ZFOXW (ZeroFox Holdings) Beneish M-Score: -2.74 (As of Jul. 03, 2026)


What is ZeroFox Holdings Beneish M-Score?

ZeroFox Holdings ZFOXW +5.76% Beneish M-Score is -2.74 as of Jul. 03, 2026. The stock has 4 warning signs investors should review.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.74 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for ZeroFox Holdings's Beneish M-Score or its related term are showing as below:

ZFOXW' s Beneish M-Score Range Over the Past 10 Years
Min: -2.74   Med: -1.49   Max: -0.24
Current: -2.74

During the past 5 years, the highest Beneish M-Score of ZeroFox Holdings was -0.24. The lowest was -2.74. And the median was -1.49.

ZeroFox Holdings Beneish M-Score Historical Data

* Premium members only.

The historical data trend for ZeroFox Holdings's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

ZeroFox Holdings Beneish M-Score Chart

ZeroFox Holdings Annual Data
Trend Jan20 Jan21 Jan22 Jan23 Jan24
Beneish M-Score
0.00 0.00 0.00 -0.24 -2.74

ZeroFox Holdings Quarterly Data
Jan20 Jan21 Apr21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.24 0.32 0.00 -1.61 -2.74

ZFOXW vs ARQQ, HUBC, TMNA: Beneish M-Score Comparison

For the Software - Infrastructure subindustry, ZeroFox Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

ZeroFox Holdings Beneish M-Score vs Software Industry

For the Software industry and Technology sector, ZeroFox Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where ZeroFox Holdings's Beneish M-Score falls into.


ZeroFox Holdings Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of ZeroFox Holdings for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.66+0.528 * 1.2375+0.404 * 0.9117+0.892 * 1.9918+0.115 * 1.0396
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6761+4.679 * -0.138089-0.327 * 2.0304
=-2.74

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jan24) TTM:Last Year (Jan23) TTM:
Total Receivables was $38.9 Mil.
Revenue was 60.508 + 65.023 + 62.235 + 45.534 = $233.3 Mil.
Gross Profit was 21.469 + 19.829 + 18.752 + 14.914 = $75.0 Mil.
Total Current Assets was $85.6 Mil.
Total Assets was $464.8 Mil.
Property, Plant and Equipment(Net PPE) was $4.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $50.1 Mil.
Selling, General, & Admin. Expense(SGA) was $108.3 Mil.
Total Current Liabilities was $101.9 Mil.
Long-Term Debt & Capital Lease Obligation was $198.9 Mil.
Net Income was -234.803 + -86.692 + -16.836 + -17.979 = $-356.3 Mil.
Non Operating Income was -213.251 + -69.091 + -1.471 + 3.733 = $-280.1 Mil.
Cash Flow from Operations was 3.508 + 1.794 + 0.574 + -17.917 = $-12.0 Mil.
 Total Receivables was $29.6 Mil.
Revenue was 45.397 + 42.989 + 15.152 + 13.591 = $117.1 Mil.
Gross Profit was 13.852 + 12.709 + 10.672 + 9.342 = $46.6 Mil.
Total Current Assets was $87.9 Mil.
Total Assets was $766.9 Mil.
Property, Plant and Equipment(Net PPE) was $1.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $26.2 Mil.
Selling, General, & Admin. Expense(SGA) was $80.4 Mil.
Total Current Liabilities was $86.2 Mil.
Long-Term Debt & Capital Lease Obligation was $158.3 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(38.923 / 233.3) / (29.609 / 117.129)
=0.166837 / 0.25279
=0.66

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(46.575 / 117.129) / (74.964 / 233.3)
=0.397639 / 0.32132
=1.2375

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (85.625 + 4.751) / 464.837) / (1 - (87.914 + 1.391) / 766.911)
=0.805575 / 0.883552
=0.9117

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=233.3 / 117.129
=1.9918

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(26.184 / (26.184 + 1.391)) / (50.124 / (50.124 + 4.751))
=0.949556 / 0.913421
=1.0396

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(108.321 / 233.3) / (80.439 / 117.129)
=0.464299 / 0.686756
=0.6761

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((198.938 + 101.88) / 464.837) / ((158.27 + 86.171) / 766.911)
=0.647147 / 0.318735
=2.0304

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-356.31 - -280.08 - -12.041) / 464.837
=-0.138089

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

ZeroFox Holdings has a M-score of -2.74 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.74 mean?
ZeroFox Holdings (ZFOXW) has a Beneish M-Score of -2.74 as of Jul. 03, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on ZeroFox Holdings and its competitors.
Is ZeroFox Holdings' Beneish M-Score too high?
ZeroFox Holdings' current Beneish M-Score is -2.74.
How does ZeroFox Holdings' Beneish M-Score compare to ARQQ and HUBC?
ZeroFox Holdings' Beneish M-Score of -2.74 can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Software company?
A good Beneish M-Score depends on the Software industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on ZeroFox Holdings and its competitors. ZeroFox Holdings's current Beneish M-Score is -2.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZeroFox Holdings stock overvalued right now?
ZeroFox Holdings (ZFOXW) has a current Beneish M-Score of -2.74. The current Beneish M-Score is -2.74. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For ZeroFox Holdings (ZFOXW), the current Beneish M-Score is -2.74 as of Jul. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

ZeroFox Holdings Business Description

Address 1834 South Charles Street, Baltimore, MD, USA, 21230
ZeroFox Holdings Inc is a cybersecurity company. It provides external threat intelligence and protection to disrupt threats to brands, people, assets and data across the public attack surface in one, comprehensive platform. With complete world-wide coverage across the surface, deep and dark web and an artificial intelligence-based analysis engine, the ZeroFox Platform identifies and remediates targeted phishing attacks, credential compromise, data exfiltration, brand hijacking, executive and location threats and more.