Forensic Analysis · Technology / Software · as of Jun 28, 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
-11.7
Altman Z-score
Watch
Earnings quality
6
Forensic signals
-40.5%
ROE
$275M
Market cap
Palladyne AI Corp. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -11.7, placing it in the Distress zone. 6 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+1235.2%Accruals ratio.Net operating assets grew +1235.2% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran ahead of operating cash by +479% of net operating assets.
73d DSOReceivables vs revenue.Days sales outstanding moved from 6 to 73 days FY2024→FY2025 (receivables +687% vs revenue -33%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections.
46dInventory days.Days inventory outstanding moved from 7 to 46 FY2024→FY2025 (against cost of goods sold; inventory +377% vs -23% in cost of sales). Inventory is outrunning what's being sold — a flag for softening demand or obsolescence risk ahead.
-45%Return on invested capital.Return on invested capital is -45% and rising from -115% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+24.0%/yrShare-count dilution.Diluted share count changed +72% over the last 3 years to FY2025 (+24.0%/yr). A reversal: the count shrank earlier (net -15.7%/yr since FY2021) but the company has SWUNG to issuing stock — recent holders are now being diluted, not rewarded. That's ~24.0% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~72%.
85% of revStock-based comp load.
Key fundamentals
Net Margin191.4%
Free Cash Flow$-28.4M
Latest Revenue$5.2M
Return on Equity13.4%
Revenue Growth YoY-32.6%
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The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Palladyne AI Corp.:
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🔒Ask anything about PDYN's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown
Data from SEC EDGAR public filings · metrics as of Jun 28, 2026. Forensic signals flag probability, not certainty.
Palladyne AI Corp. (PDYN) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Stock-based compensation ran 85% of revenue in FY2025 — about $0.11 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.