28d DSOReceivables vs revenue. Days sales outstanding moved from 12 to 28 days FY2024→FY2025 (receivables +507% vs revenue +52%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections.
38dInventory days. Days inventory outstanding moved from 29 to 38 FY2024→FY2025 (against cost of goods sold; inventory +19% vs -15% in cost of sales). Inventory is outrunning what's being sold — a flag for softening demand or obsolescence risk ahead.
-1.7%Return on invested capital. Return on invested capital is -1.7% in the latest fiscal year and slipping from 1% — well below its ~8% cost of capital, so reinvested dollars may be destroying value, not building it.
+15.8%/yrShare-count dilution. Diluted share count changed +55% over the last 3 years to FY2025 (+15.8%/yr). The count is GROWING — existing holders are being diluted. That's ~15.8% 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 FY2022 has been diluted ~36%.
1.1% of revStock-based comp load. Stock-based compensation ran 1.1% of revenue and 178% of free cash flow in FY2025 — about $0.01 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
FCF ($4M)Shareholder returns. Returned $4M to shareholders (buybacks + dividends) in FY2022, but free cash flow was ($4M) after capex — there was no free cash flow to fund the payout from at all, though operating cash flow alone was $14M — 25% of that. The entire return is coming from debt or cash reserves, not cash the business itself generated — a harder case than returns merely running ahead of free cash flow, since here there was none to run ahead of.