D

Supernus Pharmaceuticals, Inc. — Earnings Quality Grade D

SUPN · Healthcare

Significant concerns

Revenue
$719M
2025
Net Income
-$39M
2025
Gross Margin
89.6%
Free Cash Flow
$46M
01

Screening Summary

9
Passed
6
Watch
2
Failed
-2.54
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 surged by 17 days (78 → 95)

!
A2AR vs Revenue Growth

AR growth 32.2% exceeds revenue growth 8.6%

A3Revenue vs CFFO

Revenue 8.6%, CFFO -72.5%. Cash follows revenue

02

Expense Quality

!
B1Inventory vs COGS

Inventory growth 51.7% exceeds COGS -4.3%

!
B2CapEx vs Revenue

CapEx growth 84.6% is >2x revenue growth 8.6%

!
B3SG&A Ratio

SG&A/Gross Profit = 75.4%, exceeds 70%

B4Gross Margin

Gross margin 89.6%, change +1.4pp. Stable

03

Cash Flow Quality

!
C1CFFO vs Net Income

CFFO/NI = -1.23. Below 1.0

C2Free Cash Flow

FCF $0.0B, FCF/NI = -1.19

C3Accruals Ratio

Accruals ratio = -5.9%. Low accruals

C4Cash vs Debt

Cash $0.3B covers debt $0.0B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.7B = 65% of equity. Over 50%

D2Leverage

Debt/EBITDA = 1.0x. Healthy

!
D3Soft Asset Growth

Other assets grew 107.0% vs revenue 8.6%

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 9% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.54 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.54
-4.0 Clean-2.22 Grey-1.78 Danger0
1.217
DSRI
AR growing faster than revenue?
0.984
GMI
Gross margin declining?
1.121
AQI
Asset quality deteriorating?
1.086
SGI
Revenue growth rate
0.975
DEPI
Depreciation slowing?
1.39
SGAI
SG&A ratio changing?
-0.0591
TATA
Accruals level
1.089
LVGI
Leverage increasing?
05

Altman Z-Score

5.17
Safe Zone
0 Distress1.102.605.0+ Safe
0.2107
Liquidity
0.3565
Cumulative profit
-0.0338
Operating efficiency
2.7158
Leverage

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