Cloudastructure, Inc. Class A (CSAI) AI Stock Analysis

• Market Cap: $16.15M
• Dividend Yield: N/A
• Average Volume (3M): 893.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.11
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 16
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.13
• Shares Outstanding: 24,144,447
• 10 Day Avg. Volume: 1,911,400
• 30 Day Avg. Volume: 893,316
• PEG Ratio: 2.75
• Price to Book (P/B): -977.11
• Price to Sales (P/S): 361.04
• P/FCF Ratio: -149.05
• Enterprise Value/Market Cap: 0.42
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 4.09
• Enterprise Value/Ebitda: -0.90
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.4
• Revenue Forecast (FY): $8.69M

• Rating: 43 Neutral
• Price Target: $0.77 ▼(-24.12% Downside)
• Action: Reiterated Date: 02/02/26
• Date: Action: Reiterated 02/02/26

The score is held down primarily by persistent large losses and ongoing cash burn despite strong recent revenue acceleration and improved gross margin. Technicals add additional risk with the stock in a clear downtrend and weak momentum. Corporate financing actions provide capital flexibility but introduce dilution/conversion overhang, while valuation signals are constrained by negative earnings and no indicated dividend yield.

Positive Factors

Rapid revenue growth & enterprise adoption

Sustained triple-digit revenue growth and meaningful enterprise wins indicate strong product-market fit and effective land-and-expand execution. Large contracts and expanding customer footprints create durable recurring revenue potential and scale benefits as the cloud-native platform is adopted across verticals.

Improving gross margins and unit economics

A material improvement to ~45% gross margin reflects improved cost structure and pricing power for the cloud video platform. Higher gross margins support operating leverage as revenue scales, making a path to sustainable profitability more achievable if growth persists and fixed costs are absorbed.

Low financial leverage provides flexibility

Zero debt reduces solvency and interest burden, preserving strategic flexibility for capex, R&D, and go-to-market investment. Positive equity and asset base provide a financial cushion while the company scales, lowering bankruptcy risk relative to highly leveraged peers.

Negative Factors

Persistent operating cash burn

Ongoing negative operating and free cash flow means the business is not self-funding and remains dependent on external capital. Sustained cash burn elevates financing risk, may constrain reinvestment, and increases vulnerability if capital markets tighten or fundraising terms worsen.

Large net losses and negative margins

Very large negative margins and operating losses indicate current economics are far from break-even. Persistent losses erode returns and equity, hamper ROE recovery, and require sustained high revenue growth plus disciplined cost control to transition to a profitable, cash-generative model.

Financing dilution and conversion overhang

Repeated capital raises, an ATM program and convertible preferred issuance provide liquidity but create structural dilution and potential conversion overhang. These financing mechanisms can suppress per-share economics and limit upside for existing investors until profitability reduces reliance on external funding.

Cloudastructure, Inc. Class A Business Overview & Revenue Model

Company Description

Cloudastructure Inc. provides cloud-based video surveillance, storage, analytics, and monitoring products in the United States. The company offers AI surveillance, remote guarding, and mobile surveillance related services. It also offers smart parking solutions. The company was formerly known as Connexed Technologies Inc. and changed its name to Cloudastructure Inc. in September 2016. Cloudastructure Inc. was incorporated in 2003 and is based in Palo Alto, California.

How the Company Makes Money

Cloudastructure, Inc. generates revenue primarily through the sale and licensing of its cloud-based security and surveillance solutions. The company's key revenue streams include subscription fees for its software-as-a-service (SaaS) platform, which provides clients with video surveillance management, data storage, and analytics services. Additionally, Cloudastructure may engage in partnerships with hardware manufacturers to offer integrated security solutions, further enhancing its product offerings and market reach. The company also benefits from service contracts and maintenance agreements, providing ongoing support and updates to its clients.

Cloudastructure, Inc. Class A Financial Statement Overview

Summary

Revenue growth accelerated sharply in TTM (~39.9%) and gross margin improved to ~45%, but profitability remains extremely weak (TTM net margin ~-211%) with sizable operating losses. Cash flow is a major drag with continued operating and free-cash-flow burn (TTM OCF ~-$5.6M; FCF ~-$5.9M), despite improvement versus 2022. Balance sheet risk is moderated by zero debt and currently positive equity, though equity has been volatile historically.

Income Statement

Results show strong top-line acceleration, with revenue up ~39.9% in TTM (Trailing-Twelve-Months) versus very low growth in 2024 (~1.2%). Profitability is improving but still weak: gross margin turned positive and reached ~45.0% in TTM (vs. ~27.4% in 2024 and negative in 2022–2023), suggesting better unit economics. However, losses remain substantial, with TTM (Trailing-Twelve-Months) net margin around -211% and operating losses still significant, indicating the cost base remains far above the current revenue scale.

Balance Sheet

Leverage appears low with total debt at $0 in recent periods (TTM and 2022–2024), which reduces balance-sheet risk. Equity is positive in TTM (about $6.8M) and total assets are ~$8.7M, indicating some capital cushion today. The key weakness is volatility in equity over time (including negative equity in 2024), and returns on equity are negative in TTM due to ongoing net losses—highlighting that solvency is currently supported more by financing history than by earnings power.

Cash Flow

Cash generation remains the primary concern: TTM (Trailing-Twelve-Months) operating cash flow is about -$5.6M and free cash flow about -$5.9M, reflecting continued cash burn to fund operations. While free cash flow burn improved versus 2022 (when free cash flow was roughly -$12.7M), the business is still not self-funding. Free cash flow roughly tracks net loss (TTM free cash flow to net income ~1.05), indicating losses are translating into real cash outflows rather than being mostly non-cash.

Breakdown	TTM	Mar 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.72M	1.36M	607.00K	489.00K	421.00K	91.00K
Gross Profit	1.67M	374.00K	-118.00K	-285.00K	-516.00K	18.00K
EBITDA	-7.59M	-6.13M	-7.04M	-11.42M	-9.23M	-1.16M
Net Income	-7.83M	-6.54M	-9.01M	-11.63M	-9.32M	-1.83M
Balance Sheet
Total Assets	8.69M	615.00K	4.95M	12.33M	14.71M	2.94M
Cash, Cash Equivalents and Short-Term Investments	6.40M	52.00K	4.04M	9.41M	13.65M	2.84M
Total Debt	0.00	0.00	0.00	0.00	1.56M	1.92M
Total Liabilities	1.89M	1.12M	273.00K	178.00K	2.30M	3.22M
Stockholders Equity	6.79M	-504.00K	4.68M	12.15M	12.41M	-277.00K
Cash Flow
Free Cash Flow	-5.88M	-3.30M	-5.76M	-12.73M	-9.35M	-1.50M
Operating Cash Flow	-5.62M	-3.28M	-5.72M	-10.92M	-9.02M	-1.45M
Investing Cash Flow	-262.00K	-27.00K	-43.00K	-1.80M	-337.00K	-51.00K
Financing Cash Flow	11.84M	-685.00K	387.00K	8.49M	20.16M	4.34M

Cloudastructure, Inc. Class A 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%
CREX	54 Neutral	$36.50M	-3.95	-36.46%	―	-18.37%	-1304.71%
BLBX	53 Neutral	―	-13.94	-68.14%	―	-13.58%	-7.29%
CXAI	48 Neutral	$6.57M	―	-80.59%	―	-27.47%	83.06%
CSAI	43 Neutral	$16.15M	-1.46	-216.29%	―	―	―
CYN	43 Neutral	$11.64M	>-0.01	-166.00%	―	347.74%	84.88%
AIXI	39 Underperform	$2.98M	-0.10	―	―	19.01%	44.24%

Cloudastructure, Inc. Class A Corporate Events

Cloudastructure Launches ATM Equity Program with Maxim

On February 2, 2026, Cloudastructure, Inc. entered into an Equity Distribution Agreement with Maxim Group LLC to establish an at-the-market equity program permitting the company to issue and sell up to $9 million of its Class A common stock on The Nasdaq Capital Market from time to time, with Maxim acting as sales agent for a 3% commission and reimbursable expenses. The program, which will run until the earlier of February 2, 2027, completion of the full $9 million offering, or earlier termination, is contingent on the effectiveness of a Form S-3 registration statement filed the same day and gives the company flexibility to raise capital as needed, while a concurrent Waiver Agreement with Streeterville Capital, LLC removed that investor’s participation rights in this specific financing structure, potentially clearing a path for smoother execution of the at-the-market offering and reducing constraints on future capital-raising activities tied to this program.

The most recent analyst rating on (CSAI) stock is a Hold with a $0.78 price target. To see the full list of analyst forecasts on Cloudastructure, Inc. Class A stock, see the CSAI Stock Forecast page.

Cloudastructure Raises Capital via Series 2 Preferred Stock

On December 15, 2025, Cloudastructure, Inc. completed the sale and issuance of 3,500 shares of its Series 2 Convertible Preferred Stock (Tranche 3 Shares) to Streeterville Capital, LLC for gross proceeds of $3.5 million under an existing securities purchase agreement for up to $40 million of Series 2 stock. The company and Streeterville also entered into Supplemental Terms and a Waiver Agreement that fully exercised and terminated Streeterville’s reinvestment right, adjusted conversion mechanics by imposing a $0.75 per share floor during a defined cooling-off period tied to the stock’s VWAP, and gave the company the option to settle certain below-floor conversions in cash or stock, while maintaining ownership caps and using a private, unregistered exemption under the Securities Act for the transaction, which collectively shape the dilution profile and financing flexibility for both the company and its investors.

The most recent analyst rating on (CSAI) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Cloudastructure, Inc. Class A stock, see the CSAI Stock Forecast page.