tiprankstipranks
Trending News
More News >
ALT5 Sigma Corporation (ALTS)
NASDAQ:ALTS

ALT5 Sigma Corporation (ALTS) AI Stock Analysis

Compare
394 Followers

Top Page

ALTS

ALT5 Sigma Corporation

(NASDAQ:ALTS)

Select Model
Select Model
Select Model
Neutral 51 (OpenAI - 5.2)
Rating:51Neutral
Price Target:
$2.00
▲(69.49% Upside)
The score is held back primarily by weak operating economics and significant cash burn despite improving revenue, alongside elevated event risk from a delayed 10-Q filing and a potentially material data-breach dispute. Offsetting factors include a strong-looking balance sheet with low leverage and moderately positive near-term technical momentum, while valuation is difficult to support due to a negative P/E and no dividend yield provided.
Positive Factors
Balance sheet strength
ALT5 Sigma’s sizeable equity cushion versus minimal debt provides durable solvency and financing flexibility. This capacity supports investment, acquisitions, or temporary funding to cover cash burn without immediate liquidity stress, reducing short- to medium-term default risk.
Transaction volume growth
A 55% rise to $3.4B in processed transactions demonstrates material platform adoption and scale in payments and trading infrastructure. Higher volumes can translate to recurring fee revenue, improved unit economics, and network effects that strengthen competitive positioning over the coming months.
Revenue rebound and gross margins
Meaningful revenue recovery alongside gross margins near 47% suggests the core product has viable unit economics. Sustained top-line growth with healthy gross margins provides a path to operating leverage, enabling margins to improve as fixed costs are absorbed by higher volumes.
Negative Factors
Negative operating cash flow
Persistent negative operating and free cash flow of -$17.4M TTM indicates the business is consuming cash despite revenue gains. Continued cash burn raises reliance on external financing, risks shareholder dilution, and limits the company’s ability to fund growth or absorb shocks without new capital.
Weak, volatile operating profitability
Deeply negative EBIT and inconsistent margins show that core operations are not yet profitable. Even with revenue growth, sustained operating losses undermine free cash generation and reinvestment capacity, making earnings durability uncertain until structural cost or pricing improvements occur.
Corporate, legal and governance risk
A material data-breach lawsuit, together with prior delayed filings and recent CEO turnover, signals governance, legal, and operational fragility. These issues can erode customer trust, divert management attention, increase compliance costs, and impair partnerships, constraining growth over the medium term.

ALT5 Sigma Corporation (ALTS) vs. SPDR S&P 500 ETF (SPY)

ALT5 Sigma Corporation Business Overview & Revenue Model

Company DescriptionALT5 Sigma Corporation operates a next generation blockchain platform. It engages in the tokenization, trading, clearing settlement, payment, and safe keeping of digital assets. The company's products include ALT 5 Prime, an electronic over-the-counter trading platform to buy and sell digital assets; and ALT 5 Pay that enables payment processors to accept digital assets as payments, as well as make payment in digital assets. It is also involved in the developing of solutions for opioid crisis. The company was formerly known as JanOne Inc. and changed its name to ALT5 Sigma Corporation in July 2024. ALT5 Sigma Corporation was founded in 1976 and is based in Las Vegas, Nevada.
How the Company Makes MoneyALT5 Sigma Corporation generates revenue primarily through its digital asset trading platforms and custody services. The company charges transaction fees for trades executed on its platforms, which serve as a significant revenue stream. Additionally, ALT5 Sigma earns money by offering secure custody solutions that provide institutions and investors a safe way to store their digital assets, with fees based on the volume of assets under management. The company may also engage in strategic partnerships with financial institutions to expand its service offerings and market reach, contributing to its overall earnings.

