Data443 Risk Mitigation (ATDS) AI Stock Analysis

• Market Cap: $220.49K
• Dividend Yield: N/A
• Average Volume (3M): 334.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: -31.83%
• EPS Growth: 88.15%
• Country: US
• Employees: 21
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 629,956,540
• 10 Day Avg. Volume: 932,362
• 30 Day Avg. Volume: 334,752
• PEG Ratio: <0.01
• Price to Book (P/B): >-0.01
• Price to Sales (P/S): 0.02
• P/FCF Ratio: 0.06
• Enterprise Value/Market Cap: 36.57
• Enterprise Value/Revenue: 1.77
• Enterprise Value/Gross Profit: 2.39
• Enterprise Value/Ebitda: -6.26
• 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: 46 Neutral
• Price Target: $0.01 ▲(0.00% Upside)

The score is primarily held back by weak financial performance—declining revenue, very large losses, and a heavily impaired balance sheet with negative equity—despite strong gross margins and a recent move to positive (but small) free cash flow. Limited technical indicator data keeps the technical view neutral, while valuation signals remain challenged due to a negative P/E and no dividend information.

Positive Factors

Revenue Growth

Consistent revenue growth over the years indicates strong market demand and effective sales strategies, supporting long-term business sustainability.

Cash Flow Improvement

Positive operational cash flow suggests improved efficiency in converting sales to cash, enhancing the company's ability to fund operations and growth internally.

Diversified Revenue Model

A diversified revenue model reduces dependency on a single income stream, providing stability and resilience against market fluctuations.

Negative Factors

High Debt Levels

High debt levels can strain financial resources, limiting the company's ability to invest in growth opportunities and increasing insolvency risk.

Negative Profitability

Persistent negative profitability indicates challenges in managing costs and achieving sustainable margins, which can hinder long-term financial health.

Negative Equity

Negative equity reflects financial instability, potentially impacting investor confidence and the company's ability to secure additional financing.

Data443 Risk Mitigation Business Overview & Revenue Model

Company Description

Data443 Risk Mitigation (ATDS) is a technology company specializing in data privacy and security solutions. The company operates primarily in the cybersecurity sector, offering a suite of products designed to help organizations manage data risk and compliance. Core services include data discovery, classification, and protection, along with advanced threat detection and response capabilities.

How the Company Makes Money

Data443 generates revenue through a subscription-based model for its software solutions, which allows clients to access its suite of cybersecurity tools on a recurring basis. Key revenue streams include licensing fees for its software, professional services for implementation and training, and ongoing support and maintenance contracts. The company also benefits from strategic partnerships with other technology firms and cybersecurity providers, enhancing its market reach and customer acquisition efforts.

Data443 Risk Mitigation Financial Statement Overview

Summary

Overall financial profile is high-risk: TTM revenue declined (-5.2%) and losses remain very large (net margin about -71%) with negative operating profit. The balance sheet is strained with deeply negative equity (about -$13.5M) and meaningful debt (about $8.1M). Offsetting factors include strong gross margin (about 74% TTM) and a shift to positive TTM operating cash flow/free cash flow (about $0.57M), though cash generation is small relative to debt and weakened vs 2024.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-5.2%) and profitability remains weak, with a large net loss (net margin about -71%) and negative operating profit. A key positive is consistently strong gross margin (about 74% TTM, improving from 2024), suggesting the core product economics can be attractive, but operating costs and/or other charges continue to overwhelm gross profit.

Balance Sheet

The balance sheet is strained: stockholders’ equity is deeply negative (TTM about -$13.5M) alongside sizable debt (about $8.1M). Negative equity is a major financial flexibility risk and makes leverage metrics hard to interpret economically, even if debt levels have modestly trended down versus 2024. Overall, capitalization remains a clear weakness.

Cash Flow

Cash generation has improved versus earlier years: TTM operating cash flow and free cash flow are both positive (about $0.57M), a notable turnaround from negative cash flow in 2020–2022. However, cash flow weakened versus 2024 (free cash flow down ~15.7%), and operating cash flow remains small relative to the company’s debt load, limiting de-leveraging capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.56M	4.87M	5.58M	2.63M	3.61M	2.48M
Gross Profit	3.38M	2.85M	3.85M	2.11M	3.06M	2.17M
EBITDA	-1.29M	-2.46M	2.80M	-2.75M	-2.00M	-9.90M
Net Income	-3.26M	-6.09M	-4.25M	-9.71M	-6.47M	-13.91M
Balance Sheet
Total Assets	5.29M	6.01M	7.45M	4.18M	3.06M	3.11M
Cash, Cash Equivalents and Short-Term Investments	49.09K	168.21K	84.57K	1.71K	1.20M	58.78K
Total Debt	8.11M	8.64M	8.57M	8.83M	4.83M	2.91M
Total Liabilities	18.77M	19.10M	15.45M	12.95M	7.28M	6.60M
Stockholders Equity	-13.48M	-13.09M	-8.00M	-8.77M	-4.22M	-3.49M
Cash Flow
Free Cash Flow	569.65K	1.28M	596.58K	-3.20M	-993.87K	-1.22M
Operating Cash Flow	569.65K	1.28M	782.10K	-2.89M	-855.54K	-758.48K
Investing Cash Flow	-115.00K	-115.00K	-1.69M	-561.13K	-138.33K	-461.40K
Financing Cash Flow	-405.57K	-1.08M	986.28K	2.24M	2.14M	1.26M

Data443 Risk Mitigation 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	$40.70M	-81.00	-5.30%	―	20.68%	84.51%
STEM	51 Neutral	$142.97M	-1.22	―	―	-35.61%	―
ATDS	46 Neutral	$220.49K	>-0.01	―	―	-31.83%	88.15%
INTZ	42 Neutral	$24.93M	-1.96	-132.37%	―	33.49%	82.01%
MSAI	42 Neutral	$18.53M	-0.92	-103.97%	―	―	―