AtlasClear Holdings (ATCH) AI Stock Analysis

• Market Cap: $38.92M
• Dividend Yield: N/A
• Average Volume (3M): 102.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.15
• 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: -0.16
• Enterprise Value/Revenue: -0.51
• Enterprise Value/Gross Profit: -0.62
• Enterprise Value/Ebitda: -1.82
• 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: $0.33 ▲(22.22% Upside)

AtlasClear Holdings' overall stock score is primarily impacted by its financial distress, with significant operating losses and solvency issues. While recent financing deals and strategic initiatives provide some optimism, the company's negative equity and cash flow challenges weigh heavily on its score. Technical analysis and valuation metrics also reflect concerns, though the earnings call and corporate events offer some positive outlooks.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product adoption, supporting long-term business expansion.

New Institutional Financing

The financing boosts liquidity and supports strategic growth initiatives, enhancing competitive positioning in the industry.

Operational Momentum

Significant revenue growth at Wilson-Davis reflects strong operational momentum, contributing to overall company performance.

Negative Factors

Negative Equity Position

Negative equity indicates insolvency risks, limiting financial flexibility and posing long-term sustainability challenges.

Operating Losses

Continued operating losses suggest inefficiencies in cost management, impacting profitability and long-term viability.

Cash Flow Challenges

Persistent negative cash flow highlights difficulties in generating cash, affecting operational sustainability and growth capacity.

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

AtlasClear Holdings is under financial distress, with significant operating losses and a negative equity position. Despite a strong gross profit margin, the company's inability to control operational costs and generate positive cash flow poses serious concerns. The balance sheet shows solvency issues with negative equity, while cash flow statements highlight inefficiencies in cash management. Improvements in operational efficiency and revenue growth are critical for financial recovery.

Income Statement

AtlasClear Holdings shows significant volatility in revenue and profitability. The TTM (Trailing-Twelve-Months) period saw a revenue of $9.55M but experienced heavy losses with a net income of -$109.88M. The gross profit margin is 64.42%, indicating efficiency in managing production costs. However, negative EBIT and EBITDA margins reflect substantial operating losses, raising concerns about operational efficiency. The lack of revenue growth compared to prior periods suggests challenges in expanding the business.

Balance Sheet

The company's financial stability is weak, with a negative stockholders' equity of -$23.2M indicating insolvency risks. The debt-to-equity ratio cannot be calculated due to negative equity, which is a red flag. The equity ratio is also negative, highlighting the company's reliance on liabilities. Despite a reasonable cash position of $6.88M, the high total liabilities overshadow it.

Cash Flow

AtlasClear Holdings exhibits a challenging cash flow situation with negative operating cash flow of -$11.04M in the TTM period. The negative free cash flow of -$11.34M further indicates difficulties in generating cash organically. The free cash flow to net income ratio is not favorable due to substantial net losses, suggesting poor cash conversion efficiency.

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: 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 below the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.30, and below the 200-day MA of 0.33, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 43.36 is Neutral, neither overbought nor oversold. The STOCH value of 42.00 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	$40.82M	-89.25	-5.30%	―	20.68%	84.51%
XBP	54 Neutral	$97.19M	0.08	2125.09%	―	―	―
SNCR	49 Neutral	$99.88M	-8.46	-21.44%	―	0.07%	58.47%
ATCH	47 Neutral	$38.92M	-0.11	―	―	―	―
KPLT	47 Neutral	$33.94M	-1.19	―	―	16.56%	28.25%
SOS	45 Neutral	$55.98M	-85.93	-3.89%	―	134.43%	95.39%

AtlasClear Holdings Corporate Events

AtlasClear Holdings Secures $20 Million Financing Deal

On October 9, 2025, AtlasClear Holdings announced a $20 million financing agreement led by Funicular Funds, LP, with participation from Sixth Borough Capital. The financing includes $10 million in convertible debt and $10 million in units with common stock and warrants. This investment is expected to accelerate AtlasClear’s business model, expand its revenue lines, and enhance its technological capabilities, positioning the company for competitive advantages in the financial services industry.