AtlasClear Holdings (ATCH) AI Stock Analysis

• Market Cap: $42.50M
• Dividend Yield: N/A
• Average Volume (3M): 102.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.83
• 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: 126,819,145
• 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): 0.00529
• P/FCF Ratio: 0.07
• Enterprise Value/Market Cap: -0.15
• 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: 39 Underperform
• Price Target: $0.00 ▼(-100.00% Downside)

AtlasClear Holdings faces significant financial challenges, with operating losses and negative equity being the most critical issues. Technical analysis supports a bearish outlook, with the stock trading below key moving averages and showing oversold conditions. Valuation metrics are poor, with a negative P/E ratio and no dividend yield. While the earnings call provided some positive insights into financial stability and revenue growth, these are overshadowed by persistent losses and share price concerns.

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: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.28 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.48, and below the 200-day MA of 0.64, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 40.32 is Neutral, neither overbought nor oversold. The STOCH value of 19.02 is Positive, 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	$40.46M	―	-5.30%	―	20.68%	84.93%
XBP	51 Neutral	$71.70M	0.06	2125.09%	―	―	―
SOS	50 Neutral	$50.15M	-77.89	-3.89%	―	134.43%	95.39%
KPLT	45 Neutral	$52.55M	-1.64	―	―	16.56%	28.25%
SNCR	43 Neutral	$51.67M	―	-21.44%	―	0.07%	58.47%
ATCH	39 Underperform	$42.50M	-0.13	―	―	―	―

AtlasClear Holdings Corporate Events

AtlasClear Holdings Reports Quarterly Financial Results

AtlasClear Holdings, Inc. is a fintech-driven company specializing in trading, clearing, settlement, and banking services, aiming to innovate within the financial services sector. In its latest earnings report for the quarter ending September 30, 2025, AtlasClear Holdings reported a net loss of $440,294, a significant decline from the net income of $10,748,033 in the same period last year. The company saw an increase in revenues to $4.25 million, driven by higher commission and other revenues, although this was offset by increased expenses, particularly in compensation and stock-based compensation. The company also engaged in several financing activities, raising approximately $15.75 million through convertible notes and equity sales, which alleviated previous concerns about its ability to continue as a going concern. Looking forward, AtlasClear Holdings remains focused on leveraging its recent financing to support its operations and strategic goals, with management optimistic about the company’s financial health and growth potential.

AtlasClear Holdings: Earnings Call Highlights Growth Amid Challenges

The recent earnings call of AtlasClear Holdings, Inc. presented a balanced sentiment, highlighting both achievements and ongoing challenges. The company showcased significant strides in financial stability and revenue growth, bolstered by new institutional financing and strategic client onboarding. However, concerns about persistent operating and net losses, as well as share price issues, tempered the overall optimism.

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.

AtlasClear Holdings Reports Strong Fiscal 2025 Results

AtlasClear Holdings, Inc. is a financial services company focused on modernizing trading, clearing, settlement, and banking for small- and middle-market financial institutions through a technology-enabled platform.

AtlasClear Holdings Unregistered Sales of Equity Securities

AtlasClear Holdings has executed Securities Purchase Agreements, selling securities under exemptions from the registration requirements of the Securities Act. These transactions, which did not involve a public offering, are conducted under Section 4(a)(2) and Rule 506 of Regulation D, potentially impacting the company’s financial strategy and stakeholder interests.

AtlasClear Holdings Secures $3M Financing for Growth

AtlasClear Holdings announced on September 17, 2025, the successful closing of a $3,000,000 financing through the issuance of promissory notes, with the potential to raise an additional $2,000,000. This financing, facilitated by Dawson James Securities, is intended to support the company’s growth and operational efficiency, particularly in expanding its correspondent clearing business. The investment from Sixth Borough Capital and the positive outlook from company executives highlight the strategic importance of this capital infusion in positioning AtlasClear for future growth and minimizing dilution.