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Atomera (ATOM)
NASDAQ:ATOM
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Atomera
(NASDAQ:ATOM)
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Rating:51Neutral
Price Target:
$3.50
▲(5.74% Upside)
The score is primarily constrained by weak financial performance (minimal revenue, large losses, and persistent cash burn) and limited valuation support (negative P/E, no dividend). Technical momentum is currently constructive but looks stretched, while the earnings call adds some offset via technology validation and customer activity, tempered by the STMicroelectronics program setback and higher losses.
Positive Factors
Proprietary MST performance
A materially better MST implementation that doubles device performance while preserving lifetime is a durable competitive advantage. Validated by TCAD, this raises the odds MST becomes a preferred process step across node transitions, enabling long-term licensing and structural product differentiation.
Customer engagement / wafer scale testing
Record wafer processing indicates sustained technical engagement and scale-up capability with foundry and OEM partners. Durable pipeline activity across wafers is a prerequisite for converting evaluations into licensing deals and royalties, supporting longer-term commercial traction if conversions continue.
Low leverage balance sheet
Very low leverage and minimal absolute debt materially reduce near-term solvency risk, giving management flexibility to continue R&D and customer engagements. This structural balance-sheet strength extends runway relative to highly levered peers, lowering default risk while commercialization progresses.
Negative Factors
Minimal and declining revenue
Extremely low and falling revenue signals the company has not yet converted technology validation into commercial licensing scale. Over months this limits internal funding ability, weakens operating leverage, and increases reliance on converting pilot engagements into sustained, repeatable licensing income.
Persistent cash burn
Sustained negative operating and free cash flow at this magnitude creates structural funding risk absent meaningful revenue growth. Over the medium term this forces external financing or cost reductions, which can dilute shareholders or constrain commercial investments needed to drive long-term licensing adoption.
STMicroelectronics setback reduces royalty visibility
Loss of a major partner's royalty path is a durable setback: it removes an expected recurring revenue source and highlights integration/adoption hurdles. When a lead customer opts out for architecture/schedule reasons, it lengthens the timeline to scaling royalties and raises conversion risk across other engagements.
Atomera (ATOM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$104.86M
Dividend YieldN/A
Average Volume (3M)464.54K
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue Growth-94.26%
EPS Growth3.20%
CountryUS
Employees20
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.17
Shares Outstanding31,681,032
10 Day Avg. Volume463,975
30 Day Avg. Volume464,540
Financial Highlights & Ratios
PEG Ratio1.14
Price to Book (P/B)12.59
Price to Sales (P/S)2338.65
P/FCF Ratio-23.83
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue2.03K
Enterprise Value/Gross Profit-157.02
Enterprise Value/Ebitda-3.99
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
Atomera Business Overview & Revenue Model
Company DescriptionAtomera Incorporated develops, commercializes, and licenses proprietary materials, processes, and technologies for the semiconductor industry in North America and the Asia Pacific. The company's lead technology is the Mears Silicon Technology, a thin film of reengineered silicon that can be applied as a transistor channel enhancement to CMOS-type transistors. Its customers include foundries, integrated device manufacturers, fabless semiconductor manufacturers, original equipment manufacturers, and electronic design automation companies. The company was formerly known as Mears Technologies, Inc. and changed its name to Atomera Incorporated in January 2016. Atomera Incorporated was incorporated in 2001 and is headquartered in Los Gatos, California.
How the Company Makes MoneyAtomera generates revenue primarily through licensing its MST technology to semiconductor manufacturers. The company charges fees for the license agreements that allow clients to integrate Atomera's technology into their production processes. Additionally, Atomera may earn revenue from research and development contracts, collaborations with industry partners, and potential royalties based on the sales of products that utilize MST. Key partnerships with major semiconductor firms are crucial, as they not only provide direct revenue but also validate Atomera's technology, leading to wider adoption and increased sales opportunities.
Atomera Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of significant positive developments including increased wafer activity, strategic collaborations, and promising engagements with transformative customers. However, these were somewhat offset by the delay in STMicro's initiative and an increased net loss. The positive aspects indicate strong future potential, but immediate financial challenges temper the outlook.Q2-2025 Updates
Positive Updates
Increased Wafer Activity
Atomera reports high levels of wafer activity, indicating strong business momentum and numerous ongoing projects with licensees and potential customers.
New High in Customer Wafer Runs
The company has reached a new high watermark on customer wafer runs, showcasing increased engagement and interest in MST technology.
Strategic Collaborations
Atomera announced a strategic collaboration with Incize for GaN devices, expanding focus to include GaN for RF, and joined the National Semiconductor Technology Center to contribute to and benefit from semiconductor advancements.
Innovative Solutions and Patent Milestone
Atomera has surpassed 400 issued and pending patents, demonstrating its innovative capabilities, and has proposed solutions for LNAs that have generated significant market interest.
Positive Developments with Transformative Customers
Two transformative customers are engaged in large-scale demo plans and multiple wafer runs, indicating potential significant future revenue.
Negative Updates
Delay in STMicro Initiative
STMicro's shift to a 300-millimeter wafer production has delayed Atomera's MST rollout, pushing back process qualification beyond 2025.
Increased Net Loss
Atomera reported a GAAP net loss of $5 million for Q2 2025, higher than the $4.4 million loss in Q2 of the previous year.
Operational Expense Increase
GAAP operating expenses increased by $565,000, attributed to higher R&D and payroll costs, despite lower sales and marketing expenses.
