Forensic Analysis · Technology / Software · as of Sep 25, 2026
Palladyne Ai Corp. (PDYN)
A forensic read on Palladyne Ai Corp. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-2.0
Distress distance
Watch
Earnings quality
4
Forensic signals
-8.2
P / E (ttm)
13.4%
ROE
$268M
Market cap
0.00%
Dividend yield
-32.6%
Revenue growth
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.
Palladyne Ai Corp. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -2.0, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by share-count dilution.
What the filings flag
+28.2%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +64% over the last 2 years to FY2025 (+28.2%/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 ~28.2% 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 FY2023 has been diluted ~39%.
85% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 85% of revenue in FY2025 — about $0.11 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 30.9% a year and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. 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.
n/m (sign flip)
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets flipped from negative to positive FY2024→FY2025 (FY2024 $-40.7M to FY2025 $+56.5M) — the standard accruals ratio divides by the average of the two, which collapses toward zero right as the sign changes, so the resulting percentage is a denominator artifact, not a real accrual measurement. Treat this as a structural balance-sheet shift to understand on its own terms rather than a clean or dirty accruals read.
73d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 6 to 73 days FY2024→FY2025 (receivables +687% vs revenue -33%). Across FY2023–FY2025 the day count ran 33 → 6 → 73 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in. Deferred revenue grew +29% over the same period, which accounts for part of the balance but not for a day count that widened against the same quarters a year earlier. Measured against the same quarter twelve months earlier — like-for-like on the calendar, so an ordinary seasonal build cannot produce it — receivables took longer to collect in 3 consecutive quarters (Dec 2025 +42, Mar 2026 +32, Jun 2026 +15 days). In the latest of them the receivable balance grew +875% against sales +470%, so more of a quarter's billings were still outstanding at the period end than a year earlier — money the company has recognized and not yet been paid. Both figures are measured on period-end balances rather than the beginning-plus-ending average, because averaging needs the balance a year before every reading — FY2024's opening balance is on file, but across the 3 fiscal years read here (FY2023–FY2025) the average yields only 2 day counts (1 step), too few to tell a climb from one year's move.
Key fundamentals
Latest Revenue$5.2M
Revenue Growth YoY-32.6%
Revenue CAGR (2yr)-7.6%
Net Margin191.4%
Free Cash Flow-$28.4M
Return on Equity13.4%
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 Palladyne Ai Corp.'s actual 10-K/10-Q/8-K filings?