Teads Holding Co. — Earnings Quality Grade F
TEAD · Communication Services
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 35 days (61 → 96)
Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.
AR growth 129.5% exceeds revenue growth 46.1%
Revenue grew 46.1% but CFFO declined -88.9%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
No material inventory
CapEx growth 31.6% vs revenue 46.1%. Normal
SG&A/Gross Profit = 93.6%, exceeds 70%
Gross margin swung +11.4pp (21.6% → 33.0%)
Cash Flow Quality
CFFO/NI = -0.01. Below 1.0
FCF is negative ($-0.0B)
Accruals ratio = -39.5%. Low accruals
Cash $0.1B covers only 21% of debt $0.7B
Balance Sheet Health
Goodwill+Intangibles $0.7B = 689% of equity. Over 50%
Interest coverage = -0.2x (<2x). Financial stress
Other assets grew 99.1% vs revenue 46.1%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles surged 722% YoY
Manipulation Score
M-Score = -3.50 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25