BrainChip Holdings (BRN) AI Stock Analysis

• Market Cap: $410.83M
• Dividend Yield: N/A
• Average Volume (3M): 7.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.15
• Revenue Growth: 72.47%
• EPS Growth: 20.08%
• Country: AU
• Employees: 63
• Sector: Technology
• Sector Strength: 98
• Industry: Semiconductors
• EPS (TTM): -0.01
• Shares Outstanding: 2,025,741,700
• 10 Day Avg. Volume: 8,239,191
• 30 Day Avg. Volume: 7,531,899
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: 3.07K
• Enterprise Value/Gross Profit: 7.36K
• Enterprise Value/Ebitda: -25.83
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by weak financial performance and valuation concerns. The technical analysis also indicates a bearish trend, further impacting the score. The lack of earnings call data and corporate events means these factors do not contribute to the score.

BrainChip Holdings Business Overview & Revenue Model

Company Description

BrainChip 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 Money

BrainChip Holdings makes money primarily through the licensing of its Akida technology to semiconductor manufacturers and original equipment manufacturers (OEMs) who integrate the neural processor into their products. Additionally, the company generates revenue through the sale of its proprietary chips and evaluation boards directly to customers who need advanced AI capabilities in edge devices. BrainChip also engages in strategic partnerships and collaborations with leading technology companies to expand its market presence and drive the adoption of its innovative solutions. Furthermore, the company may receive funding and investment from venture capital and technology investors to support its research and development efforts, although this is not a direct revenue stream.

BrainChip Holdings Financial Statement Overview

Summary

BrainChip Holdings demonstrates strong revenue growth of 71.5%, but persistent losses, negative net profit margin, and negative gross margin indicate severe profitability and cost management issues. The balance sheet shows low leverage, but reliance on equity financing and negative ROE are concerning. Cash flow issues are highlighted by negative free cash flow and unsustainable financing inflows.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	398.01K	232.00K	5.07M	1.59M	134.60K
Gross Profit	-134.91K	91.44K	4.59M	1.30M	-195.72K
EBITDA	-23.67M	-27.99M	-21.41M	-19.79M	-11.36M
Net Income	-24.43M	-28.88M	-22.09M	-20.98M	-29.88M
Balance Sheet
Total Assets	23.05M	20.18M	29.18M	23.78M	22.65M
Cash, Cash Equivalents and Short-Term Investments	20.00M	14.34M	23.12M	19.37M	19.02M
Total Debt	1.17M	1.70M	2.95M	1.80M	3.74M
Total Liabilities	3.22M	3.35M	5.46M	4.84M	5.93M
Stockholders Equity	19.83M	16.83M	23.72M	18.94M	16.72M
Cash Flow
Free Cash Flow	-15.96M	-17.66M	-19.88M	―	―
Operating Cash Flow	-15.88M	-17.53M	-19.69M	-13.69M	-11.17M
Investing Cash Flow	-72.65K	-132.60K	-183.52K	―	―
Financing Cash Flow	22.60M	8.84M	25.38M	14.19M	23.92M

BrainChip Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.21, and below the 200-day MA of 0.25, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.28 is Neutral, neither overbought nor oversold. The STOCH value of 47.61 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	¥238.13B	15.93	6.62%	2.46%	9.00%	-0.33%
COS	66 Neutral	AU$103.73M	11.33	12.90%	4.19%	23.66%	-7.71%
BRN	41 Neutral	$410.83M	―	-133.28%	―	72.47%	20.08%
FRDSF	―	$34.95M	―	-92.68%	―	―	―
RUL	68 Neutral	AU$710.75M	109.15	11.59%	―	9.76%	-28.92%
WBT	39 Underperform	AU$471.12M	―	-46.55%	―	905.48%	10.02%
AKP	23 Underperform	AU$181.10M	―		―	-100.00%	44.26%

BrainChip Holdings Corporate Events

BrainChip Holdings Strengthens Position with Strategic Collaborations and ASX Commitment

BrainChip Holdings Ltd reported a strong financial position for the June 2025 quarter, with a cash balance of US$13.5 million, indicating robust potential for growth and investment in research and development. The company decided to remain listed on the ASX after evaluating a potential redomicile, emphasizing its commitment to shareholder value. Notable collaborations were formed with companies like Arquimea, Andes Technology, and Chelpis Quantum Corp, showcasing the commercial viability and application of BrainChip’s Akida technology in diverse sectors such as water safety, AI computation, and industrial robotics. These partnerships highlight BrainChip’s strategic positioning in the AI industry and its ongoing expansion of its intellectual property portfolio, which now includes 55 patents.

BrainChip Holdings Issues New Employee Incentives

BrainChip Holdings Ltd announced the issuance of 580,000 options and 1,000,000 restricted stock units as part of an employee incentive scheme, which are not intended to be quoted on the ASX. This move is likely aimed at enhancing employee retention and motivation, potentially strengthening the company’s operational capabilities and market position in the competitive AI and technology sector.

BrainChip Holdings Issues Over 2 Million New Securities

BrainChip Holdings Ltd announced the issuance of 2,236,485 ordinary fully paid securities as part of their latest financial activities. This move reflects the company’s ongoing efforts to manage its equity and potentially strengthen its financial position, which could have implications for its market strategy and stakeholder interests.

BrainChip Holdings Issues New Restricted Stock Units to Employees

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

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

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

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

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

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

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

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

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.