Paradigm AI, Inc.
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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) Beneish M-score
Paradigm AI, Inc.'s Beneish M-score for fiscal 2025 is −2.97; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −2.97 | (0.72) |
| FY2024 | −2.25 | 0.49 |
| FY2023 | −2.75 | 0.48 |
| FY2022 | −3.23 | 1.43 |
| FY2021 | −4.65 | (1.38) |
| FY2020 | −3.27 | (6.05) |
| FY2019 | 2.77 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 0.67 | — | 0.61 | |
| Gross margin index | 0.87 | — | 0.46 | |
| Asset quality index | 1.05 | — | 0.42 | |
| Sales growth index | 1.07 | — | 0.96 | |
| Depreciation index | 0.99 | — | 0.11 | |
| SG&A index | 0.52 | — | −0.09 | |
| Total accruals to total assets | (0.09) | — | −0.44 | |
| Leverage index | 0.51 | — | −0.17 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −2.97 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| SJ Scienjoy Holding Corporation compare | −7.9× |
| SEAT Vivid Seats Inc. compare | −7.9× |
| TEAD Teads Holding Co. compare | −3.6× |
| ZDGE Zedge, Inc. compare | −3.4× |
| IZEA IZEA WORLDWIDE, INC. compare | −3.1× |
| LVO LiveOne, Inc. compare | −3.0× |
| PAAI Paradigm AI, Inc. | −3.0× |
| GETY Getty Images Holdings, Inc. compare | −2.8× |
| TZOO Travelzoo compare | −2.6× |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI