C2Free Cash Flow

FCF < 50% of Net Income for 2 years

!
C3Accruals Ratio

Accruals ratio = 5.0%. Elevated

C4Cash vs Debt

Cash $0.0B covers only 5% of debt $0.1B

04

Balance Sheet Health

D1Goodwill + Intangibles

No goodwill. Clean balance sheet

!
D2Leverage

Debt/EBITDA = 10.0x (>4x). Financial stress

D3Soft Asset Growth

Insufficient data

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

No goodwill

06

Manipulation Score

F1Beneish M-Score

Insufficient data

Portfolio monitoring

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Altman Z-Score — Not Applicable

Sunrise Realty 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