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.

0.86 0.03 −3.37%
Market cap
$42.5M
P/E
4.6×
Fwd P/E
3.9×
Dividend yield
—
F-score
6/9
Altman Z
−0.85
Beneish M
−2.97
Dividend safety
n/a

Paradigm AI, Inc. (PAAI) Altman Z-score

Alert me on 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 zoneabove 2.99above 2.60
Grey zone1.81–2.991.10–2.60
Distress zonebelow 1.81below 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

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

The full definition of Altman Z-score →

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