AtlasClear Holdings (ATCH) AI Stock Analysis

• Market Cap: $32.62M
• Dividend Yield: N/A
• Average Volume (3M): 102.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.13
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 51
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 144,580,170
• 10 Day Avg. Volume: 64,609,424
• 30 Day Avg. Volume: 102,142,126
• PEG Ratio: <0.01
• Price to Book (P/B): >-0.01
• Price to Sales (P/S): 5.29
• P/FCF Ratio: 36.57
• Enterprise Value/Market Cap: 0.18
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 0.58
• Enterprise Value/Ebitda: 1.71
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $0.22 ▼(-19.26% Downside)

The score is held down primarily by weak financial quality (losses, cash burn, and balance-sheet inconsistency) and bearish technicals (below major moving averages with negative MACD). The latest earnings call adds some support via improved equity position, liability reduction, and strong revenue growth, but not enough to outweigh ongoing profitability and cash-flow risks; valuation also offers limited support given negative earnings and no dividend.

Positive Factors

High gross margins and revenue growth

Sustained high gross margins (~82%) combined with positive TTM revenue growth indicate strong unit economics in AtlasClear's software/fintech offerings. These durable margins provide room to scale operating investments and absorb customer acquisition costs as revenue expands, supporting long-term profitability potential if operating losses are addressed.

Improved equity and liability reduction

Achieving positive stockholders' equity and materially reducing de-SPAC liabilities improves balance-sheet credibility and lowers solvency risk. This structural improvement enhances access to capital and strategic flexibility, enabling management to pursue organic growth, integrations, or selective acquisitions without immediate distress-driven constraints.

Financing and fintech integrations

New institutional financing and multiple financings materially bolster liquidity and extend runway, while integrating LocBox expands the fintech product set (stock loan inventory optimization). Together these are durable strategic moves that strengthen the operating platform, support client onboarding, and improve competitive differentiation over the medium term.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flow signals structural cash burn that undermines internal funding capacity. Over months this increases reliance on external financing, creates dilution risk, and constrains capital allocation to product development or client expansion unless cash generation turns positive or financing remains available on favorable terms.

Balance-sheet inconsistency and past negative equity

Historical episodes of negative equity and a complex capital structure with elevated debt indicate balance-sheet volatility. This structural inconsistency raises financing costs, heightens covenant and regulatory risk, and complicates long-term planning, making sustained investment and M&A strategy more challenging until capital structure stabilizes.

Ongoing losses and volatile profitability

Recurrent operating and net losses, combined with profit volatility across reporting periods, limit the company's ability to self-finance growth and build retained earnings. Structural profitability weakness pressures margins and increases dependency on external capital and cost control, constraining long-term strategic investments until results stabilize.

AtlasClear Holdings Business Overview & Revenue Model

Company Description

AtlasClear Holdings, Inc. focuses on operating as a technology enabled financial services firm. It creates a platform for trading, clearing, settlement, and banking of financial products with a focus on the small and middle market financial services firms. The company is based in Tampa, Florida.

How the Company Makes Money

AtlasClear Holdings generates revenue through a variety of streams, primarily by offering financial technology solutions and investment management services. The company earns fees from its technology platforms, which facilitate transactions and streamline processes for clients in the financial sector. Additionally, ATCH generates income from asset management services by charging management fees based on assets under management (AUM) and performance fees tied to investment returns. Strategic partnerships with other financial institutions and technology firms enhance its service offerings and expand its customer base, contributing significantly to its overall revenue. The company also leverages its real estate investments to generate rental income and capital appreciation, further diversifying its income sources.

AtlasClear Holdings Financial Statement Overview

Summary

Revenue growth and very strong gross margin (~82%) are positives, but the latest TTM profile shows net losses, negative operating/free cash flow, and balance-sheet inconsistency (including a period of negative equity), which materially raises financial risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 13.3% and gross margin remains very strong (~82%), indicating solid unit economics. However, profitability is weak: TTM net income is negative with a sizeable net loss, and results have been volatile across periods (e.g., profitable in 2024 annual but loss-making in TTM), which lowers confidence in earnings quality and consistency.

Balance Sheet

Leverage looks moderate on TTM figures (debt-to-equity ~0.74 with positive equity), but the capital structure appears unstable across reporting periods. The 2024 annual report shows deeply negative equity alongside high debt and a very large asset base, suggesting significant balance-sheet complexity and heightened financial risk versus a more typical software profile.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation is weak with negative operating cash flow and negative free cash flow, and free cash flow growth is sharply down versus the prior period. While some earlier annual periods show positive operating/free cash flow, the latest TTM trend points to cash burn and reduced financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.30M	10.86M	4.00M	9.09M	13.31M	0.00
Gross Profit	10.12M	8.75M	2.70M	6.70M	11.78M	0.00
EBITDA	3.44M	1.03M	-857.80K	287.77K	1.92M	0.00
Net Income	-5.44M	5.75M	-120.09M	131.33K	1.48M	-21.68K
Balance Sheet
Total Assets	73.63M	60.89B	55.48M	40.59M	64.33M	200.62K
Cash, Cash Equivalents and Short-Term Investments	2.69M	7.53B	619.55K	9.10M	10.68M	21.87K
Total Debt	5.05M	1.00B	480.00K	805.72K	943.64K	130.10K
Total Liabilities	66.78M	67.69B	12.37M	30.65M	54.49M	181.04K
Stockholders Equity	6.86M	-6.80B	43.11M	9.94M	9.85M	19.58K
Cash Flow
Free Cash Flow	-1.10M	1.57M	-1.82M	-1.08M	-1.09M	-25.31K
Operating Cash Flow	-1.10M	1.57M	-1.82M	-1.08M	-1.07M	-25.31K
Investing Cash Flow	-145.00K	-145.00K	152.34M	351.47K	-201.25M	0.00
Financing Cash Flow	6.62M	1.62M	-150.03M	799.17K	202.36M	47.18K

AtlasClear Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATCH, the sentiment is Negative. The current price of 0.27 is above the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.28, and below the 200-day MA of 0.31, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 29.95 is Positive, neither overbought nor oversold. The STOCH value of 26.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATCH.

AtlasClear Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JG	58 Neutral	$43.64M	-86.86	-5.30%	―	20.68%	84.51%
XBP	54 Neutral	$88.84M	0.08	2125.09%	―	―	―
SNCR	49 Neutral	$101.26M	-8.58	-21.44%	―	0.07%	58.47%
KPLT	48 Neutral	$30.78M	-1.10	―	―	16.56%	28.25%
SOS	45 Neutral	$49.51M	-76.88	-3.89%	―	134.43%	95.39%
ATCH	44 Neutral	$32.62M	-0.09	―	―	―	―