Talkspace, Inc. — Earnings Quality Grade F
TALK · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 26 days, change +7 days YoY
AR growth 66.6% exceeds revenue growth 22.0%
Revenue grew 22.0% but CFFO declined -24.4%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
No material inventory
CapEx growth 95.5% is >2x revenue growth 22.0%
SG&A/Gross Profit = 76.8%, exceeds 70%
Gross margin 43.0%, change -3.0pp. Stable
Cash Flow Quality
CFFO/NI = 1.10. Profits backed by cash
FCF is negative ($-0.0B)
Accruals ratio = -0.5%. Low accruals
Insufficient data
Balance Sheet Health
Goodwill+Intangibles $0.0B = 3% of equity. Manageable
Insufficient data
Other assets grew 109.7% vs revenue 22.0%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles surged 148% YoY
Manipulation Score
M-Score = -0.83 (> -1.78). LIKELY MANIPULATOR
Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25