Altigen Communications Inc (ATGN)
OTHER OTC:ATGN
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Altigen Communications
(OTC:ATGN)
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Rating:67Neutral
Price Target:
$0.55
▲(22.89% Upside)
Action:ReiteratedDate:02/19/26
The score is driven primarily by strong financial positioning (very low leverage) and improved profitability/cash generation, supported by a constructive earnings outlook and upcoming product/partner catalysts. These positives are tempered by weak technical trend signals and limited recent revenue growth, including cloud-services and churn headwinds.
Positive Factors
Balance Sheet Strength
Extremely low leverage and a growing equity base materially reduce financial risk and refinancing pressure. This capital flexibility supports sustained R&D and partner investments, cushions revenue volatility from migrations, and allows management to fund product rollouts without reliance on external debt.
Negative Factors
Limited Revenue Growth
Stagnant to modestly declining top line constrains operating leverage and limits the payoff from margin improvements. Durable growth is required to convert high gross margins into material EPS expansion; without consistent revenue acceleration, reinvestment and partner programs may not deliver expected returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Extremely low leverage and a growing equity base materially reduce financial risk and refinancing pressure. This capital flexibility supports sustained R&D and partner investments, cushions revenue volatility from migrations, and allows management to fund product rollouts without reliance on external debt.
Read all positive factors
Altigen Communications (ATGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.98M
Dividend YieldN/A
Average Volume (3M)23.25K
Price to Earnings (P/E)27.3
Beta (1Y)0.64
Revenue Growth5.74%
EPS GrowthN/A
CountryUS
Employees51
SectorCommunication Services
Sector Strength97
IndustryCommunication Equipment
Share Statistics
EPS (TTM)<0.01
Shares Outstanding16,732,000
10 Day Avg. Volume16,604
30 Day Avg. Volume23,246
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)1.18
Price to Sales (P/S)1.17
P/FCF Ratio15.91
Enterprise Value/Market Cap0.64
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit0.53
Enterprise Value/Ebitda2.74
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Altigen Communications Business Overview & Revenue Model
Company Description
Altigen Communications, Inc. designs, develops, markets, and supports integrated communications solutions worldwide. It provides MaxCS IP-PBX, a software-based phone system that provides customers with business communications solutions; MaxACD Voi...
How the Company Makes Money
AltiGen primarily makes money by selling its business communications and contact center software to organizations that deploy these systems for customer service and internal communications. Revenue is generated from (1) software license sales and/...
Altigen Communications Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic outlook: management highlighted sustained profitability (seventh consecutive profitable quarter), maintained high gross margins (>60%), a 9% reduction in operating expenses, a debt-free balance sheet and clear progress on AI product development and strategic partnerships (Fiserv, Crescendo). Key risks noted include a modest overall revenue decline (~5.9% YoY), a larger 17% drop in cloud services revenue, elevated churn from legacy/platform transitions, and near-term cash flow volatility tied to customer payment timing. The balance of operational improvements, strategic partnerships, product roadmap progress and continued profitability outweighs the current revenue and churn headwinds, positioning the company for potential upside if execution on migrations, AI product rollouts and partner programs proceeds as planned.Positive Updates
Consecutive Profitability Maintained
GAAP net income of $101,000 for Q1 FY2026, marking the company's seventh consecutive profitable quarter; GAAP EPS roughly $0.00 ($0.005 technically) and adjusted EBITDA of $257,000, demonstrating ongoing profitability and positive operating performance.
Negative Updates
Quarterly Revenue Decline
Total revenue was $3.2M for Q1 FY2026, down from $3.4M in the prior-year quarter — a decline of approximately 5.9% year-over-year — with sequential decline from Q4 noted as typical seasonality but nonetheless a revenue decrease.
Read all updates
Q1-2026 Updates
Positive
Negative
Consecutive Profitability Maintained
GAAP net income of $101,000 for Q1 FY2026, marking the company's seventh consecutive profitable quarter; GAAP EPS roughly $0.00 ($0.005 technically) and adjusted EBITDA of $257,000, demonstrating ongoing profitability and positive operating performance.
