Paradigm AI, Inc.
PAAI Communication Services Internet Content & Information
In the quarter to June 2026, revenue fell 50.7%, EPS fell 100.2%, free cash flow fell 100.7% and total debt fell 11.7%, each against the same quarter a year earlier.
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Paradigm AI, Inc. (PAAI) Altman Z-score
Paradigm AI, Inc.'s Altman Z-score for fiscal 2025 is −0.85, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | −0.85 | 4.35 |
| FY2024 | −5.19 | (2.05) |
| FY2023 | −3.15 | (0.76) |
| FY2022 | −2.39 | (0.04) |
| FY2021 | −2.35 | (0.68) |
| FY2020 | −1.67 | (0.60) |
| FY2019 | −1.07 | 1.45 |
| FY2018 | −2.53 | (3.15) |
| FY2017 | 0.63 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.17 | — | 0.20 | |
| Retained earnings / total assets | (3.15) | — | −4.41 | |
| EBIT / total assets | 0.36 | — | 1.20 | |
| Market value of equity / total liabilities | 1.62 | — | 0.97 | |
| Sales / total assets | 1.20 | — | 1.20 | |
| Altman Z-score | Distress zone | −0.85 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −6.79 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| IZEA IZEA WORLDWIDE, INC. compare | 4.2× |
| ZDGE Zedge, Inc. compare | 3.8× |
| TZOO Travelzoo compare | 3.5× |
| SJ Scienjoy Holding Corporation compare | 3.1× |
| GETY Getty Images Holdings, Inc. compare | −0.2× |
| TEAD Teads Holding Co. compare | −0.7× |
| PAAI Paradigm AI, Inc. | −0.8× |
| SEAT Vivid Seats Inc. compare | −6.3× |
| LVO LiveOne, Inc. compare | −7.9× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets