Kalray SA (ALKAL) AI Stock Analysis

• Market Cap: €63.02M
• Dividend Yield: N/A
• Average Volume (3M): 91.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: 1.54%
• EPS Growth: N/A
• Country: FR
• Employees: 221
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.18
• Shares Outstanding: 15,412,938
• 10 Day Avg. Volume: 80,055
• 30 Day Avg. Volume: 91,843
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.35
• P/FCF Ratio: -0.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.45
• Revenue Forecast (FY): €15.60M

• Rating: 54 Neutral
• Price Target: €2.50 ▲(108.33% Upside)
• Action: Upgraded Date: 01/29/26
• Date: Action: Upgraded 01/29/26

The score is held back primarily by weak financial performance—persistent losses, negative margins, and negative operating/free cash flow—despite meaningful revenue growth. Technicals are a relative positive with the stock above major moving averages and supportive momentum, but valuation remains pressured because losses make the negative P/E a risk signal and there is no dividend support.

Positive Factors

Revenue Growth Momentum

Reported strong revenue growth indicates Kalray is winning customer engagements and expanding product adoption across data-center, embedded and storage use cases. Sustained top-line growth can fund R&D, support scale economics, and enable longer-term customer relationships if margins are improved.

Proprietary Manycore Technology

Kalray's MPPA manycore processors and integrated software stack are durable competitive assets for energy-efficient, parallel compute workloads. Proprietary hardware-software integration raises technical barriers, supports differentiation in niche high-performance markets, and aids customer lock-in over time.

Diverse Revenue Streams

A business model combining product sales, software/platform licensing, engineering services and partner channels reduces single-source dependency. This mix supports recurring revenue potential, upsell opportunities, and resilience through market cycles if the company converts installs to software/service engagements.

Negative Factors

Persistent Negative Profitability

Ongoing negative gross profit and EBIT indicate the company still sells below production or service delivery cost. Without durable margin improvement, losses will persist, undermining the ability to self-fund growth, eroding equity, and forcing reliance on external financing or dilutive capital raises.

Negative Operating and Free Cash Flow

Sustained negative operating and free cash flow weakens liquidity and limits reinvestment capacity for product development and commercialization. Over months, this raises refinancing risk, constrains strategic flexibility, and can force cost cuts or financing that dilute shareholders if operational cash generation isn't restored.

Rising Leverage and Declining Equity

An increasing debt load alongside declining equity reduces financial flexibility and raises interest and refinancing burdens. Structural leverage growth elevates default or covenant risks and increases cost of capital, which can constrain long-term investments and make scaling the business more expensive or difficult.

Kalray SA Business Overview & Revenue Model

Company Description

Kalray S.A., a fabless semiconductor company, provides processors and acceleration cards in France. The company's products include MPPA processor for various data transfers; Kalray Flashbox, a disaggregated NVMe storage array to use the potential of NVMe flash devices; acceleration cards; and an intelligent data processor for managing multiple workloads in parallel with no bottlenecks under the Coolidge brand. It also offers MPPA-DEV4 platform; and a software to develop, debug, and optimize applications under the AccessCore brand name. The company serves modern data centers, 5G, AI and edge computing, autonomous vehicles, and other sectors. Kalray S.A. was founded in 2008 and is headquartered in Montbonnot Saint Martin, France.

How the Company Makes Money

Kalray generates revenue through the sale of its specialized processors and related software solutions, targeting industries that require high-performance computing capabilities. Key revenue streams include direct sales of hardware products to original equipment manufacturers (OEMs), licensing agreements for its technology, and providing tailored solutions and support services to enterprise clients. The company also benefits from strategic partnerships with technology leaders and research institutions, which enhance its product development and market reach, thereby contributing to its overall earnings.

Kalray SA Financial Statement Overview

Summary

Despite strong revenue growth, the company reports persistent negative net income and negative margins (including negative gross profit and EBIT), indicating ongoing profitability and cost-structure issues. Balance sheet leverage has increased while equity has declined, and cash flow remains negative (including negative operating and free cash flow), raising liquidity and sustainability concerns.

Income Statement

Kalray SA shows significant revenue growth over the years, with a notable increase from 2019 to 2023. However, the company consistently reports negative net income, gross profit, and EBIT, indicating operational challenges and inefficiencies in cost management. The negative gross profit margin suggests that production costs exceed revenues, which is a critical area of concern for profitability.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio, which has increased in recent years, indicating a reliance on debt financing. Stockholders' equity has declined, reflecting the impact of ongoing losses. The equity ratio remains stable, suggesting a balanced asset structure, but the increasing liabilities pose a risk to financial stability.

Cash Flow

Kalray SA's cash flow statement highlights negative free cash flow and operating cash flow, which could pressure liquidity. The free cash flow to net income ratio is unfavorable, reflecting cash management issues. Despite securing financing, the company struggles to generate positive cash flow from operations, which is concerning for long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.62M	24.82M	25.83M	16.41M	1.45M	1.03M
Gross Profit	-6.56M	-33.87M	29.66M	-17.15M	-18.44M	-14.24M
EBITDA	1.75M	-6.37M	-858.00K	-2.69M	-5.82M	-5.98M
Net Income	-14.28M	-23.27M	-11.69M	-15.55M	-15.12M	-11.82M
Balance Sheet
Total Assets	66.84M	88.14M	80.52M	88.05M	43.28M	47.50M
Cash, Cash Equivalents and Short-Term Investments	2.29M	1.70M	13.21M	32.20M	12.22M	20.24M
Total Debt	9.26M	12.98M	3.27M	6.67M	11.61M	11.84M
Total Liabilities	33.60M	53.51M	23.87M	34.03M	17.62M	18.97M
Stockholders Equity	33.24M	34.63M	56.65M	51.27M	25.63M	28.43M
Cash Flow
Free Cash Flow	-7.36M	-9.44M	-22.70M	-16.54M	-20.74M	-16.15M
Operating Cash Flow	-4.75M	-1.03M	-2.15M	-1.72M	-7.06M	-5.62M
Investing Cash Flow	330.00K	-20.05M	-16.51M	-15.88M	-12.12M	-9.43M
Financing Cash Flow	4.22M	9.29M	-484.00K	37.98M	11.17M	19.57M

Kalray SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALKAL, the sentiment is Positive. The current price of 1.2 is below the 20-day moving average (MA) of 3.99, below the 50-day MA of 2.81, and below the 200-day MA of 1.23, indicating a bullish trend. The MACD of 0.44 indicates Positive momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 12.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ALKAL.

Kalray SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOI	65 Neutral	€1.47B	-5.18	0.73%	―	-14.27%	-89.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALHYP	60 Neutral	€34.47M	36.28	3.47%	―	9.77%	-86.18%
ALKAL	54 Neutral	€63.02M	-0.47	-34.88%	―	1.54%	―
XFAB	50 Neutral	€593.85M	25.30	2.04%	―	-5.30%	-81.29%