Forensic Analysis · Communication Services / Telecom · as of Jun 27, 2026
Unusual Machines, Inc. (UMAC)
A forensic read on Unusual Machines, Inc. 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
Safe
Financial health
16.3
Altman Z-score
Watch
Earnings quality
6
Forensic signals
-3.4%
ROE
$913M
Market cap
Unusual Machines, Inc. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is 16.3, placing it in the Safe zone. 6 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+146.5%Accruals ratio.Net operating assets grew +146.5% 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 in line with operating cash by +5% of net operating assets.
51d DSOReceivables vs revenue.Days sales outstanding moved from 4 to 51 days FY2024→FY2025 (receivables +2250% vs revenue +101%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections.
266dInventory days.Days inventory outstanding moved from 121 to 266 FY2024→FY2025 (against cost of goods sold; inventory +298% vs +81% in cost of sales). Inventory is outrunning what's being sold — a flag for softening demand or obsolescence risk ahead.
-26%Return on invested capital.Return on invested capital is -26% and rising from -936% — well below its ~8% cost of capital, so reinvested dollars may be destroying value, not building it.
+180.7%/yrShare-count dilution.Diluted share count changed +542% over the last 3 years to FY2025 (+180.7%/yr). The count is GROWING — existing holders are being diluted. That's ~180.7% 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 ~542%.
139% of revStock-based comp load.Stock-based compensation ran 139% of revenue in FY2025 — about $0.60 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin-171.4%
Free Cash Flow$-23.2M
Latest Revenue$11.2M
Return on Equity-11.0%
Revenue Growth YoY+101.2%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Unusual Machines, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about UMAC'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