AtlasClear Holdings (ATCH) AI Stock Analysis

• Market Cap: $36.42M
• Dividend Yield: N/A
• Average Volume (3M): 102.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.88
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 51
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 149,692,490
• 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: -0.53
• Enterprise Value/Revenue: -1.32
• Enterprise Value/Gross Profit: -1.70
• Enterprise Value/Ebitda: -1.73
• 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: 47 Neutral
• Price Target: $0.24 ▼(-12.22% Downside)

The score is primarily held back by weak financial quality—negative operating profitability and negative operating/free cash flow—despite solid revenue growth and low leverage in the latest snapshot. Technicals also lean bearish (below major DMAs and negative MACD). Offsetting factors include improved equity/liability positioning and new financing discussed on the earnings call, plus a potentially strategic bank acquisition, but both come with ongoing loss and execution/regulatory risks.

Positive Factors

Revenue growth & gross margin

Sustained top-line growth combined with ~55% gross margin indicates the core fintech/clearing products scale with attractive unit economics. Over 2–6 months this supports reinvestment in product and sales, and provides potential operating leverage as fixed costs are spread across higher revenue.

Improved capital position

Restored equity and materially reduced de‑SPAC liabilities (>80% reduction) materially lower refinancing risk and improve financial flexibility. This stronger balance-sheet foundation supports strategic initiatives, M&A readiness, and regulatory confidence over the coming months.

Vertical integration strategy (bank acquisition)

Acquiring a bank and integrating clearing, brokerage and payments creates a durable strategic moat: access to deposits, payment rails and lending enables lower funding costs, cross‑sell opportunities, and product stickiness versus pure-play fintechs, improving long‑term revenue mix.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flow forces reliance on external financing and constrains organic investment. Over months this limits runway for growth initiatives, raises dilution/refinancing risk, and means earnings improvements must translate into cash to be durable.

Operating profitability and earnings quality

Core operations remain unprofitable despite revenue gains, and reported net income reflects non‑operational items. This raises concern that margin expansion is not yet sustainable, making durable profitability contingent on operational improvements rather than one‑time items.

Regulatory and execution risk from bank deal

The bank acquisition is strategically transformative but depends on regulatory approvals and complex integration. Approval delays, conditions, or integration missteps could derail expected funding and product synergies, increasing execution risk and prolonging reliance on external liquidity.

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 is growing strongly (TTM +18.8%) with solid gross margin (~55%), and the latest snapshot shows low leverage. However, operating profitability remains negative (EBIT/EBITDA below zero) and operating/free cash flow are negative, indicating the business is not currently self-funding. Large historical volatility (including a major 2023 loss) and the sharp equity swing (2024 negative equity vs. positive equity in the latest period) reduce confidence in stability.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew strongly (+18.8%), and gross profit remains solid (about 55% gross margin). However, profitability quality is mixed: operating profit is still negative (both EBIT and EBITDA are below zero in TTM), while net income is positive, suggesting results are being helped by items outside core operations. History is volatile (including a very large loss in 2023 annual), which lowers confidence in earnings stability.

Balance Sheet

On the latest TTM snapshot, leverage looks very low (debt is minimal versus equity) and equity is positive, which is a clear strength. That said, the balance sheet trend is inconsistent: 2024 annual shows deeply negative equity alongside sizable debt, implying significant structural change year-to-year and raising questions about durability and comparability across periods. Overall asset base is sizable, but the equity swing is the key risk.

Cash Flow

Cash generation is the main weak spot: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are negative, and free cash flow fell sharply versus the prior period (large negative growth). While free cash flow and net income appear to track closely in the provided data, the company is currently not self-funding through operations, which increases reliance on external financing or balance-sheet support.

Breakdown	TTM	Dec 2024	Dec 2023	Jun 2023	Jun 2022	Dec 2020
Income Statement
Total Revenue	14.61M	10.86M	4.00M	9.09M	13.31M	0.00
Gross Profit	11.34M	8.75M	2.70M	6.70M	11.78M	0.00
EBITDA	11.09M	1.03M	-857.80K	287.77K	1.92M	0.00
Net Income	1.77M	5.75M	-120.09M	131.33K	1.48M	-21.68K
Balance Sheet
Total Assets	77.62M	60.89B	55.48M	40.59M	64.33M	200.62K
Cash, Cash Equivalents and Short-Term Investments	23.08M	7.53B	619.55K	9.10M	10.68M	21.87K
Total Debt	128.16K	1.00B	480.00K	805.72K	943.64K	130.10K
Total Liabilities	55.94M	67.69B	12.37M	30.65M	54.49M	181.04K
Stockholders Equity	21.68M	-6.80B	43.11M	9.94M	9.85M	19.58K
Cash Flow
Free Cash Flow	-189.76K	1.57M	-1.82M	-1.08M	-1.09M	-25.31K
Operating Cash Flow	-189.75K	1.57M	-1.82M	-1.08M	-1.07M	-25.31K
Investing Cash Flow	-85.00K	-145.00K	152.34M	351.47K	-201.25M	0.00
Financing Cash Flow	18.78M	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: Negative
• RSI: Neutral
• 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 0.25, above the 50-day MA of 0.27, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.61 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 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	$45.92M	-94.50	-5.30%	―	20.68%	84.51%
XBP	54 Neutral	$85.49M	0.08	2125.09%	―	―	―
KPLT	48 Neutral	$30.97M	-1.11	―	―	16.56%	28.25%
ATCH	47 Neutral	$36.42M	-0.19	―	―	―	―
SOS	45 Neutral	$41.09M	-63.82	-3.89%	―	134.43%	95.39%

AtlasClear Holdings Corporate Events

AtlasClear to Acquire Commercial Bancorp in Stock Deal

On February 10, 2026, AtlasClear Holdings, Inc., a financial technology holding company focused on modernizing trading, clearing, settlement, and banking for emerging financial institutions and fintechs, announced it had entered into a definitive Share Purchase Agreement to acquire all outstanding shares of Commercial Bancorp, parent of Farmers State Bank. Through its existing broker-dealer subsidiary Wilson-Davis & Co., Inc. and the pending bank acquisition, AtlasClear is pursuing a vertically integrated model that combines brokerage, clearing, risk management, regulatory, and commercial banking capabilities.

The new share purchase agreement replaces a prior merger arrangement and will give AtlasClear 100% ownership of Commercial Bancorp in a deal structured predominantly with AtlasClear common stock, with sellers agreeing to take about 73% of consideration in equity and the balance in cash. Executives said the updated structure simplifies pre-de-SPAC legacy arrangements, preserves cash, streamlines regulatory review, and is expected to be accretive and strategically transformative by providing AtlasClear with deposit-taking, payment rails, and lending infrastructure, though closing remains subject to customary conditions and regulatory approvals from the Federal Reserve Board and the Wyoming Division of Banking.

The most recent analyst rating on (ATCH) stock is a Sell with a $0.21 price target. To see the full list of analyst forecasts on AtlasClear Holdings stock, see the ATCH Stock Forecast page.