Company Guidance
During Atomera's Second Quarter 2025 Update Call, the company discussed various metrics and guidance for the current fiscal year. Atomera reported a GAAP net loss for Q2 2025 of $5 million, translating to $0.17 per share, compared to a loss of $4.4 million or $0.16 per share in the same quarter of the previous year. Operating expenses increased to $5.2 million, driven by higher R&D and G&A costs, partly offset by reduced sales and marketing expenses due to lower headcount. The company's non-GAAP net loss was $4 million, up from $3.6 million in Q2 2024. Atomera's cash balance stood at $22 million as of June 30, 2025, with cash used in operating activities totaling $3.5 million for the quarter. The company anticipates recognizing a small amount of NRE revenue in Q3 from wafer shipments, and it maintains its non-GAAP OpEx guidance for 2025 between $17.25 million and $17.75 million. Despite delays in STMicro's rollout plans, Atomera remains optimistic about future revenue potential and continues to engage with multiple customers on MST applications, with ongoing efforts to expand its engineering and sales teams to support increased customer activity.Atomera Financial Statement Overview
Summary
Overall fundamentals are weak: revenue remains minimal and declining, profitability is deeply negative with ongoing net losses, and operating/free cash flow show sustained cash burn. The balance sheet is a relative positive with low leverage and modest debt, but continued losses are eroding shareholder capital.Income Statement
ATOM remains in a very weak earnings profile: TTM (Trailing-Twelve-Months) revenue is minimal ($0.04M) and down ~22% year-over-year, while losses remain heavy (TTM net loss ~$20.4M). Profitability is deeply negative, with TTM gross margin below zero and operating losses broadly consistent with prior years, indicating limited operating leverage and a business still far from break-even. The main positive is that losses have not dramatically worsened versus recent history, but overall revenue traction and margin structure are the key concerns.8
Very Negative
Balance Sheet
The balance sheet is a relative strength. Leverage is low (TTM debt-to-equity ~0.07) and total debt is modest (TTM ~$0.8M), which reduces solvency risk. However, continued net losses drive a very negative return on equity (TTM roughly -0.92), and equity has trended lower versus earlier years—highlighting ongoing erosion of shareholder capital if profitability does not improve.66
Positive
Cash Flow
Cash generation remains weak, with TTM operating cash flow of about -$14.7M and free cash flow also around -$14.7M, reflecting persistent cash burn. A modest positive is that free cash flow has improved versus the prior annual period, but cash flow still tracks losses closely (free cash flow roughly in line with net loss), meaning the company likely remains dependent on external funding over time unless revenue ramps materially or costs reset.18
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.00K | 135.00K | 550.00K | 382.00K | 400.00K | 62.00K |
| Gross Profit | -491.00K | 12.00K | 522.00K | 301.00K | 400.00K | 49.00K |
| EBITDA | -19.34M | -16.94M | -18.16M | -15.68M | -14.73M | -14.70M |
| Net Income | -20.41M | -18.43M | -19.79M | -17.36M | -15.71M | -14.88M |
Balance Sheet | ||||||
| Total Assets | 21.94M | 29.12M | 24.03M | 26.73M | 36.06M | 39.40M |
| Cash, Cash Equivalents and Short-Term Investments | 20.32M | 26.77M | 19.53M | 21.18M | 28.70M | 37.94M |
| Total Debt | 794.00K | 1.98M | 3.64M | 4.88M | 6.54M | 692.00K |
| Total Liabilities | 2.91M | 4.05M | 5.86M | 6.42M | 7.68M | 2.05M |
| Stockholders Equity | 19.03M | 25.08M | 18.17M | 20.31M | 28.38M | 37.34M |
Cash Flow | ||||||
| Free Cash Flow | -14.71M | -13.25M | -14.59M | -12.54M | -12.55M | -12.20M |
| Operating Cash Flow | -14.68M | -13.24M | -14.56M | -12.50M | -12.44M | -12.07M |
| Investing Cash Flow | 3.58M | 6.08M | -6.75M | -39.00K | -109.00K | -131.00K |
| Financing Cash Flow | 17.66M | 20.34M | 12.71M | 5.02M | 3.31M | 35.27M |
Atomera Technical Analysis
Neutral
3.31
Price Trends
2.38
Positive
3.05
Negative
4.00
Negative
Market Momentum
0.13
Negative
57.32
Neutral
72.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATOM, the sentiment is Neutral. The current price of 3.31 is above the 20-day moving average (MA) of 2.47, above the 50-day MA of 2.38, and below the 200-day MA of 4.00, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 57.32 is Neutral, neither overbought nor oversold. The STOCH value of 72.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATOM.
Atomera Risk Analysis
Atomera disclosed 25 risk factors in its most recent earnings report. Atomera reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Atomera Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $320.68M | -524.40 | -0.91% | ― | -0.41% | -134.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $253.35M | -8.62 | -44.68% | ― | -21.59% | -254.69% | |
52 Neutral | $950.72M | -31.92 | -12.00% | ― | -4.54% | -119.39% | |
51 Neutral | $104.86M | -4.14 | -116.86% | ― | -94.26% | 3.20% | |
43 Neutral | $81.55M | ― | -18.19% | ― | 2.80% | ― | |
42 Neutral | $96.56M | -10.29 | -24.81% | ― | -42.77% | 83.21% |
* Technology Sector Average
ATOM
Atomera
2.80
-5.57
-66.55%
ASYS
Amtech Systems
18.28
13.26
264.14%
AXTI
AXT
16.83
14.75
709.13%
SQNS
Sequans Communications S A
5.12
-25.78
-83.43%
MRAM
Everspin Technologies
13.11
6.92
111.79%
WKEY
WISeKey International Holding
8.29
0.72
9.51%
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.