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BrainChip Holdings (AU:BRN)
ASX:BRN

BrainChip Holdings (BRN) AI Stock Analysis

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AU

BrainChip Holdings

(Sydney:BRN)

Rating:39Underperform
Price Target:
AU$0.00
▼(-100.00%Downside)
The low overall stock score is primarily driven by weak financial performance, including persistent losses and negative cash flow. Technical analysis further indicates bearish trends, which compound valuation challenges due to a negative P/E ratio. These factors combine to reflect significant risks in the current investment profile of BrainChip Holdings.

BrainChip Holdings (BRN) vs. iShares MSCI Australia ETF (EWA)

BrainChip Holdings Business Overview & Revenue Model

Company DescriptionBrainChip Holdings Ltd develops software and hardware accelerated solutions for artificial intelligence (AI) and machine learning applications in North America, Oceania, Europe, the Middle East, and Asia. The company offers Akida Neuromorphic Processor to provide ultra-low power and fast AI Edge Network for vision, audio, olfactory, and smart transducer applications; and Akida Development Environment, a machine learning framework for creating, training, and testing neural networks, as well as supporting the development of systems for edge AI on its Akida event domain neural processor. The company also provides Akida Neuromorphic System-on-Chip, an integrated solution for Edge AI device and systems. Its products are used in various applications, such as automotive and cybersecurity. The company was incorporated in 2011 and is based in Sydney, Australia.
How the Company Makes MoneyBrainChip Holdings generates revenue primarily through the sale and licensing of its Akida neuromorphic processors and related intellectual property. The company monetizes its technology by providing semiconductor chips, software solutions, and licenses to original equipment manufacturers (OEMs) and technology partners across multiple industries. Revenue streams include direct sales of chips and development boards, technology licensing fees, and royalties from partners who incorporate Akida technology into their own products. Strategic partnerships with companies in sectors like automotive and IoT further bolster BrainChip's earnings, as these collaborations often lead to new applications and market penetration for its AI solutions.

BrainChip Holdings Financial Statement Overview

Summary
BrainChip Holdings exhibits strong revenue growth but is severely hampered by negative profitability and cash flow issues. The balance sheet shows limited leverage but relies heavily on equity financing. Overall, financial performance is weak, primarily due to persistent losses and cash outflows.
Income Statement
35
Negative
BrainChip Holdings has shown a significant revenue growth of 71.5% from 2023 to 2024, indicating strong topline expansion. However, the company struggles with persistent losses, evidenced by a negative net profit margin and operating losses (EBITDA). The gross margin is also negative, suggesting cost issues at the production level.
Balance Sheet
40
Negative
The balance sheet reveals a relatively low debt-to-equity ratio of 0.06, indicating conservative leverage. However, the equity ratio of 86.03% shows that most assets are financed through equity, not debt. Despite a positive cash position, the company faces challenges in generating returns, as reflected by negative ROE.
Cash Flow
30
Negative
The cash flow statement highlights negative free cash flow, indicating cash outflows from operations. Although there is a substantial inflow from financing activities, it may not be sustainable long-term. The company also struggles with converting operating activities into net income, as seen in the zero operating cash flow to net income ratio.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue240.00K398.01K232.00K5.07M1.59M134.60K
Gross Profit100.00K-134.91K91.44K4.59M1.30M-195.72K
EBITDA-28.51M-23.67M-27.99M-21.41M-19.79M-11.36M
Net Income-28.88M-24.43M-28.88M-22.09M-20.98M-29.88M
Balance Sheet
Total Assets20.18M23.05M20.18M29.18M23.78M22.65M
Cash, Cash Equivalents and Short-Term Investments14.34M20.00M14.34M23.12M19.37M19.02M
Total Debt1.70M1.17M1.70M2.95M1.80M3.74M
Total Liabilities3.35M3.22M3.35M5.46M4.84M5.93M
Stockholders Equity16.83M19.83M16.83M23.72M18.94M16.72M
Cash Flow
Free Cash Flow-17.66M-15.96M-17.66M-19.88M
Operating Cash Flow-17.53M-15.88M-17.53M-19.69M-13.69M-11.17M
Investing Cash Flow-132.60K-72.65K-132.60K-183.52K
Financing Cash Flow8.84M22.60M8.84M25.38M14.19M23.92M

BrainChip Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.20
Price Trends
50DMA
0.23
Negative
100DMA
0.23
Negative
200DMA
0.25
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
42.29
Neutral
STOCH
32.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BRN, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.23, and below the 200-day MA of 0.25, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.29 is Neutral, neither overbought nor oversold. The STOCH value of 32.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:BRN.

