Forensic Analysis · Communications Equipment & Electronic Components · as of Nov 11, 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.
F · Poor — capital at risk
Forensic grade
Safe
Financial health
16.3
Distress distance
Watch
Earnings quality
6
Forensic signals
-20.2%
ROE
101.2%
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 (auditor quality, say on pay, board independence, going concern). 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.
Unusual Machines, Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads 16.3, placing it in the Safe zone. 6 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of NOA).
What the filings flag
+114.5%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +114.5% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. Net operating assets also rose $8.5M through acquisitions (increase in goodwill and intangibles); that purchase is investing and is excluded from this ratio. The build is led by PP&E up +391811% against revenue +101% and receivables up +2250% against revenue +101%. A cash-flow measure on the same base disagrees: reported earnings ran in line with operating cash by 5% of net operating assets, against an accruals ratio of 114.5%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
266d
FY2024→FY2025
Inventory 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. There's no FY2023 figure on file for inventory, so FY2024 has no opening balance to average against — both figures are measured on period-end balances rather than the beginning-plus-ending average, since averaging only the current year would make the move track balance-sheet growth rather than the business.
-45.0%
FY2025
Return on invested capital.Return on invested capital is -45.0% in the latest fiscal year and rising across FY2023–FY2025 from -362.0%. After-tax operating profit was ($2M) in FY2023 and ($20M) in FY2025, with operating income at -305.3% of revenue in FY2024 and -224.6% in FY2025. The capital base behind it cannot be compared across FY2023–FY2025: long-term debt is tagged in one of those two fiscal years and not the other, and an untagged line enters this calculation as zero, so any change in the base would be a change in what the filer tagged. $39M of the $44M base at FY2025 is short-term investments (88.9%) — securities held beside cash, which the base keeps because only cash is subtracted from it; they earn the balance sheet's yield, which is not in the operating profit above, so the loss on the operating capital is larger than this rate shows. FY2024's operating profit carried a $10M goodwill write-off that alone took about 133.3 points off that year's return; FY2024 sits between the two ends of FY2023–FY2025, so the charge shapes the path between them without moving the change across it. A non-cash write-down lowers the reported return in the year it lands.
+180.5%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +687% over the last 2 years to FY2025 (+180.5%/yr). The count is growing — 3.3M shares in FY2023, 26.0M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~180.5% 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 ~87%.
139% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 139% of revenue in FY2025 — about $0.60 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 180.5% a year across FY2023–FY2025 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.
51d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 4 to 51 days FY2024→FY2025 (receivables +2250% vs revenue +101%). Deferred revenue grew +224% 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 5 consecutive quarters (Sep 2025 +9, Dec 2025 +26, Mar 2026 +33, Jun 2026 +43, Sep 2026 +110 days). In the latest of them the receivable balance grew +5942% against sales +551%, 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. There's no FY2023 figure on file for receivables, so FY2024 has no opening balance to average against — both figures are measured on period-end balances rather than the beginning-plus-ending average, since averaging only the current year would make the move track balance-sheet growth rather than the business.DSO (days sales outstanding): the average days the company waits to collect cash after a sale.
Key fundamentals
Latest Revenue$11.2M
Revenue Growth YoY+101.2%
Net Margin-171.4%
Free Cash Flow-$23.2M
Return on Equity-20.2%
Debt / Equity0.02x
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