T Stamp, Inc. Class A (IDAI) AI Stock Analysis

• Market Cap: $6.95M
• Dividend Yield: N/A
• Average Volume (3M): 35.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: -28.60%
• EPS Growth: -294.74%
• Country: US
• Employees: 72
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): -0.69
• Shares Outstanding: 2,542,290
• 10 Day Avg. Volume: 22,442
• 30 Day Avg. Volume: 35,263
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 2.23
• Enterprise Value/Gross Profit: 3.45
• Enterprise Value/Ebitda: -0.95
• 1Y Price Target: $8.00
• Price Target Upside: 187.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: $2.50 ▼(-10.07% Downside)

T Stamp, Inc. Class A receives a low overall stock score due to significant financial challenges, including negative profitability and cash flow issues. Technical analysis provides mixed signals, with no strong momentum. Valuation metrics are unattractive, with a negative P/E ratio and no dividend yield. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Financial Performance

T Stamp Inc. reported 4Q24 results with revenue of $1.5M, beating estimates and showing significant year-over-year growth.

Growth Initiatives

Growth initiatives include a new partnership with Qenta expected to contribute up to $3.6M annually, relaunch of enhanced Orchestration Layer offering, geographical expansion, and partnerships with distribution channels.

Partnerships

Results beat on the top- and bottom-line mainly due to the company's QID partnership and cost controls.

Negative Factors

Cash and Debt Management

The company ended March with $1.1M in cash and $1.0M in debt, projecting a likely need to raise capital or access its $6.1M equity distribution agreement to fund operations.

Revenue Projections

Management reiterated 2025 guidance for revenue of over $5.0M but widened cash burn projections.

Stock Dilution

The price target for T Stamp Inc. was lowered due to dilution and multiple compression in the peer group.

T Stamp, Inc. Class A Business Overview & Revenue Model

Company Description

T Stamp Inc. develops and markets identity authentication software solutions for government, enterprise partners, and peer-to-peer markets in the United States, the United Kingdom, and Malta. The company's artificial intelligence powered solutions include researching and leveraging biometric science, cryptography, and data mining to deliver insightful identity & trust predictions while identifying and defending against fraudulent identity attacks. Its solution converts biometric and other identifying data into an Irreversibly Transformed Identity Token that serves as a secure tokenized identity. The company also offers solutions for privacy and data protection, document validation, identity verification, duplicate detection, and biometric capture. It serves banking/fintech; humanitarian and development services; biometrically secured email; KYC/AML compliance; government and law enforcement; P2P transactions, social media, and sharing economy; and real estate, travel, and healthcare industries. The company was incorporated in 2016 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

T Stamp, Inc. generates revenue through the sale and licensing of its identity verification software and services. The company partners with businesses and governmental organizations to integrate its technology into their systems, charging fees for usage, subscriptions, and ongoing support services. Additionally, T Stamp may engage in strategic partnerships that enhance its technological offerings and expand its market reach, contributing to its revenue streams.

T Stamp, Inc. Class A Financial Statement Overview

Summary

T Stamp, Inc. faces significant financial challenges, with persistent net losses and negative cash flows. Despite a manageable debt level and stable equity ratio, profitability and cash conversion capabilities are concerning. The company needs to improve operational efficiency and revenue growth to enhance financial stability.

Income Statement

T Stamp, Inc. has faced significant challenges in maintaining revenue growth, with a consistent decrease in revenue over the periods. The TTM data shows a Gross Profit Margin of 64.85%, reflecting efficiency in controlling production costs relative to revenue. However, profitability remains a concern with a negative Net Profit Margin of -330.16%, indicating high operational costs and expenses. The continuous negative EBIT and EBITDA margins highlight ongoing operational inefficiencies.

Balance Sheet

The Balance Sheet shows a Debt-to-Equity Ratio of 0.27 in the TTM, indicating manageable leverage compared to industry standards. Return on Equity (ROE) remains negative due to persistent net losses, reflecting challenges in generating returns for shareholders. The Equity Ratio stands at 61.61%, suggesting a relatively stable capital structure with a considerable portion of assets financed by equity.

Cash Flow

T Stamp, Inc. exhibits challenges in cash flow management, with a negative Free Cash Flow in the TTM. The Operating Cash Flow to Net Income Ratio is negative, reflecting issues in converting income into cash. Despite these challenges, the company shows a pattern of raising capital through financing activities, which aids in addressing operational cash deficits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.37M	3.08M	4.56M	5.39M	3.68M	2.65M
Gross Profit	2.18M	2.01M	3.65M	3.60M	2.53M	1.13M
EBITDA	-7.91M	-9.36M	-7.63M	-11.03M	-8.45M	-10.09M
Net Income	-9.20M	-10.61M	-7.64M	-12.09M	-8.91M	-10.95M
Balance Sheet
Total Assets	5.66M	8.60M	7.89M	6.41M	8.66M	4.81M
Cash, Cash Equivalents and Short-Term Investments	292.05K	2.78M	3.14M	1.25M	3.48M	1.47M
Total Debt	1.25M	4.13M	1.09M	1.17M	856.26K	344.22K
Total Liabilities	3.05M	5.41M	3.98M	5.79M	3.63M	2.74M
Stockholders Equity	2.45M	3.03M	3.75M	463.70K	4.87M	1.91M
Cash Flow
Free Cash Flow	-8.17M	-9.73M	-7.86M	-7.32M	-7.48M	-4.99M
Operating Cash Flow	-7.26M	-8.92M	-7.85M	-6.34M	-6.71M	-4.48M
Investing Cash Flow	-1.01M	-906.67K	-401.68K	-998.19K	-768.35K	-512.16K
Financing Cash Flow	7.98M	9.49M	10.21M	5.10M	9.35M	6.09M

T Stamp, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDAI, the sentiment is Positive. The current price of 2.78 is below the 20-day moving average (MA) of 2.83, above the 50-day MA of 2.73, and below the 200-day MA of 3.41, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 29.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IDAI.

T Stamp, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	¥239.04B	15.13	6.64%	2.40%	9.16%	-0.15%
VERB	63 Neutral	$1.22B	―	-51.38%	―	4095.10%	93.91%
SOPA	48 Neutral	$6.92M	―	-247.72%	―	0.31%	70.95%
TGL	41 Neutral	$5.14M	―	-8.88%	―	-96.03%	95.03%
IDAI	39 Underperform	$6.95M	―	-575.54%	―	-28.60%	-294.74%
AMST	―	$12.57M	―	-107.30%	―	―	―
MYSE	―	$8.14M	―	-62.70%	―	―	―

T Stamp, Inc. Class A Corporate Events

T Stamp, Inc. Secures $2.21M Note Agreement

On July 1, 2025, T Stamp, Inc. entered into a Note Purchase Agreement with Streeterville Capital LLC, issuing a Secured Promissory Note for $2,210,000 with a nine percent annual interest rate, due November 1, 2026. The agreement includes mandatory prepayment clauses tied to fundraising activities and redemption rights for the investor starting March 1, 2026, with default conditions that could accelerate repayment at a higher interest rate.