What is a hard gate in Misano?

A rule that runs before the five-dimension average. It can set Score to 0 or cap it so a charming composite cannot paper over missing data, a non-operating entity, or sustained negative EBITDA margins. Detail: misano.ai/guides/how-the-score-is-computed.

When does Misano return Score 0?

When the company is not operating (holding or dormant), or when there is less than a year of revenue / insufficient data. Better no number than an invented one.

What happens if average EBITDA margin is negative?

Score is capped at 25 when the three-year average EBITDA margin is in the red. If the latest year is above 15% margin and jumped about 30 points, the cap lifts to 50 — half credit for the turnaround.

Do Score weights override hard gates?

No. Custom weights live on the strategy and change how dimensions combine after gates. Gates take precedence. Weights guide: misano.ai/guides/default-finance-heavy-score-weights.

Hard gates can zero or cap a Score before the average runs.

A composite Score without gates is how a great story with terrible unit economics reaches Shortlist. Misano runs hard gates before it averages Market, Finance, Moat, Management, and Risk. The gates take precedence.

What runs before the average

Not an operating company (a holding or dormant entity) → Score 0. Better no number than a dressed-up shell.
Less than a year of revenue, or insufficient data → Score 0. A confident Score on garbage inputs is worse than no Score.
One or two years of data → scored, but flagged preliminary. Thin history is not treated as a full track record.
Average EBITDA margin over the last three years in the red → Score capped at 25. If the latest year is above 15% margin and jumped about 30 points, the cap lifts to 50 — half credit for the turn, not full.

Why gates beat charm

Finance and Risk are deterministic math over filings. Market, Moat, and Management are AI judgement with cited evidence. Gates sit above both. Full breakdown: misano.ai/guides/how-the-score-is-computed.
Weights live on the strategy and default Finance-heavy. Weights do not override a gate. Weights guide: misano.ai/guides/default-finance-heavy-score-weights.
Strategy Fit is a separate 0–3 axis, not a sixth weight. A strong company that fails your thesis is still a strong company you should not buy. Fit guide: misano.ai/guides/strategy-fit-is-not-the-score.

What this is not

Not a promise that every red flag becomes a hard zero. The published gates above are the ones that zero or cap before the average.
Not a substitute for diligence. Gates keep bad composites out of Shortlist; they do not finish the deal.
Not a UI click-path. This guide states product behaviour grounded in the public Score methodology.

Get started at https://app.misano.ai/login. From €39/month billed annually, 14-day money-back, no sales call. Product path: misano.ai/scout.

See also: misano.ai/guides/how-the-score-is-computed, misano.ai/guides/deal-pipeline-and-scoring, misano.ai/guides/default-finance-heavy-score-weights, and misano.ai/guides/strategy-fit-is-not-the-score.