AtlasClear Holdings (ATCH)
:ATCH
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AtlasClear Holdings
(ATCH)
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Rating:50Neutral
Price Target:
$0.24
▲(3.48% Upside)
Action:ReiteratedDate:04/09/26
The score is held back primarily by weak and inconsistent cash generation and a historically unstable balance sheet, despite solid revenue growth and strong gross margins. Technical signals are mixed, valuation looks optically inexpensive on P/E, and the announced bank acquisition adds potential upside but comes with execution and regulatory risk.
Positive Factors
Revenue growth & high gross margins
Sustained top-line growth combined with very high gross margins indicates durable unit economics and pricing power in the core software/infrastructure business. Over 2–6 months this supports reinvestment, scalable margin expansion, and resilience versus commoditized peers if growth persists.
Negative Factors
History of volatile and weak capital structure
Large year-to-year swings in equity and episodic heavy leverage indicate structural capital instability. Such volatility raises long-term refinancing risk, can impair counterparty and regulator confidence, and makes funding costs and strategic planning more fragile over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & high gross margins
Sustained top-line growth combined with very high gross margins indicates durable unit economics and pricing power in the core software/infrastructure business. Over 2–6 months this supports reinvestment, scalable margin expansion, and resilience versus commoditized peers if growth persists.
Read all positive factors
AtlasClear Holdings (ATCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.12M
Dividend YieldN/A
Average Volume (3M)102.14M
Price to Earnings (P/E)1.3
Beta (1Y)3.06
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees51
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.05
Shares Outstanding149,692,490
10 Day Avg. Volume64,609,424
30 Day Avg. Volume102,142,126
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)1.65
Price to Sales (P/S)2.45
P/FCF Ratio-188.65
Enterprise Value/Market Cap-0.13
Enterprise Value/Revenue-0.32
Enterprise Value/Gross Profit-0.41
Enterprise Value/Ebitda-0.42
Forecast
1Y Price Target
$1.00Price Target Upside334.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)$118.10M
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 servic...
AtlasClear Holdings Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
The call emphasizes a clear inflection point: very strong revenue growth (+84% YoY), return to net income, positive stockholders' equity, improved liquidity and visible momentum at the core clearing business (Wilson-Davis). Key strategic initiatives (scaling correspondent clearing and the proposed bank acquisition) create optionality for higher-margin, scalable growth. Offsetting concerns include outstanding dilution (potentially material share issuance), expense run-rate (~$14M annual) before full operating leverage, timing and regulatory uncertainty around the bank acquisition, and some portion of reported net income tied to noncash/one-time items. Overall, the positive operational and financial progress described outweighs the listed risks.Positive Updates
Strong Revenue Growth
Revenue for the quarter (ended Dec 31, 2025) was $5.1 million, representing an 84% year-over-year increase driven by higher client activity and broader utilization of the platform (commissions were the largest contributor at just over $3.0 million).
Negative Updates
Outstanding Dilution and Convertibles
Current outstanding share count is ~150 million. Potential additional dilution includes ~43 million warrant shares (exercise $0.75) and ~14 million shares from a convertible note; original de-SPAC warrants (~26 million) remain but have a very high strike. Investors remain focused on near-term dilution risk.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Revenue for the quarter (ended Dec 31, 2025) was $5.1 million, representing an 84% year-over-year increase driven by higher client activity and broader utilization of the platform (commissions were the largest contributor at just over $3.0 million).
Read all positive updates
Company Guidance
Management's guidance was that AtlasClear is entering 2026 from its "strongest position" and expects measurable revenue/account impacts over the next few quarters as new introducing brokers ramp (Dawson James expected to begin trading "momentarily"); they highlighted Q4 (12/31/25) results of $5.1M revenue (up 84% YoY) with commissions just over $3M, a modest net trading gain, net income of $6.8M (including noncash fair‑value adjustments), total assets of $77.6M (vs. $60.9M on 6/30/25), stockholders' equity of $21.7M (up from a $6.8M deficit at year‑end), cash & restricted cash of $46.2M (including $23.1M cash & cash equivalents), Wilson‑Davis net capital of $14.7M (regulatory minimum cited ~$10.5M and management maintaining an internal floor of ~$15M), a prior operating cost run‑rate of roughly $14M (the cited breakeven for consistent operating leverage), an outstanding share count of ~150M (plus ~43M unit warrants at $0.75, ~14M convertible‑note shares if converted, and ~26M de‑SPAC warrants at a $690 strike), and a proposed Commercial Bancorp of Wyoming acquisition (2025 bank revenue ~$1.9M, net income ~$0.5M, sellers taking ~73% stock) for which a Fed filing is imminent and management expects the deal to be accretive if approved.AtlasClear Holdings Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
33
Negative
Cash Flow
28
Negative
| Breakdown | Jun 2025 | Dec 2024 | Dec 2023 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.61M | 10.86M | 4.00M | 9.09M | 13.31M |
| Gross Profit | 11.34M | 8.75M | 2.70M | 6.70M | 11.78M |
| EBITDA | -1.53M | 1.03M | -857.80K | 287.77K | 1.92M |
| Net Income | 1.77M | 5.75M | -120.09M | 131.33K | 1.48M |
Balance Sheet | |||||
| Total Assets | 77.62M | 60.89B | 55.48M | 40.59M | 64.33M |
| Cash, Cash Equivalents and Short-Term Investments | 23.08M | 7.53B | 619.55K | 9.10M | 10.68M |
| Total Debt | 14.72M | 1.00B | 480.00K | 805.72K | 943.64K |
| Total Liabilities | 55.94M | 67.69B | 12.37M | 30.65M | 54.49M |
| Stockholders Equity | 21.68M | -6.80B | 43.11M | 9.94M | 9.85M |
Cash Flow | |||||
| Free Cash Flow | -189.76K | 1.57M | -1.82M | -1.08M | -1.09M |
| Operating Cash Flow | -189.75K | 1.57M | -1.82M | -1.08M | -1.07M |
| Investing Cash Flow | -85.00K | -145.00K | 152.34M | 351.47K | -201.25M |
| Financing Cash Flow | 18.78M | 1.62M | -150.03M | 799.17K | 202.36M |
AtlasClear Holdings Technical Analysis
Positive
0.23
Price Trends
0.22
Positive
0.26
Negative
0.29
Negative
Market Momentum
<0.01
Negative
57.67
Neutral
78.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATCH, the sentiment is Positive. The current price of 0.23 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.22, and below the 200-day MA of 0.29, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.67 is Neutral, neither overbought nor oversold. The STOCH value of 78.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATCH.
AtlasClear Holdings Risk Analysis
AtlasClear Holdings disclosed 74 risk factors in its most recent earnings report. AtlasClear Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AtlasClear Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $39.29M | 22.16 | 0.58% | ― | 20.68% | 84.51% | |
50 Neutral | $35.12M | 1.32 | 90.77% | ― | ― | ― | |
45 Neutral | $32.68M | -0.75 | -3.86% | ― | 134.43% | 95.39% | |
44 Neutral | $31.17M | 23.79 | -3.13% | ― | 16.56% | 28.25% | |
41 Neutral | $31.66M | -0.44 | -2369.34% | ― | ― | ― |
* Technology Sector Average
ATCH
AtlasClear Holdings
0.23
-0.29
-55.68%
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AtlasClear Holdings Corporate Events
Business Operations and StrategyM&A Transactions
AtlasClear to Acquire Commercial Bancorp in Stock Deal
Positive
Feb 10, 2026
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 ...
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.