Forensic Analysis · Technology / Software · as of Sep 16, 2026
Fatpipe Inc (FATN)
A forensic read on Fatpipe Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
7.4
Distress distance
Watch
Earnings quality
5
Forensic signals
19.7%
ROE
17.9%
Revenue growth
The financial-health reading above compares this company's equity at BOOK value, not at what the market currently pays for it — this free snapshot doesn't pull live market data. Treat it as a rough read, not the final word.
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Fatpipe Inc earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 7.4, placing it in the Safe zone (based on book value, not market value, since this free snapshot doesn't pull live market data — treat this zone as a rough read, not the final word). 5 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
-0.19×
FY2025–FY2026
Cash conversion.Over FY2025–FY2026, cumulative operating cash flow was -0.19× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.
+49.1%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +49.1% relative to their own average in FY2026 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by receivables up +14% against revenue +18% and payables paid down 11% against +63% in cost of sales. A cash-flow measure on the same base agrees: reported earnings ran ahead of operating cash by 24% of net operating assets, against an accruals ratio of 49.1%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average.
+8.9%/yr
FY2025–FY2026
Share-count dilution.Diluted share count changed +9% over the last 1 year to FY2026 (+8.9%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~8.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2025 has been diluted ~8%.
10.5%
FY2026
Return on invested capital.
Key fundamentals
Latest Revenue$19.2M
Revenue Growth YoY+17.9%
Net Margin25.9%
Free Cash Flow-$832,876.00
Return on Equity19.7%
Debt / Equity0.20x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Fatpipe Inc's actual 10-K/10-Q/8-K filings?
Return on invested capital is 10.5% in the latest fiscal year, close to the 12% of FY2025 — within 0.5 points of the ~10% cost of capital we hold this sector to, so the capital deployed to date has been roughly value-neutral. The capital base behind it cannot be compared across FY2025–FY2026: cash is tagged in one of those two fiscal years and not the other, and an untagged line enters this calculation as zero, so any change in the base would be a change in what the filer tagged.
4% of rev
FY2026
Stock-based comp load.Stock-based compensation ran 4% of revenue in FY2026 — about $0.05 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 8.9% a year, above the level at which the count is a material claim on a stake, and only one year's change is on file — enough to state what a holder gave up, not enough to say whether the rate is climbing or coming down. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.