Forensic Analysis · Semiconductors · as of Aug 11, 2026
Skywater Technology, LLC (SKYT)
A forensic read on Skywater Technology, LLC 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
Grey Zone
Financial health
1.9
Distress distance
Watch
Earnings quality
5
Forensic signals
63.3%
ROE
$1.6B
Market cap
29.2%
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). 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.
Skywater Technology, LLC earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 1.9, placing it in the Grey zone. 5 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
-0.01×
FY2023–FY2025
Cash conversion.Over FY2023–FY2025, operating cash flow was -0.01× 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.
+87.8%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +87.8% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). 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 build is led by receivables up +91% against revenue +29% and inventory up +69% against +30% in cost of sales. The cash-flow cross-check agrees: reported earnings ran ahead of operating cash by 101% of net operating assets.
-0.6%
FY2025
Return on invested capital.Return on invested capital is -0.6% in the latest fiscal year and rising from -16% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+6.1%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +19% over the last 3 years to FY2025 (+6.1%/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 ~6.1% 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 ~16%.
Key fundamentals
Latest Revenue$442.1M
Revenue Growth YoY+29.2%
Revenue CAGR (3yr)+27.7%
Net Margin26.9%
Free Cash Flow-$53.3M
Return on Equity63.3%
Debt / Equity0.21x
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 Skywater Technology, LLC's actual 10-K/10-Q/8-K filings?
Stock-based comp load.Stock-based compensation ran 2% of revenue in FY2025 — about $0.19 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count, and there it has run at about 6.1% a year and is falling.