BrainChip Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUCOS
70
Outperform
AU$115.56M12.6212.90%3.15%23.66%-7.71%
63
Neutral
$33.22B5.99-11.76%1.91%5.54%-19.87%
AUBRN
39
Underperform
$400.81M-133.28%72.47%20.08%
$33.69M-92.68%
AURUL
73
Outperform
AU$642.29M98.6411.59%9.76%-28.92%
AUWBT
39
Underperform
AU$355.35M-46.55%905.48%10.02%
AUAKP
23
Underperform
AU$181.10M
-100.00%44.26%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:BRN
BrainChip Holdings
0.20
>-0.01
-4.76%
FRDSF
4DS Memory
0.05
0.00
0.00%
AU:COS
Cosol Limited
0.64
-0.54
-45.76%
AU:AKP
Audio Pixels Holdings Limited
6.20
0.00
0.00%
AU:WBT
Weebit Nano Ltd.
1.70
-0.65
-27.66%
AU:RUL
RPMGlobal Holdings Ltd
2.91
0.14
5.05%

BrainChip Holdings Corporate Events

BrainChip Holdings Issues New Restricted Stock Units to Employees
Jun 10, 2025

BrainChip Holdings Ltd has announced the issuance of 4,688,000 restricted stock units as part of an employee incentive scheme. This move is expected to enhance employee engagement and align their interests with the company’s long-term growth objectives, potentially strengthening BrainChip’s position in the competitive AI technology market.

BrainChip Director Updates Shareholding Amid Tax Obligations
May 28, 2025

BrainChip Holdings Ltd announced a change in the director’s interest, specifically regarding Pia Turcinov, who disposed of 175,331 ordinary shares to meet Australian tax liabilities related to the historical vesting of performance rights. This transaction reflects the company’s adherence to regulatory requirements and transparency in director dealings, potentially impacting investor perceptions and stakeholder confidence.

BrainChip Director Adjusts Shareholding for Tax Obligations
May 27, 2025

BrainChip Holdings Ltd announced a change in the director’s interest, with Director Antonio Jose Florindo Viana disposing of 130,000 ordinary shares valued at $27,950. This transaction was conducted to facilitate the payment of US Federal and State Taxes related to the vesting of Restricted Stock Units. The change reflects the director’s financial management strategy and does not indicate a shift in the company’s operational or strategic direction.

BrainChip Director Increases Shareholding Through Stock Vesting
May 26, 2025

BrainChip Holdings Ltd announced a change in the director’s interest notice, with Director Duy-Loan Thi Le acquiring 697,674 Ordinary Shares as a result of the vesting of Restricted Stock Units. This change reflects an increase in her direct and indirect holdings in the company, with no cash consideration involved. The announcement highlights the company’s ongoing commitment to aligning its leadership’s interests with shareholder value, potentially impacting its market perception and stakeholder confidence.

BrainChip Announces Director’s Shareholding Adjustment
May 26, 2025

BrainChip Holdings Ltd has announced a change in the director’s interest, specifically regarding Pia Turcinov’s holdings. On May 23, 2025, Ms. Turcinov acquired 766,799 Ordinary Shares through the vesting of Performance Rights, while disposing of 69,125 Performance Rights. This change reflects a strategic adjustment in the director’s shareholding, potentially impacting the company’s stakeholder dynamics and market perception.

BrainChip Director’s Interest in Securities Updated
May 26, 2025

BrainChip Holdings Ltd has announced a change in the interests of its director, Antonio Jose Florindo Viana, in the company’s securities. The change involves the conversion of 697,674 Restricted Stock Units into the same number of Ordinary Shares, resulting in Mr. Viana holding a total of 3,130,018 Fully Paid Ordinary Shares. This adjustment reflects the vesting of Restricted Stock Units under the company’s Employee Share Plan Trust, with no cash consideration involved. The shares were valued at $0.22 per share as of May 22, 2025. This change in director’s interest is part of the company’s ongoing governance and compliance with ASX regulations.

BrainChip Cancels Previous Equity Securities Announcement
May 23, 2025

BrainChip Holdings Ltd announced the cancellation of a previous notification regarding the issue, conversion, or payment of unquoted equity securities. This decision was made because service rights have vested but do not automatically convert to shares unless the holder chooses to exercise them, impacting the company’s equity management strategy.

BrainChip Holdings Issues Over 2 Million New Securities
May 23, 2025

BrainChip Holdings Ltd has announced the issuance of 2,093,022 fully paid ordinary securities as of May 23, 2025. This move indicates the company’s strategic financial maneuvers to potentially enhance its market position and operational capabilities, reflecting a proactive approach to leveraging its equity for growth and development. The issuance of these securities may have implications for stakeholders, suggesting an expansion or strengthening of the company’s financial foundation.

BrainChip Holdings Issues New Securities to Enhance Capital Base
May 23, 2025

BrainChip Holdings Ltd has announced the issuance of 1,395,348 ordinary fully paid securities as of May 23, 2025. This move involves the conversion of unquoted options or other convertible securities, which could potentially impact the company’s financial structure and market positioning by increasing its capital base.