ALT5 Sigma Corporation Financial Statement Overview

Summary
Revenue rebounded strongly in TTM, and the balance sheet shows very low leverage with large equity relative to debt. However, operating performance remains weak with deeply negative EBIT and a major red flag in cash generation: TTM operating cash flow and free cash flow are both materially negative, indicating the business is currently consuming cash.
Income Statement
34
Negative
Revenue has rebounded meaningfully in TTM (Trailing-Twelve-Months) ($24.9M) versus 2024 ($12.5M), with a solid gross margin (~47% TTM; ~50% in 2024). However, profitability is still volatile and weak: EBIT remains deeply negative (TTM -$22.4M; 2024 -$7.6M), and margins are inconsistent (TTM shows a positive net income but negative net margin, indicating mixed/possibly non-operating drivers). Earlier years also show sizable losses, reinforcing an uneven earnings profile.
Balance Sheet
72
Positive
The balance sheet appears strong in TTM (Trailing-Twelve-Months), with very large equity ($1.55B) relative to debt ($17.8M), suggesting substantial balance-sheet capacity and low leverage risk at present. Return on equity in TTM is positive (~8%), a notable improvement versus 2024’s negative return. That said, the capital structure has been unstable historically (including periods of negative equity), which raises questions about sustainability and the drivers behind the sharp equity expansion.
Cash Flow
28
Negative
Cash generation is a key weakness: TTM (Trailing-Twelve-Months) operating cash flow is negative (-$17.4M) and free cash flow is also negative (-$17.4M), implying the business is consuming cash despite reported net income in the same period. 2024 was modestly positive on free cash flow (+$1.8M), but the reversal to sizable outflows in TTM highlights volatility and potential funding dependence if losses/working-capital needs persist.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue24.89M12.53M0.000.0040.02M33.87M
Gross Profit9.92M6.29M0.000.008.87M8.83M
EBITDA56.45M-4.97M-3.29M-3.15M1.90M-4.30M
Net Income33.12M-6.25M-7.81M10.99M-16.89M-8.50M
Balance Sheet
Total Assets1.64B82.44M18.49M46.76M15.16M24.35M
Cash, Cash Equivalents and Short-Term Investments7.32M7.18M5.00K61.00K705.00K379.00K
Total Debt17.81M13.07M707.00K7.67M6.64M6.63M
Total Liabilities83.95M57.63M21.80M44.45M23.84M21.98M
Stockholders Equity1.55B20.89M-3.31M2.31M-8.68M2.37M
Cash Flow
Free Cash Flow-17.42M1.78M1.46M-3.06M-7.02M-1.45M
Operating Cash Flow-17.42M1.78M1.46M-3.06M-5.29M-617.00K
Investing Cash Flow-711.30M5.85M-155.00K-1.51M-1.72M-834.00K
Financing Cash Flow723.40M6.09M-1.44M3.98M7.37M1.40M

ALT5 Sigma Corporation Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.18
Price Trends
50DMA
1.67
Positive
100DMA
2.25
Negative
200DMA
4.72
Negative
Market Momentum
MACD
0.19
Negative
RSI
56.41
Neutral
STOCH
26.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALTS, the sentiment is Neutral. The current price of 1.18 is below the 20-day moving average (MA) of 1.89, below the 50-day MA of 1.67, and below the 200-day MA of 4.72, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 56.41 is Neutral, neither overbought nor oversold. The STOCH value of 26.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALTS.

ALT5 Sigma Corporation Risk Analysis

ALT5 Sigma Corporation disclosed 19 risk factors in its most recent earnings report. ALT5 Sigma Corporation reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

ALT5 Sigma Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
$354.14M-40.90-2.85%-0.68%-146.14%
54
Neutral
$423.60M94.610.84%1.62%
54
Neutral
$404.32M-6.37-41.00%6.33%-66.34%
51
Neutral
$276.38M-3.33-46.05%926.05%68.96%
51
Neutral
$325.43M-4.70-25.48%-24.30%-181.62%
46
Neutral
$258.42M-18.52-37.23%2.97%53.53%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ALTS
ALT5 Sigma Corporation
2.12
-3.61
-63.00%
API
Agora
4.56
-1.49
-24.63%
CMRC
Commerce.com
3.10
-3.14
-50.32%
PUBM
PubMatic
7.48
-7.85
-51.21%
SMRT
SmartRent
1.68
0.18
12.00%
LAW
CS Disco
6.40
1.25
24.27%

ALT5 Sigma Corporation Corporate Events

Business Operations and StrategyExecutive/Board Changes
ALT5 Sigma Finalizes CFO Employment Agreement and Compensation
Positive
Jan 28, 2026

On November 21, 2025, ALT5 Sigma Corporation appointed veteran CPA Steven M. Plumb, formerly an auditor with PricewaterhouseCoopers and KPMG and long-time president of consulting firm Clear Financial Solutions, as its Chief Financial Officer and principal financial and accounting officer, effective November 24, 2025. On January 21, 2026, the company formalized his role through an employment agreement that sets a $339,400 base salary, eligibility for an annual bonus of up to 50% of base pay, a $20,000 signing bonus, and a grant of 95,337 restricted stock units vesting over two years, alongside participation in standard executive benefit and incentive plans and detailed severance and accelerated equity-vesting protections in the event of termination without cause or for good reason, underscoring ALT5 Sigma’s effort to secure experienced financial leadership as it navigates the regulatory and capital markets demands of the digital asset industry.