Read all positive updates
Company Guidance
Management guided that they expect revenue acceleration and improving subscriber trends: Q1 FY2026 results were $3.2M revenue, $101K GAAP net income (seventh consecutive profitable quarter), 62% gross margin, adjusted EBITDA $257K, $2.55M cash and $2.9M working capital, with a debt‑free balance sheet; cloud services were ~$1.4M (down 17% YoY) and services/other $1.5M (up 7%), while GAAP operating expenses declined 9% YoY to $1.9M. They said most churn tied to legacy migrations is behind (only a modest tail) and expect trends to turn positive by FYQ3, with two AI platforms entering customer preview within 90 days and revenue contribution later in FY2026, IVR revenue accelerating in H2 FY2026, continued ACS growth (ACS run‑rate ~ $1.47M after a $1.55M Q4 peak and a $150K initial project), and tracked operational KPIs going forward (Max Cloud: >100 live customers/4,000+ seats plus 40 contracted customers/1,700+ seats to go live in ~4 months; CoreEngage: 6 billing customers/200+ users, ~500 contracted users to bill by Q3 and ~500 seats in advanced pipeline; Fiserv channel: ~1,500 IVR customers and ~200 account managers to be trained).Altigen Communications Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
88
Very Positive
Cash Flow
67
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.66M | 13.87M | 13.62M | 13.68M | 11.89M | 10.99M |
| Gross Profit | 8.48M | 8.68M | 8.39M | 8.65M | 8.09M | 7.92M |
| EBITDA | 1.64M | 1.52M | -119.00K | 340.00K | 400.00K | 1.14M |
| Net Income | 752.00K | 738.00K | 1.56M | -3.32M | -698.00K | -491.00K |
Balance Sheet | ||||||
| Total Assets | 16.04M | 16.25M | 15.65M | 13.92M | 17.70M | 17.14M |
| Cash, Cash Equivalents and Short-Term Investments | 2.55M | 2.75M | 2.58M | 2.64M | 3.23M | 6.80M |
| Total Debt | 63.00K | 49.00K | 153.00K | 324.00K | 616.00K | 881.00K |
| Total Liabilities | 2.20M | 2.52M | 2.69M | 2.58M | 3.50M | 2.67M |
| Stockholders Equity | 13.84M | 13.73M | 12.96M | 11.34M | 14.20M | 14.47M |
Cash Flow | ||||||
| Free Cash Flow | 1.18M | 1.02M | 510.00K | -409.00K | -612.00K | -25.00K |
| Operating Cash Flow | 1.26M | 1.09M | 510.00K | 62.00K | -18.00K | 589.00K |
| Investing Cash Flow | -939.00K | -906.00K | -576.00K | -471.00K | -3.58M | -614.00K |
| Financing Cash Flow | -14.00K | -14.00K | 0.00 | -182.00K | 35.00K | 165.00K |
Altigen Communications Technical Analysis
Negative
0.45
Price Trends
0.46
Negative
0.48
Negative
0.55
Negative
Market Momentum
-0.01
Positive
36.74
Neutral
20.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATGN, the sentiment is Negative. The current price of 0.45 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.46, and below the 200-day MA of 0.55, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 36.74 is Neutral, neither overbought nor oversold. The STOCH value of 20.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATGN.
Altigen Communications Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $6.98M | 27.27 | 21.07% | ― | 5.74% | ― | |
67 Neutral | $60.30M | 16.83 | 33.19% | ― | -5.65% | 88.68% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
51 Neutral | $4.42M | -5.63 | 1515.04% | ― | 4.17% | -238.36% | |
48 Neutral | $6.44M | -1.57 | -49.73% | ― | -39.32% | -100.79% | |
44 Neutral | $5.79M | -4.23 | -7.48% | ― | -1.49% | 76.04% | |
42 Neutral | $8.48M | -0.45 | -157.60% | ― | -42.90% | -427.39% |
* Communication Services Sector Average
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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.