Forensic Analysis · Furniture & Home Furnishings · as of Nov 9, 2026
XMax Inc. (XMAX)
A forensic read on XMax 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
Distress
Financial health
0.3
Distress distance
Watch
Earnings quality
6
Forensic signals
-22.0%
ROE
72.6%
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 (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.
XMax Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads 0.3, placing it in the Distress zone. 6 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of NOA).
What the filings flag
+151.1%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +151.1% 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. The build is led by receivables up +6623% against revenue +73% and payables paid down 55% against +131% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 25% of net operating assets, against an accruals ratio of 151.1%. 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.
-10.0%
FY2025
Return on invested capital.Return on invested capital is -10.0% in the latest fiscal year and rising across FY2023–FY2025 from -232.6%. After-tax operating profit was ($5M) in FY2023 and ($2M) in FY2025, with operating income at -57.9% of revenue in FY2023, -55.4% in FY2024 and -11.5% in FY2025. The capital base behind it grew +597% across FY2023–FY2025, from $2M to $15M, and the return did not fall doing it, so the dollars added over that window earned at least the -232.6% the older base was already earning.
+264.5%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +1229% over the last 2 years to FY2025 (+264.5%/yr). The count is growing — 1.6M shares in FY2023, 20.7M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~264.5% 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 ~92%.
20% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 20% of revenue in FY2025 — about $0.16 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 264.5% 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.
53d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 1 to 53 days FY2024→FY2025 (receivables +6623% vs revenue +73%). Receivables are creeping up relative to sales. Across FY2023–FY2025 the day count ran 2 → 1 → 53 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 was roughly flat (-86%) over the same period, which doesn't corroborate a benign upfront-billing explanation for the receivables build. 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 4 consecutive quarters (Sep 2025 +70, Dec 2025 +125, Mar 2026 +122, Jun 2026 +105 days). In the latest of them the receivable balance grew +8828% against sales +7%, 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.DSO (days sales outstanding): the average days the company waits to collect cash after a sale.
$218,606
FY2025
Goodwill impairments.Took $218,606 of goodwill writedowns across 1 year (FY2025 ($218,606)). Writedowns mean past acquisitions underperformed what was paid for them.
Key fundamentals
Latest Revenue$16.7M
Revenue Growth YoY+72.6%
Revenue CAGR (2yr)+22.8%
Net Margin-20.4%
Return on Equity-22.0%
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 XMax Inc.'s actual 10-K/10-Q/8-K filings?