The most recent analyst rating on (ALTS) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on ALT5 Sigma Corporation stock, see the ALTS Stock Forecast page.

Regulatory Filings and ComplianceShareholder Meetings
ALT5 Sigma Sets 2025 Virtual Annual Shareholder Meeting
Neutral
Jan 2, 2026

ALT5 Sigma Corporation has scheduled its 2025 Annual Meeting of Stockholders to be held virtually on February 27, 2026, with stockholders of record as of the close of business on January 30, 2026 entitled to receive notice and vote at the meeting. Because this date falls more than 30 days after the anniversary of the 2024 Annual Meeting, the company has set January 13, 2026 as the deadline for qualified stockholder proposals to be received at its Las Vegas corporate office for potential inclusion in the proxy materials, provided they comply with applicable U.S. securities regulations.

The most recent analyst rating on (ALTS) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on ALT5 Sigma Corporation stock, see the ALTS Stock Forecast page.

Executive/Board Changes
ALT5 Sigma CEO Departure and Transition Agreement
Neutral
Dec 12, 2025

On December 12, 2025, ALT5 Sigma Corporation and its former CEO, Peter Tassiopoulos, agreed to a Separation Agreement, concluding his employment on December 15, 2025. The agreement includes payment of all due compensation and mutual release of claims, with no further obligations from the company to Mr. Tassiopoulos. He also resigned from the board of directors but will assist with the transition if needed.

Legal Proceedings
ALT5 Sigma Settles Multiple Legal Disputes
Neutral
Dec 12, 2025

On December 10, 2025, ALT5 Sigma Corporation reached a settlement with Wellington Peel, LLC, Jean-Francois Amyot, Hugues Benoit, and Prime Delta Corp., resolving litigation disclosed in November 2025. The settlement involved the WP Parties certifying the destruction or return of all accessed company information and agreeing to a mutual release of claims. Additionally, ALT5 Sigma resolved a contractual dispute with Wellington Peel, LLC, agreeing to pay $200,000 and issue shares. The company also settled a dispute with a former employee, issuing 50,000 shares. The settlement is not expected to materially impact the company’s financial condition.

Delistings and Listing ChangesRegulatory Filings and Compliance
ALT5 Sigma Faces Nasdaq Compliance Deadline
Neutral
Dec 3, 2025

On December 2, 2025, ALT5 Sigma Corporation announced it received a notification from Nasdaq regarding a delay in filing its Form 10-Q for the period ending September 27, 2025. This delay means the company is not in compliance with Nasdaq’s listing requirements, but it has until January 20, 2026, to submit a compliance plan. If accepted, ALT5 may be granted an extension to regain compliance by May 18, 2026. The notification does not immediately affect the trading of ALT5’s shares, and the company is working to complete the filing within the required timeframe.

Executive/Board Changes
ALT5 Sigma Corporation Announces Leadership Changes in November 2025
Neutral
Nov 26, 2025

ALT5 Sigma Corporation announced significant leadership changes effective November 2025. Jonathan Hugh’s roles as Chief Financial Officer and Acting Chief Executive Officer concluded without cause, and Ron Pitters’ consulting agreement as Chief Operating Officer ended, though he remains on the Board. Tony Isaac was appointed Acting CEO, while Steven Plumb was named Chief Financial Officer, bringing extensive financial experience from various companies. Additionally, David Danziger resigned from the Board for personal reasons, and the Special Committee was disbanded after completing its investigation.

Financial DisclosuresRegulatory Filings and Compliance
ALT5 Sigma Delays Q3 2025 Financial Report Filing
Negative
Nov 18, 2025

ALT5 Sigma Corporation has announced a delay in filing its Quarterly Report on Form 10-Q for the quarter ended September 27, 2025, due to various factors. The company will provide updates to its stockholders once more information is available regarding the filing of its third-quarter financial results and previously issued financial statements.

Legal Proceedings
ALT5 Sigma Files Lawsuit Over Data Breach
Negative
Nov 5, 2025

On October 23, 2025, ALT5 Sigma Corporation discovered that a former consultant had accessed and transmitted company emails and files without authorization to a competing business. The company took immediate action by terminating the consultant’s access and engaging forensic experts to investigate the breach. On November 4, 2025, ALT5 Sigma Corporation filed a lawsuit in the Chancery Court of Delaware against the former consultant and associated entities, seeking a temporary restraining order and injunctive relief to prevent the use of compromised information. The investigation revealed that the unauthorized access was more extensive than initially thought, potentially having a material adverse effect on the company.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 29, 2026