BrainChip Director Increases Stake with New Stock Units
May 7, 2025

BrainChip Holdings Ltd has announced a change in the director’s interest, specifically regarding Sean Hehir, who has acquired 7,545,307 Restricted Stock Units, increasing his total holdings to 11,918,679 units. This change, approved by shareholders at the recent Annual General Meeting, reflects the company’s ongoing commitment to aligning its leadership’s interests with its strategic goals, potentially impacting its market positioning and stakeholder confidence.

BrainChip Holdings Issues Restricted Stock Units to Employees
May 7, 2025

BrainChip Holdings Ltd announced the issuance of 7,545,307 restricted stock units under an employee incentive scheme. These securities are unquoted and subject to transfer restrictions until the specified conditions are met, reflecting the company’s commitment to incentivizing its workforce and aligning their interests with corporate growth objectives.

BrainChip Holdings Announces AGM Results with Key Resolutions Passed
May 6, 2025

BrainChip Holdings Ltd announced the results of its Annual General Meeting, where several key resolutions were voted on. Notably, the adoption of the Remuneration Report was not carried, marking a first strike under the Corporations Act 2001, while the re-election of directors and other resolutions were successfully passed. This outcome may influence the company’s governance and stakeholder relations moving forward.

BrainChip Unveils Strategic Roadmap at 2025 AGM
May 6, 2025

At the 2025 Annual General Meeting, BrainChip Holdings Ltd’s CEO and Chairman highlighted the company’s robust product roadmap, which positions it well in the current market and anticipates future trends. The company has undergone significant changes to improve its product offerings, leading to increased market engagements and a strong outlook for future growth, reflecting a newfound confidence in its market strategy.

BrainChip Holdings Reveals Top 50 Shareholders
Apr 29, 2025

BrainChip Holdings Ltd has released its top 50 shareholders list as of April 28, 2025, showcasing the distribution of its fully paid ordinary shares. The list highlights significant stakeholders, including Mr. Peter Adrian Van Der Made and BNP Paribas Nominees Pty Ltd, among others, indicating the company’s shareholder structure and potential influences on its strategic decisions.

BrainChip Holdings Expands Global Reach with Strategic Partnerships and Innovations
Apr 29, 2025

BrainChip Holdings has made significant strides in the first quarter of 2025, with key developments including a contract awarded to Frontgrade Gaisler by the Swedish National Space Agency to commercialize a neuromorphic System on Chip for space applications, integrating BrainChip’s Akida™ technology. Additionally, BrainChip has entered into a subcontractor agreement with Raytheon for a U.S. Air Force Research Laboratory contract, collaborated with Onsor Technologies for a seizure prediction wearable, and partnered with Information Systems Laboratories to advance AI-based radar solutions. The company is also considering redomiciling to the United States to potentially enhance shareholder value.

BrainChip Director’s Share Disposal Reflects Charitable Commitment
Apr 11, 2025

BrainChip Holdings Ltd has announced a change in the director’s interest, specifically involving Peter Van Der Made, who disposed of 333,333 fully paid ordinary shares. The shares were gifted to ShareGift Australia and subject to a charity nomination to ADRA Australia, with the transaction managed through an on-market trade process. This move reflects the company’s commitment to corporate social responsibility and may influence its reputation positively among stakeholders.

BrainChip Holdings Issues New Securities to Bolster Market Position
Apr 4, 2025

BrainChip Holdings Ltd announced the issuance of 331,941 ordinary fully paid securities as of March 31, 2025. This move signifies a strategic step in strengthening the company’s financial position and potentially enhancing its market presence, reflecting its ongoing commitment to growth and innovation in the AI technology sector.

BrainChip Holdings Announces Cessation of Securities
Apr 4, 2025

BrainChip Holdings Ltd announced the cessation of certain securities, specifically options and restricted stock units, due to unmet conditions. This development may impact the company’s capital structure and could have implications for stakeholders, as it reflects on the company’s ability to meet certain financial or operational conditions.

BrainChip Unveils Future Technology Roadmap
Mar 31, 2025

BrainChip Holdings Ltd is set to present its future Technology Roadmap, highlighting advancements in its Akida IP and target applications. The presentation, led by Chief Development Officer Dr. Jonathan Tapson, will provide insights into the company’s development plans and market requirements, potentially impacting BrainChip’s industry positioning and stakeholder interests.

BrainChip Holdings Aligns Executive Compensation with Shareholder Interests
Mar 31, 2025

BrainChip Holdings Ltd has announced its 2025 Annual General Meeting, highlighting the company’s commitment to aligning executive compensation with shareholder interests. The Board has designed a remuneration strategy that includes a flexible and holistic approach to attract top talent globally, with a focus on achieving high financial targets. Despite falling short of 2024 goals, the company continues to refine its compensation programs to ensure they are competitive and aligned with market practices, reflecting shareholder feedback and confidence in BrainChip’s long-term growth prospects.

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.Date of analysis: Jun 24, 2025